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28. EQUITY AND REMUNERATION TO SHAREHOLDERS (Tables)
 12 Months Ended
Dec. 31, 2019
Statement of changes in equity [abstract]  
Schedule of share capital for common shares and preferred shares

As of December 31, 2019, the Company’s issued and share capital is R$7,294 (R$7,294 at December 31, 2018 and 2017), represented by 487,614,213 common shares (487,614,213 at December 31, 2018) and 971,138,388 preferred shares (971,138,388 at December 31, 2018), both of them with nominal value of R$5.00 (five Reais), as follows:

 

                                               
    Number of shares on December 31, 2019  
Shareholders    Common          %           Preferred          %          Total           %    
State of Minas Gerais    248,516,953       51       11,323       –         248,528,276       17  
Other entities of Minas Gerais State    19,896       –         1,411,276       –         1,431,172       –    
FIA Dinâmica Energia S.A.    48,700,000       10       55,133,744       6       103,833,744       7  
BNDES Participações    54,342,992       11       26,220,938       3       80,563,930       6  
Others                                               
In Brazil    101,170,317       21       328,982,856       34       430,153,173       29  
Foreign shareholders    34,864,055       7       559,378,251       57       594,242,306       41  
Total    487,614,213       100       971,138,388       100       1,458,752,601       100  
                                               
    Number of shares on December 31, 2018  
Shareholders    Common        %        Preferred        %        Total        %   
State of Minas Gerais    248,480,146       51       –         –         248,480,146       17  
Other entities of Minas Gerais State    56,703       –         647,647       –         704,35        –    
FIA Dinâmica Energia S.A.    48,200,000       10       55,905,344       6       104,105,344       7  
BNDES Participações    54,342,992       11       26,220,938       3       80,563,930       5  
Others                                               
In Brazil    105,402,202       22       370,338,947       38       475,741,149       33  
Foreign shareholders    31,132,170       6       518,025,512       53       549,157,682       38  
Total    487,614,213       100       971,138,388       100       1,458,752,601       100  
                                               
    Number of shares on December 31, 2017  
Shareholders    Common        %        Preferred        %        Total        %   
State of Minas Gerais    214,414,739       51       –         –         214,414,739       17  
Other entities of Minas Gerais State    56,703       –         4,860,228       1       4,916,931       1  
FIA Dinâmica Energia S.A.    41,635,754       10       62,469,590       7       104,105,344       8  
BNDES    54,342,992       13       26,220,938       3       80,563,930       6  
Others                                               
In Brazil    56,000,217       13       210,953,069       25       266,953,286       21  
Foreign shareholders    54,314,303       13       533,573,121       64       587,887,424       47  
Total    420,764,708       100       838,076,946       100       1,258,841,654       100  
                                               
Schedule of shares used in calculation of basic profit and diluted profit per share
                     
Number of shares    2019          2018           2017   
Common shares already paid up    487,614,213       487,614,213       420,764,708  
Common shares to be paid up    –         –         66,849,505  
Shares in treasury    (69 )     (69 )     (69 )
    487,614,144       487,614,144       487,614,144  
Preferred shares already paid up    971,138,388       971,138,388       838,076,946  
Preferred shares to be paid up    –         –         133,061,442  
Shares in treasury    (560,649 )     (560,649 )     (560,649 )
    970,577,739       970,577,739       970,577,739  
Total    1,458,191,883       1,458,191,883       1,458,191,883  
                       
Schedule of calculation of basic earnings per share

The calculation of basic and diluted earnings per share is as follows:

 

                       
    2019          2018          2017    
Net income for the year attributed to equity holders of the parent    3,127       1,700       1,001  
Minimum mandatory dividend from net income for the year - preferred shares    509       577       486  
Net income for the year not distributed - preferred shares    1,573       554       333  
Total earnings - preferred shares (A)    2,082       1,131       819  
Minimum mandatory dividend from net income for the year - common shares    255       290       15  
Net income for the year not distributed - common shares    790       279       167  
Total earnings - common shares (B)    1,045       569       182  
Basic and diluted earnings per preferred share (A / number of preferred shares)    2.14       1.17       0.84  
Basic and diluted earnings per common share (B / number of common shares)    2.14       1.17       0.37  

 

                       
    2019          2018          2017    
Net income for the year from continuing operations attributed to equity holders of the parent    2,903       1,378       1,001  
Minimum mandatory dividend from net income for the year from continuing operations – preferred shares    509       527       486  
Net income for the year from continuing operations not distributed – preferred shares    1,424       390       333  
Total earnings from continuing operations - preferred shares (A.1)    1,933       917       819  
Minimum mandatory dividend from net income for the year from continuing operations - common shares    255       290       15  
Net income for the year from continuing operations not distributed – common shares    715       171       167  
Total earnings from continuing operations - common shares (B.1)    970       461       182  
Basic and diluted earnings from continuing operations per preferred share (A.1 / number of preferred shares)    1.99       0.95       0.84  
Basic and diluted earnings from continuing operations per common share (B.1 / number of common shares)    1.99       0.95       0.37  
Schedule of capital reserves and profit reserves

Capital reserves

 

                       
    2019         2018          2017    
Investment-related donations and subsidies    1,857       1,857       1,857  
Goodwill on issuance of shares    394       394       69  
Shares in treasury    (1 )     (1 )     (1 )
    2,250       2,250       1,925  
                       

 

Profit reserves

 

                       
    2019         2018         2017   
Legal reserve    853       853       853  
Statutory reserve    57       57       57  
Retained earnings reserve    5,500       3,965       3,341  
Unrealized profit reserve    835       –         –    
Incentive tax reserve    85       67       58  
Reserve for mandatory dividends not distributed    1,420       1,420       1,420  
    8,750       6,362       5,729  
                       

