6-K 1 d456076d6k.htm FORM 6-K

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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

Report of foreign private issuer pursuant to rule 13a-16 or 15d-16 of the securities exchange act of 1934

For the month of September 2017

Commission File Number 1-15224

Energy Company of Minas Gerais

(Translation of Registrant’s Name Into English)

Avenida Barbacena, 1200

30190-131 Belo Horizonte, Minas Gerais, Brazil

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper

as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper

as permitted by Regulation S-T Rule 101(b)(7): ☐

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐ No ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

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Index

Item |  | Description of Items
1. |  | Summary of Minutes of the 700th Meeting of the Board of Directors Held on July 24, 2017
2. |  | Material Announcement Dated August 2, 2017: Taesa: Ratification of the transfer to Taesa of the shares held by Cemig of Transmineiras
3. |  | Material Announcement Dated August 4, 2017: Renova: Completion of Alto Sertão II Wind Farm Complex Sale
4. |  | Material Announcement Dated August 9, 2017: Renova: Negotiations for Umburanas Complex at advanced stage
5. |  | Earnings Release Results for the 2nd Quarter of 2017 Dated August 12, 2017
6. |  | Presentation Earnings Release Results for the 2nd Quarter of 2017 Dated August 16, 2017
7. |  | Summary of Minutes of the 702nd Meeting of the Board of Directors Held on August 22, 2017
8. |  | Summary of Minutes of the 703rd Meeting of the Board of Directors Held on August 23, 2017
9. |  | Material Announcement Dated August 23, 2017: Renova: Completion of contract for sale of Umburanas Projects
10. |  | Material Announcement Dated August 28, 2017: Data Room opened for potential investors in Light
11. |  | Market Announcement Dated August 28, 2017: Renova decontracts 99.75 MWp of solar supply

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Forward-Looking Statements

This report contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Actual results could differ materially from those predicted in such forward-looking statements. Factors which may cause actual results to differ materially from those discussed herein include those risk factors set forth in our most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission. CEMIG undertakes no obligation to revise these forward-looking statements to reflect events or circumstances after the date hereof, and claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

|  |  |  | COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG
Date: Sempteber 8, 2017 |  |  |  | By: |  | /s/ Adézio de Almeida Lima
|  |  |  | Name: |  | Adézio de Almeida Lima
|  |  |  | Title: |  | Chief Finance and Investor Relations Officer

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1. SUMMARY OF MINUTES OF THE 700TH MEETING OF THE BOARD OF DIRECTORS HELD ON JULY 24, 2017

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

BOARD OF DIRECTORS

SUMMARY OF MINUTES

OF THE

700TH MEETING

Date, time and place: |  | July 24, 2017 at 5.30 p.m. at the company’s head office,
|  | Av. Barbacena 1200, 21st floor, Belo Horizonte, Minas Gerais, Brazil.

Meeting Committee: |  | Chair: |  | José Afonso Bicalho Beltrão da Silva;
|  |  |  | Carlos Henrique Cordeiro Finholdt.

Summary of proceedings:

I | Conflict of interest: The board members listed below said they had no conflict of interest in the matters on the agenda of this meeting.

II | The Board approved the minutes of this meeting.

III | The Board authorized:

a) | Extension by up to 120 days of the surety guarantee and the period of maturity of the Company’s Seventh Issue of Commercial Promissory Notes (August 25, 2017), in which the Company is Guarantor.

b) | Replacement of the printed Notes of the 7th Issue of Commercial Promissory Notes by new printed Notes with the altered date of maturity.

c) | Realization of an offer for early redemption of the 7th Issue of Commercial Promissory Notes in circulation, for up to 24 (twenty four) Notes, for payment of the Nominal Unit Value of the Notes plus the Remuneration calculated pro rata temporis from the Date of Issue up to the date of the said redemption, in accordance with CRCA (Board Spending Decision) 042/2016, of June 13, 2016; this amount being equivalent to R$ 140,772,087.60 (one hundred forty million seven hundred seventy two thousand eighty seven Reais sixty centavos) at the reference date, July 17, 2017.

Av. Barbacena 1200 |  | Santo Agostinho |  | 30190-131 Belo Horizonte, MG |  | 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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d) | The Executive Board to take all action necessary to put the above decisions into effect, including the holding for this purpose of a general meeting of the holders of the Promissory Notes of the 7th Issue.

e) | Grant of a partial surety guarantee, by Cemig Companhia Energética de Minas Gerais – (‘Cemig’) up to the limit of the direct equity interest held by Cemig Geração e Transmissão S.A. (‘Cemig GT’), in Madeira Energia S.A. (‘Mesa’), in the Counter-guarantee Contract which will be signed by Santo Antônio Energia S.A. (‘Saesa’ or ‘Borrower’) and BMG Seguros S.A., (‘BMG’ or ‘Insurer’), upon provision of surety guarantee by Centrais Elétricas do Brasil (Eletrobrás), SAAG Participações S.A. (SAAG), Odebrecht Energia do Brasil S.A. (OEB) and Cemig (‘Sureties’), the object of which is issuance of a Policy and, as appropriate, endorsements, of Guarantee Insurance, for the exclusive purpose of guaranteeing the obligations assumed by the Borrower in the Private Surety Contract signed with Itaú Unibanco S.A. (‘the Principal Agreement’), up to the amount of R$ 90,000,000.00 (ninety million Reais), in relation to the obligations linked to the reserve account (‘the Policy’), for the period established in the Principal Agreement, which has period of maturity of 24 (twenty four) months.

IV | Comment: The following spoke on subjects and business of interest to the Company.

The Chair; |  |  |  |
Board members: |  | Patricia Gracindo Marques de Assis Bentes, |  | Marcelo Gasparino da Silva;
General Manager: |  | Paulo Eduardo Pereira Guimarães; |  |

The following were present:

Board members: |  | Bernardo Afonso Salomão de Alvarenga, Marco Antônio Soares da Cunha Castello Branco, Patricia Gracindo Marques de Assis Bentes Mr. Antônio Carlos de Andrada Tovar, Carolina Alvim Guedes Alcoforado, Tarcísio Augusto Carneiro, Agostinho Faria Cardoso, Geber Soares de Oliveira, Luiz Guilherme Piva, Ricardo Wagner Righi de Toledo, |  | José Afonso Bicalho Beltrão da Silva, Antônio Dirceu Araújo Xavier, Arcângelo Eustáquio Torres Queiroz, Bruno Magalhães Menicucci, Helvécio Miranda Magalhães Junior, José Pais Rangel, Marcelo Gasparino da Silva, Marina Rosenthal Rocha, Otávio Silva Camargo, Daniel Alves Ferreira, Wieland Silberschneider;
CEO and Board Member: |  | Bernardo Afonso Salomão de Alvarenga; |  |
General Manager: |  | Paulo Eduardo Pereira Guimarães; |  |
Secretary: |  | Carlos Henrique Cordeiro Finholdt. |  |

Av. Barbacena 1200 |  | Santo Agostinho |  | 30190-131 Belo Horizonte, MG |  | 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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2. MATERIAL ANNOUNCEMENT DATED AUGUST 2, 2017: TAESA: RATIFICATION OF THE TRANSFER TO TAESA OF THE SHARES HELD BY CEMIG OF TRANSMINEIRAS

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

MATERIAL ANNOUNCEMENT

In continuation from its Material Announcements of July 3, 12 and 13, 2017, Cemig (Companhia Energética de Minas Gerais), a listed company with securities traded on the stock exchanges of São Paulo, New York and Madrid, in accordance with CVM Instruction 358 of January 3, 2002, as amended, hereby reports to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (BM&F Bovespa S.A.) and the market as follows:

Today (August 02, 2017) Cemig’s affiliated company Transmissora Aliança de Energia Elétrica S.A. (‘Taesa’) published a Material Announcement with the following content:

“ Transmissora Aliança de Energia Elétrica S.A. (“Company” or “Taesa”), pursuant to the Securities and Exchange Commission’s Instruction No. 358, from January 3, 2002, as amended, and for the purposes of Paragraph 4 of Article 157 of Law 6404, from December 15, 1976, as amended, hereby announces to its shareholders, the market in general and other interested parties that, continuing the material factProxys disclosed on July 3, 12 and 13, 2017, the Extraordinary General Meeting approved, on this date, the ratification of the transfer to Taesa of the shares held by Companhia Energética de Minas Gerais (“CEMIG”) of the following concessionaires that provide the public service of electric energy transmission: Companhia Transleste de Transmissão S.A. (“Transleste”), Companhia Transudeste de Transmissão S.A. (“Transudeste”) and Companhia Transirapé de Transmissão S.A. (“Transirapé”) (together, referred to as “Transmineiras”) (the “Corporate Restructuring”).

The conclusion of the Corporate Restructuring is subject to the other relevant preceding approvals, which include the antitrust authorities (CADE—Administrative Council for Economic Defense), ANEEL—National Agency of Electric Energy, creditors and financing banks.

The Company will keep its shareholders and the market up to date on the development of the Corporate Restructuring.”

Cemig will keep its stockholders and the market timely and appropriately informed on the progress of this transaction. For further information please contact Cemig on: ri@cemig.com.br

Belo Horizonte, August 02, 2017

Adézio de Almeida Lima

Chief Finance and Investor Relations Officer

Av. Barbacena 1200 |  | Santo Agostinho |  | 30190-131 Belo Horizonte, MG |  | 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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3. MATERIAL ANNOUNCEMENT DATED AUGUST 3, 2017: RENOVA: COMPLETION OF ALTO SERTÃO II WIND FARM COMPLEX SALE

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

MATERIAL ANNOUNCEMENT

Renova: Completion of Alto Sertão II Wind Farm Complex Sale

Cemig (Companhia Energética de Minas Gerais), a listed company with securities traded on the stock exchanges of São Paulo, New York and Madrid, in accordance with CVM Instruction 358 of January 3, 2002, as amended, hereby reports to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (BM&F Bovespa S.A.) and the market as follows:

Today (August 3, 2017) Cemig’s affiliated company Renova Energia S.A. (‘Renova’) published the following Material Announcement:

“Complementing its Material Announcements of January 13 and April 18, 2017, and in accordance with CVM Instruction 358/2002, as amended, Renova Energia S.A. (RNEW11) (‘Renova’), reports to its stockholders and the market as follows:

Today (August 3, 2017) Renova completed the sale to AES Tietê Energia (‘AES Tietê’) of Renova’s entire equity interest in Nova Energia Holding S.A. (‘Nova Energia’), which, through Renova Eólica Participações S.A. (‘Renova Eólica’), owns the Alto Sertão II Wind Farm Complex (‘the Complex’).

The base value of the acquisition (‘the Acquisition Price’) is R$ 600 million, and AES Tietê has also assumed the debt of the Alto Sertão II Complex, which totaled R$ 1.15 billion at December 31, 2016.

The Acquisition Price will be adjusted based on certain variations in working capital and net debt of the Complex. It may also be increased by up to R$ 100 million under earn-out clauses, depending on the performance of the Complex as measured over a period of five years from the completion of the transaction.

A tranche totaling R$ 364.6 million of the amount received as Acquisition Price has been allocation to Extraordinary Amortization of the debentures of Renova’s Third Issue of Non-convertible Debentures (Unsecured, with Additional Asset Guarantee, for Public Distribution, in a Single Series, with Restricted Distribution Efforts), settling the whole of the outstanding balance of principal and remuneratory interest owed by Renova under that issue.

This transaction underlines and re-emphasizes Renova’s commitment to re-establish its financial stability and sustainability over the long term.”

Belo Horizonte, August 3, 2017

Adézio de Almeida Lima

Chief Finance and Investor Relations Officer

Av. Barbacena 1200 |  | Santo Agostinho |  | 30190-131 Belo Horizonte, MG |  | 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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4. MATERIAL ANNOUNCEMENT DATED AUGUST 8, 2017: RENOVA: NEGOTIATIONS FOR UMBURANAS COMPLEX AT ADVANCED STAGE

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

MATERIAL ANNOUNCEMENT

Renova: Negotiations for Umburanas Complex at advanced stage

Cemig (Companhia Energética de Minas Gerais), a listed company with securities traded on the stock exchanges of São Paulo, New York and Madrid, in accordance with CVM Instruction 358 of January 3, 2002, as amended, hereby reports to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (BM&F Bovespa S.A.) and the market as follows:

Today Cemig’s affiliated company Renova Energia S.A. (“Renova”) published the following material announcement:

“In accordance with CVM Instruction 358/2002, as amended, Renova Energia S.A. (RNEW11) (‘Renova’), reports to its stockholders and the market as follows:

Renova is at an advanced stage of negotiation with Engie Brasil Energia S.A. (‘Engie’) for the sale of the Umburanas Wind Farm Complex, which has installed generation capacity of 605MW.

Renova advises the market that the negotiations with Engie do not in any way adversely affect the negotiations currently in progress with Brookfield Energia Renovável, of which Renova informed the market in a Market Announcement on July 4, 2017 and a Material Announcement on July 17, 2017.

Renova will keep the market informed on all events and developments related to this transaction.”

Belo Horizonte, August 8, 2017

Adézio de Almeida Lima

Chief Finance and Investor Relations Officer

Av. Barbacena 1200 |  | Santo Agostinho |  | 30190-131 Belo Horizonte, MG |  | 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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5. EARNINGS RELEASE RESULTS FOR THE 2ND QUARTER OF 2017 DATED AUGUST 16, 2017

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PUBLICATION OF RESULTS

CEMIG REPORTS

EBITDA OF R$ 740 MILLION

IN 2Q 2017

Principal impacts in the quarter:

| ◾ | Lower provisions for loss on investments had a positive impact in 2Q17.

| ◾ | Revenue from transactions in the CCEE R$ 144 million higher (average spot price higher in 2Q17).

| ◾ | Higher provision for employment-related litigation.

| ◾ | New programmed voluntary retirement offer in 2017, accepted by 891 employees up to June 30, 2017.

Indicators (GWh) |  | 2Q17 |  |  | 2Q16 |  |  | Change % |
Electricity sold (excluding CCEE) |  |  | 13,540,283 |  |  |  | 13,874,405 |  |  |  | (2.41 | )
Indicators – R$ ’000 |  | 2Q17 |  |  | 2Q16 |  |  | Change % |
Sales on CCEE |  |  | 198,529 |  |  |  | 49,042 |  |  |  | 304.81 |
Net debt |  |  | 12,544,833 |  |  |  | 12,960,625 |  |  |  | (3.21 | )
Gross revenue |  |  | 7,788,240 |  |  |  | 7,275,577 |  |  |  | 7.05 |
Net revenue |  |  | 5,205,029 |  |  |  | 4,757,626 |  |  |  | 9.40 |
Ebitda (IFRS) |  |  | 739,642 |  |  |  | 680,149 |  |  |  | 8.75 |
Net profit in the quarter |  |  | 138,114 |  |  |  | 202,124 |  |  |  | (31.67 | )
Earnings per share – R$ |  |  | 0,11 |  |  |  | 0,16 |  |  |  | (31.25 | )
Ebitda margin – % |  |  | 14,22% |  |  |  | 14,30% |  |  |  | -0.08 p.p. |

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Conference call

Publication of 2Q17 results

Video webcast and conference call

August 16, 2017 (Wednesday), at 12 p.m. – Brasília time

This transmission on Cemig’s results will have simultaneous translation into English and can be seen in real time by Video Webcast, at http://ri.cemig.com.br or heard by conference call on:

+ 55 (11) 2188-0155 (1st option) or

+ 55 (11) 2188-0188 (2nd option)

Password: CEMIG

Playback of Video Webcast: Site: http://ri.cemig.com.br Click on the banner and download. Available for 90 days |  | Conference call – Playback: Tel.: +55 (11) 2188-0400 Password: CEMIG Português (Available from August 16 to 30, 2017)

Cemig Investor Relations

http://ri.cemig.com.br/

ri@cemig.com.br

Tel.: +55 (31) 3506-5024

Fax: +55 (31) 3506-5025

Cemig’s Executive Investor Relations Team

◾ | Chief Finance and Investor Relations Officer

Adézio de Almeida Lima

◾ | General Manager, Investor Relations

Antônio Carlos Vélez Braga

◾ | Manager, Investor Market

Robson Laranjo

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Contents

CONFERENCE CALL |  |  | 12 |
CEMIG INVESTOR RELATIONS |  |  | 12 |
CEMIG’S EXECUTIVE INVESTOR RELATIONS TEAM |  |  | 12 |
CONTENTS |  |  | 13 |
DISCLAIMER |  |  | 14 |
CEMIG’S SHARES: 2016-2017 |  |  | 15 |
ADOPTION OF IFRS |  |  | 15 |
CEMIG’S LONG-TERM RATINGS |  |  | 16 |
ADOPTION OF IFRS |  |  | 16 |
CEMIG’S CONSOLIDATED ELECTRICITY MARKET |  |  | 18 |
THE ELECTRICITY MARKET OF CEMIG D |  |  | 19 |
THE ELECTRICITY MARKET OF CEMIG GT |  |  | 21 |
PHYSICAL TOTALS OF TRANSPORT AND DISTRIBUTION – MWH |  |  | 22 |
QUALITY INDICATORS – SAIDI AND SAIFI |  |  | 22 |
CONSOLIDATED OPERATIONAL REVENUE |  |  | 24 |
OPERATIONAL COSTS AND EXPENSES |  |  | 27 |
EQUITY METHOD GAINS IN NON-CONSOLIDATED INVESTEES |  |  | 31 |
FINANCIAL REVENUE AND EXPENSES |  |  | 34 |
EBITDA |  |  | 35 |
DEBT |  |  | 36 |
APPENDICES |  |  | 39 |
GENERATION PLANTS – DECEMBER 31, 2016 |  |  | 39 |
RAP (PERMITTED ANNUAL REVENUE – TRANSMISSION) – 2016-17 CYCLE |  |  | 40 |

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Disclaimer

Certain statements and estimates in this material may represent expectations about future events or results, which are subject to risks and uncertainties that 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 Cemig’s control.

