6-K 1 cemig20200513_6k.htm FORM 6-K

FORM 6-K

securities and exchange commission
washington, d.c. 20549

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

For the month of May 2020

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 X 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 X

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

Index

Item |  | Description of Items
1. |  | Material Announcement Dated March 13, 2020: Taesa has reviewed its projections for the Capex and the RAP.
2. |  | Material Announcement Dated March 16, 2020: Renova receives binding offer for Phase A of Alto Sertão III Wind Complex.
3. |  | Earnings Release - 4Q 2019 Results.
4. |  | Presentation of 2019 Results.
5. |  | Material Announcement Dated March 20, 2020: Renova accepts binding offer – with 30 days exclusivity for completion of documents.

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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
| By: | /s/ Leonardo George de Magalhães.
|  | Name: Leonardo George de Magalhães
|  | Title: Chief Finance and Investor Relations Officer

Date: May 14, 2020

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1. Material Announcement Dated March 13, 2020: Taesa has reviewed its projections for the Capex and the RAP.

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

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

MATERIAL ANNOUNCEMENT

Taesa has reviewed its projections for the Capex and the RAP

Cemig (Companhia Energética de Minas Gerais, listed and traded in São Paulo, New York and Madrid), in accordance with CVM Instruction 358 of Jan. 3, 2002 as amended, hereby reports to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (B3) and the market as follows:

Cemig’s affiliated company Transmissora Aliança de Energia Elétrica S.A. (‘Taesa’) has today published the following Material Announcement:

“Transmissora Aliança de Energia Elétrica S.A. (B3: TAEE11) (“Taesa” or “Company”), pursuant to CVM Instruction 358 of January 03, 2002, as amended, and CVM Instruction 480 of December 07, 2009, as amended, hereby communicates to its shareholders, the market in general, and other stakeholders that, in accordance with the best corporate governance practices, it has reviewed its projections for the Nominal Capex and the incremental in the Annual Permitted Revenues (RAP) of the projects under construction wholly owned by the Company.

The total nominal Capex for these projects made in 2019 was R$ 314.0 million, a reduction of 23.4% compared to the minimum projection disclosed. This difference is basically explained by: (i) Janaúba: postponement to 2020 of part of the payment of conductor cables and withholding of payments related to services carried out in 2019 due to technical pending issues; (ii) Mariana: reduction of activities in Mariana as a result of heavy rainfalls in the state of Minas Gerais; (iii) Sant’Ana: postponement of payment of land indemnities; and (iv) Miracema: Capex savings. It is important to highlight that these factors do not compromise the expected completion of Janaúba and Sant’Ana projects. With regard to Mariana, the specific construction period provided for in the schedule of the concession contract will be met.

2019 Projected | 2019 Actual
(R$ million) | (R$ million)
Max. 450 Min. 410 | 314

Based on the foregoing, the Company revised its nominal Capex projections for the projects under construction wholly owned by Taesa for 2020, since the investments not made in 2019 were transferred to the current year. It should be noted that the nominal Capex projections for years 2021 and 2022 remain unchanged.

Previous projections of nominal Capex (in R$ million):

2019 | 2020 | 2021 | 2022
Max. 450 | Max. 1,020 | Max. 340 | Max. 20
Min. 410 | Min. 940 | Min. 310 | Min. 15

Updated projections of nominal Capex (in R$ million):

2019 (Actual) | 2020 | 2021 | 2022
314 | Max. 1,130 Min. 1,040 | Max. 340 Min. 310 | Max. 20 Min. 15

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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The projections referring to the Incremental in Annual Permitted Revenues (RAP) after the start-up of each of the projects wholly owned by Taesa are as follows:

2020 | 2021 | 2022 | TOTAL
78 | 186 | 107 | 372

The values projected in this table consider the current RAP cycle (2019-2020) and are presented in real terms (not adjusted for inflation)

Such projections will be updated in section 11 of the Company’s Reference Form and will be available on the CVM website at http://www.cvm.gov.br/ and on the Company’s website at http://ri.taesa.com.br/, within the legal time frame.

We stress that the projections presented herein reflect Company management’s current estimates or expectations only, which are subject to risks and uncertainties, and in no way constitute a promise of performance. The information on business outlooks, projections and financial targets are mere forecasts, based on Management’s current expectations regarding the future of the Company and its subsidiaries. These expectations depend on market conditions and on the performance and execution capacity of EPC contractors, as well as the Brazilian economic scenario. Any change in perception or in the factors described above may cause the actual results to differ from the projections presented herein.”

Belo Horizonte, March 13, 2020

Maurício Fernandes Leonardo Júnior
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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2. Material Announcement Dated March 16, 2020: Renova receives binding offer for Phase A of Alto Sertão III Wind Complex.

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG
LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

MATERIAL ANNOUNCEMENT

Renova receives binding offer for Phase A of
Alto Sertão III Wind Complex

Cemig (Companhia Energética de Minas Gerais, listed in São Paulo, New York and Madrid), in compliance with CVM Instruction 358 of January 3, 2002 as amended, hereby reports to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (B3) and the market as follows:

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

“ | Renova Energia S.A., in Judicial Recovery (RNEW3; RNEW 4; RNEW11) (‘Renova’), in accordance with CVM Instruction 358/2002 as amended, hereby informs its stockholders and the market in general as follows: Renova has received from Castlelake, L.P., on behalf of one or more funds which it manages, jointly with Vientos Agrícolas Intermediação de Negócios e Participações S.A., an investment entity of one or more funds managed by Castlelake L.P., a binding proposal (‘the Offer’) for acquisition of the total equity in the special-purpose companies that comprise Phase A of the Alto Sertão III complex of wind farms (‘the Potential Transaction’). The Potential Transaction is subject to negotiation of the definitive final documents and obtaining of the necessary approvals for its conclusion. The Company’s management has not yet considered the Offer, and, as alternatives, is studying other possibilities for resolving matters of its capital structure. The Company reiterates its commitment to keeping stockholders and the market in general fully and timely informed in accordance with the applicable legislation. ”

Belo Horizonte, March 16, 2020

Maurício Fernandes Leonardo Júnior
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. Earnings Release - 4Q 2019 Results.

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4Q 2019 RESULTS

CEMIG REPORTS

4Q19 EBITDA OF R$ 993 MILLION

Highlights of 4Q19:

| ◾ | Continuing improvement in Cemig D’s results in 4Q19.
|  | o | 4Q19 net profit: | R$ 393 million, vs. R$ 189mn in 4Q18
|  | o | 2019 net profit: | R$ 1.64 billion (all-time record)
| ◾ | Total energy distributed practically flat in 4Q:
|  | o | From 4Q18 to 4Q19: | down 0.12%
|  | o | From 2018 to 2019: | up 0.88%
| ◾ | Non-recurring expenses in Cemig GT
|  | o | R$ 71.7 million write-off for Igarapé thermal plant
|  | o | R$ 32.1 million in obligations under investment contract (Aliança)
|  | o | R$ 21.7 mn impairment at Volta do Rio wind farm.

Indicators (GWh) |  | 4Q19 |  |  |  | 4Q18 |  |  |  | % |  |  |  | 2019 |  |  |  | 2018 |  |  |  | % |
Electricity sold (excl. CCEE) – GWh |  | 14,202 |  |  |  | 14,340 |  |  |  | -0.97 |  |  |  | 55,045 |  |  |  | 55,555 |  |  |  | -0.92 |
Total energy carried |  | 4,783 |  |  |  | 4,906 |  |  |  | -2.50 |  |  |  | 19,351 |  |  |  | 19,286 |  |  |  | 0.34 |

Indicators (R$ ’000) |  | 4Q19 |  |  |  | 4Q18 |  |  |  | % |  |  |  | 2019 |  |  |  | 2018 |  |  |  | % |
Sales on CCEE |  | 24,746 |  |  |  | 28,095 |  |  |  | -11.92 |  |  |  | 431,994 |  |  |  | 217,218 |  |  |  | 98.88 |
Net debt |  | 13,486,593 |  |  |  | 13,068,690 |  |  |  | 3.20 |  |  |  | 13,486,593 |  |  |  | 13,068,690 |  |  |  | 3.20 |
Gross revenue |  | 9,518,421 |  |  |  | 8,966,628 |  |  |  | 6.15 |  |  |  | 37,726,177 |  |  |  | 34,577,851 |  |  |  | 9.11 |
Net revenue |  | 6,389,549 |  |  |  | 5,471,966 |  |  |  | 16.77 |  |  |  | 25,390,306 |  |  |  | 22,266,217 |  |  |  | 14.03 |
Ebitda (IFRS) |  | 993,364 |  |  |  | 988,646 |  |  |  | 0.48 |  |  |  | 4,376,087 |  |  |  | 3,780,925 |  |  |  | 15.74 |
Net profit |  | 497,534 |  |  |  | 1,002,368 |  |  |  | -50.36 |  |  |  | 3,127,398 |  |  |  | 1,700,099 |  |  |  | 83.95 |
Ebitda margin |  | 15.55 | % |  |  | 18.07 | % |  |  | -2,52p.p. |  |  |  | 17.24 | % |  |  | 16.98 | % |  |  | +0,25p.p. |