 
Schedule of detailed information regarding calculation of retained earnings reserve

The calculation of the retained earnings reserve is as follows:

 

                       
    2019       2018       2017  
Net income for the year    3,127       1,700       1,001  
Expired dividends    –           42          –      
Incentives tax reserve    (18 )     (9 )     (1 )
Deemed cost realization    25       42       28  
Adjustment for initial adoption of IFRS 9 and IFRS 15.    –         (157 )     –    
Dividends proposed    (764 )     (867 )     (500 )
Unrealized profit reserve    (835 )     –         –    
Retained earnings reserve    1,535       751       528  
                       
Schedule of unrealized profit reserve

Thus, since the mandatory dividends if distributed in their totality represents 50% of net income and an amount of R$1,564 and considering the expectations of realized profit for the year, as stated above, Management proposed the constitution of unrealized profit reserve in the amount of R$835, whose calculation is described as follows.

 

       
    2019     
Minimum mandatory dividend required by Bylaws (50% of net income)    1,564  
Minimum mandatory dividend required by the Bylaws for the preferred shares    (486 )
Minimum mandatory dividend proposed for the common shares   (243 )
Unrealized profit reserve    835  
       
Schedule of reserve for obligatory dividends not distributed

Reserve for mandatory dividends not distributed

 

    2019    
Dividends withheld, arising from the net income of 2015    623  
Dividends withheld, arising from the net income of 2014    797  
    1,420  
        
Schedule of dividends proposed for distribution to shareholders based on the profit for the business year

The calculation of the minimum dividends proposed for distribution to Shareholders, considering the 2019 unrealized profit assumption mentioned in the previous paragraphs, is as follows:

 

                       
    2019           2018           2017     
Calculation of Minimum Dividends required by the By-laws for the preferred shares                       
Nominal value of the preferred shares    4,856       4,856       4,191  
Nominal value of the preferred shares to be capitalized    –         –         665  
    4,856       4,856       4,856  
Percentage applied to the nominal value of the preferred shares    10.00 %     10.00 %     10.00 %
Amount of the dividends by the first payment criterion    486       486       486  
Equity    15,887       14,579       14,326  
Preferred shares as a percentage of Equity (net of shares held in Treasury)    66.56 %     66.56 %     66.58 %
Portion of Equity represented by the preferred shares    10,574       9,704       9,538  
Percentage applied to the portion of Equity represented by the preferred shares    3.00 %     3.00 %     3.00 %
Amount of the dividends by the second payment criterion    317       291       286  
Minimum Dividends required by the Bylaws for the preferred shares    486       486       486  
Calculation of the Minimum Dividend under the by-laws based on the net income for the period                       
Mandatory dividend                       
Net income for the year    3,127       1,700       1,001  
Mandatory dividends – 50% of Net income    1,564       850       500  
Unrealized profit reserve    (835 )                
Withholding income tax on Interest on equity    35       17       –    
    764       867       500  
Dividends recorded, as specified in the by-laws                       
Interest on Equity    400       210       -  
Ordinary dividends    364       657       500  
    764       867       500  
Total dividends for the preferred shares    509       577       486  
Total dividends for the common shares    255       290       14  
Unit value of dividends – R$                       
Minimum dividends required by the by-laws for the preferred shares    0.50       0.50       0.50  
Mandatory dividends (including withholding income tax on Interest on Equity)    0.52       0.59       0.34  
Dividends proposed: Common (ON) shares    0.52       0.59       0.03  
Dividends proposed: Preferred (PN) shares    0.52       0.59       0.50  
Schedule of dividends and interest on capital payable

This table provides the changes on dividends and interest on capital payable:

 

         
Balances at December 31, 2017   428  
Proposed dividends and interest on equity   867  
Withholding income tax on interest on capital   (17 )
Dividends proposed for non-controlling shareholder   127  
Proposed dividends of previous years   (42 )
Expired dividends   (8 )
Dividends retained – Minas Gerais state government   (491 )
Balances at December 31, 2018    864  
Proposed dividends    764  
Withholding income tax on interest on capital   (35 )
Dividends retained – Minas Gerais state government (Note 13)    (148 )
Dividends paid    (701 )
Balances at December 31, 2019    744  
       
Schedule of changes in the equity held by non-controlling shareholders

The changes in the equity held by non-controlling shareholders are shown below:

 

                                                       
Investee   Gasmig           Light S.A           LightGer           Guanhães           Axxion            UHE
Itaocara 		          Total    
Balances at Dec. 31, 2017    4       –         –         –         –         –         4  
Net profit attributed to non-controlling shareholders    1       41       –         –         –         –         42  
Non-controlling interests arising from business combination    –         1,236       22       50       4       3       1,315  
Others    (1 )     –         –         –         –         –         (1 )
Balances at Dec. 31, 2018    4       1,277       22       50       4       3       1,360  
Net profit attributed to non-controlling shareholders    1       –         –         –         –         –         1  
Capital Increase to non-controlling shareholders    –         –         –         10       –         –         10  
Proposed dividends to non-controlling shareholders    (1 )     –         –         –         –         –         (1 )
Derecognition of the non-controlling interests in Light (Note 34)    –         (1,277 )     (22 )     (60 )     (4 )     (3 )     (1,366 )
Balances at Dec. 31, 2019    4       –         –         –         –         –         4  
                                                       
Schedule of net profit allocated to non-controlling interests

Net profit allocated to non-controlling interests:

 

                 
Company   2019          2018   
Gasmig      1       1  
Total      1       1