Important factors that could lead to significant differences between actual results and the projections about future events or results include Cemig’s business strategy, Brazilian and international economic conditions, technology, Cemig’s 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, Cemig’s 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 Cemig’s 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.

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Cemig’s shares: 2016-2017

Security |  | Ticker |  | Currency |  | Close of June 30, 2017 |  |  | Close of 2016 |  |  | Change in the period % |
Cemig PN |  | CMIG4 |  | R$ |  |  | 8.08 |  |  |  | 7.51 |  |  |  | 7.66% |
Cemig ON |  | CMIG3 |  | R$ |  |  | 8.23 |  |  |  | 7.88 |  |  |  | 4.44% |
ADR PN |  | CIG |  | US$ |  |  | 2.40 |  |  |  | 2.22 |  |  |  | 8.18% |
ADR ON |  | CIG.C |  | US$ |  |  | 2.42 |  |  |  | 2.53 |  |  |  | -4.31% |
Ibovespa |  | Ibovespa |  | — |  |  | 62,899 |  |  |  | 60,227 |  |  |  | 4.44% |
IEEX |  | IEEX |  | — |  |  | 38,095 |  |  |  | 36,108 |  |  |  | 5.50% |

Source: Economática.

Trading volume in Cemig’s preferred shares (CMIG4) in the first half of 2017 (1H17) totaled R$ 8.96 billion, a daily average of R$ 78.89 million. Adding the volume traded in its common (ON) and preferred (PN) shares, Cemig was the company with the highest stock trading liquidity in the Brazilian electricity sector in the period, and among the most traded in the Brazilian market as a whole.

On the New York Stock Exchange the volume traded in ADRs for Cemig’s preferred shares (CIG) in 2Q17 was US$1.82 billion: we see this as reflecting recognition by the investor market and maintaining Cemig’s position as a global investment option.

The Ibovespa index of the São Paulo Stock Exchange (Bovespa) was up 4.44% in the first half of 2017, closing June at 62,899 points. Cemig’s preferred shares rose 7.66% in 1H17, slightly outperforming the principal Brazilian stock index and the Brazilian electricity sector index. The common shares rose 4.44%

Adoption of IFRS

The results presented below are prepared in accordance with the new Brazilian accounting rules, which embody a process of harmonization of Brazilian accounting standards to IFRS (International Financial Reporting Standards).

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Cemig’s long-term ratings

These tables show credit risk ratings and outlook for Cemig’s companies as provided by the principal rating agencies:

Brazilian ratings:

Agency |  | Cemig |  | Cemig D |  | Cemig GT
|  | Rating |  | Outlook |  | Rating |  | Outlook |  | Rating |  | Outlook
Fitch |  | BBB(bra) |  | Negative |  | BBB(bra) |  | Negative |  | BBB(bra) |  | Negative
S&P |  | BrBB+ |  | Stable |  | BrBB+ |  | Stable |  | BrBB+ |  | Stable
Moody’s |  | Ba1.br |  | Negative |  | Ba1.br |  | Negative |  | Ba1.br |  | Negative

Global ratings:

Agency |  | Cemig |  | Cemig D |  | Cemig GT
|  | Rating |  | Outlook |  | Rating |  | Outlook |  | Rating |  | Outlook
Fitch |  | B+ |  | Negative |  | B+ |  | Negative |  | B+ |  | Negative
S&P |  | B |  | Stable |  | B |  | Stable |  | B |  | Stable
Moody’s |  | B2 |  | Negative |  | B2 |  | Negative |  | B2 |  | Negative

Adoption of IFRS

The results presented below are prepared in accordance with the new Brazilian accounting rules, which embody a process of harmonization between Brazilian accounting rules and IFRS (International Financial Reporting Standards).

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STATEMENTS OF INCOME

Consolidated – R$ ’000 |  | 2Q17 |  |  | 2Q16 |  |  | Change % |
REVENUE |  |  | 5,205,029 |  |  |  | 4,757,626 |  |  |  | 9.40 |
OPERATING COSTS |  |  |  |  |  |  |  |  |  |  |  |
Personnel |  |  | (535,954 | ) |  |  | (429,808 | ) |  |  | 24.70 |
Employees’ and managers’ profit shares |  |  | (6,007 | ) |  |  | (6,200 | ) |  |  | (3.11 | )
Post-retirement obligations |  |  | (97,390 | ) |  |  | (84,091 | ) |  |  | 15.82 |
Materials |  |  | (15,823 | ) |  |  | (12,898 | ) |  |  | 22.68 |
Raw materials and inputs for production of electricity |  |  | (6 | ) |  |  | (9 | ) |  |  | (33.33 | )
Outsourced services |  |  | (238,140 | ) |  |  | (192,779 | ) |  |  | 23.53 |
Electricity purchased for resale |  |  | (2,649,330 | ) |  |  | (2,024,749 | ) |  |  | 30.85 |
Depreciation and amortization |  |  | (209,435 | ) |  |  | (199,684 | ) |  |  | 4.88 |
Operating provisions |  |  | (161,386 | ) |  |  | (481,842 | ) |  |  | (66.51 | )
Charges for use of the national grid |  |  | (197,764 | ) |  |  | (267,206 | ) |  |  | (25.99 | )
Gas bought for resale |  |  | (262,651 | ) |  |  | (189,146 | ) |  |  | 38.86 |
Infrastructure construction costs |  |  | (240,475 | ) |  |  | (348,712 | ) |  |  | (31.04 | )
Other operating expenses, net |  |  | (90,938 | ) |  |  | (112,006 | ) |  |  | (18.81 | )
TOTAL COST |  |  | (4,705,299 | ) |  |  | (4,349,130 | ) |  |  | 8.19 |
Equity method gains in non-consolidated investees |  |  | 30,477 |  |  |  | 71,969 |  |  |  | (57.65 | )
Operational profit before Financial income (expenses) and taxes |  |  | 530,207 |  |  |  | 480,465 |  |  |  | 10.35 |
Financial revenues |  |  | 169,010 |  |  |  | 386,919 |  |  |  | (56.32 | )
Financial expenses |  |  | (510,564 | ) |  |  | (602,427 | ) |  |  | (15.25 | )
Pre-tax profit |  |  | 188,653 |  |  |  | 264,957 |  |  |  | (28.80 | )
Current and deferred income tax and Social Contribution tax |  |  | (50,539 | ) |  |  | (62,833 | ) |  |  | (19.57 | )
NET PROFIT FOR THE PERIOD |  |  | 138,114 |  |  |  | 202,124 |  |  |  | (31.67 | )
Interest of the controlling shareholders |  |  | 137,982 |  |  |  | 202,047 |  |  |  |  |
Interest of non-controlling stockholder |  |  | 132 |  |  |  | 77 |  |  |  |  |
NET PROFIT FOR THE PERIOD |  |  | 138,114 |  |  |  | 202,124 |  |  |  |  |

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Cemig’s 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, Termelétrica Ipatinga (up to January 2016), Sá Carvalho, Termelétrica de Barreiro, 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 Cemig’s 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, or ACR).

In 2Q17 the Cemig group sold a total volume of 13,540,283 MWh, which was 2.41% less than in 2Q16.

Sales of electricity to final consumers plus Cemig’s own consumption totaled 10,685,234 MWh, or minimally (0.1%) less than in 2Q16.

Sales to distributors, traders, other generating companies and independent power producers in 2Q17 totaled 2,846,260 MWh – or 8.5% more than in 2Q16.

In June 2017 the Cemig group invoiced 8,310,840 clients – a growth of 1.3% in the consumer base in the year since June 2016. Of these, 8,310,457 are final consumers; and 383 are other agents in the Brazilian electricity sector.

This chart shows the breakdown of the Cemig Group’s sales to final consumers in the quarter, by consumer category:

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Total consumption of electricity (GWh)

Volume sold

Consolidated |  | MWh |  |  | Change, % |  |  | Average price 2Q17 R$ |  |  | Average price 2Q16 R$ |
| 2Q17 |  |  | 2Q16 |  |  |  |
Residential |  |  | 2,496,022 |  |  |  | 2,526,223 |  |  |  | (1.20 | ) |  |  | 772.27 |  |  |  | 766.38 |
Industrial |  |  | 4,450,891 |  |  |  | 4,671,891 |  |  |  | (4.73 | ) |  |  | 278.99 |  |  |  | 281.70 |
Commercial, Services and Others |  |  | 1,892,746 |  |  |  | 1,697,134 |  |  |  | 11.53 |  |  |  | 579.24 |  |  |  | 660.84 |
Rural |  |  | 953,709 |  |  |  | 959,912 |  |  |  | (0.65 | ) |  |  | 431.02 |  |  |  | 371.11 |
Public authorities |  |  | 226,041 |  |  |  | 236,278 |  |  |  | (4.33 | ) |  |  | 611.42 |  |  |  | 599.36 |
Public lighting |  |  | 341,420 |  |  |  | 344,358 |  |  |  | (0.85 | ) |  |  | 394.25 |  |  |  | 374.29 |
Public services |  |  | 324,405 |  |  |  | 319,218 |  |  |  | 1.62 |  |  |  | 439.25 |  |  |  | 412.66 |
Subtotal |  |  | 10,685,234 |  |  |  | 10,755,014 |  |  |  | (0.65 | ) |  |  | 476.55 |  |  |  | 477.18 |
Own consumption |  |  | 8,788 |  |  |  | 9,634 |  |  |  | (8.78 | ) |  |  | — |  |  |  | — |
Wholesale supply to agents in Free and Regulated Markets (*) |  |  | 2,846,261 |  |  |  | 3,109,757 |  |  |  | (8.47 | ) |  |  | 151.18 |  |  |  | 210.73 |
Total |  |  | 13,540,283 |  |  |  | 13,874,405 |  |  |  | (2.41 | ) |  |  | 428.39 |  |  |  | 404.58 |

(*) | Includes Regulated Market Electricity Sale Contracts (CCEARs) and ‘bilateral contracts’ with other agents.

The electricity market of Cemig D

Electricity billed to captive clients by Cemig D, and electricity transported for Free Clients and distributors with access to Cemig D’s networks, totaled 10,610 GWh in 2Q17, or 5.50% more than in 2Q16.

There are two components of this reduction: consumption by the captive market 6.1% lower YoY, and use of the network by Free Clients 4.7% higher YoY.

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In June 2017 Cemig D invoiced 8,308,582 clients – a growth of 1.28% in the consumer base in the year since June 2016.

Cemig D |  | Number of clients |  |  | Change, % |
| 06/30/2017 |  |  | 06/30/2016 |  |
Residential |  |  | 6,739,939 |  |  |  | 6,641,995 |  |  |  | 1.47 |
Industrial |  |  | 73,896 |  |  |  | 75,112 |  |  |  | -1.62 |
Commercial, Services and Others |  |  | 715,815 |  |  |  | 717,394 |  |  |  | -0.22 |
Rural |  |  | 696,276 |  |  |  | 687,966 |  |  |  | 1.21 |
Public authorities |  |  | 63,857 |  |  |  | 64,349 |  |  |  | -0.76 |
Public lighting |  |  | 5,924 |  |  |  | 4,704 |  |  |  | 25.94 |
Public services |  |  | 12,875 |  |  |  | 11,807 |  |  |  | 9.05 |
Total |  |  | 8,308,582 |  |  |  | 8,203,327 |  |  |  | 1.28 |

Comments on the various consumer categories:

Residential

Consumption by captive residential users of Cemig D in 2Q17, at 2,496,022 MWh, was 1.2% less than in 2Q16. The reduction in the level of residential consumption can be explained mainly by reduction of family disposable income over the year 2006 and in the first half of 2017.

Industrial

Electricity used by captive clients of Cemig D totaled 653,536 MWh in 2Q17 – or 23.28% less than in 2Q16.

This lower consumption mainly reflects migration of captive consumers to the Free Market – which was also responsible for part of the increase in the total volume of power distributed.

Cemig D transported a total of 3,955,247 MWh for Free Clients in 2Q17.

Both these segments of the market are affected by the trends in economic activity, both in the state of Minas and in Brazil as a whole. In particular we can mention:

◾ | migration of two mining facilities to the national grid;

◾ | uncertainties in the Brazilian, and also the international, political and economic situation.

Client relations

Total consumption by the captive clients of Cemig D in the Commercial category totaled 1,322,077 MWh, or 10.82% less than in 2Q16, mainly because of the adverse conditions of the economy, with lower disposable family incomes and lower economic activity in the other private and public sectors of the economy.

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The volume transported for Free Clients 87% higher year-on-year is mainly associated with the incorporation of new facilities supplied with power from incentive-bearing sources, which contributed to reduction of consumption in the captive market.

The electricity market of Cemig GT

Cemig GT billed a total of 6,807,298 MWh in 2Q17, 2.0% less than in 2Q16.

The number of clients billed by Cemig GT was 51.7% higher than at the end of June 2016, totaling 1,171. Of these: 1,104 were industrial, commercial and rural clients, 47 were distribution companies, and 20 were companies in the category of traders, generators and independent power producers.

Free Clients in the industrial, commercial and rural categories consumed 3,940,958 MWh in 2Q17, or 3.4% more than in 2Q16.

Between the end of 2Q16 and the end of 2Q17 Cemig GT added 170 new industrial clients, 1 rural client and 206 clients in the Commercial and Services category – in the latter category the YoY increase in consumption was 184.5%.

Trading of electricity to other agents in the electricity sector in the Free Market totaled 2,237,418 MWh in 2Q17, 10.1% less than in 2Q16.

Cemig GT |  | MWh |  |  | Change, % |
| 2Q17 |  |  | 2Q16 |  |
Free Clients |  |  | 3,940,958 |  |  |  | 3,810,300 |  |  |  | 3.4 |
Industrial |  |  | 3,373,679 |  |  |  | 3,602,752 |  |  |  | -6.4 |
Client relations |  |  | 563,620 |  |  |  | 207,548 |  |  |  | 171.6 |
Rural |  |  | 3,660 |  |  |  | — |  |  |  | — |
Free Market – Free contracts |  |  | 2,237,418 |  |  |  | 2,488,003 |  |  |  | -10.1 |
Regulated Market |  |  | 596,028 |  |  |  | 613,159 |  |  |  | -2.8 |
Regulated Market – Cemig D |  |  | 32,894 |  |  |  | 34,905 |  |  |  | -5.8 |
Total |  |  | 6,807,298 |  |  |  | 6,946,367 |  |  |  | -2.0 |

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Physical totals of transport and distribution – MWh

Item |  | MWh |  |  | Change % |
| 2Q17 |  |  | 2Q16 |  |
Total energy carried |  |  | 12,287,568 |  |  |  | 12,432,099 |  |  |  | -1.16 |
Electricity transported for distributors |  |  | 80,429 |  |  |  | 93,666 |  |  |  | -14.13 |
Electricity transported for Free Clients |  |  | 4,348,532 |  |  |  | 4,274,563 |  |  |  | 1.73 |
Own load |  |  | 7,858,607 |  |  |  | 8,063,870 |  |  |  | -2.55 |
Consumption by captive market |  |  | 6,313,550 |  |  |  | 6,710,787 |  |  |  | -5.92 |
Losses in distribution network |  |  | 1,545,057 |  |  |  | 1,353,083 |  |  |  | 14.19 |

QUALITY INDICATORS – SAIDI AND SAIFI

Cemig is continuously taking action to improve operational management, organization of the logistics of emergency services, and its permanent regime of inspections and preventive maintenance of substations, lines and distribution networks. It also invests in training of its staff for improved qualifications, state-of-the-art technologies, and standardization of work processes, aiming to uphold the quality of electricity supply, and as a result maintain the satisfaction of clients and consumers.