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Conference call

Publication of 4Q19 results

Webcast and Conference call

This Friday, March 20, 2020, at 11:00 a.m. (Brasília time)

The transmission will have simultaneous translation in English: See it in webcast, at http://ri.cemig.com.br, or take part by conference call via:

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

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

Password: CEMIG

Playback of Video Webcast: 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 03/20 to 04/03/2020

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
|  | Maurício Fernandes Leonardo Júnior
| ◾ | General Manager, Investor Relations
|  | Antônio Carlos Vélez Braga

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Summary |
CONFERENCE CALL | 2
CEMIG INVESTOR RELATIONS | 2
CEMIG’S EXECUTIVE INVESTOR RELATIONS TEAM | 2
SUMMARY | 3
DISCLAIMER | 4
OUR SHARES | 5
CEMIG’S LONG-TERM RATINGS | 6
ADOPTION OF IFRS | 7
PROFIT AND LOSS ACCOUNTS | 7
4Q19 RESULTS | 9
CEMIG’S CONSOLIDATED ELECTRICITY MARKET | 9
THE ELECTRICITY MARKET OF CEMIG D | 11
PHYSICAL TOTALS OF TRANSPORT AND DISTRIBUTION – MWH | 13
THE ELECTRICITY MARKET OF CEMIG GT | 13
SUPPLY QUALITY INDICATORS – DECI AND FECI | 14
CONSOLIDATED OPERATIONAL REVENUE | 15
TAXES AND CHARGES REPORTED AS DEDUCTIONS FROM REVENUE | 18
OPERATIONAL COSTS AND EXPENSES | 19
DEFAULT | 22
SHARE OF PROFIT (LOSS) OF ASSOCIATES AND JOINT VENTURES, NET | 24
FINANCIAL REVENUE AND EXPENSES | 25
EBITDA | 26
DEBT | 27
COVENANTS – EUROBONDS | 29
RESULTS SEPARATED BY BUSINESS SEGMENT – 2019 AND Q4 | 30
APPENDICES | 31
INVESTMENTS / CAPEX – PLANNED AND REALIZED | 31
SOURCES AND USES OF SUPPLY – BILLED MARKET | 32
LOSSES | 33
GENERATION PLANTS | 34
RAP (PERMITTED ANNUAL REVENUE – TRANSMISSION) – 2019-20 CYCLE | 35
CEMIG D TABLES (R$ MILLION) | 36
CEMIG GT TABLES (R$ MILLION) | 37
TABLES – CEMIG CONSOLIDATED (R$ MILLION) | 37

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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 US Securities and Exchange Commission (SEC).

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Our shares

Security / index | Ticker |  | Currency |  | Close of 2019 |  |  |  | Close of 2018 |  |  |  | Change in the period % |
Cemig PN | CMIG4 |  | R$ |  | 13.79 |  |  |  | 13.16 |  |  |  | 4.79 | %
Cemig ON | CMIG3 |  | R$ |  | 15.59 |  |  |  | 14.39 |  |  |  | 8.35 | %
ADR PN | CIG |  | US$ |  | 3.34 |  |  |  | 3.38 |  |  |  | -1.14 | %
ADR ON | CIG.C |  | US$ |  | 3.90 |  |  |  | 3.76 |  |  |  | 3.72 | %
Ibovespa | IBOV |  | – |  | 115,645 |  |  |  | 87,887 |  |  |  | 31.58 | %
Power industry index | IEEX |  | – |  | 76,627 |  |  |  | 49,266 |  |  |  | 55.54 | %

Source: Economática – Adjusted for corporate action, including dividends.

Trading volume in Cemig’s preferred shares (CMIG4) in 2019 was R$ 33.75 billion, of which R$ 6.14 billion was traded in the fourth quarter, corresponding to a daily average of R$ 100.63 million - 51.29% higher than in 4Q18 (R$ 206.61 mn). Trading volume in Cemig’s common shares in 4Q19 was R$ 6.49 bn, with average daily trading volume of R$ 22.61 mn. Cemig’s shares, by volume (aggregate of common (ON) and preferred (PN) shares), were the second most liquid in Brazil’s electricity sector in the period, and among the most traded in the whole Brazilian equity market.

On the New York Stock Exchange the volume traded in ADRs for Cemig’s preferred shares (CIG) in full-year 2019 was US$ 3.19 billion: we see this as reflecting recognition by the investor market of Cemig as a global investment option.

The São Paulo stock exchange Ibovespa index rose 31.58% in the year, closing on December 31 at 115,645 points. Cemig’s shares also rose in the year: the common (ON) shares rose 8.35%, and the preferred (PN) shares rose 4.79%. In New York the ADRs for Cemig’s preferred shares were down 1.17% in the year, and the ADRs for the common shares were up 3.72%.

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Cemig’s long-term ratings

This table shows long-term credit risk ratings and outlook for the Company as provided by the principal rating agencies:

Brazilian rating:

| Cemig |  | Cemig D |  | Cemig GT
Agency | Rating |  | Outlook |  | Rating |  | Outlook |  | Rating |  | Outlook
Fitch | A+(bra) |  | Stable |  | A+(bra) |  | Stable |  | A+(bra) |  | Stable
S&P | brA+ |  | Stable |  | brA+ |  | Stable |  | brA+ |  | Stable
Moody’s | Baa1.br |  | Positive |  | Baa1.br |  | Positive |  | Baa1.br |  | Positive

Global rating:

| Cemig |  | Cemig D |  | Cemig GT
Agency | Rating |  | Outlook |  | Rating |  | Outlook |  | Rating |  | Outlook
Fitch | BB– |  | Stable |  | BB– |  | Stable |  | BB– |  | Stable
S&P | B |  | Stable |  | B |  | Stable |  | B |  | Stable
Moody’s | B1 |  | Positive |  | B1 |  | Positive |  | B1 |  | Positive

Ratings of Eurobonds:

|  | Cemig |  | Cemig GT
Agency |  | Rating |  | Outlook |  | Rating |  | Outlook
Fitch |  | BB– |  | Stable |  | BB– |  | Stable
S&P |  | B |  | Stable |  | B |  | Stable

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Adoption of IFRS

The results presented below are prepared in accordance with Brazilian accounting rules, which now embody harmonization to IFRS (International Financial Reporting Standards) – and are expressed in thousands of Reais (R$ ’000) unless otherwise stated.

PROFIT AND LOSS ACCOUNTS

Consolidated – R$ ’000 |  | 4Q19 |  |  |  | 4Q18 |  |  |  | % |
GOING CONCERN OPERATIONS |  |  |  |  |  |  |  |  |  |  |
REVENUE |  | 6,389,549 |  |  |  | 5,471,966 |  |  |  | 16.77 |
OPERATING COSTS |  |  |  |  |  |  |  |  |  |  |
People |  | 290,096 |  |  |  | 422,110 |  |  |  | -31.27 |
Employees’ and managers’ profit shares |  | 103,065 |  |  |  | 53,940 |  |  |  | 91.07 |
Post-retirement obligations |  | 104,368 |  |  |  | 86,677 |  |  |  | 20.41 |
Materials |  | 30,432 |  |  |  | 29,997 |  |  |  | 1.45 |
Outsourced services |  | 344,605 |  |  |  | 334,574 |  |  |  | 3.00 |
Electricity purchased for resale |  | 3,131,866 |  |  |  | 2,508,133 |  |  |  | 24.87 |
Depreciation and amortization |  | 234,912 |  |  |  | 215,489 |  |  |  | 9.01 |
Operating provisions |  | 125,684 |  |  |  | 64,650 |  |  |  | 94.41 |
Charges for use of the national grid |  | 348,891 |  |  |  | 338,511 |  |  |  | 3.07 |
Gas bought for resale |  | 335,426 |  |  |  | 340,182 |  |  |  | -1.40 |
Infrastructure construction costs |  | 392,970 |  |  |  | 305,284 |  |  |  | 28.72 |
Other operating expenses, net |  | 310,520 |  |  |  | 140,460 |  |  |  | 121.07 |
TOTAL COST |  | 5,752,835 |  |  |  | 4,840,007 |  |  |  | 18.86 |
Gross Profit |  | 636,714 |  |  |  | 631,959 |  |  |  | 0.75 |
Share of profit (loss) in associates and joint ventures |  | -35,929 |  |  |  | -27,563 |  |  |  | 30.35 |
Dividends declared by investee classified as held for sale |  | 72,738 |  |  |  | 0 |  |  |  | — |
Restatement of prior equity holding in the subsidiaries acquired |  | 0 |  |  |  | -119,117 |  |  |  | -100.00 |
Adjustment for impairment of Investments |  | 0 |  |  |  | -127,427 |  |  |  | -100.00 |
Operational profit before financial revenue (expenses) and taxes |  | 673,523 |  |  |  | 357,852 |  |  |  | 88.21 |
Finance income |  | -35,113 |  |  |  | 854,217 |  |  |  | -104.11 |
Finance expenses |  | -177,846 |  |  |  | -185,369 |  |  |  | -4.06 |
Pre-tax profit |  | 460,564 |  |  |  | 1,026,700 |  |  |  | -55.14 |
Current income tax and Social Contribution tax |  | -145,687 |  |  |  | -204,042 |  |  |  | -28.60 |
Deferred income tax and Social Contribution tax |  | 182,805 |  |  |  | -106,968 |  |  |  | -270.90 |
PROFIT (LOSS) FOR THE PERIOD FROM GOING CONCERN OPERATIONS |  | 497,682 |  |  |  | 715,690 |  |  |  | -30.46 |
Profit for the period from discontinued operations |  | 0 |  |  |  | 327,774 |  |  |  | -100.00 |
NET PROFIT (LOSS) FOR THE PERIOD |  | 497,682 |  |  |  | 1,043,464 |  |  |  | -52.30 |
Net profit for the period attributable to equity holders of the parent |  | 497,534 |  |  |  | 1,002,368 |  |  |  | -50.36 |
Net profit for the period attributable to non-controlling interests |  | 148 |  |  |  | 41,096 |  |  |  | -99.64 |