The charts below show Cemig’s indicators for duration and frequency of outages – SAIDI (System Average Interruption Duration Index, in hours), and SAIFI (System Average Interruption Frequency Index, in number of outages), since January 2016.

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Consolidated operational revenue

Revenue from supply of electricity:

Total revenue from supply of electricity in 2Q17 was R$ 5.80 billion, 3.33% higher than in 2Q16 (R$ 5.61 billion).

Final consumers

Total revenue from electricity sold to final consumers, excluding Cemig’s own consumption, in 2Q17 was R$ 5.022 billion, or 0.66% more than the figure for 2Q16.

The main factors in this revenue were:

◾ | The Annual Tariff Adjustment for Cemig D, with average effect on consumer tariffs of 3.78%, effective from May 28, 2016 (full effect in 2017).

◾ | The Annual Tariff Adjustment for Cemig D, with average effect on consumer tariffs of 10.66%, effective from May 28, 2017.

◾ | Volume of electricity sold to final consumers was 0.65% higher year-on-year.

|  | R$ ’000 |  |  | Change % |  |  | Average price 2Q17 |  |  | Average price 2Q16 |  |  | Change % |
| 2Q17 |  |  | 2Q16 |  |  |  | R$ |  |  | R$ |  |
Residential |  |  | 1,927,607 |  |  |  | 1,936,040 |  |  |  | (0.44 | ) |  |  | 772.27 |  |  |  | 766.38 |  |  |  | 0.77 |
Industrial |  |  | 1,241,737 |  |  |  | 1,316,086 |  |  |  | (5.65 | ) |  |  | 278.99 |  |  |  | 281.70 |  |  |  | (0.96 | )
Commercial, Services and Others |  |  | 1,096,355 |  |  |  | 1,121,528 |  |  |  | (2.24 | ) |  |  | 579.24 |  |  |  | 660.84 |  |  |  | (12.35 | )
Rural |  |  | 411,069 |  |  |  | 356,233 |  |  |  | 15.39 |  |  |  | 431.02 |  |  |  | 371.11 |  |  |  | 16.14 |
Public authorities |  |  | 138,206 |  |  |  | 141,615 |  |  |  | (2.41 | ) |  |  | 611.42 |  |  |  | 599.36 |  |  |  | 2.01 |
Public lighting |  |  | 134,604 |  |  |  | 128,891 |  |  |  | 4.43 |  |  |  | 394.25 |  |  |  | 374.29 |  |  |  | 5.33 |
Public services |  |  | 142,495 |  |  |  | 131,728 |  |  |  | 8.17 |  |  |  | 439.25 |  |  |  | 412.66 |  |  |  | 6.44 |
Subtotal |  |  | 5,092,073 |  |  |  | 5,132,121 |  |  |  | (0.78 | ) |  |  | 476.55 |  |  |  | 477.18 |  |  |  | (0.13 | )
Supply not yet invoiced, net |  |  | -70,182 |  |  |  | -159,590 |  |  |  | (56.02 | ) |  |  | — |  |  |  | — |  |  |  | — |
Wholesale supply to other concession holders (*) |  |  | 430,303 |  |  |  | 655,322 |  |  |  | (34.34 | ) |  |  | 151.18 |  |  |  | 210.73 |  |  |  | (28.26 | )
Wholesale supply not yet invoiced, net |  |  | 348,326 |  |  |  | -14,501 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  | 5,800,520 |  |  |  | 5,613,352 |  |  |  | 3.33 |  |  |  | 428.39 |  |  |  | 404.58 |  |  |  | 5.88 |

(*) | Includes Regulated Market Electricity Sale Contracts (CCEARs) and ‘bilateral contracts’ with other agents.

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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 2Q17 it totaled R$ 437 million, compared to R$ 427 million in 2Q16 – a year-on-year increase of 2.32%.

CVA and Other financial components in tariff adjustments

In its interim accounting information Cemig recognizes the difference between actual non-controllable costs (in which the CDE, and electricity bought for resale, are significant components) and the costs that were used as the basis of decision of the rates charged to consumers. This balance represents the amounts that will be passed through in the forthcoming tariff adjustments of Cemig D: a debit of R$ 29 million in 2Q17, compared to a credit of R$ 531 million in 2Q16. This variation is mainly due to the increase in costs of electricity in 2Q17. Further, as a consequence of the inspection by Aneel and calculation of the effective amounts of credit of CVA for the period corresponding to the tariff adjustment in force from May 28, 2016 to May 27, 2017, the Company made a complementary negative adjustment of R$ 214 million for the realization of CVA credits in that period.

Transmission indemnity revenue

Transmission indemnity revenue was R$ 204 million in 2Q17, compared to R$ 561 million in 2Q16.

In 2Q16, as a result of the Mining and Energy Ministry setting the criteria for updating of the transmission indemnity, a posting was made, backdated to 2013, of the amount of the updating of the indemnity receivable based on the regulatory cost of own capital, which had a significant impact on the revenue reported.

We highlight the amount recorded in 2Q17, of R$ 149 million, for the backdated difference of transmission concession assets the values of which were not included in the calculation basis for revenues in the previous tariff reviews.

The Company has calculated the following amounts as indemnity:

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|  | R$ ’000 |
Regulatory Remuneration Base (BRR) – Dispatch 2181/2016 |  |  | 1,177,488 |
Amount of the indemnity received so far |  |  | (285,438 | )
Net value of the assets for purposes of indemnity |  |  | 892,050 |
Updating in accordance with MME Order 120/16 – IPCA index/Cost of capital – Period Jan. 2013 to Sep. 2016 |  |  | 1,183,035 |
Total indemnity |  |  | 2,075,085 |

Revenue from transactions in the Wholesale Trading Market (CCEE)

Revenue from transactions in electricity on the CCEE in 2Q17 was R$ 199 million, compared to R$ 49 million in 2Q16 – a year-on-year increase of 304.81%. This basically reflects the average spot price (‘PLD’) being 387.01% higher – at R$ 303.75/MWh in 2Q17, compared to R$ 62.37/MWh in 2016.

Revenue from supply of gas

The Company reported revenue from supply of gas 28.78% higher year-on-year in 2Q17, at R$ 411 million, compared to R$ 319 million in 2Q16, mainly due to the higher volume of gas sold: 310,240m³ in 2Q17, compared to 216,135m³ in 2Q16.

Market (’000 m3/day) |  | 2013 |  |  | 2014 |  |  | 2015 |  |  | 2016 |  |  | Acum. to June 2017 |
Residential |  |  | 0.17 |  |  |  | 0.72 |  |  |  | 1.04 |  |  |  | 3.38 |  |  |  | 9.15 |
Client relations |  |  | 20.38 |  |  |  | 23.15 |  |  |  | 22.42 |  |  |  | 24.68 |  |  |  | 28.44 |
Industrial |  |  | 2,734.95 |  |  |  | 2,849.24 |  |  |  | 2,422.78 |  |  |  | 2,173.76 |  |  |  | 2,547.27 |
Other |  |  | 106.33 |  |  |  | 99.64 |  |  |  | 119.87 |  |  |  | 120.19 |  |  |  | 124.45 |
Total market excluding thermal plants |  |  | 2,861.83 |  |  |  | 2,972.75 |  |  |  | 2,566.11 |  |  |  | 2,322.01 |  |  |  | 2,709.31 |
Thermal |  |  | 1,214.50 |  |  |  | 1,223.99 |  |  |  | 1,309.13 |  |  |  | 591.52 |  |  |  | 640.79 |
Total |  |  | 4,076.33 |  |  |  | 4,196.74 |  |  |  | 3,875.24 |  |  |  | 2,913.53 |  |  |  | 3,350.10 |

There was a recovery of activity in the industrial user category, the largest in Gasmig’s market, with higher dispatching by the thermal power generation plants, and also higher consumption in the other sectors of the industrial market.

Supply of gas to the residential market, which began in 2013, totaled 22,536 households invoiced in June 2017 – compared to 14,935 on December 31, 2016.

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Sector/regulatory charges reported as deductions from revenue

The sector charges that are effectively deductions from reported revenue totaled R$ 2.583 billion in 2Q17, or 2.45% more than their total of R$ 2.521 billion in 2Q16. This mainly reflects the charges passed through from the flag tariff system, of R$ 127 million in 2Q17, compared to R$ 70 million in 2Q16. In April and May 2017 the tariff ‘flag’ was set to ‘red’, compared to ‘green’ during the whole of 2Q16 – indicating higher total amounts received as spilling in 2Q17.

The ‘Flag’ Tariff component – history
Apr 2017 |  | May 2017 |  | June 2017
Red |  | Red |  | Green
Apr 2016 |  | May 2016 |  | June 2016
Green |  | Green |  | Green

Operational costs and expenses

Operational costs and expenses totaled R$ 4.705 billion in 2Q17, or 8.19% more than in 2Q16 (R$ 4.349 billion).

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The following paragraphs comment on the main variations:

Electricity purchased for resale

The expense on electricity bought for resale in 2Q17 was R$ 2.649 billion, or 30.85% more than in 2Q16 (R$ 2.025 billion). The main factors in the higher figure are:

Cemig D:

The expense on electricity bought for resale in 2Q17 was R$ 1.676 billion, or 37.40% more than in 2Q16 (R$ 1.220 billion).

This is mainly due to higher purchases on the spot market, of R$ 545 million in 2Q17, vs. R$ 161 million in 2Q16, due to the higher cost of power supply in the wholesale market in 2017.

Also, expense on purchase of electricity at auctions was higher: at R$ 642 million in 2Q17, compared to R$ 561 million in 2Q16 – reflecting new power purchasing agreements made in the regulated market in 2017.

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Cemig GT:

The expense on electricity bought for resale in 2Q17 was R$ 981 million, or 21.38% more than in 2Q16 (R$ 808 million). This reflects an average price per MWh 11.12% higher in 2Q17 (R$ 182.41, vs. R$ 164.15 in 2Q16), and the volume of electricity purchased in 2017 being 9.00% higher (at 5,364,064 MWh) than in 2015 (4,921,224 MWh).

Operating provisions

Operational provisions were 66.51% lower year-on-year in the quarter – an expense of R$ 161mn in 2Q17, compared to R$ 482mn in 2Q16. The main factors are:

◾ | Reversal of provision for RME’s options for investment in Lepsa and SAAG, of R$ 8mn and R$ 5mn, respectively.

◾ | Lower provisions for doubtful receivables: R$ 75mn in 2Q17, compared to R$ 98mn in 2Q16 – mainly reflecting lower default.

Default

With the effects of the Brazilian macroeconomic context of reduction in economic activity, bringing unemployment and inflation, the adverse hydrological situation, and the increase in tariffs, which had been held down, Cemig has experienced higher than average growth in its total debt.

To combat a record level of default, in 2017 Cemig has redoubled its efforts to receive payment from customers in arrears with their electricity invoices. An additional budget has been released, and is being used, this year in the attempt to recover the previous losses of revenue. Some results have already been achieved. Since December 2016 there has been no significant increase in the default percentages, showing that this situation is being brought under control. We expect to see a more consistent decline in the percentages from now on.

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The average level of default increased by 7.59% from June 2016 to June 2017; but the percentage has fallen by 2.24% from March 2017 to June 2017.

The Company uses various tools of communication and collection to prevent increase in default. Measures used include contact by telephone, email, collection requests by text and by letter, negative references for defaulting clients, 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 to the defaulting consumer.

As well as these various collection tools, in 2017 Cemig launched a campaign offering special conditions for negotiation and re-negotiation for low-voltage consumers, hospitals and public authorities.

The Company is confident that with more intense collection and disconnection the levels of default will be reduced in 2017.

Personnel

Personnel expenses were R$ 536mn in 2Q17, compared to R$ 430mn in 2Q16, an increase of 24.70%. This arises mainly from the following factors:

◾ | Recognition, in 2Q17, of an expense of R$ 165mn on the voluntary retirement plan.

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Programmed Voluntary Retirement Plan (PDVP)

In March 2017, the Company created the 2017 Employee Voluntary Severance Program (‘the 2017 PDVP’). Those eligible to take part were any employees who will have worked with Cemig for 25 years or more by December 31, 2017. Employees will be able to accept the 2017 PDVP from April 3 through September 29, 2017. It provides for payment of an additional premium of five monthly salaries to employees who join in April 2017, to leave the Company in May 2017; the premium diminishes progressively depending on the month of acceptance. An employee who accepts the plan in August 2017, for severance in September 2017, will thus have the right to a premium corresponding to one monthly remuneration. Employees using the plan to leave on or after September 1, 2017, will have no premium. The PDVP offers the standard legal severance payments – including: payment for the period of notice, and especially, an amount equal to the ‘penalty’ payment of 40% of the Base Value of the employee’s FGTS fund, as well as the other payments specified by the legislation. On June 30, 2017 the amount appropriated as expense on the premium for retirement under the 2017 PDVP was R$ 165mn, corresponding to 891 employees joining the scheme up to that date.

Gas bought for resale

In 2Q17 the Company recorded an expense of R$ 263mn on acquisition of gas, 38.86% more than its comparable expense of R$ 189mn in 2Q16. This reflects the higher volume of gas acquired (308,850m³ in 2Q17 compared to 215,901m³ in 2Q16).

Equity method gains in non-consolidated investees

In 2Q17 Cemig posted a net gain on equity in non-consolidate investees of R$ 30mn, which compares with a net gain of R$ 72mn in 2Q16. This mainly arises from the interests held in Taesa, Aliança Energia, Renova and Santo Antônio.

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Consolidated – R$ mn |  | Gain (loss) by equity method 2Q17 |  |  | Gain (loss) by equity method 2Q16 |
Companhia Transleste de Transmissão |  |  | 1,322 |  |  |  | 1,081 |
Companhia Transudeste de Transmissão |  |  | 1,047 |  |  |  | 857 |
Companhia Transirapé de Transmissão |  |  | 1,157 |  |  |  | 992 |
Transchile |  |  | — |  |  |  | 1,188 |
Companhia de Transmissão Centroeste de Minas |  |  | 1,374 |  |  |  | 1,445 |
Light (2) |  |  | -19,424 |  |  |  | -21,467 |
Axxiom Soluções Tecnológicas |  |  | -2,309 |  |  |  | -1,398 |
Lepsa |  |  | -6,085 |  |  |  | — |
RME |  |  | -6,060 |  |  |  | — |
Parati |  |  | — |  |  |  | -7,807 |
Hidrelétrica Cachoeirão |  |  | 3,150 |  |  |  | 2,944 |
Guanhães Energia |  |  | -571 |  |  |  | -4,446 |
Hidrelétrica Pipoca |  |  | 732 |  |  |  | 1,209 |
Madeira Energia (Santo Antônio Plant) |  |  | -25,558 |  |  |  | 5,308 |
FIP Melbourne (Santo Antônio Plant) |  |  | -22,451 |  |  |  | 2,710 |
Lightger |  |  | 1,175 |  |  |  | 1,697 |
Baguari Energia |  |  | 5,954 |  |  |  | 6,100 |
Central Eólica Praias de Parajuru |  |  | -616 |  |  |  | 547 |
Central Eólica Volta do Rio |  |  | -1,847 |  |  |  | 465 |
Central Eólica Praias de Morgado |  |  | -1,522 |  |  |  | -59 |
Amazônia Energia (Belo Monte Plant) |  |  | -2,638 |  |  |  | 125 |
Ativas Data Center |  |  | -766 |  |  |  | -8,108 |
Taesa |  |  | 20,530 |  |  |  | 86,387 |
Renova |  |  | 64,799 |  |  |  | -31,669 |
Aliança Geração |  |  | 15,891 |  |  |  | 40,667 |
Aliança Norte (Belo Monte Plant) |  |  | 120 |  |  |  | -6,350 |
Retiro Baixo |  |  | 3,073 |  |  |  | -449 |
Total |  |  | 30,477 |  |  |  | 71,969 |

Cemig and Taesa sign Transmineiras stockholding transaction

Cemig published material announcements on July 3 and 12, 2017 on this subject, and on July 13 signed the contracts for a restructuring involving the transfer to Transmissora Aliança de Energia Elétrica S.A. (‘Taesa’) of the stock holdings held by Cemig in the following transmission concession holders: Companhia Transleste de Transmissão S.A. (“Transleste”), Companhia Transudeste de Transmissão S.A. (“Transudeste”) and Companhia Transirapé de Transmissão S.A. (“Transirapé”) (referred to jointly as “Transmineiras”) (‘the Transaction’). The initial value of the transaction is R$ 77 million, to be paid on the date of closing.