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4Q19 RESULTS

Unless otherwise stated, all figures are expressed in thousands of Reais (R$ ’000).

For 4Q19, Cemig reports net profit of R$ 497,534, which compares with net profit of R$ 1,002,368 in 4Q18.

Leading factors in the fourth quarter result were:

| ◾ | Continuing improvement in the results of Cemig D (Distribution) in 4Q19, with profit of R$ 392,747 , compared to R$ 188,771 in 4Q18.
| ◾ | Profit in Cemig GT of R$ 43,317 in 4Q19, vs. R$ 585,546 in 4Q18. Net profit of Cemig GT was impacted by 3 factors:

|  | (i) | deactivation of the Igarapé thermal plant, recognized in Other expenses at R$ 71,764;
|  | (ii) | the agreement relating to a contingency in A liança – the joint venture of Cemig and Vale – contributing an expense of R$ 32,088; and
|  | (iii) | an impairment, of R$ 21,684, in the Volta do Rio wind farm company (Central Eólica Volta do Rio).

Particular factors in the result for the year-ago quarter – 4Q18 – were:

| ◾ | A foreign exchange variation gain of R$ 199,104 related to the debt in dollars (Eurobonds), and recognition of gains totaling R$ 570,454 arising from a related hedge transaction – both in Cemig GT.
| ◾ | A gross gain of R$ 378,316, on sales of telecom assets, in 4Q18.

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, Sá Carvalho, Cemig PCH, Rosal Energia, CE Praias de Parajuru, CE Volta do Rio, Cemig Geração Camargos, Cemig Geração Itutinga, Cemig Geração Salto Grande, Cemig Geração Três Marias, Cemig Geração Leste, Cemig Geração Oeste, and Cemig Geração Sul.

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These companies sell 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 4Q19 the Cemig group sold a total volume of 14,201,727 MWh, or 0.97% less than in 4Q18.

Sales of electricity to final consumers, plus Cemig’s own consumption, totaled 11,233,589 MWh, or 1.0% less than in 2018. Sales to distributors, traders, other generating companies and independent power producers in 2019 were 2,968,138 MWh, or 7.9% less than in 2018.

In December 2019 the Cemig Group invoiced 8,537,540 clients – a growth of 1.5% in the consumer base since the end of December 2018.

The chart below itemizes the Cemig Group’s sales to final consumers in the year, by consumer category:

Total consumption of electricity (GWh)

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The electricity market of Cemig D

Electricity billed to captive clients and electricity transported for Free Clients and distributors with access to Cemig D’s networks in 2019 totaled 11,299,265 MWh, or 0.12% less than in 2018. This result is a composition of lower use of the network by Free Clients – a reduction of 2.50%; and an increase, of 1.69%, in consumption by the captive market.

Captive clients + Transmission service (MWh)

Captive clients |  | 4Q19 |  |  |  | 4Q18 |  |  |  | % |  |  |  | 2019 |  |  |  | 2018 |  |  |  | % |
+ Transmission service (MWh) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | 2,688,730 |  |  |  | 2,618,259 |  |  |  | 2.69 |  |  |  | 10,538,342 |  |  |  | 10,266,434 |  |  |  | 2.65 |
Industrial |  | 4,887,100 |  |  |  | 5,198,468 |  |  |  | -5.99 |  |  |  | 20,071,529 |  |  |  | 20,381,534 |  |  |  | -1.52 |
Commercial, Services and Others |  | 1,711,403 |  |  |  | 1,650,362 |  |  |  | 3.70 |  |  |  | 6,521,907 |  |  |  | 6,358,255 |  |  |  | 2.57 |
Rural |  | 968,650 |  |  |  | 840,779 |  |  |  | 15.21 |  |  |  | 3,806,696 |  |  |  | 3,627,418 |  |  |  | 4.94 |
Public authorities |  | 244,113 |  |  |  | 229,774 |  |  |  | 6.24 |  |  |  | 904,879 |  |  |  | 871,325 |  |  |  | 3.85 |
Public lighting |  | 322,883 |  |  |  | 345,642 |  |  |  | -6.58 |  |  |  | 1,357,293 |  |  |  | 1,383,878 |  |  |  | -1.92 |
Public services |  | 377,339 |  |  |  | 338,329 |  |  |  | 11.53 |  |  |  | 1,371,992 |  |  |  | 1,315,479 |  |  |  | 4.30 |
Concession holders (Distributors) |  | 89,462 |  |  |  | 82,944 |  |  |  | 7.86 |  |  |  | 340,490 |  |  |  | 311,146 |  |  |  | 9.43 |
Own consumption |  | 9,585 |  |  |  | 8,161 |  |  |  | 17.45 |  |  |  | 37,827 |  |  |  | 41,244 |  |  |  | -8.28 |
Total |  | 11,299,265 |  |  |  | 11,312,718 |  |  |  | -0.12 |  |  |  | 44,950,955 |  |  |  | 44,556,713 |  |  |  | 0.88 |

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Residential

Residential consumption, which was 23.8% of the energy distributed by Cemig D in 4Q19, was 2.69% higher in 4Q19 than in 4Q18. This increase is mainly related to the inclusion (connection to the network) of a total of 149,331 new consumer units.

Industrial

Consumption by industrial clients in the captive market was negatively affected by reclassification of approximately 50% of the consumers in the industrial class to commercial and residential, and also by migration of clients to the Free Market. As a result it was 19.98% lower year-on-year, at 548,412 MWh in 4Q19, compared to 685,336 MWh in 4Q18.

In the Free Market, energy transported was 3.87% lower YoY at 4,338,688 MWh in 4Q19, compared to 4,513,132 MWh in 4Q18.

Commercial and Services

Energy distributed to commercial consumers was 3.70% higher than in 4Q18, reflecting the significant increase in consumption by the Free Market, and migration of clients from the captive market.

Volume was up 1.30% year-on-year in the captive market, but up 14.21% YoY in the Free Market.

Rural

Rural users consumed 15.21% more electricity in 4Q19 than in 4Q18 – mainly reflecting an increase in average consumption, despite the number of consumers billed being 9.22% lower than in 2018.

Number of clients

The Cemig group billed a total of 8,536,325 customers in December 2019 (excluding the group’s own consumption). Of this total, 1,441 were Free Clients that use Cemig D’s distribution network.