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This amount will be subject to monetary updating by: (i) the accumulated variation of the IPCA inflation index from January 1, 2017, inclusive, to the day immediately prior to the signature of the final closing document for the Transaction; and (ii) accumulated variation represented by 100% (one hundred per cent) of the CDI rate from date of signature, inclusive, up to the day immediately prior to the date of closing of the Transaction, after discounting of any amounts of dividends and/or Interest on Equity declared as from January 1, 2017 (inclusive) by the Transmineiras companies in favor of Cemig, whether paid or not by the date of closing, duly updated by the accumulated variation in the IPCA index from the date of the payment to the business day immediately prior to the closing date.

A further portion of the price with a maximum of R$ 12 million may become payable by Taesa and Cemig if Transmineiras receives judgment in its favor in certain legal actions currently in progress, as per conditions established in the instrument of the Transaction. This amount will be subject to the due monetary updating represented by 100% of the CDI Rate from January 1, 2017 (inclusive) until the business day immediately prior to the payment.

Cemig emphasizes that the transaction is subject to approval by a General Meeting of Stockholders of Taesa, which will be called to ratify signature of the instruments necessary for its execution.

The Transaction will also be submitted for approval to the anti-trust authorities (the Brazilian Monopolies Authority, CADE (Conselho Administrativo de Defesa Econômica), and Aneel, the Brazilian electricity regulator, in accordance with current legislation, and is also subject to obtaining other relevant prior approvals, including consent from the creditors and financing banks.

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Investment in Renova

In 2Q17, Cemig recognized a gain by the equity method of R$ 65mn, compared to a loss of R$ 32 mn in 2Q16.

On August 3, 2017 Renova completed the sale to AES Tietê of the wind farm complexes of Alto Sertão II. AES Tietê also assumed the debt related to the wind farms which on June 30, 2017 was R$ 1.115 billion.

In June 2017, Renova sold the shares that it held in TerraForm Global to Brookfield (through its vehicle Orion US Holding 1 L.P.), for a total price of R$ 302,219 (US$92.8 million). Part of the proceeds was used to amortize debentures issued by Renova.

Sale of assets—Umburan Wind Complex

The investee Renova is in negotiation with Engie Brasil Energia SA for the sale of the Umburanas Wind Complex with total installed capacity of 605MW (“Umburanas Projects”), according to a material fact published on August 8, 2017. This negotiation does not cause any harm to the negotiations already underway with Brookfield Renewable Energy, announced by Renova in a Notice to the Market on July 4 and Relevant Fact on July 17, 2017.

Financial revenue and expenses

Cemig reports net financial expenses of R$ 342 million in 2Q17, compared to net financial expenses of R$ 215 million in 2Q16. The main factors are:

◾ | Gain on monetary updating of the CVA balances in 2Q16 of R$ 168 million, compared to a negative amount of R$ 22 million in 2Q17. The positive and negative balances of CVA are updated by the Selic rate. This difference arises from a net payable amount of CVA on June 30, 2017. In 2Q16 the corresponding amount was a credit.

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◾ | Financial expense on monetary variation in loans and financings was R$ 44 million lower, due to the lower total effect of the IPCA inflation index (indexor for the debt) in the quarter – 0.22% in 2Q17, compared to 1.75% in 2Q16.

◾ | Charges for loans and financings 17.33% lower, at R$ 396 million in 2Q17, compared to R$ 479 million in 2Q17. This result is substantially due to lower debt indexed to the CDI rate, and a lower value for the CDI rate itself, in 2Q17 – of 2.55%, compared to 3.31% in 2Q16.

EBITDA

Cemig’s consolidated Ebitda in 2Q17 was 8.75% higher than in 2Q16.

Ebitda – R$ ’000 |  | 2Q17 |  |  | 2Q16 |  |  | Change, |
Net profit for the period |  |  | 138,114 |  |  |  | 202,124 |  |  |  | (31.67 | )
+ Income and Social Contribution taxes |  |  | 50,539 |  |  |  | 62,833 |  |  |  | (19.57 | )
+ Net financial revenue (expenses) |  |  | 341,554 |  |  |  | 215,508 |  |  |  | 58.49 |
+ Depreciation and amortization |  |  | 209,435 |  |  |  | 199,684 |  |  |  | 4.88 |
= EBITDA |  |  | 739,642 |  |  |  | 680,149 |  |  |  | 8.75 |

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DEBT

The Company’s consolidated total debt on June 30, 2017 was R$ 14.607 billion, 3.77% less than at December 31, 2016.

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São Simão, Miranda, Jaguara and Volta Grande hydro plants

On August 3, 2017, through Ordinance No. 291/17, the Ministry of Mines and Energy—MME established indemnification amounts to Cemig GT for investments made in the São Simão and Miranda plants that were not amortized until the end of contract agreement. The total amount of the indemnity is R$ 1.027 billion, of which R$ 243.59 million are destined to the indemnification of the São Simão plant and R$ 784.15 million destined to the indemnification of the Miranda plant, amounts referring to December 2015 and February 2016, respectively.

The amounts will be updated, pro rata die, by the National Extended Consumer Price Index (IPCA) until the date of signing the Concession Agreement by the winner of the bidding for the Usinas concession and by the referential Selic rate for federal securities, from the date of signature of the Concession Agreement until the date of the effective payment of the indemnity.

In addition, despite the existence of pending judicial discussions, on August 8, 2017, the National Electric Energy Agency—ANEEL approved the auction for the No. 1/2017 concession for the Jaguara, São Simão, Volta Grande and Miranda plants, expected to occur in September 2017.

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FINANCIAL STATEMENTS SEPARATED BY SEGMENT

INFORMATION BY MARKET SEGMENT ON JUNE 30, 2017 |
ITEM |  | ELECTRICITY |  |  | TELECOM |  |  | GAS |  |  | OTHER |  |  | ELIMINATIONS |  |  | TOTAL |
| GENERATION |  |  | TRANSMISSION |  |  | DISTRIBUTION |  |  |  |  |  |
ASSETS OF THE SEGMENT |  |  | 20,025,471 |  |  |  | 2,739,099 |  |  |  | 16,525,323 |  |  |  | 350,555 |  |  |  | 2,098,567 |  |  |  | 2,720,320 |  |  |  | (2,519,536 | ) |  |  | 41,939,799 |
ADDITIONS TO THE SEGMENT |  |  | 196,255 |  |  |  | — |  |  |  | 421,112 |  |  |  | 21,368 |  |  |  | 26,689 |  |  |  | — |  |  |  | — |  |  |  | 665,424 |
Additions to the financial asset |  |  | — |  |  |  | 156,280 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 156,280 |
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES |  |  | 8,030,138 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 18,252 |  |  |  | — |  |  |  | 8,048,390 |
NET REVENUE |  |  | 3,305,994 |  |  |  | 449,145 |  |  |  | 5,619,766 |  |  |  | 57,721 |  |  |  | 663,318 |  |  |  | 54,778 |  |  |  | (132,763 | ) |  |  | 10,017,959 |
COST OF ELECTRICITY AND GAS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Electricity purchased for resale |  |  | (1,721,290 | ) |  |  | — |  |  |  | (3,054,465 | ) |  |  | — |  |  |  | — |  |  |  | (9 | ) |  |  | 33,346 |  |  |  | (4,742,418 | )
Charges for use of the national grid |  |  | (168,552 | ) |  |  | 166 |  |  |  | (314,264 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 78,389 |  |  |  | (404,261 | )
Gas bought for resale |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (485,163 | ) |  |  | — |  |  |  | — |  |  |  | (485,163 | )
Operational costs, total |  |  | (1,889,842 | ) |  |  | 166 |  |  |  | (3,368,729 | ) |  |  | — |  |  |  | (485,163 | ) |  |  | (9 | ) |  |  | 111,735 |  |  |  | (5,631,842 | )
OPERATING COSTS AND EXPENSES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel |  |  | (154,656 | ) |  |  | (58,470 | ) |  |  | (643,937 | ) |  |  | (9,846 | ) |  |  | (25,239 | ) |  |  | (25,014 | ) |  |  | — |  |  |  | (917,162 | )
Profit sharing |  |  | (4,136 | ) |  |  | (1,821 | ) |  |  | (17,640 | ) |  |  | (315 | ) |  |  | — |  |  |  | (979 | ) |  |  | — |  |  |  | (24,891 | )
Post-retirement obligations |  |  | (28,068 | ) |  |  | (12,684 | ) |  |  | (131,804 | ) |  |  | — |  |  |  | — |  |  |  | (19,472 | ) |  |  | — |  |  |  | (192,028 | )
Materials |  |  | (4,749 | ) |  |  | (1,323 | ) |  |  | (20,053 | ) |  |  | (66 | ) |  |  | (888 | ) |  |  | (84 | ) |  |  | 55 |  |  |  | (27,108 | )
Outsourced services |  |  | (65,918 | ) |  |  | (13,863 | ) |  |  | (360,937 | ) |  |  | (14,675 | ) |  |  | (7,504 | ) |  |  | (3,809 | ) |  |  | 19,942 |  |  |  | (446,764 | )
Depreciation and amortization |  |  | (102,917 | ) |  |  | — |  |  |  | (263,051 | ) |  |  | (17,008 | ) |  |  | (27,571 | ) |  |  | (253 | ) |  |  |  |  |  |  | (410,800 | )
Operational provisions (reversals) |  |  | (57,000 | ) |  |  | (4,426 | ) |  |  | (293,044 | ) |  |  | (137 | ) |  |  | — |  |  |  | (15,311 | ) |  |  | — |  |  |  | (369,918 | )
Construction costs |  |  | — |  |  |  | (7,025 | ) |  |  | (421,112 | ) |  |  | — |  |  |  | (12,897 | ) |  |  | — |  |  |  | — |  |  |  | (441,034 | )
Other operating expenses, net |  |  | (44,069 | ) |  |  | (3,773 | ) |  |  | (139,118 | ) |  |  | (11,505 | ) |  |  | (4,026 | ) |  |  | (29,483 | ) |  |  | 44,520 |  |  |  | (187,454 | )
Total cost of operation |  |  | (461,513 | ) |  |  | (103,385 | ) |  |  | (2,290,696 | ) |  |  | (53,552 | ) |  |  | (78,125 | ) |  |  | (94,405 | ) |  |  | 64,517 |  |  |  | (3,017,159 | )
OPERATING COSTS AND EXPENSES |  |  | (2,351,355 | ) |  |  | (103,219 | ) |  |  | (5,659,425 | ) |  |  | (53,552 | ) |  |  | (563,288 | ) |  |  | (94,414 | ) |  |  | 176,252 |  |  |  | (8,649,001 | )
OPERATIONAL PROFIT BEFORE EQUITY GAINS (LOSSES) AND FINANCIAL REVENUE (EXPENSES) |  |  | 954,639 |  |  |  | 345,926 |  |  |  | (39,659 | ) |  |  | 4,169 |  |  |  | 100,030 |  |  |  | (39,636 | ) |  |  | 43,489 |  |  |  | 1,368,958 |
Equity method gains in non-consolidated investees |  |  | 182,054 |  |  |  |  |  |  |  |  |  |  |  | (1,492 | ) |  |  |  |  |  |  |  |  |  |  | (120,444 | ) |  |  | 60,118 |
Financial revenues |  |  | 89,161 |  |  |  | 3,605 |  |  |  | 205,427 |  |  |  | 921 |  |  |  | 12,832 |  |  |  | 36,955 |  |  |  | — |  |  |  | 348,901 |
Financial expenses |  |  | (617,297 | ) |  |  | (1,223 | ) |  |  | (433,533 | ) |  |  | (7,648 | ) |  |  | (21,534 | ) |  |  | (1,966 | ) |  |  | — |  |  |  | (1,083,201 | )
PRE-TAX PROFIT |  |  | 608,557 |  |  |  | 348,308 |  |  |  | (267,765 | ) |  |  | (4,050 | ) |  |  | 91,328 |  |  |  | (4,647 | ) |  |  | (76,955 | ) |  |  | 694,776 |
Income and Social Contribution taxes |  |  | (154,767 | ) |  |  | (106,991 | ) |  |  | 76,670 |  |  |  | 807 |  |  |  | (28,586 | ) |  |  | (1,061 | ) |  |  |  |  |  |  | (213,928 | )
NET PROFIT ( LOSS) |  |  | 453,790 |  |  |  | 241,317 |  |  |  | (191,095 | ) |  |  | (3,243 | ) |  |  | 62,742 |  |  |  | (5,708 | ) |  |  | (76,955 | ) |  |  | 480,848 |
Interest of the controlling shareholders |  |  | 453,790 |  |  |  | 241,317 |  |  |  | (191,095 | ) |  |  | (3,243 | ) |  |  | 62,472 |  |  |  | (5,708 | ) |  |  | (76,955 | ) |  |  | 480,578 |
Interest of non-controlling shareholder |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 270 |  |  |  | — |  |  |  | — |  |  |  | 270 |
|  |  | 453,790 |  |  |  | 241,317 |  |  |  | (191,095 | ) |  |  | (3,243 | ) |  |  | 62,742 |  |  |  | (5,708 | ) |  |  | (76,955 | ) |  |  | 480,848 |