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|  | Number of clients |  |  |
Cemig D |  | Dec. 31, 2019 |  |  |  | Dec. 31, 2018 |  |  |  | Change, % |
Residential |  | 6,966,696 |  |  |  | 6,817,365 |  |  |  | 2.19 | %
Industrial |  | 29,875 |  |  |  | 72,341 |  |  |  | -58.70 | %
Commercial, Services and Others |  | 805,811 |  |  |  | 720,535 |  |  |  | 11.84 | %
Rural |  | 647,064 |  |  |  | 712,792 |  |  |  | -9.22 | %
Public authorities |  | 66,855 |  |  |  | 64,322 |  |  |  | 3.94 | %
Public lighting |  | 6,677 |  |  |  | 6,418 |  |  |  | 4.04 | %
Public services |  | 11,906 |  |  |  | 13,431 |  |  |  | -11.35 | %
|  | 8,534,884 |  |  |  | 8,407,204 |  |  |  | 1.52 | %
Total energy carried |  |  |  |  |  |  |  |  |  |  |
Industrial |  | 707 |  |  |  | 574 |  |  |  | 23.17 | %
Commercial |  | 724 |  |  |  | 555 |  |  |  | 30.45 | %
Rural |  | 7 |  |  |  | 6 |  |  |  | 16.67 | %
Concession holders |  | 3 |  |  |  | 3 |  |  |  | 0.00 | %
|  | 1,441 |  |  |  | 1,138 |  |  |  | 26.63 | %
Total |  | 8,536,325 |  |  |  | 8,408,342 |  |  |  | 1.52 | %

Physical totals of transport and distribution – MWh

Metered market |  |  |  |  |  |  |  |  |  | Change, |
| MWh |  |  |  | 4Q18–4Q19 |
| 4Q19 |  |  |  | 4Q18 |  |  |  | % |
Total energy carried |  |  |  |  |  |  |  |  |  |  |
Transported for distributors (metered) |  | 84,851 |  |  |  | 78,888 |  |  |  | 7.56 |
Transported for Free Clients (metered) |  | 4,735,353 |  |  |  | 4,910,682 |  |  |  | -3.57 |
Own load + Distributed generation (1)(2) |  | 8,295,057 |  |  |  | 7,902,244 |  |  |  | 4.97 |
Consumption by captive market – Billed supply |  | 6,515,789 |  |  |  | 6,406,350 |  |  |  | 1.71 |
Losses in distribution network |  | 1,779,268 |  |  |  | 1,495,894 |  |  |  | 18.94 |
Total energy carried |  | 13,115,261 |  |  |  | 12,891,814 |  |  |  | 1.73 |

(1) | Includes Distributed Microgeneration.
(2) | Includes own consumption.

The electricity market of Cemig GT

Cemig GT billed a total of 7,720,172 MWh in 4Q19, 3.11% less than in 4Q18.

Consumption by industrial clients was 9.22% lower in 4Q19 than 4Q18. Meanwhile, consumption in the commercial market segment was 43.14% higher year-on-year, due to an increasing number of clients migrating from the captive market to the free market. From December 2018 to the end of December 2019, Cemig GT added 177 new commercial clients. Sales of energy in the Regulated Market were 11.40% lower,

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reflecting termination of sale contracts from the 15th Auction for Supply from Existing Plant.

Cemig GT |  | (MWh) |  |  |  | Change, |
| 4Q19 |  |  |  | 4Q18 |  |  |  | % |
Free Clients |  |  |  |  |  |  |  |  |  |  |
Industrial |  | 3,512,239 |  |  |  | 3,869,146 |  |  |  | -9.22 |
Commercial |  | 1,204,286 |  |  |  | 841,320 |  |  |  | 43.14 |
Rural |  | 1,275 |  |  |  | 548 |  |  |  | 132.71 |
Free Market – Free contracts |  | 2,448,556 |  |  |  | 2,636,610 |  |  |  | -7.13 |
Regulated Market |  | 519,582 |  |  |  | 586,404 |  |  |  | -11.40 |
Regulated Market – Cemig D |  | 34,235 |  |  |  | 34,259 |  |  |  | -0.07 |
Total |  | 7,720,172 |  |  |  | 7,968,286 |  |  |  | -3.11 |

SUPPLY QUALITY INDICATORS – DECi and FECi

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

The charts below show Cemig’s indicators for duration and frequency of outages –DECi (Average Outage Duration per Consumer, in hours), and FECi (Average Outage Frequency per Consumer, in number of outages), since January 2016.

These quality indicators are linked to the current concession contract of Cemig D (Distribution), signed in 2015

Note: Figures for 2016 and 2017 are according to recalculation presented by the Company to Aneel.

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Consolidated operational revenue

Revenue from supply of electricity:

Total revenue from supply of electricity in 4Q19 was R$ 7,123,326, or 6.2% more than in 4Q18 (R$ 6,708,348).

|  | MWh (1) |  |  |  | R$ ’000 |  |  |  | Average price invoiced – R$/MWh |
|  | 4Q19 |  |  |  | 4Q18 |  |  |  | Change %, 4Q18 – 4Q19 |  |  |  | 4Q19 |  |  |  | 4Q18 |  |  |  | Change %, 4Q18 – 4Q19 |  |  |  | 4Q19 |  |  |  | 4Q18 |
Residential |  | 2,688,731 |  |  |  | 2,618,259 |  |  |  | 2.69 |  |  |  | 2,544,329 |  |  |  | 2,389,729 |  |  |  | 6.47 |  |  |  | 946.29 |  |  |  | 912.72 |
Industrial |  | 4,060,651 |  |  |  | 4,554,482 |  |  |  | -10.84 |  |  |  | 1,224,965 |  |  |  | 1,304,031 |  |  |  | -6.06 |  |  |  | 301.67 |  |  |  | 286.32 |
Commercial, services and others |  | 2,565,435 |  |  |  | 2,185,009 |  |  |  | 17.41 |  |  |  | 1,481,986 |  |  |  | 1,302,171 |  |  |  | 13.81 |  |  |  | 577.67 |  |  |  | 595.96 |
Rural |  | 964,853 |  |  |  | 837,708 |  |  |  | 15.18 |  |  |  | 546,908 |  |  |  | 467,888 |  |  |  | 16.89 |  |  |  | 566.83 |  |  |  | 558.53 |
Public authorities |  | 244,113 |  |  |  | 229,774 |  |  |  | 6.24 |  |  |  | 183,471 |  |  |  | 165,394 |  |  |  | 10.93 |  |  |  | 751.58 |  |  |  | 719.81 |
Public lighting |  | 322,883 |  |  |  | 345,642 |  |  |  | -6.58 |  |  |  | 155,323 |  |  |  | 160,847 |  |  |  | -3.43 |  |  |  | 481.05 |  |  |  | 465.36 |
Public services |  | 377,339 |  |  |  | 338,328 |  |  |  | 11.53 |  |  |  | 196,033 |  |  |  | 183,230 |  |  |  | 6.99 |  |  |  | 519.51 |  |  |  | 541.58 |
Subtotal |  | 11,224,005 |  |  |  | 11,109,202 |  |  |  | 1.03 |  |  |  | 6,333,015 |  |  |  | 5,973,290 |  |  |  | 6.02 |  |  |  | 564.24 |  |  |  | 537.69 |
Own consumption |  | 9,585 |  |  |  | 8161 |  |  |  | 17.45 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Unbilled retail supply, net |  | 0 |  |  |  | 0 |  |  |  | — |  |  |  | 133,930 |  |  |  | -38,852 |  |  |  | -309.58 |  |  |  | — |  |  |  | — |
|  | 11,233,590 |  |  |  | 11,117,363 |  |  |  | 1.05 |  |  |  | 6,414,441 |  |  |  | 5,934,438 |  |  |  | 8 .09 |  |  |  | 571.01 |  |  |  | 533 .80 |
Other concession holders – Wholesale supply |  | 2,968,138 |  |  |  | 3,223,014 |  |  |  | -7.91 |  |  |  | 728,424 |  |  |  | 749,547 |  |  |  | -2.82 |  |  |  | 245.41 |  |  |  | 232.56 |
Wholesale supply not yet invoiced, net |  | 0 |  |  |  | 0 |  |  |  | — |  |  |  | -19,539 |  |  |  | 24,363 |  |  |  | -180.2 |  |  |  | — |  |  |  | — |
Total |  | 14,201,728 |  |  |  | 14,340,377 |  |  |  | -0 .97 |  |  |  | 7,123,326 |  |  |  | 6,708,348 |  |  |  | 6 .19 |  |  |  | 501.58 |  |  |  | 467 .79 |

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

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Final consumers

Total revenue from electricity sold to final consumers, excluding Cemig’s own consumption, in 4Q19 was R$ 6,333,015, or 6.02% more than in 4Q18 (R$ 5,973,290). The main factors in this revenue were:

| ◾ | The annual tariff adjustment for Cemig D effective on May 28, 2019, with an average upward effect of 8.73% on consumer tariffs.
| ◾ | Higher volume of energy sold to the commercial user category by Cemig GT and its wholly-owned subsidiaries.

Revenue from Use of Distribution Systems (TUSD charge)

This revenue in 4Q19 was R$ 745,540, or 19.40% higher than in 4Q18 (R$ 624,641), mainly reflecting the Company’s annual tariff adjustment, as from May 28, 2019, the average impact of which for Free Clients was an increase of 17.28%.

CVA and Other financial components in tariff adjustment

In its financial statements 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 for decision on the rates charged to consumers. A gain of R$ 12,869 was posted in 4Q19, compared to a gain of R$ 189,274 for 4Q18. This mainly reflects the lower costs of energy in comparison to the amounts for which the tariff provided coverage in 4Q19, compared to the prior year.

Changes in balances of financial assets and liabilities:

|  | R$ ’000 |
Balance at September 30, 2018 |  | 1,204,748 |
Net constitution of financial assets |  | 229,676 |
Realized |  | -40,402 |
Others – R&D Reimbursement |  | 0 |
Payments from the Flag Tariff Centralizing Account |  | -340,172 |
Updating – Selic rate |  | 26,843 |
Balance at December 31, 2018 |  | 1,080,693 |
Balance at December 30, 2019 |  | 1,099,974 |
Net constitution of financial assets |  | 267,097 |
Realized |  | -254,228 |
Advances from the Flag Tariff Centralizing Account |  | -251,760 |
Updating – Selic rate |  | 20,531 |
Balance at December 31, 2019 |  | 881,614 |

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Transmission concession revenue

This revenue, at R$ 129,437 in 4Q19, was 28.72% higher than in 4Q18 (R$ 100,559). The higher figure arises from (i) the inflation adjustment of the annual RAP, applied in July 2019, plus (ii) the new revenues related to the investments authorized to be included. The percentages and indices applied for the adjustment are different for different concessions: the IPCA index is applied to the contract of Cemig GT, and the IGP–M index to the contract of Cemig Itajubá. In 2019, the adjustments made to the RAP were: positive 10.53% for Cemig GT’s concession contracts; and positive 14.60% for the concession contracts of Cemig Itajubá. The adjustments comprised (i) application of the inflation adjustment index, plus (ii) recognition of works to upgrade and improve the facilities.

Revenue from transactions on the Wholesale Trading Exchange (CCEE)

Revenue from transactions in electricity on the CCEE in 4Q19 was R$ 24,746, compared to R$ 28,095 in 4Q18 – a year-on-year reduction of 11.92%. This difference mainly reflects a lower GSF (Generation Scaling Factor) in the period, and the Company’s seasonalization profile.

|  | Spot price |  |  |  |  |
Period |  | Sub-market |  | Average price R$/MWh |  |  |  | GSF |
October |  | Southeast/Center-West |  | 273.89 |  |  |  | 0.5805 |
November |  | Southeast/Center-West |  | 317.28 |  |  |  | 0.6690 |
December |  | Southeast/Center-West |  | 227.30 |  |  |  | 0.8587 |

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Revenue from supply of gas

Revenue from supply of gas in 4Q19 was R$ 585,012, or 7.74% higher than in 4Q18 (R$ 542,979), mainly due to passthrough of the increase in cost of gas acquired from Petrobras.

Market (’000 m 3 /day) |  | 2014 |  |  |  | 2015 |  |  |  | 2016 |  |  |  | 2017 |  |  |  | 2018 |  |  |  | 2019 |
Residential |  | 0.72 |  |  |  | 1.04 |  |  |  | 3.38 |  |  |  | 11.44 |  |  |  | 17.73 |  |  |  | 21.28 |
Commercial |  | 23.15 |  |  |  | 22.42 |  |  |  | 24.68 |  |  |  | 32.67 |  |  |  | 39.37 |  |  |  | 47.70 |
Industrial |  | 2,849.24 |  |  |  | 2,422.78 |  |  |  | 2,173.76 |  |  |  | 2,453.22 |  |  |  | 2,400.41 |  |  |  | 2,085.32 |
Other expenses |  | 99.64 |  |  |  | 119.87 |  |  |  | 120.19 |  |  |  | 126.15 |  |  |  | 155.14 |  |  |  | 148.44 |
Total market excluding thermal plants |  | 2,972.75 |  |  |  | 2,566.11 |  |  |  | 2,322.01 |  |  |  | 2,623.47 |  |  |  | 2,612.65 |  |  |  | 2,302.74 |
Thermal generation |  | 1,223.99 |  |  |  | 1,309.13 |  |  |  | 591.52 |  |  |  | 990.89 |  |  |  | 414.04 |  |  |  | 793.94 |
Total |  | 4,196.74 |  |  |  | 3,875.24 |  |  |  | 2,913.53 |  |  |  | 3,614.36 |  |  |  | 3,026.69 |  |  |  | 3,096.69 |

Supply of gas to the residential market began in March 2013. In December 2019, a total of 50,813 households were invoiced.

Number of clients |  | 2014 |  |  |  | 2015 |  |  |  | 2016 |  |  |  | 2017 |  |  |  | 2018 |  |  |  | 2019 |
Residential |  | 1,446 |  |  |  | 3,820 |  |  |  | 14,935 |  |  |  | 30,605 |  |  |  | 41,377 |  |  |  | 50,813 |
Commercial |  | 177 |  |  |  | 218 |  |  |  | 394 |  |  |  | 591 |  |  |  | 756 |  |  |  | 981 |
Industrial |  | 111 |  |  |  | 113 |  |  |  | 112 |  |  |  | 107 |  |  |  | 109 |  |  |  | 109 |
Other expenses |  | 88 |  |  |  | 62 |  |  |  | 49 |  |  |  | 50 |  |  |  | 57 |  |  |  | 61 |
Thermal generation |  | 2 |  |  |  | 2 |  |  |  | 2 |  |  |  | 2 |  |  |  | 2 |  |  |  | 2 |
Total |  | 1,824 |  |  |  | 4,215 |  |  |  | 15,492 |  |  |  | 31,355 |  |  |  | 42,301 |  |  |  | 51,966 |

Taxes and charges reported as Deductions from revenue

The total of these taxes and charges reported as deductions from revenue in 4Q19 was R$ 3,128,872 – or 10.47% less than in 4Q18 (R$ 3,494,662). The lower total primarily reflects: (i) lower consumer charges for the ‘Flag’ tariff band system; and (ii) the legal action won by Cemig, Cemig D and Cemig GT, in which the judiciary recognized these companies’ right to exclude ICMS tax amounts (paid or still payable) from the basis for calculation of the PIS, Pasep and Cofins taxes. As a result of the court judgment, ICMS

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amounts are no longer included in the basis for calculation of PIS, Pasep and Cofins in the bills delivered to clients of Cemig D.

Consumer charges – the ‘Flag’ Tariff system

The ‘Flag’ Tariff bands are activated as a result of low levels of water in the system’s reservoirs – tariffs are temporarily increased due to scarcity of rain. The charges to the consumer related to the Flag Tariffs were 28.33% lower in 4Q19, at R$ 200,662, than in 4Q18 (R$ 279,989).

The ’Flag’ Tariff component – history
Sep. 2019 |  | Oct. 2019 |  | Nov. 2019 |  | Dec. 2019
Red 1 |  | Yellow |  | Red 1 |  | Yellow
Sep. 2018 |  | Oct. 2018 |  | Nov. 2018 |  | Dec. 2018
Red 2 |  | Red 2 |  | Yellow |  | Green

Operational costs and expenses

Operational costs and expenses in 4Q19 totaled R$ 5,752,835, or 18.86% more than in 4Q18 (R$ 4,840,007).

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The following paragraphs comment on the main variations:

People

The expense on personnel in 4Q19 was R$ 290,096, or 31.27% lower than in 4Q18 (R$ 422,110). This mainly reflects the total number of employees in 4Q19 being 8.01% lower than in 4Q18 – and the expense on the Voluntary Retirement Program (PDVP), at R$ 65,596, being posted in 4Q18.

Number of employees – by company

Employees’ and managers’ profit shares

The expense on managers’ and employees’ profit shares in 4Q19 was R$ 103,065, compared to R$ 53,940 in 4Q18.

Electricity purchased for resale

The expense on electricity bought for resale in 4Q19 was R$ 3,131,866, or 24.87% higher than in 4Q18 (R$ 2,508,133). This arises mainly from the following items:

| ◾ | Expenses on spot market purchases 310.7% higher, at R$ 638,028 in 4Q19, vs. R$ 155,360 in 4Q18, reflecting an expense R$ 524,899 higher in Cemig D in 4Q19 than in 4Q18, primarily due to the higher spot price (PLD): The average spot price was approximately 70% higher than in 4Q18;

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| ◾ | Expenses on energy acquired in the Free Market 8.48% higher, at R$ 1,091,035 in 4Q19, vs. R$ 1,005,740 in 4Q18.

For Cemig D, purchased energy is a non-manageable cost: the difference between the amounts used as a reference for calculation of tariffs and the costs actually incurred is compensated for in the subsequent tariff adjustment.