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Appendices

Generation plants – December 31, 2016

Usina |  | Empresa |  | Tipo |  | Participação Cemig |  |  | Capacidade Instalada (MW) |  |  | Garantia Fĺsica (MW Médio) |  |  | Capacidade Instalada (MW)* |  |  | Garantia Fĺsica (MW Médio)* |  |  | Vencimento |
São Simão |  | CEMIG GT |  | UHE |  |  | 100,00% |  |  |  | 1.710,00 |  |  |  | 1.281,00 |  |  |  | 1.710,00 |  |  |  | 1.281,00 |  |  |  | 11/01/2015 |
Emborcação |  | CEMIG GT |  | UHE |  |  | 100,00% |  |  |  | 1.192,00 |  |  |  | 497,00 |  |  |  | 1.192,00 |  |  |  | 497,00 |  |  |  | 23/07/2025 |
Nova Ponte |  | CEMIG GT |  | UHE |  |  | 100,00% |  |  |  | 510,00 |  |  |  | 276,00 |  |  |  | 510,00 |  |  |  | 276,00 |  |  |  | 23/07/2025 |
Jaguara |  | CEMIG GT |  | UHE |  |  | 100,00% |  |  |  | 424,00 |  |  |  | 336,00 |  |  |  | 424,00 |  |  |  | 336,00 |  |  |  | 28/08/2013 |
Miranda |  | CEMIG GT |  | UHE |  |  | 100,00% |  |  |  | 408,00 |  |  |  | 202,00 |  |  |  | 408,00 |  |  |  | 202,00 |  |  |  | 23/12/2016 |
Irapé |  | CEMIG GT |  | UHE |  |  | 100,00% |  |  |  | 399,00 |  |  |  | 210,70 |  |  |  | 399,00 |  |  |  | 210,70 |  |  |  | 28/02/2035 |
Volta Grande |  | CEMIG GT |  | UHE |  |  | 100,00% |  |  |  | 380,00 |  |  |  | 229,00 |  |  |  | 380,00 |  |  |  | 229,00 |  |  |  | 23/02/2017 |
Igarapé |  | CEMIG GT |  | UTE |  |  | 100,00% |  |  |  | 131,00 |  |  |  | 71,30 |  |  |  | 131,00 |  |  |  | 71,30 |  |  |  | 13/08/2024 |
Rio de Pedras |  | CEMIG GT |  | PCH |  |  | 100,00% |  |  |  | 9,28 |  |  |  | 2,15 |  |  |  | 9,28 |  |  |  | 2,15 |  |  |  | 19/09/2024 |
Poço Fundo |  | CEMIG GT |  | PCH |  |  | 100,00% |  |  |  | 9,16 |  |  |  | 5,79 |  |  |  | 9,16 |  |  |  | 5,79 |  |  |  | 19/08/2025 |
São Bernardo |  | CEMIG GT |  | PCH |  |  | 100,00% |  |  |  | 6,82 |  |  |  | 3,42 |  |  |  | 6,82 |  |  |  | 3,42 |  |  |  | 19/08/2025 |
Paraúna |  | CEMIG GT |  | PCH |  |  | 100,00% |  |  |  | 4,28 |  |  |  | 1,90 |  |  |  | 4,28 |  |  |  | 1,90 |  |  |  | — |
Pandeiros |  | CEMIG GT |  | PCH |  |  | 100,00% |  |  |  | 4,20 |  |  |  | 0,47 |  |  |  | 4,20 |  |  |  | 0,47 |  |  |  | 22/09/2021 |
Salto Morais |  | CEMIG GT |  | PCH |  |  | 100,00% |  |  |  | 2,39 |  |  |  | 0,74 |  |  |  | 2,39 |  |  |  | 0,74 |  |  |  | 01/07/2020 |
Sumidouro |  | CEMIG GT |  | PCH |  |  | 100,00% |  |  |  | 2,12 |  |  |  | 0,34 |  |  |  | 2,12 |  |  |  | 0,34 |  |  |  | 08/07/2015 |
Anil |  | CEMIG GT |  | PCH |  |  | 100,00% |  |  |  | 2,08 |  |  |  | 1,16 |  |  |  | 2,08 |  |  |  | 1,16 |  |  |  | 08/07/2015 |
Xicão |  | CEMIG GT |  | PCH |  |  | 100,00% |  |  |  | 1,81 |  |  |  | 0,61 |  |  |  | 1,81 |  |  |  | 0,61 |  |  |  | 19/08/2025 |
Luiz Dias |  | CEMIG GT |  | PCH |  |  | 100,00% |  |  |  | 1,62 |  |  |  | 0,61 |  |  |  | 1,62 |  |  |  | 0,61 |  |  |  | 19/08/2025 |
Central Mineirão |  | CEMIG GT |  | UFV |  |  | 100,00% |  |  |  | 1,42 |  |  |  |  |  |  |  | 1,42 |  |  |  | — |  |  |  | — |
Poquim |  | CEMIG GT |  | PCH |  |  | 100,00% |  |  |  | 1,41 |  |  |  | 0,58 |  |  |  | 1,41 |  |  |  | 0,58 |  |  |  | 08/07/2015 |
Santa Marta |  | CEMIG GT |  | PCH |  |  | 100,00% |  |  |  | 1,00 |  |  |  | 0,58 |  |  |  | 1,00 |  |  |  | 0,58 |  |  |  | 08/07/2015 |
Pissarrão |  | CEMIG GT |  | PCH |  |  | 100,00% |  |  |  | 0,80 |  |  |  | 0,55 |  |  |  | 0,80 |  |  |  | 0,55 |  |  |  | 19/11/2004 |
Jacutinga |  | CEMIG GT |  | PCH |  |  | 100,00% |  |  |  | 0,72 |  |  |  | 0,47 |  |  |  | 0,72 |  |  |  | 0,47 |  |  |  | — |
Santa Luzia |  | CEMIG GT |  | PCH |  |  | 100,00% |  |  |  | 0,70 |  |  |  | 0,23 |  |  |  | 0,70 |  |  |  | 0,23 |  |  |  | 25/02/2026 |
Lages |  | CEMIG GT |  | PCH |  |  | 100,00% |  |  |  | 0,68 |  |  |  | 0,54 |  |  |  | 0,68 |  |  |  | 0,54 |  |  |  | 24/06/2010 |
Bom Jesus do Galho |  | CEMIG GT |  | PCH |  |  | 100,00% |  |  |  | 0,36 |  |  |  | 0,13 |  |  |  | 0,36 |  |  |  | 0,13 |  |  |  | — |
Queimado |  | CEMIG GT |  | UHE |  |  | 82,50% |  |  |  | 105,00 |  |  |  | 58,00 |  |  |  | 86,63 |  |  |  | 47,85 |  |  |  | 02/01/2033 |
Praias de Parajuru |  | CEMIG GT |  | EOL |  |  | 49,00% |  |  |  | 28,80 |  |  |  | 8,39 |  |  |  | 14,11 |  |  |  | 4,11 |  |  |  | 24/09/2032 |
Praia do Morgado |  | CEMIG GT |  | EOL |  |  | 49,00% |  |  |  | 28,80 |  |  |  | 13,20 |  |  |  | 14,11 |  |  |  | 6,47 |  |  |  | 26/12/2031 |
Volta do Rio |  | CEMIG GT |  | EOL |  |  | 49,00% |  |  |  | 42,00 |  |  |  | 18,41 |  |  |  | 20,58 |  |  |  | 9,02 |  |  |  | 26/12/2031 |
Três Marias |  | CEMIG G. TRÊS MARIAS |  | UHE |  |  | 100,00% |  |  |  | 396,00 |  |  |  | 239,00 |  |  |  | 396,00 |  |  |  | 239,00 |  |  |  | 04/01/2046 |
Salto Grande |  | CEMIG G. SALTO GRANDE |  | UHE |  |  | 100,00% |  |  |  | 102,00 |  |  |  | 75,00 |  |  |  | 102,00 |  |  |  | 75,00 |  |  |  | 04/01/2046 |
Itutinga |  | CEMIG G. ITUTINGA |  | UHE |  |  | 100,00% |  |  |  | 52,00 |  |  |  | 28,00 |  |  |  | 52,00 |  |  |  | 28,00 |  |  |  | 04/01/2046 |
Camargos |  | CEMIG G. CAMARGOS |  | UHE |  |  | 100,00% |  |  |  | 46,00 |  |  |  | 21,00 |  |  |  | 46,00 |  |  |  | 21,00 |  |  |  | 04/01/2046 |
|  | CEMIG G. SUL |  | PCHs |  |  | 100,00% |  |  |  | 39,53 |  |  |  | 27,00 |  |  |  | 39,53 |  |  |  | 27,00 |  |  |  | 04/01/2046 |
|  | CEMIG G. LESTE |  | PCHs |  |  | 100,00% |  |  |  | 35,16 |  |  |  | 19,95 |  |  |  | 35,16 |  |  |  | 19,95 |  |  |  | 04/01/2046 |
|  | CEMIG G. OESTE |  | PCHs |  |  | 100,00% |  |  |  | 28,90 |  |  |  | 12,68 |  |  |  | 28,90 |  |  |  | 12,68 |  |  |  | 04/01/2046 |
Sá Carvalho |  | Sá Carvalho S.A |  | UHE |  |  | 100,00% |  |  |  | 78,00 |  |  |  | 58,00 |  |  |  | 78,00 |  |  |  | 58,00 |  |  |  | 01/12/2024 |
Rosal |  | Rosal Energia S. A |  | UHE |  |  | 100,00% |  |  |  | 55,00 |  |  |  | 30,00 |  |  |  | 55,00 |  |  |  | 30,00 |  |  |  | 08/05/2032 |
Pai Joaquim |  | CEMIG PCH S.A |  | PCH |  |  | 100,00% |  |  |  | 23,00 |  |  |  | 2,41 |  |  |  | 23,00 |  |  |  | 2,41 |  |  |  | 01/04/2032 |
Barreiro |  | Usina Termelétrica Barreiro |  | UTE |  |  | 100,00% |  |  |  | 12,90 |  |  |  | 11,37 |  |  |  | 12,90 |  |  |  | 11,37 |  |  |  | 30/04/2023 |
Salto Voltão |  | Horizontes Energia |  | PCH |  |  | 100,00% |  |  |  | 8,20 |  |  |  | 6,63 |  |  |  | 8,20 |  |  |  | 6,63 |  |  |  | 04/10/2030 |
Salto do Paraopeba |  | Horizontes Energia |  | PCH |  |  | 100,00% |  |  |  | 2,46 |  |  |  | — |  |  |  | 2,46 |  |  |  | — |  |  |  | 04/10/2030 |
Salto do Passo Velho |  | Horizontes Energia |  | PCH |  |  | 100,00% |  |  |  | 1,80 |  |  |  | 1,48 |  |  |  | 1,80 |  |  |  | 1,48 |  |  |  | 04/10/2030 |
Machado Mineiro |  | Horizontes Energia |  | PCH |  |  | 100,00% |  |  |  | 1,72 |  |  |  | 1,14 |  |  |  | 1,72 |  |  |  | 1,14 |  |  |  | 08/07/2025 |
Aimorés |  | ALIANÇA |  | UHE |  |  | 45,00% |  |  |  | 330,00 |  |  |  | 172,00 |  |  |  | 148,50 |  |  |  | 77,40 |  |  |  | 20/12/2035 |
Funil |  | ALIANÇA |  | UHE |  |  | 45,00% |  |  |  | 180,00 |  |  |  | 89,00 |  |  |  | 81,00 |  |  |  | 40,05 |  |  |  | 20/12/2035 |
Amador Aguiar I (Capim Branco I) |  | ALIANÇA |  | UHE |  |  | 39,32% |  |  |  | 240,00 |  |  |  | 155,00 |  |  |  | 94,36 |  |  |  | 60,94 |  |  |  | 29/08/2036 |
Amador Aguiar II (Capim Branco II) |  | ALIANÇA |  | UHE |  |  | 39,32% |  |  |  | 210,00 |  |  |  | 131,00 |  |  |  | 82,56 |  |  |  | 51,50 |  |  |  | 29/08/2036 |
Porto Estrela |  | ALIANÇA |  | UHE |  |  | 30,00% |  |  |  | 112,00 |  |  |  | 55,80 |  |  |  | 33,60 |  |  |  | 16,74 |  |  |  | 10/07/2032 |
Igarapava |  | ALIANÇA |  | UHE |  |  | 23,69% |  |  |  | 210,00 |  |  |  | 136,00 |  |  |  | 49,75 |  |  |  | 32,22 |  |  |  | 30/12/2028 |
Candonga |  | ALIANÇA |  | UHE |  |  | 22,50% |  |  |  | 140,00 |  |  |  | 64,50 |  |  |  | 31,50 |  |  |  | 14,51 |  |  |  |  |
Santo Antônio |  | Santo Antônio Energia |  | UHE |  |  | 18,13% |  |  |  | 3.568,30 |  |  |  | 2.424,00 |  |  |  | 646,90 |  |  |  | 439,45 |  |  |  | 12/06/2046 |
Belo Monte |  | Norte Energia |  | UHE |  |  | 12,77% |  |  |  | 2.677,54 |  |  |  | 2.525,30 |  |  |  | 341,87 |  |  |  | 322,43 |  |  |  | 26/08/2045 |
Baguari |  | BAGUARI ENERGIA |  | UHE |  |  | 34,00% |  |  |  | 140,00 |  |  |  | 80,20 |  |  |  | 47,60 |  |  |  | 27,27 |  |  |  | 15/08/2041 |
Retiro Baixo |  | Retiro Baixo Energética |  | UHE |  |  | 49,90% |  |  |  | 82,00 |  |  |  | 38,50 |  |  |  | 40,92 |  |  |  | 19,21 |  |  |  | 25/08/2041 |
Cachoeirão |  | Hidrelétrica Cachoeirão |  | PCH |  |  | 49,00% |  |  |  | 27,00 |  |  |  | 16,37 |  |  |  | 13,23 |  |  |  | 8,02 |  |  |  | 25/07/2030 |
Pipoca |  | Hidrelétrica Pipoca |  | PCH |  |  | 49,00% |  |  |  | 20,00 |  |  |  | 11,90 |  |  |  | 9,80 |  |  |  | 5,83 |  |  |  | 10/09/2031 |
|  | Light Energia |  | UHEs |  |  | 43,33% |  |  |  | 855,14 |  |  |  | 637,00 |  |  |  | 370,53 |  |  |  | 275,85 |  |  |  |  |
|  | Lightger |  | PCH |  |  | 71,10% |  |  |  | 25,00 |  |  |  | 19,53 |  |  |  | 17,77 |  |  |  | 13,89 |  |  |  |  |
|  | Renova Energia |  | EOL |  |  | 40,94% |  |  |  | 386,10 |  |  |  | 191,30 |  |  |  | 158,09 |  |  |  | 78,33 |  |  |  |  |
|  | Renova Energia |  | PCH |  |  | 40,94% |  |  |  | 41,80 |  |  |  | 24,40 |  |  |  | 17,11 |  |  |  | 9,99 |  |  |  |  |
|  | Brasil PCH |  | PCHs |  |  | 20,88% |  |  |  | 291,00 |  |  |  | 192,68 |  |  |  | 60,77 |  |  |  | 40,23 |  |  |  |  |
Total |  |  |  |  |  |  |  |  |  |  | 15.828,01 |  |  |  | 10.719,40 |  |  |  | 8.468,82 |  |  |  | 5.258,24 |  |  |  |  |

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RAP (Permitted Annual Revenue – Transmission) – 2016-17 cycle

Resolução Homologatoria ANEEL - nº 2.098/16* |
Annual Permitted Revenue (RAP) |  | RAP |  |  | % Cemig |  |  | Cemig Consolidado |  |  | Cemig GT |
Cemig GT |  |  | 296,435,871 |  |  |  | 100.0% |  |  |  | 296,435,871 |  |  |  | 296,435,871 |
Cemig Itajuba |  |  | 37,434,741 |  |  |  | 100.0% |  |  |  | 37,434,741 |  |  |  | 37,434,741 |
Centroeste |  |  | 17,129,836 |  |  |  | 51.0% |  |  |  | 8,736,216 |  |  |  |  |
Transirapé |  |  | 29,201,132 |  |  |  | 24.5% |  |  |  | 7,154,277 |  |  |  |  |
Transleste |  |  | 40,172,135 |  |  |  | 25.0% |  |  |  | 10,043,034 |  |  |  |  |
Transudeste |  |  | 24,899,069 |  |  |  | 24.0% |  |  |  | 5,975,777 |  |  |  |  |
Taesa |  |  |  |  |  |  | 31.54% |  |  |  |  |  |  |  |  |
ETEO |  |  | 112,775,455 |  |  |  | 100.0% |  |  |  | 35,569,378 |  |  |  |  |
ETAU |  |  | 42,527,356 |  |  |  | 52.6% |  |  |  | 7,053,132 |  |  |  |  |
NOVATRANS |  |  | 512,214,141 |  |  |  | 100.0% |  |  |  | 161,552,340 |  |  |  |  |
TSN |  |  | 494,919,285 |  |  |  | 100.0% |  |  |  | 156,097,542 |  |  |  |  |
GTESA |  |  | 9,216,414 |  |  |  | 100.0% |  |  |  | 2,906,857 |  |  |  |  |
PATESA |  |  | 23,933,818 |  |  |  | 100.0% |  |  |  | 7,548,726 |  |  |  |  |
Munirah |  |  | 35,919,476 |  |  |  | 100.0% |  |  |  | 11,329,003 |  |  |  |  |
Brasnorte |  |  | 24,904,755 |  |  |  | 38.7% |  |  |  | 3,037,081 |  |  |  |  |
São Gotardo |  |  | 5,023,232 |  |  |  | 100.0% |  |  |  | 1,584,327 |  |  |  |  |
NTE |  |  | 151,048,516 |  |  |  | 100.0% |  |  |  | 47,640,702 |  |  |  |  |
STE |  |  | 80,334,482 |  |  |  | 100.0% |  |  |  | 25,337,495 |  |  |  |  |
ATEI |  |  | 146,729,702 |  |  |  | 100.0% |  |  |  | 46,278,548 |  |  |  |  |
ATEII |  |  | 226,671,244 |  |  |  | 100.0% |  |  |  | 71,492,110 |  |  |  |  |
ATEIII |  |  | 112,228,974 |  |  |  | 100.0% |  |  |  | 35,397,018 |  |  |  |  |
Mariana ** |  |  | 13,863,000 |  |  |  | 100.0% |  |  |  | 4,372,390 |  |  |  |  |
Miracema ** |  |  | 61,268,000 |  |  |  | 100.0% |  |  |  | 19,323,927 |  |  |  |  |
Janaúba |  |  | 174,624,789 |  |  |  | 100.0% |  |  |  | 55,076,658 |  |  |  |  |
Aimorés |  |  | 71,424,700 |  |  |  | 50.0% |  |  |  | 11,263,675 |  |  |  |  |
TBE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EATE |  |  | 422,269,558 |  |  |  | 50.0% |  |  |  | 66,568,439 |  |  |  |  |
STC |  |  | 41,521,642 |  |  |  | 40.0% |  |  |  | 5,236,683 |  |  |  |  |
Lumitrans |  |  | 26,206,259 |  |  |  | 40.0% |  |  |  | 3,305,016 |  |  |  |  |
ENTE |  |  | 221,643,644 |  |  |  | 50.0% |  |  |  | 34,945,473 |  |  |  |  |
ERTE |  |  | 49,750,421 |  |  |  | 50.0% |  |  |  | 7,843,554 |  |  |  |  |
ETEP |  |  | 96,563,389 |  |  |  | 50.0% |  |  |  | 15,223,312 |  |  |  |  |
ECTE |  |  | 79,722,528 |  |  |  | 19.1% |  |  |  | 4,800,783 |  |  |  |  |
EBTE |  |  | 44,400,267 |  |  |  | 74.5% |  |  |  | 10,431,604 |  |  |  |  |
ESDE |  |  | 12,639,916 |  |  |  | 50.0% |  |  |  | 1,992,695 |  |  |  |  |
ETSE |  |  | 21,581,574 |  |  |  | 19.1% |  |  |  | 1,299,613 |  |  |  |  |
Light |  |  | 8,803,216 |  |  |  | 32.6% |  |  |  | 904,595 |  |  |  |  |
RAP TOTAL CEMIG |  |  |  |  |  |  |  |  |  |  | 1,221,192,595 |  |  |  | 333,870,612 |