Consolidated |  | 4Q19 |  |  |  | 4Q18 |  |  |  | % |
Supply from Itaipu Binacional |  | 362,882 |  |  |  | 343,216 |  |  |  | 5.73 |
Physical guarantee quota contracts |  | 187,547 |  |  |  | 178,277 |  |  |  | 5.20 |
Quotas for Angra I and II nuclear plants |  | 67,294 |  |  |  | 66,711 |  |  |  | 0.87 |
Spot market |  | 638,028 |  |  |  | 155,360 |  |  |  | 310.68 |
Proinfa |  | 89,517 |  |  |  | 85,002 |  |  |  | 5.31 |
‘Bilateral’ contracts |  | 79,750 |  |  |  | 189,154 |  |  |  | -57.84 |
Electricity acquired in Regulated Market auctions |  | 809,253 |  |  |  | 787,752 |  |  |  | 2.73 |
Acquired in Free Market |  | 1,091,035 |  |  |  | 1,005,740 |  |  |  | 8.48 |
Distributed generation |  | 69,514 |  |  |  | -62,850 |  |  |  | -210.60 |
Credits of PIS, Pasep and Cofins taxes |  | -262,954 |  |  |  | -240,229 |  |  |  | 9.46 |
|  | 3,131,866 |  |  |  | 2,508,133 |  |  |  | 24.87 |

Cemig D |  | 4Q19 |  |  |  | 4Q18 |  |  |  | % |
Supply from Itaipu Binacional |  | 362,882 |  |  |  | 343,216 |  |  |  | 5.73 |
Physical guarantee quota contracts |  | 197,739 |  |  |  | 178,277 |  |  |  | 10.92 |
Quotas for Angra I and II nuclear plants |  | 67,292 |  |  |  | 66,711 |  |  |  | 0.87 |
Spot market - CCEE |  | 616,753 |  |  |  | 91,854 |  |  |  | 571.45 |
Individual (‘bilateral’) contracts |  | 79,750 |  |  |  | 73,709 |  |  |  | 8.20 |
Supply acquired in auctions on Regulated Market |  | 818,020 |  |  |  | 815,829 |  |  |  | 0.27 |
Proinfa |  | 89,517 |  |  |  | 85,001 |  |  |  | 5.31 |
Distributed generation |  | 69,513 |  |  |  | 29,823 |  |  |  | 133.09 |
Credits of PIS, Pasep and Cofins taxes |  | -166,287 |  |  |  | -143,884 |  |  |  | 15.57 |
|  | 2,135,179 |  |  |  | 1,540,536 |  |  |  | 38.60 |

Gas bought for resale

The expense on acquisition of gas, at R$ 335,426, was 1.40% lower than in 4Q18 (R$ 340,182).

Post-retirement obligations

The impact of the Company’s post-retirement obligations was an expense of R$ 104,368 in 4Q19 – or 20.41% more than the expense of R$ 86,677 in 3Q18. This is

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mainly the result of reduction in the discount rate used in the actuarial calculation –which generated an increase in liabilities, and consequently in the expense reported.

Outsourced services

The expense on outsourced services in 4Q19 was R$ 344,605, compared to R$ 334,574 in 4Q18, a growth of 3.00%. The main impacts arise from factors prioritizing action and expenses for Cemig D, to reduce outages and improve consumer service quality. The expense on maintenance and conservation of electrical facilities and equipment increased from R$ 102,785, in 4Q18, to R$ 114,588 in 4Q19.

Operational provisions

New operational provisions were 94.41% higher in 4Q19 than 4Q18, at R$ 125,684, compared to R$ 64,650 in 4Q18. This arises mainly from the following factors:

| ◾ | Higher new provisions for employment-law contingencies, a net R$ 34.687 million in 4Q19, compared to net R$ 8,079 million in 2018. This arises mainly from new actions, or from reassessment of the chances of loss in existing actions, based on adverse court decisions taking place in the period.
| ◾ | Tax provisions were R$ 32,009, higher than in 4Q18.
| ◾ | Regulatory provisions were significantly higher in 4Q19: in the quarter new provisions of R$ 856 were made, compared to a total net reversal of provisions in 4Q18 of R$ 15,848.

Default

In 2019 two marked features of the economy were: instability in the financial market, combined with continuation of the slow process of recovery in economic activity.

To overcome the effects of a still unfavorable economic scenario, and to combat the level of default, in 2019 Cemig maintained its high ratios of collection in relation to consumers in default. Cemig uses various tools of communication and collection to prevent increase in default. These include contact by telephone and email, collection

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requests by text and by letter, negative posting on credit registers, collection through the courts and, principally, disconnection of supply. Aneel Resolution 414 allows supply to be cut off after 15 days from receipt of a notice by a defaulting consumer.

The company continued with a robust plan for consumer disconnections in 2019, under which carried out more than 1.2 million consumer disconnections – over the aggregate of all the types of consumer – in the year, for the second year running.

As well as the collection methods Cemig already uses to combat default over the long term, it is in the process of implementing a technology platform for solutions to disputes through negotiation of receivables both through the courts and by out-of-court settlement. In parallel, in November the Company held a “Reconciliation Week” in the Courts of Minas Gerais State, and also a campaign for renegotiation taking place simultaneously with the release of citizens’ FGTS funds, as authorized by Provisional Measure 889/2019, to encourage clients to renegotiate their debts. The Company is also putting in place a mechanism for automatic filing of notary’s-office protests, making this a viable route for collection.

This level of activity has shown positive results. The level of default at the end of 2019, at a ratio of 5.10%, is 10% lower than the level in 2018. With continuing enhancement of its processes and more intense application of the tools for collection, the Company is confident that it will achieve an even more significant reduction in default indices in the coming periods.

Default – % – moving average
( Accumulated default over total of 12 months / Billing for same 12 months )

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Share of profit (loss) of associates and joint ventures, net
(Equity method accounting)

The result of equity method gains/losses in non-consolidated investees in 4Q19 was a loss of R$ 35,929, compared to a loss of R$ 27,563 in 4Q18. The losses in 4Q18 came mainly from the interests in Renova and Madeira Energia. No equity method gain or loss was reported in 4Q19 for the investment in Renova, since the entire value of that investment was written off in December 2018, as a result of that investee’s negative net equity.

Consolidated – R$ ’000 |  | 4Q19 |  |  |  | 4Q18 |
Taesa |  | 35,524 |  |  |  | 68,945 |
Aliança Geração |  | 15,808 |  |  |  | 24,751 |
Baguari Energia |  | 7,557 |  |  |  | 5,896 |
Retiro Baixo |  | 3,263 |  |  |  | -86 |
Hidrelétrica Pipoca |  | 2,181 |  |  |  | 2,338 |
Hidrelétrica Cachoeirão |  | 974 |  |  |  | 1,718 |
Janaúba photovoltaic plant – distributed generation |  | 566 |  |  |  | -27 |
LightGer |  | 555 |  |  |  | 725 |
Axxiom Soluções Tecnológicas |  | 361 |  |  |  | -1,588 |
Guanhães Energia |  | 24 |  |  |  | 30,298 |
Companhia de Transmissão Centroeste |  | 8 |  |  |  | 1,406 |
Ativas Data Center |  | -483 |  |  |  | -2,382 |
Aliança Norte (Belo Monte plant) |  | -4,117 |  |  |  | 11,376 |
Amazônia Energia (Belo Monte Plant) |  | -5,717 |  |  |  | 24,302 |
Usina Hidrelétrica Itaocara S.A. |  | -27,810 |  |  |  | -120 |
FIP Melbourne (Santo Antônio Plant) |  | -29,146 |  |  |  | -37,600 |
Madeira Energia (Santo Antônio plant) |  | -35,477 |  |  |  | -43,785 |
Central Eólica Praias de Parajuru |  | 0 |  |  |  | 1,472 |
Central Eólica Volta do Rio |  | 0 |  |  |  | -1,729 |
Central Eólica Praias de Morgado |  | 0 |  |  |  | -9,506 |
Renova |  | 0 |  |  |  | -106,100 |
Light |  | 0 |  |  |  | 1,447 |
RME |  | 0 |  |  |  | 686 |
Total |  | -35,929 |  |  |  | -27,563 |

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Financial revenue and expenses

Cemig reports net financial expenses in 4Q19 of R$ 212,959, which compares with net financial revenue of R$ 668,848 in 4Q18. The main components in the year-on-year difference are as follows:

| ◾ | A loss, of R$ 101,372, in 4Q19, on the hedge transaction contracted to protect the Eurobond issue from exchange rate variation – this compares to a gain, of R$ 570,454, in 4Q18. The positive result in 4Q18 was mainly the result of the lowering of the yield curve during the period of the contract, which helped to reduce expectations for the amount of Cemig’s obligations, which are indexed to the CDI rate – increasing the fair value of the option. This factor was not repeated in 4Q19.
| ◾ | Negative financial expense of R$ 203,307 on loans in foreign currency, in 4Q19, due to the Brazilian currency’s gain in value in the period, compared to a negative financial expense of R$ 199,104 in 4Q18.

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Ebitda

Cemig’s consolidated Ebitda was 0.48% higher in 4Q19 than in 4Q18. Ebitda margin in 4Q19 was 15.55%, compared to 18.07% in 4Q18.