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Cemig D Tables (R$ million)

CEMIG D Market |
|  | (GWh) |  |  | GW |
Quarter |  | Captive Consumers |  |  | TUSD ENERGY1 |  |  | T.E.D2 |  |  | TUSD PICK3 |
2Q14 |  |  | 6.646 |  |  |  | 4.485 |  |  |  | 11.132 |  |  |  | 29 |
3Q14 |  |  | 6.686 |  |  |  | 4.298 |  |  |  | 10.984 |  |  |  | 27 |
4Q14 |  |  | 6.935 |  |  |  | 4.201 |  |  |  | 11.136 |  |  |  | 29 |
1Q15 |  |  | 6.722 |  |  |  | 3.857 |  |  |  | 10.579 |  |  |  | 29 |
2Q15 |  |  | 6.410 |  |  |  | 4.012 |  |  |  | 10.422 |  |  |  | 29 |
3Q15 |  |  | 6.471 |  |  |  | 3.865 |  |  |  | 10.336 |  |  |  | 29 |
4Q15 |  |  | 6.850 |  |  |  | 3.937 |  |  |  | 10.787 |  |  |  | 28 |
1Q16 |  |  | 6.408 |  |  |  | 4.053 |  |  |  | 10.460 |  |  |  | 29 |
2Q16 |  |  | 6.711 |  |  |  | 4.497 |  |  |  | 11.208 |  |  |  | 29 |
3Q16 |  |  | 6.365 |  |  |  | 4.424 |  |  |  | 10.788 |  |  |  | 29 |
4Q16 |  |  | 6.402 |  |  |  | 4.409 |  |  |  | 10.811 |  |  |  | 30 |
1Q17 |  |  | 6.249 |  |  |  | 4.274 |  |  |  | 10.523 |  |  |  | 30 |
2Q17 |  |  | 6.314 |  |  |  | 4.287 |  |  |  | 10.601 |  |  |  | 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 w hich the TUSD is invoiced, according to demand contracted (“Portion B”).

Operating Revenues |  | 2Q17 |  |  | 2Q16 |  |  | Change% |  |  | 1H2017 |  |  | 1H2016 |  |  | Change% |
Sales to end consumers |  |  | 4.006 |  |  |  | 4.064 |  |  |  | (1 | ) |  |  | 8.184 |  |  |  | 8.395 |  |  |  | (3 | )
TUSD |  |  | 447 |  |  |  | 436 |  |  |  | 3 |  |  |  | 915 |  |  |  | 853 |  |  |  | 7 |
CVA and Other financial components in tariff adjustment |  |  | (29 | ) |  |  | (531 | ) |  |  | — |  |  |  | (332 | ) |  |  | (664 | ) |  |  | — |
Construction revenue |  |  | 240 |  |  |  | 314 |  |  |  | (24 | ) |  |  | 421 |  |  |  | 533 |  |  |  | (21 | )
Others |  |  | 298 |  |  |  | 280 |  |  |  | 6 |  |  |  | 575 |  |  |  | 579 |  |  |  | — |
Subtotal |  |  | 4.961 |  |  |  | 4.563 |  |  |  | 9 |  |  |  | 9.763 |  |  |  | 9.696 |  |  |  | 1 |
Deductions |  |  | (2.109 | ) |  |  | (2.065 | ) |  |  | 2 |  |  |  | (4.143 | ) |  |  | (4.506 | ) |  |  | (8 | )
Net Revenues |  |  | 2.852 |  |  |  | 2.498 |  |  |  | 14 |  |  |  | 5.620 |  |  |  | 5.190 |  |  |  | 8 |

Operating Expenses |  | 2Q17 |  |  | 2Q16 |  |  | Change% |  |  | 1H2017 |  |  | 1H2016 |  |  | Change% |
Personnel/Administrators/Councillors |  |  | 390 |  |  |  | 300 |  |  |  | 30 |  |  |  | 644 |  |  |  | 588 |  |  |  | 10 |
Employee Participation |  |  | 4 |  |  |  | 10 |  |  |  | (57 | ) |  |  | 18 |  |  |  | 10 |  |  |  | 85 |
Forluz – Post-Retirement Employee Benefits |  |  | 67 |  |  |  | 56 |  |  |  | 20 |  |  |  | 132 |  |  |  | 106 |  |  |  | 24 |
Materials |  |  | 12 |  |  |  | 9 |  |  |  | 30 |  |  |  | 20 |  |  |  | 17 |  |  |  | 15 |
Contracted Services |  |  | 188 |  |  |  | 146 |  |  |  | 29 |  |  |  | 361 |  |  |  | 313 |  |  |  | 15 |
Purchased Energy |  |  | 1.676 |  |  |  | 1.220 |  |  |  | 37 |  |  |  | 3.054 |  |  |  | 2.496 |  |  |  | 22 |
Depreciation and Amortization |  |  | 133 |  |  |  | 122 |  |  |  | 9 |  |  |  | 263 |  |  |  | 244 |  |  |  | 8 |
Operating Provisions |  |  | 156 |  |  |  | 92 |  |  |  | 71 |  |  |  | 293 |  |  |  | 236 |  |  |  | 24 |
Charges for Use of Basic Transmission Network |  |  | 152 |  |  |  | 224 |  |  |  | (32 | ) |  |  | 314 |  |  |  | 437 |  |  |  | (28 | )
Cost from Operation |  |  | 240 |  |  |  | 314 |  |  |  | (24 | ) |  |  | 421 |  |  |  | 533 |  |  |  | (21 | )
Other Expenses |  |  | 70 |  |  |  | 89 |  |  |  | (21 | ) |  |  | 139 |  |  |  | 177 |  |  |  | (21 | )
Total |  |  | 3.088 |  |  |  | 2.580 |  |  |  | 20 |  |  |  | 5.659 |  |  |  | 5.156 |  |  |  | 10 |

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##### Table of Contents

Statement of Results |  | 2Q17 |  |  | 2Q16 |  |  | Change% |  |  | 1H2017 |  |  | 1H2016 |  |  | Change% |
Net Revenue |  |  | 2.852 |  |  |  | 2.498 |  |  |  | 14 |  |  |  | 5.620 |  |  |  | 5.190 |  |  |  | 8 |
Operating Expenses |  |  | 3.088 |  |  |  | 2.580 |  |  |  | 20 |  |  |  | 5.659 |  |  |  | 5.156 |  |  |  | 10 |
EBIT |  |  | (237 | ) |  |  | (82 | ) |  |  | 189 |  |  |  | (40 | ) |  |  | 34 |  |  |  | — |
EBITDA |  |  | (103 | ) |  |  | 40 |  |  |  | — |  |  |  | 223 |  |  |  | 278 |  |  |  | (20 | )
Financial Result |  |  | (115 | ) |  |  | 15 |  |  |  | — |  |  |  | (228 | ) |  |  | (127 | ) |  |  | (80 | )
Provision for Income Taxes, Social Cont & |  |  | 111 |  |  |  | 17 |  |  |  | 573 |  |  |  | 77 |  |  |  | 15 |  |  |  | 402 |
Net Income |  |  | (240 | ) |  |  | (51 | ) |  |  | 373 |  |  |  | (191 | ) |  |  | (78 | ) |  |  | 145 |

Cemig GT tables (R$ million)

Operating Revenues |  | 2Q17 |  |  | 2Q16 |  |  | Change% |  |  | 1H2017 |  |  | 1H2016 |  |  | Change% |
Sales to end consumers |  |  | 1.003 |  |  |  | 875 |  |  |  | 15 |  |  |  | 1.933 |  |  |  | 1.819 |  |  |  | 6 |
Supply |  |  | 760 |  |  |  | 624 |  |  |  | 22 |  |  |  | 1.401 |  |  |  | 1.215 |  |  |  | 15 |
Gain on monetary updating of Concession Grant Fee |  |  | 71 |  |  |  | 68 |  |  |  | 4 |  |  |  | 150 |  |  |  | 149 |  |  |  | 1 |
Transactions in the CCEE |  |  | 192 |  |  |  | 48 |  |  |  | 304 |  |  |  | 412 |  |  |  | 52 |  |  |  | 695 |
Revenues from Trans. Network |  |  | 114 |  |  |  | 98 |  |  |  | 17 |  |  |  | 241 |  |  |  | 192 |  |  |  | 26 |
Construction revenue |  |  | 4 |  |  |  | 25 |  |  |  | (84 | ) |  |  | 7 |  |  |  | 32 |  |  |  | (78 | )
Transmission indemnity revenue |  |  | 204 |  |  |  | 561 |  |  |  | (64 | ) |  |  | 270 |  |  |  | 592 |  |  |  | (54 | )
Others |  |  | 7 |  |  |  | 7 |  |  |  | (2 | ) |  |  | 17 |  |  |  | 14 |  |  |  | 26 |
Subtotal |  |  | 2.356 |  |  |  | 2.305 |  |  |  | 2 |  |  |  | 4.432 |  |  |  | 4.065 |  |  |  | 9 |
Deductions |  |  | (361 | ) |  |  | (359 | ) |  |  | 1 |  |  |  | (763 | ) |  |  | (718 | ) |  |  | 6 |
Net Revenues |  |  | 1.995 |  |  |  | 1.946 |  |  |  | 3 |  |  |  | 3.669 |  |  |  | 3.347 |  |  |  | 10 |

Operating Expenses |  | 2Q17 |  |  | 2Q16 |  |  | Change% |  |  | 1H2017 |  |  | 1H2016 |  |  | Change% |
Personnel/Administrators/Councillors |  |  | 120 |  |  |  | 101 |  |  |  | 19 |  |  |  | 212 |  |  |  | 198 |  |  |  | 7 |
Employees’ and managers’ profit shares |  |  | 1 |  |  |  | 1 |  |  |  | — |  |  |  | 6 |  |  |  | 1 |  |  |  | 9 |
Forluz – Post-Retirement Employee Benefits |  |  | 21 |  |  |  | 19 |  |  |  | 9 |  |  |  | 41 |  |  |  | 36 |  |  |  | 15 |
Materials |  |  | 3 |  |  |  | 5 |  |  |  | (33 | ) |  |  | 6 |  |  |  | 7 |  |  |  | (18 | )
Contracted Services |  |  | 37 |  |  |  | 34 |  |  |  | 8 |  |  |  | 64 |  |  |  | 70 |  |  |  | (9 | )
Depreciation and Amortization |  |  | 45 |  |  |  | 47 |  |  |  | (4 | ) |  |  | 86 |  |  |  | 94 |  |  |  | (8 | )
Operating Reserves |  |  | 6 |  |  |  | 30 |  |  |  | (80 | ) |  |  | 61 |  |  |  | 52 |  |  |  | 19 |
Charges for Use of Basic Transmission Network |  |  | 84 |  |  |  | 74 |  |  |  | 14 |  |  |  | 166 |  |  |  | 148 |  |  |  | 12 |
Purchased Energy |  |  | 981 |  |  |  | 808 |  |  |  | 21 |  |  |  | 1.715 |  |  |  | 1.468 |  |  |  | 17 |
Construction Cost |  |  | 4 |  |  |  | 25 |  |  |  | (84 | ) |  |  | 7 |  |  |  | 32 |  |  |  | (78 | )
Other Expenses |  |  | 8 |  |  |  | 10 |  |  |  | (21 | ) |  |  | 28 |  |  |  | 32 |  |  |  | (14 | )
Total |  |  | 1.310 |  |  |  | 1.154 |  |  |  | 14 |  |  |  | 2.391 |  |  |  | 2.137 |  |  |  | 12 |

Statement of Results |  | 2Q17 |  |  | 2Q16 |  |  | Change% |  |  | 1H2017 |  |  | 1H2016 |  |  | Change% |
Net Revenue |  |  | 1.995 |  |  |  | 1.946 |  |  |  | 3 |  |  |  | 3.669 |  |  |  | 3.347 |  |  |  | 10 |
Operating Expenses |  |  | (1.310 | ) |  |  | (1.154 | ) |  |  | 14 |  |  |  | (2.391 | ) |  |  | (2.137 | ) |  |  | 12 |
EBIT |  |  | 685 |  |  |  | 792 |  |  |  | (14 | ) |  |  | 1.278 |  |  |  | 1.210 |  |  |  | 6 |
Equity equivalence results |  |  | 40 |  |  |  | 19 |  |  |  | 111 |  |  |  | 14 |  |  |  | (131 | ) |  |  | — |
EBITDA |  |  | 769 |  |  |  | 858 |  |  |  | (10 | ) |  |  | 1.379 |  |  |  | 1.173 |  |  |  | 18 |
Financial Result |  |  | (238 | ) |  |  | (279 | ) |  |  | (15 | ) |  |  | (533 | ) |  |  | (569 | ) |  |  | (6 | )
Provision for Income Taxes, Social Cont & Deferred Income Tax |  |  | (141 | ) |  |  | (160 | ) |  |  | (12 | ) |  |  | (229 | ) |  |  | (199 | ) |  |  | 15 |
Net Income |  |  | 346 |  |  |  | 372 |  |  |  | (7 | ) |  |  | 531 |  |  |  | 311 |  |  |  | 71 |

42

##### Table of Contents

Tables – Cemig Consolidated (R$ million)

Energy Sales (Consolidated)(GWh) |  | 2Q17 |  |  | 2Q16 |  |  | Change% |  |  | 1H2017 |  |  | 1H2016 |  |  | Change% |
Residential |  |  | 2.496 |  |  |  | 2.526 |  |  |  | (1 | ) |  |  | 5.033 |  |  |  | 5.017 |  |  |  | — |
Industrial |  |  | 4.451 |  |  |  | 4.672 |  |  |  | (5 | ) |  |  | 8.704 |  |  |  | 9.510 |  |  |  | (8 | )
Commercial |  |  | 1.893 |  |  |  | 1.697 |  |  |  | 12 |  |  |  | 3.805 |  |  |  | 3.385 |  |  |  | 12 |
Rural |  |  | 954 |  |  |  | 960 |  |  |  | (1 | ) |  |  | 1.752 |  |  |  | 1.684 |  |  |  | 4 |
Others |  |  | 892 |  |  |  | 900 |  |  |  | (1 | ) |  |  | 1.752 |  |  |  | 1.737 |  |  |  | 1 |
Subtotal |  |  | 10.685 |  |  |  | 10.755 |  |  |  | (1 | ) |  |  | 21.046 |  |  |  | 21.333 |  |  |  | (1 | )
Own Consumption |  |  | 9 |  |  |  | 10 |  |  |  | (9 | ) |  |  | 18 |  |  |  | 19 |  |  |  | (5 | )
Supply |  |  | 2.846 |  |  |  | 3.110 |  |  |  | (8 | ) |  |  | 5.740 |  |  |  | 5.806 |  |  |  | (1 | )
TOTAL |  |  | 13.540 |  |  |  | 13.874 |  |  |  | (2 | ) |  |  | 26.805 |  |  |  | 27.158 |  |  |  | (1 | )

Energy Sales |  | 2Q17 |  |  | 2Q16 |  |  | D% |  |  | 1H2017 |  |  | 1H2016 |  |  | D% |
Residential |  |  | 1.928 |  |  |  | 1.936 |  |  |  | — |  |  |  | 3.919 |  |  |  | 3.960 |  |  |  | (1 | )
Industrial |  |  | 1.242 |  |  |  | 1.316 |  |  |  | (6 | ) |  |  | 2.424 |  |  |  | 2.663 |  |  |  | (9 | )
Commercial |  |  | 1.096 |  |  |  | 1.122 |  |  |  | (2 | ) |  |  | 2.236 |  |  |  | 2.285 |  |  |  | (2 | )
Rural |  |  | 411 |  |  |  | 356 |  |  |  | 15 |  |  |  | 779 |  |  |  | 679 |  |  |  | 15 |
Others |  |  | 415 |  |  |  | 402 |  |  |  | 3 |  |  |  | 821 |  |  |  | 811 |  |  |  | 1 |
Electricity sold to final consumers |  |  | 5.092 |  |  |  | 5.132 |  |  |  | (1 | ) |  |  | 10.179 |  |  |  | 10.398 |  |  |  | (2 | )
Unbilled Supply, Net |  |  | 278 |  |  |  | (174 | ) |  |  | — |  |  |  | 505 |  |  |  | (77 | ) |  |  | — |
Supply |  |  | 430 |  |  |  | 655 |  |  |  | (34 | ) |  |  | 888 |  |  |  | 1.207 |  |  |  | (26 | )
TOTAL |  |  | 5.801 |  |  |  | 5.613 |  |  |  | 3 |  |  |  | 11.572 |  |  |  | 11.528 |  |  |  | — |

Operating Revenues |  | 2Q17 |  |  | 2Q16 |  |  | D% |  |  | 1H2017 |  |  | 1H2016 |  |  | D% |
Sales to end consumers |  |  | 5.022 |  |  |  | 4.973 |  |  |  | 1 |  |  |  | 10.145 |  |  |  | 10.279 |  |  |  | (1 | )
TUSD |  |  | 437 |  |  |  | 427 |  |  |  | 2 |  |  |  | 900 |  |  |  | 837 |  |  |  | 8 |
Supply |  |  | 779 |  |  |  | 641 |  |  |  | 22 |  |  |  | 1.428 |  |  |  | 1.249 |  |  |  | 14 |
Transactions in the CCEE |  |  | 199 |  |  |  | 49 |  |  |  | 305 |  |  |  | 425 |  |  |  | 52 |  |  |  | 723 |
CVA and Other financial components in tariff adjustment |  |  | (29 | ) |  |  | (531 | ) |  |  | (94 | ) |  |  | (332 | ) |  |  | (664 | ) |  |  | (50 | )
Gain on monetary updating of Concession Grant Fee |  |  | 71 |  |  |  | 68 |  |  |  | 4 |  |  |  | 150 |  |  |  | 149 |  |  |  | 1 |
Revenues from Trans. Network |  |  | 85 |  |  |  | 75 |  |  |  | 14 |  |  |  | 177 |  |  |  | 148 |  |  |  | 20 |
Construction revenue |  |  | 240 |  |  |  | 349 |  |  |  | (31 | ) |  |  | 441 |  |  |  | 584 |  |  |  | (24 | )
Gas supply |  |  | 411 |  |  |  | 319 |  |  |  | 29 |  |  |  | 821 |  |  |  | 697 |  |  |  | 18 |
Transmission Indemnity Revenue |  |  | 204 |  |  |  | 561 |  |  |  | (64 | ) |  |  | 270 |  |  |  | 592 |  |  |  | (54 | )
Others |  |  | 370 |  |  |  | 349 |  |  |  | 6 |  |  |  | 719 |  |  |  | 712 |  |  |  | 1 |
Subtotal |  |  | 7.788 |  |  |  | 7.279 |  |  |  | 7 |  |  |  | 15.145 |  |  |  | 14.635 |  |  |  | 3 |
Deductions |  |  | (2.583 | ) |  |  | (2.521 | ) |  |  | 2 |  |  |  | (5.127 | ) |  |  | (5.424 | ) |  |  | (5 | )
Net Revenues |  |  | 5.205 |  |  |  | 4.758 |  |  |  | 9 |  |  |  | 10.018 |  |  |  | 9.211 |  |  |  | 9 |

Operating Expenses |  | 2Q17 |  |  | 2Q16 |  |  | D% |  |  | 1H2017 |  |  | 1H2016 |  |  | D% |
Personnel/Administrators/Councillors |  |  | 536 |  |  |  | 430 |  |  |  | 25 |  |  |  | 917 |  |  |  | 843 |  |  |  | 9 |
Employee Participation |  |  | 6 |  |  |  | 6 |  |  |  | (3 | ) |  |  | 25 |  |  |  | 6 |  |  |  | 301 |
Forluz – Post-Retirement Employee Benefits |  |  | 97 |  |  |  | 84 |  |  |  | 16 |  |  |  | 192 |  |  |  | 159 |  |  |  | 21 |
Materials |  |  | 16 |  |  |  | 13 |  |  |  | 23 |  |  |  | 27 |  |  |  | 24 |  |  |  | 13 |
Contracted Services |  |  | 238 |  |  |  | 193 |  |  |  | 24 |  |  |  | 447 |  |  |  | 401 |  |  |  | 11 |
Purchased Energy |  |  | 2.649 |  |  |  | 2.025 |  |  |  | 31 |  |  |  | 4.742 |  |  |  | 3.956 |  |  |  | 20 |
Depreciation and Amortization |  |  | 209 |  |  |  | 200 |  |  |  | 5 |  |  |  | 411 |  |  |  | 399 |  |  |  | 3 |
Operating Provisions |  |  | 161 |  |  |  | 482 |  |  |  | (67 | ) |  |  | 370 |  |  |  | 734 |  |  |  | (50 | )
Charges for Use of Basic Transmission Network |  |  | 198 |  |  |  | 267 |  |  |  | (26 | ) |  |  | 404 |  |  |  | 526 |  |  |  | (23 | )
Gas bought for resale |  |  | 263 |  |  |  | 189 |  |  |  | 39 |  |  |  | 485 |  |  |  | 427 |  |  |  | 14 |
Cost from Operation |  |  | 240 |  |  |  | 349 |  |  |  | (31 | ) |  |  | 441 |  |  |  | 584 |  |  |  | (24 | )
Other Expenses |  |  | 91 |  |  |  | 112 |  |  |  | (19 | ) |  |  | 187 |  |  |  | 240 |  |  |  | (22 | )
TOTAL |  |  | 4.705 |  |  |  | 4.349 |  |  |  | 8 |  |  |  | 8.649 |  |  |  | 8.299 |  |  |  | 4 |

43

##### Table of Contents

Financial Result Breakdown |  | 2Q17 |  |  | 2Q16 |  |  | D% |  |  | 1H2017 |  |  | 1H2016 |  |  | D% |
Financial revenues |  |  | 169 |  |  |  | 387 |  |  |  | (56 | ) |  |  | 349 |  |  |  | 604 |  |  |  | (42 | )
Revenue from cash investments |  |  | 61 |  |  |  | 77 |  |  |  | (21 | ) |  |  | 125 |  |  |  | 135 |  |  |  | (7 | )
Arrears penalty payments on electricity bills |  |  | 65 |  |  |  | 69 |  |  |  | (5 | ) |  |  | 138 |  |  |  | 142 |  |  |  | (3 | )
Exchange rate |  |  | 9 |  |  |  | 29 |  |  |  | (68 | ) |  |  | 18 |  |  |  | 44 |  |  |  | (60 | )
Monetary updating |  |  | 19 |  |  |  | 20 |  |  |  | (4 | ) |  |  | 37 |  |  |  | 67 |  |  |  | (45 | )
Monetary updating - CVA |  |  | — |  |  |  | 168 |  |  |  | — |  |  |  | — |  |  |  | 188 |  |  |  | — |
Taxes applied to Financial Revenue |  |  | (11 | ) |  |  | (27 | ) |  |  | (58 | ) |  |  | (22 | ) |  |  | (39 | ) |  |  | — |
Other |  |  | 26 |  |  |  | 52 |  |  |  | (49 | ) |  |  | 53 |  |  |  | 67 |  |  |  | (20 | )
Financial expenses |  |  | (511 | ) |  |  | (602 | ) |  |  | (15 | ) |  |  | (1.083 | ) |  |  | (1.234 | ) |  |  | (12 | )
Costs of loans and financings |  |  | (396 | ) |  |  | (479 | ) |  |  | (17 | ) |  |  | (858 | ) |  |  | (908 | ) |  |  | (6 | )
Exchange rate |  |  | (19 | ) |  |  | (0 | ) |  |  | 34.987 |  |  |  | (19 | ) |  |  | (17 | ) |  |  | 8 |
Monetary updating – loans and financings |  |  | (26 | ) |  |  | (69 | ) |  |  | (63 | ) |  |  | (69 | ) |  |  | (185 | ) |  |  | (63 | )
Monetary updating – paid concessions |  |  | 1 |  |  |  | (1 | ) |  |  | — |  |  |  | 1 |  |  |  | (3 | ) |  |  | (127 | )
Charges and monetary updating on Post-employment obligations |  |  | (17 | ) |  |  | (27 | ) |  |  | (38 | ) |  |  | (36 | ) |  |  | (64 | ) |  |  | (44 | )
Other |  |  | (55 | ) |  |  | (26 | ) |  |  | 112 |  |  |  | (103 | ) |  |  | (56 | ) |  |  | 82 |
Financial revenue (expenses) |  |  | (342 | ) |  |  | (216 | ) |  |  | 58 |  |  |  | (734 | ) |  |  | (630 | ) |  |  | 17 |

Statement of Results |  | 2Q17 |  |  | 2Q16 |  |  | D% |  |  | 1H2017 |  |  | 1H2016 |  |  | D% |
Net Revenue |  |  | 5.205 |  |  |  | 4.758 |  |  |  | 9 |  |  |  | 10.018 |  |  |  | 9.211 |  |  |  | 9 |
Operating Expenses |  |  | 4.705 |  |  |  | 4.349 |  |  |  | 8 |  |  |  | 8.649 |  |  |  | 8.299 |  |  |  | 4 |
EBIT |  |  | 500 |  |  |  | 408 |  |  |  | 22 |  |  |  | 1.369 |  |  |  | 913 |  |  |  | 50 |
Equity gain in subsidiaries |  |  | 30 |  |  |  | 72 |  |  |  | (58 | ) |  |  | 60 |  |  |  | 14 |  |  |  | 328 |
Depreciation and Amortization |  |  | 209 |  |  |  | 200 |  |  |  | 5 |  |  |  | 411 |  |  |  | 399 |  |  |  | 3 |
EBITDA |  |  | 740 |  |  |  | 681 |  |  |  | 9 |  |  |  | 1.840 |  |  |  | 1.326 |  |  |  | 39 |
Financial Result |  |  | (342 | ) |  |  | (215 | ) |  |  | (59 | ) |  |  | (734 | ) |  |  | (630 | ) |  |  | (17 | )
Tax |  |  | (51 | ) |  |  | (63 | ) |  |  | (20 | ) |  |  | (214 | ) |  |  | (89 | ) |  |  | 139 |
Net Income |  |  | 138 |  |  |  | 202 |  |  |  | (32 | ) |  |  | 481 |  |  |  | 207 |  |  |  | 132 |

Cash Flow Statement |  | 1H2017 |  |  | 1H2016 |  |  | Change% |
Cash at beginning of period |  |  | 995 |  |  |  | 925 |  |  |  | 8 |
Cash generated by operations |  |  | 1.923 |  |  |  | 113 |  |  |  | 1.607 |
Net profit |  |  | 481 |  |  |  | 207 |  |  |  | 132 |
Current and deferred income tax and Social Contribution tax |  |  | 214 |  |  |  | 89 |  |  |  | 139 |
Depreciation and amortization |  |  | 411 |  |  |  | 399 |  |  |  | 3 |
Passthrough from CDE |  |  | 477 |  |  |  | 1.005 |  |  |  | (53 | )
Equity gain (loss) in subsidiaries |  |  | (60 | ) |  |  | (14 | ) |  |  | (328 | )
Provisions (reversals) for operational losses |  |  | 370 |  |  |  | 734 |  |  |  | (50 | )
Dividends received from equity holdings |  |  | 157 |  |  |  | 345 |  |  |  | (54 | )
Interest paid on loans and financings |  |  | (711 | ) |  |  | (1.085 | ) |  |  | (34 | )
Other adjustments |  |  | 584 |  |  |  | (1.568 | ) |  |  | — |
Financing activities |  |  | (1.066 | ) |  |  | 95 |  |  |  | 1.217 |
Financings obtained and capital increase |  |  | 60 |  |  |  | 2.252 |  |  |  | (97 | )
Interest on Equity, and dividends |  |  | (271 | ) |  |  | (111 | ) |  |  | 143 |
Payments of loans and financings |  |  | (855 | ) |  |  | (2.045 | ) |  |  | (58 | )
Investment activity |  |  | (906 | ) |  |  | 368 |  |  |  | (346 | )
Securities - Financial Investment |  |  | (104 | ) |  |  | 1.524 |  |  |  | (346 | )
Acquisition of ownership interest and future capital commitments |  |  | (186 | ) |  |  | (643 | ) |  |  | (71 | )
Financial assets |  |  | (156 | ) |  |  | — |  |  |  | — |
Fixed and Intangible assets |  |  | (460 | ) |  |  | (513 | ) |  |  | (10 | )
Cash at end of period |  |  | 946 |  |  |  | 1.500 |  |  |  | (37 | )
Total Cash |  |  | 2.062 |  |  |  | 2.040 |  |  |  |  |

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BALANCE SHEETS (CONSOLIDATED) - ASSETS |  | 06/30/2017 |  |  | 12/31/2016 |
CURRENT |  |  | 7.875 |  |  |  | 8.285 |
Cash and cash equivalents |  |  | 946 |  |  |  | 995 |
Securities |  |  | 1.101 |  |  |  | 1.014 |
Consumers and traders |  |  | 3.502 |  |  |  | 3.425 |
Financial assets of the concession |  |  | 389 |  |  |  | 730 |
Tax offsetable |  |  | 224 |  |  |  | 236 |
Income tax and Social Contribution tax recoverable |  |  | 506 |  |  |  | 590 |
Dividends receivable |  |  | 30 |  |  |  | 11 |
Linked funds |  |  | 388 |  |  |  | — |
Inventories |  |  | 48 |  |  |  | 49 |
Passthrough from CDE (Energy Development Account) |  |  | 73 |  |  |  | 64 |
Other credits |  |  | 667 |  |  |  | 803 |
NON-CURRENT |  |  | 34.041 |  |  |  | 33.750 |
Securities |  |  | 15 |  |  |  | 31 |
Consumers and traders |  |  | 145 |  |  |  | 146 |
Tax offsetable |  |  | 190 |  |  |  | 178 |
Income tax and Social Contribution tax recoverable |  |  | 67 |  |  |  | 112 |
Deferred income tax and Social Contribution tax |  |  | 1.950 |  |  |  | 1.797 |
Escrow deposits in legal actions |  |  | 1.924 |  |  |  | 1.887 |
Other credits |  |  | 1.903 |  |  |  | 1.279 |
Financial assets of the concession |  |  | 5.363 |  |  |  | 4.971 |
Investments |  |  | 8.723 |  |  |  | 8.753 |
PP&E |  |  | 2.823 |  |  |  | 3.775 |
Intangible assets |  |  | 10.939 |  |  |  | 10.820 |
TOTAL ASSETS |  |  | 41.916 |  |  |  | 42.036 |

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BALANCE SHEETS LIABILITIES AND SHAREHOLDERS’ EQUITY |  | 06/30/2017 |  |  | 12/31/2016 |
CURRENT |  |  | 11.778 |  |  |  | 11.447 |
Suppliers |  |  | 1.916 |  |  |  | 1.940 |
Regulatory charges |  |  | 335 |  |  |  | 381 |
Profit shares |  |  | 28 |  |  |  | 18 |
Taxes |  |  | 570 |  |  |  | 794 |
Income tax and Social Contribution tax |  |  | 97 |  |  |  | 27 |
Interest on Equity, and dividends, payable |  |  | 199 |  |  |  | 467 |
Loans and financings |  |  | 5.193 |  |  |  | 4.837 |
Payroll and related charges |  |  | 234 |  |  |  | 225 |
Post-retirement liabilities |  |  | 233 |  |  |  | 199 |
Other obligations |  |  | 1.816 |  |  |  | 1.412 |
Provisions for losses on investments |  |  | 1.158 |  |  |  | 1.150 |
NON-CURRENT |  |  | 16.768 |  |  |  | 17.654 |
Regulatory charges |  |  | 516 |  |  |  | 455 |
Loans and financings |  |  | 9.414 |  |  |  | 10.342 |
Taxes |  |  | 722 |  |  |  | 724 |
Income tax and Social Contribution tax |  |  | 651 |  |  |  | 582 |
Provisions |  |  | 949 |  |  |  | 815 |
Post-retirement liabilities |  |  | 4.102 |  |  |  | 4.043 |
Provisions for losses on investments |  |  | 233 |  |  |  | 192 |
Other obligations |  |  | 180 |  |  |  | 502 |
STOCKHOLDERS’ EQUITY |  |  | 13.367 |  |  |  | 12.930 |
Share capital |  |  | 6.294 |  |  |  | 6.294 |
Capital reserves |  |  | 1.925 |  |  |  | 1.925 |
Profit reserves |  |  | 5.202 |  |  |  | 5.200 |
Adjustments to Stockholders’ equity |  |  | (533 | ) |  |  | (488 | )
Retained earnings |  |  | 479 |  |  |  | — |
NON- CONTROLLING STOCKHOLDER´S EQUITY |  |  | 4 |  |  |  | 4 |
TOTAL LIABILITIES |  |  | 41.916 |  |  |  | 42.036 |

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6. PRESENTATION EARNINGS RELEASE RESULTS FOR THE 2ND QUARTER OF 2017 DATED AUGUST 16, 2017

47

##### Table of Contents

RESULTS
2nd Quarter 2017

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##### Table of Contents

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, and market conditions in the electricity sector; and on our expectations for future results, many of which are not under our control.
Important factors that could lead to significant differences between actual results and the projections about future events or results include our business strategy, Brazilian and international economic conditions, technology, our 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. Because of these and other factors, our real 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 our professionals nor any of their related parties or representatives shall have any liability for any losses that may result from the use of the content of this presentation.
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.
In this material, financial amounts are in R$ million (R$ mn) unless otherwise stated.
Financial data reflect the adoption of IFRS.