EBITDA – R$ ’000 |  | 4Q19 |  |  |  | 4Q18 |  |  |  | Change, % |  |  |  | 2019 |  |  |  | 2018 |  |  |  | Change, % |
Net profit for the period |  | 497,534 |  |  |  | 1,002,368 |  |  |  | -50.36 |  |  |  | 3,127,398 |  |  |  | 1,700,099 |  |  |  | 83.95 |
+ Provision for income tax and Social Contribution tax* |  | 47,959 |  |  |  | 439,637 |  |  |  | -89.09 |  |  |  | 1,650,732 |  |  |  | 727,751 |  |  |  | 126.83 |
+ Financial revenue (expenses) |  | 212,959 |  |  |  | -668,848 |  |  |  | -131.84 |  |  |  | -1,360,277 |  |  |  | 518,482 |  |  |  | -362.36 |
+ Amortization and depreciation |  | 234,912 |  |  |  | 215,489 |  |  |  | 9.01 |  |  |  | 958,234 |  |  |  | 834,593 |  |  |  | 14.81 |
Ebitda |  | 993,364 |  |  |  | 988,646 |  |  |  | 0.48 |  |  |  | 4,376,087 |  |  |  | 3,780,925 |  |  |  | 15.74 |

* The expense on income tax and the Social Contribution tax includes an item of R$85 million (2019) and R$129 million (2018), presented at its net value in the figure for profit/loss of discontinued activities.

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DEBT

The Company’s consolidated debt at December 31, 2019, was R$ 14,776,031, practically from R$ 14,771,828 at the end of 2018. Note, importantly, that the company has reported a net positive component of R$ 1,690,944, arising from hedge transactions related to the Eurobond issue (Call Spread on the principal: R$1,037,664; Swap for 100% of the interest: R$653,280).

In 2019 debt totaling R$ 4,883,218 was amortized – a total of R$ 133,026 of this being amortized in the fourth quarter – and no new loans were obtained in the last quarter of the year; a total of R$ 4,510,000 in new financings was raised in 3Q19.

Debt amortization (R$ mn)

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CEMIG H |  | 2019 |  |  |  | 2018 |  |  |  | % |
Total Debt |  | 14,776,031 |  |  |  | 14,771,728 |  |  |  | 0.03 | %
Cash and cash equivalents + Marketable Securities |  | 1,289,438 |  |  |  | 1,703,038 |  |  |  | -24.29 | %
Total Net Debt |  | 13,486,593 |  |  |  | 13,068,690 |  |  |  | 3.20 | %
Debt in foreign currency |  | 6,061,097 |  |  |  | 5,826,701 |  |  |  | 4.02 | %

CEMIG GT |  | 2019 |  |  |  | 2018 |  |  |  | % |
Total Debt |  | 7,886,783 |  |  |  | 8,198,912 |  |  |  | -3.81 | %
Cash and cash equivalents + Marketable Securities |  | 585,203 |  |  |  | 485,042 |  |  |  | 20.65 | %
Total Net Debt |  | 7,301,580 |  |  |  | 7,713,870 |  |  |  | -5.34 | %
Debt in foreign currency |  | 6,043,046 |  |  |  | 5,800,765 |  |  |  | 4.18 | %

CEMIG D |  | 2019 |  |  |  | 2018 |  |  |  | % |
Total Debt |  | 5,794,922 |  |  |  | 6,263,408 |  |  |  | -7.48 | %
Cash and cash equivalents + Marketable Securities |  | 344,611 |  |  |  | 916,272 |  |  |  | -62.39 | %
Total Net Debt |  | 5,450,311 |  |  |  | 5,347,136 |  |  |  | 1.93 | %
Debt in foreign currency |  | 18,051 |  |  |  | 25,936 |  |  |  | -30.40 | %

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Covenants – Eurobonds

12 months |  | 2019 |
R$ mn |  | GT |  |  |  | H |
Net income (loss) |  | 835 |  |  |  | 3.127 |
Financial results net |  | -234 |  |  |  | -1.360 |
Income tax and social contribution |  | 603 |  |  |  | 1.566 |
Depreciation and amortization |  | 216 |  |  |  | 958 |
minority interest result |  | 83 |  |  |  | -125 |
provisions for the variation in value of put option obligations |  | 64 |  |  |  | 64 |
non-operating result (which includes any gains on asset sales and any asset write-off or impairments) |  | 72 |  |  |  | 92 |
any non-cash expenses and non-cash charges, to the extent that they are nonrecurring |  | 994 |  |  |  | 1.923 |
any non-cash credits and gains increasing net income, to the extent that they are non-recurring |  | -414 |  |  |  | -1.428 |
non-cash revenues related to transmission and generation indemnification |  | -155 |  |  |  | -155 |
cash dividends received from minority investments (as measured in the statement of cash flows) |  | 134 |  |  |  | 283 |
monetary updating of concession grant fees |  | -318 |  |  |  | -318 |
cash inflows related to concession grant fees |  | 259 |  |  |  | 259 |
cash inflows related to transmission revenue for cost of capital coverage |  | 181 |  |  |  | 181 |
Covenant EBITDA |  | 2.319 |  |  |  | 5.066 |

12 months |  | 2019 |
R$ mn |  | GT |  |  |  | H |
Consolidated Indebtedness |  | 7.887 |  |  |  | 14.776 |
Debt contracts with Forluz |  | 253 |  |  |  | 1.117 |
The carrying liability of any put option obligation, less |  | 483 |  |  |  | 483 |
Consolidated cash and cash equivalents and consolidated marketable securities recorded as current assets |  | -584 |  |  |  | -1.289 |
Covenant Net Debt |  | 8.038 |  |  |  | 15.086 |
Covenant Net Debt to Covenant EBITDA Ratio |  | 3,47 |  |  |  | 2,98 |
Limit Covenant Net Debt to Covenant EBITDA Ratio |  | 4,50 |  |  |  | 3,50 |
Total Secured Debt (reais) |  |  |  |  |  | 918 |
Total Secured Debt to Covenant EBITDA Ratio |  |  |  |  |  | 0,18 |
Limit Covenant Net Debt to Covenant EBITDA Ratio |  |  |  |  |  | 1,75 |

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RESULTS SEPARATED BY BUSINESS SEGMENT – 2019 and Q4