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##### Table of Contents

4,758
5,205
9.4%
202
138
680
739
2Q16 2Q17 2Q16 2Q17 2Q16 2Q17
•
CVA contributed to increased revenue (+)
•
Provisions for losses on investment lower year-on-year – positive effect (+)
•
Total power supplied (wholesale + retail), to all consumers in the year 2.4% lower YoY
•
Equity gain in investees weaker than in 2Q16 (R$ 30mn this year, R$ 72mn in 2Q16) (–)
•
Financial expenses have negative effect (–)
• Monetary variation on CVA: R$ 22 million negative in 2Q17, R$ 167 million positive in 2Q16
•
Provision for labor-law litigation increases expenses by R$ 125mn.

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##### Table of Contents

Volume sold – GWh
–2.4%
4,758
5,205
2Q16
2Q17
9.4%
13,874
13,540
30
221
196
6
8
263
30/06/2016
Residential
Industrial
Commercial
Rural
Others
Wholesale
30/06/2017
•
CVA year-on-year comparison – component in revenue R$ 502mn higher
•
Revenue from transactions in CCEE R$ 144mn higher
•
Transmission indemnity revenue R$ 355mn lower in 2Q17 • – was R$ 561mn in 2Q16
•
Revenue from supply of gas R$ 92mn higher

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##### Table of Contents

4,349
4,705
8.2%
2Q16
2Q17
•
Cost of power supply purchased R$ 625mn higher
•
New voluntary retirement scheme for 2017: in 2Q17, 891 employees accepted.
– Expense of R$ 165mn recognized, R$ 64mn in 2Q16; savings of R$ 175mn expected in 2018.
•
Provisions for losses on investments:
•
Parati – balance R$ 1.158 billion. In 2Q17; reversal of R$ 8mn, compares with R$ 355mn in 2Q16.
•
SAAG – balance is R$ 238 million. In 2Q17, reversal of R$ 5mn; compares with R$ 17mn in 2Q16.
Change in consolidated operational expenses, 2Q16–2Q17
106
13
3
45
625
10
-320
-69
74
-108
-21

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Maturities timetable – Average tenor: 2.4 years
Total net debt: R$ 12.5 billion
Reduced by R$ 473 million in the quarter
Debt paid after June R$ 777mn
3.907
1.856
1.813
1.610
583
229
478
2017 2018 2019 2020 2021 2022 2023 After 2023
.
Each 1 p.p. reduction in Selic rate estimated to reduce debt cost by R$ 125mn
.
Financial expenses are already lower due to reduction in the Selic rate
Cost of debt – %
15,67
15,82
15,89
15,95
14,28
12,03
11,74
8,40
8,29
6,90
5,03
5,33
3,74
8,97
2014
2015
Jun.16
Sep.15
2016
Mar.17
Jun.17
Real
Nominal
Main indexors
2%
71%
27%
CDI
IPCA
Other
Leverage – %
5,26
4,53
4,98
4,21
3,98
2,40
Net debt
Ebitda
50,4
48,4
2015
Jun.16
Sep.16
2016
Mar.17
Jun.17
Net Debt
Stockholders’ equity + Net debt

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1.945
1.995
858
769
–10.4%
372
346
2Q16
2Q17
2Q16
2Q17
2Q16
2Q17
•
Revenue from transactions in the CCEE R$ 144mn higher
• Higher average Spot Price1 : R$ 302/MWh in 2Q17 vs. R$ 62/MWh in 2Q16
•
Transmission indemnity revenue of R$ 204mn recognized in 2Q17 (R$ 149mn of this was for consent by Aneel to adjust BRR). Compares to R$ 561mn in 2Q16.
•
New voluntary retirement scheme for 2017: in 2Q17, 174 employees accepted.
• Expense of R$ 38mn recognized, R$ 16mn in 2Q16
1 – Spot Price – Average values for Southeast and Center–West Regions.

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Maturities timetable – Average tenor: 2.1 years
Main indexors
Total net debt: R$ 7.2 billion
1%
Reduced by R$ 363 million in the quarter
Debt paid after June R$777mn
2.741
CDI
2.068
IPCA
1.054
1.039
882
331
OTHERS
8
20
2017
2018
2019
2020
2021
2022
2023
After 2023
Restrictive covenants
For details see Note 18 (Loans, financings and debentures)
Cost of debt – %
Leverage – %
16,03
16,11
15,15
15,41
5,60
4,51
4,53
14,41
3,26
3,13
12,11
12,07
1,30
62,9
8,59
8,46
6,64
5,37
5,22
9,85
3,66
2014
2015
Jun.16
Sep.16
2016
Mar.17
Jun.17
Nominal
Real
2015
Jun.16
Sep.17
2016
Mar.17
Jun.17

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##### Table of Contents

2.498
2.851
40
–103
–51
–240
14.1%
2Q16
2Q17
•
CVA contributes R$ 502mn to increase in revenue:
• R$ 29mn realized in 2Q17, vs. R$ 531mn realized in 2Q16
•
Cost of power supply purchased R$ 456mn higher
•
Consumption in Cemig D’s concession area:
•
Volume distributed: 5.5% lower
•
Captive market: 6.1% lower
•
Transported: 4.7% lower
•
Complementary downward adjustment of R$ 214 million for realization of CVA
•
Provision for labor-law litigation increased expenses by R$ 97mn.
•
Retirement program: joined by 705 employees, expense of R$ 123mn recognized, R$ 44mn in 2Q16

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Maturities timetable – Average tenor: 2.8 years
Main indexors
Total net debt: R$ 5.2 billion
1%
Reduced by R$ 206 million in the quarter
1.668
CDI
1.382
932
IPCA
728
501
458
222
221
Others
2017
2018
2019
2020
2021
2022
2023
2024 em diante
Cost of debt – %
Leverage – %
16,45
16,46
15,87
15,95
12,55
13,78
10,39
14,31
6,1
6,17
6,59
11,47
10,97
70,4
69,3
8,06
8,04
7,12
5,55
4,79
8,95
4,01
2014
2015
Jun.16
Sep.16
2016
Mar.17
Jun.17
2015
Jun.16
Sep.16
2016
Mar.17
Jun.17
Nominal
Real

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##### Table of Contents

Cash generated by operations R$ 1,923
Financing –R$ 1,066
Investment –R$ 906
995
946
2062
481
370
477
595
795
271
281
186
439
1.116
1H17 profit
Provisions
CVA + other components
Other
Loans and debentures
Interest on Equity + dividends
Cash investments
Investments
Intangible + other
Initial cash 31/12/2016
Cash at 30/6/2017
Securities
Total position

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Investor relations
Tel: +55 (31) 3506-5024
ri@cemig.com.br
http://ri.cemig.com.br

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7. SUMMARY OF MINUTES OF THE 702ND MEETING OF THE BOARD OF DIRECTORS HELD ON AUGUST 22, 2017

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

BOARD OF DIRECTORS

Meeting of August 22, 2017

SUMMARY OF PRINCIPAL DECISIONS

At its 702nd meeting, held on August 22, 2017, the Board of Directors of Cemig (Companhia Energética de Minas Gerais) decided the following:

• |  | Nomination of managers for posts on the Boards of Directors of Light, Light Energia and Light SESA;

• |  | orientation of vote of the representative of Cemig at the EGM that decides on changes to the Board of Directors.

Av. Barbacena 1200 |  | Santo Agostinho |  | 30190-131 Belo Horizonte, MG |  | 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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8. SUMMARY OF MINUTES OF THE 703RD MEETING OF THE BOARD OF DIRECTORS HELD ON AUGUST 23, 2017

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

BOARD OF DIRECTORS

Meeting of August 23, 2017

SUMMARY OF PRINCIPAL DECISIONS

At its 703rd meeting, held on August 23, 2017, the Board of Directors of Cemig (Companhia Energética de Minas Gerais) decided the following:

• |  | Orientation of vote by the members of the Board of Directors nominated by Cemig in Light S.A., directly and through Rio Minas Energia Participações S.A. and Luce Empreendimentos e Participações S.A., in relation to the sale by Renova Energia S.A. to Engie Brasil Energias Complementares Ltda. of the Projects of the Umburanas Wind Farm Complex.

Av. Barbacena 1200 |  | Santo Agostinho |  | 30190-131 Belo Horizonte, MG |  | 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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9. MATERIAL ANNOUNCEMENT DATED AUGUST 23, 2017: RENOVA: COMPLETION OF CONTRACT FOR SALE OF UMBURANAS PROJECTS

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

MATERIAL ANNOUNCEMENT

Renova: Completion of contract for sale of Umburanas Projects

Cemig (Companhia Energética de Minas Gerais), a listed company with securities traded on the stock exchanges of São Paulo, New York and Madrid, as per CVM Instruction 358 of January 3, 2002, as amended, hereby reports to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (BM&F Bovespa S.A.) and the market as follows:

Today Cemig’s affiliated company Renova Energia S.A. (‘Renova’) published the following Material Announcement:

“Complementing the Material Announcement published on August 8, 2017, Renova Energia S.A. (RNEW11) (‘the Company’ or ‘Renova’), in compliance with CVM Instruction 358/2002 as amended, hereby informs its stockholders and the market in general as follows:

Today Renova and Engie Brasil Energia S.A. (‘Engie’) (through its subsidiary Engie Brasil Energias Complementares Participações Ltda.) signed a Contract for Assignment of Rights and Obligations relating to the Umburanas wind farm complex.

The base price of the transaction is R$ 15 million (fifteen million Reais), subject to adjustments if certain conditions precedent of the transaction are met (‘the Transaction’).

The scope of the Transaction covers assignment of the rights to the following projects:

(i) | The ‘Umburanas I Project’, established by the 2013 A–5 LEN (‘New-build’) Auction, with installed capacity of 355.5MW. This was later decontracted under the MCSD A4+ offsetting scheme, as disclosed by the Company in the Material Announcement dated May 19, 2017.

(ii) | The ‘Umburanas II Project’, under the 2014 A–5 LEN Auction, with installed capacity of 108.9MW.

(iii) | The ‘Umburanas III Project’, referring to the remaining wind generation potential held by Renova in the region of Umburanas.

As well as the benefit in terms of liquidity in the short term, this transaction meets two more of Renova’s medium and long-term strategic objectives that add significant value to the Company:

• |  | Reduction of need for capex in the medium term: The sale of the Umburanas II project, which contracted supply in the 2014 LEN Auction (108.9MW) to start in January 2019, reduces the need for disbursement of capital expenditure in the next 18 months.

• |  | Reduction of trading exposure: The scope of the Transaction also includes assignment of the Free Market PPAs, with total contracted level of 165.2 MW average, reducing the exposure arising from these contracts as from July 1, 2019.

The Transaction is subject to certain conditions precedent specified in the Contract, including approval by regulatory bodies.

Renova informs the market that the Transaction does not in any way adversely affect the negotiations currently in progress with Brookfield Energia Renovável, of which Renova informed the market in a Market Announcement on July 4, 2017 and a Material Announcement on July 17, 2017.”

Belo Horizonte, August 23, 2017

Adézio de Almeida Lima

Chief Finance and Investor Relations Officer

Av. Barbacena 1200 |  | Santo Agostinho |  | 30190-131 Belo Horizonte, MG |  | 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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10. MATERIAL ANNOUNCEMENT DATED AUGUST 28, 2017: DATA ROOM OPENED FOR POTENTIAL INVESTORS IN LIGHT

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

MATERIAL ANNOUNCEMENT

Data Room opened for potential investors in Light

Cemig (Companhia Energética de Minas Gerais), a listed company with securities traded on the stock exchanges of São Paulo, New York and Madrid, as per CVM Instruction 358 of January 3, 2002, as amended, hereby informs the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (BM&F Bovespa S.A.) and the market as follows:

In continuation of the information given in Material Announcements published on June 21 and July 14, 2017 – on the decision by Cemig to begin, jointly with Rio Minas Energia Participações S.A. (‘RME’) and Luce Empreendimentos e Participações S.A. (‘Lepsa’), the process of disposal of the totality of their holdings in the equity of Light S.A. (‘Light’); and the Material Announcement published on July 12, 2017 – on the start of meetings with investors potentially interested in taking part in this process of disposal, Cemig reports that:

On today’\s date the Data Room with information on the Light group of companies was opened, to assist potential investors in preparation of non-binding proposals.

To be given access to the documents available in the Data Room, each of the investors has individually signed a Confidentiality Agreement.

It is expected that the Data Room will be available for a period of 30 days.

This Material Announcement is part of the Company’s commitment to keep the market updated on the progress of its Disinvestment Program, as announced in its Material Announcement of June 1 of this year, updated on July 7.

Belo Horizonte, August 28, 2017

Adézio de Almeida Lima

Chief Finance and Investor Relations Officer

Av. Barbacena 1200 |  | Santo Agostinho |  | 30190-131 Belo Horizonte, MG |  | 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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11. MARKET ANNOUNCEMENT DATED AUGUST 28, 2017: RENOVA DECONTRACTS 99.75 MWP OF SOLAR SUPPLY

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

MATERIAL ANNOUNCEMENT

Renova decontracts 99.75 MWp of solar supply

Cemig (Companhia Energética de Minas Gerais), a listed company with securities traded on the stock exchanges of São Paulo, New York and Madrid, as per CVM Instruction 358 of January 3, 2002, as amended, hereby informs the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (BM&F Bovespa S.A.) and the market as follows:

Today Cemig’s affiliated company Renova Energia S.A. (‘Renova’) published the following Material Announcement:

“Renova Energia S.A. (RNEW11) (‘Renova’), in compliance with CVM Instruction 358/2002 as amended, hereby informs its stockholders and the market in general as follows:

Today, under the Reserve Power Decontracting Mechanism (‘the Mechanism’), Renova has decontracted commitments for solar supply made in the Reserve Auction (Leilão de Energia de Reserva, or ‘LER’) of 2014.

The contract was for four wind farm complexes with aggregate installed capacity of 99.75 MWp, for physical offtake guarantee of 21.8MW average, to be supplied at the price of R$ 220.30 per MWh (in October 2014 currency). In accordance with the rules of the tender offer as published by Aneel, the commitment was decontracted in consideration of payment of R$ 7.9 million.

Under the terms of the tender, following this decontracting Renova may not now take part in any future Reserve Power Supply (‘LER’) auctions.

This transactipon reduces the need for investment in the medium term, and also mitigates the potential financial and regulatory risks arising from the delay in delivery of the plants.”

Belo Horizonte, August 28, 2017.

Adézio de Almeida Lima

Chief Finance and Investor Relations Officer

Av. Barbacena 1200 |  | Santo Agostinho |  | 30190-131 Belo Horizonte, MG |  | 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