INFORMATION BY SEGMENT, 2019 |
|  | ELECTRICITY |  |  |  |  |  |  |  |  |  |  |  |  |  |
DESCRIPTION |  | GENERATION |  |  |  | TRANSMISSION |  |  |  | DISTRIBUTION |  |  |  | GAS |  |  |  | OTHER |  |  |  | ELIMINATIONS |  |  |  | TOTAL |
NET REVENUE |  | 6,882,174 |  |  |  | 713,931 |  |  |  | 15,918,741 |  |  |  | 1,858,211 |  |  |  | 323,934 |  |  |  | -306,685 |  |  |  | 25,390,306 |
COST OF ELECTRICITY AND GAS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Electricity bought for resale |  | -3,841,262 |  |  |  | — |  |  |  | -7,516,878 |  |  |  | — |  |  |  | -6 |  |  |  | 71,972 |  |  |  | -11,286,174 |
Charges for use of national grid |  | -189,901 |  |  |  | — |  |  |  | -1,458,939 |  |  |  | — |  |  |  | — |  |  |  | 222,562 |  |  |  | -1,426,278 |
Gas bought for resale |  | — |  |  |  | — |  |  |  | — |  |  |  | -1,435,728 |  |  |  | — |  |  |  | — |  |  |  | -1,435,728 |
People |  | -207,422 |  |  |  | -114,837 |  |  |  | -869,289 |  |  |  | -45,913 |  |  |  | -34,057 |  |  |  | — |  |  |  | -1,271,518 |
Employees’ and managers’ profit shares |  | -35,818 |  |  |  | -26,908 |  |  |  | -182,856 |  |  |  | — |  |  |  | -17,426 |  |  |  | — |  |  |  | -263,008 |
Post-retirement obligations |  | -49,627 |  |  |  | -38,138 |  |  |  | -276,663 |  |  |  | — |  |  |  | -44,036 |  |  |  | — |  |  |  | -408,464 |
Materials |  | -16,927 |  |  |  | -6,059 |  |  |  | -62,632 |  |  |  | -2,092 |  |  |  | -3,455 |  |  |  | 27 |  |  |  | -91,138 |
Outsourced services |  | -125,390 |  |  |  | -44,922 |  |  |  | -1,015,880 |  |  |  | -19,788 |  |  |  | -39,667 |  |  |  | 7,097 |  |  |  | -1,238,550 |
Depreciation and amortization |  | -209,967 |  |  |  | -5,563 |  |  |  | -652,208 |  |  |  | -85,920 |  |  |  | -4,576 |  |  |  | — |  |  |  | -958,234 |
Operating provisions (reversals) and adjustments for operational losses |  | -975,363 |  |  |  | -134,843 |  |  |  | -1,100,647 |  |  |  | -1,793 |  |  |  | -188,460 |  |  |  | — |  |  |  | -2,401,106 |
Infrastructure construction costs |  | — |  |  |  | -220,390 |  |  |  | -936,332 |  |  |  | -42,976 |  |  |  | — |  |  |  | — |  |  |  | -1,199,698 |
Other operating exp (rev.), net |  | -174,888 |  |  |  | -20,116 |  |  |  | -298,633 |  |  |  | -10,128 |  |  |  | -377 |  |  |  | 5,027 |  |  |  | -499,115 |
OPERATIONAL COSTS AND EXPENSES |  | -5,826,565 |  |  |  | -611,776 |  |  |  | -14,370,957 |  |  |  | -1,644,338 |  |  |  | -332,060 |  |  |  | 306,685 |  |  |  | -22,479,011 |
Share of profit (loss) in associates and joint ventures |  | -88,279 |  |  |  | 214,564 |  |  |  | — |  |  |  | — |  |  |  | -934 |  |  |  | — |  |  |  | 125,351 |
Dividends declared by investee classified as Held for Sale |  | — |  |  |  | — |  |  |  | 72,738 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 72,738 |
OPER. PROFIT BEFORE FIN. REV. (EXP.) AND TAXES |  | 967,330 |  |  |  | 316,719 |  |  |  | 1,620,522 |  |  |  | 213,873 |  |  |  | -9,060 |  |  |  | — |  |  |  | 3,109,384 |
Financial revenues |  | 1,282,018 |  |  |  | 97,905 |  |  |  | 1,534,795 |  |  |  | 21,103 |  |  |  | 271,029 |  |  |  | — |  |  |  | 3,206,850 |
Financial expenses |  | -1,034,529 |  |  |  | -114,784 |  |  |  | -632,406 |  |  |  | -45,865 |  |  |  | -18,989 |  |  |  | — |  |  |  | -1,846,573 |
PRE-TAX PROFIT |  | 1,214,819 |  |  |  | 299,840 |  |  |  | 2,522,911 |  |  |  | 189,111 |  |  |  | 242,980 |  |  |  | — |  |  |  | 4,469,661 |
Income tax and Social Contribution tax |  | -550,798 |  |  |  | -36,042 |  |  |  | -805,807 |  |  |  | -47,507 |  |  |  | -125,501 |  |  |  | — |  |  |  | -1,565,655 |
Net income from going concern operations |  | 664,021 |  |  |  | 263,798 |  |  |  | 1,717,104 |  |  |  | 141,604 |  |  |  | 117,479 |  |  |  | — |  |  |  | 2,904,006 |
DISCONTINUED OPERATIONS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Profit for the year from discontinued operations |  | — |  |  |  | — |  |  |  | 224,067 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 224,067 |
NET PROFIT FOR THE YEAR |  | 664,021 |  |  |  | 263,798 |  |  |  | 1,941,171 |  |  |  | 141,604 |  |  |  | 117,479 |  |  |  | — |  |  |  | 3,128,073 |
Interest of controlling stockholders |  | 664,021 |  |  |  | 263,798 |  |  |  | 1,941,171 |  |  |  | 140,929 |  |  |  | 117,479 |  |  |  | — |  |  |  | 3,127,398 |
Minority interests |  | — |  |  |  | — |  |  |  | — |  |  |  | 675 |  |  |  | — |  |  |  | — |  |  |  | 675 |
|  | 664,021 |  |  |  | 263,798 |  |  |  | 1,941,171 |  |  |  | 141,604 |  |  |  | 117,479 |  |  |  | — |  |  |  | 3,128,073 |

INFORMATION BY SEGMENT, 4Q19 |
|  | ELECTRICITY |  |  |  |  |  |  |  |  |  |  |  |  |  |
DESCRIPTION |  | GENERATION |  |  |  | TRANSMISSION |  |  |  | DISTRIBUTION |  |  |  | GAS |  |  |  | OTHER |  |  |  | ELIMINATIONS |  |  |  | TOTAL |
NET REVENUE |  | 1,534,523 |  |  |  | 193,728 |  |  |  | 4,223,832 |  |  |  | 482,215 |  |  |  | 34,448 |  |  |  | -79,197 |  |  |  | 6,389,549 |
COST OF ELECTRICITY AND GAS |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Electricity bought for resale |  | -1,015,644 |  |  |  | 0 |  |  |  | -2,135,179 |  |  |  | 0 |  |  |  | 0 |  |  |  | 18,957 |  |  |  | -3,131,866 |
Charges for use of national grid |  | -47,524 |  |  |  | 0 |  |  |  | -360,447 |  |  |  | 0 |  |  |  | 0 |  |  |  | 59,080 |  |  |  | -348,891 |
Gas bought for resale |  | — |  |  |  | 0 |  |  |  | — |  |  |  | -335,426 |  |  |  | — |  |  |  | 0 |  |  |  | -335,426 |
People |  | -365,846 |  |  |  | -203,027 |  |  |  | -1,542,999 |  |  |  | -79,249 |  |  |  | -6,295 |  |  |  | 0 |  |  |  | -290,096 |
Employees’ and managers’ profit shares |  | -13,334 |  |  |  | -11,252 |  |  |  | -73,376 |  |  |  | — |  |  |  | -5,103 |  |  |  | 0 |  |  |  | -103,065 |
Post-retirement obligations |  | -12,616 |  |  |  | -9,835 |  |  |  | -70,797 |  |  |  | — |  |  |  | -11,120 |  |  |  | 0 |  |  |  | -104,368 |
Materials |  | -5,630 |  |  |  | -2,296 |  |  |  | -18,844 |  |  |  | -424 |  |  |  | -3,245 |  |  |  | 7 |  |  |  | -30,432 |
Outsourced services |  | -38,253 |  |  |  | -12,932 |  |  |  | -281,911 |  |  |  | -5,837 |  |  |  | -6,821 |  |  |  | 1,149 |  |  |  | -344,605 |
Depreciation and amortization |  | -43,279 |  |  |  | -1,020 |  |  |  | -163,196 |  |  |  | -26,550 |  |  |  | -867 |  |  |  | 0 |  |  |  | -234,912 |
Operating provisions (reversals) and adjustments for operational losses |  | -55,102 |  |  |  | -20,247 |  |  |  | -52,037 |  |  |  | -676 |  |  |  | 2,378 |  |  |  | 0 |  |  |  | -125,684 |
Infrastructure construction costs |  | — |  |  |  | -70,231 |  |  |  | -310,002 |  |  |  | -12,737 |  |  |  | — |  |  |  | 0 |  |  |  | -392,970 |
Other operating exp (rev.), net |  | -175,191 |  |  |  | -8,179 |  |  |  | -123,422 |  |  |  | -3,352 |  |  |  | -380 |  |  |  | 4 |  |  |  | -310,520 |
OPERATIONAL COSTS AND EXPENSES |  | -1,455,571 |  |  |  | -162,639 |  |  |  | -3,784,790 |  |  |  | -397,579 |  |  |  | -31,453 |  |  |  | 79,197 |  |  |  | -5,752,835 |
Share of profit (loss) in associates and joint ventures |  | -71,339 |  |  |  | 35,532 |  |  |  | 0 |  |  |  | 0 |  |  |  | -122 |  |  |  | 0 |  |  |  | -35,929 |
Dividends declared by investee classified as Held for Sale |  | — |  |  |  | — |  |  |  | 72,738 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 72,738 |
OPER. PROFIT BEFORE FIN. REV. (EXP.) AND TAXES |  | 7,613 |  |  |  | 66,621 |  |  |  | 511,780 |  |  |  | 84,636 |  |  |  | 2,873 |  |  |  | 0 |  |  |  | 673,523 |
Financial revenues |  | -79,400 |  |  |  | -9,090 |  |  |  | 132,858 |  |  |  | -36,275 |  |  |  | -43,206 |  |  |  | 0 |  |  |  | -35,113 |
Financial expenses |  | -21,067 |  |  |  | -3,015 |  |  |  | -126,011 |  |  |  | -26,937 |  |  |  | -816 |  |  |  | 0 |  |  |  | -177,846 |
PRE-TAX PROFIT |  | -92,854 |  |  |  | 54,516 |  |  |  | 518,627 |  |  |  | 21,424 |  |  |  | -41,149 |  |  |  | 0 |  |  |  | 460,564 |
Income tax and Social Contribution tax |  | 91,910 |  |  |  | -3,879 |  |  |  | -53,142 |  |  |  | 9,135 |  |  |  | -6,906 |  |  |  | 0 |  |  |  | 37,118 |
Net income from going concern operations |  | -944 |  |  |  | 50,637 |  |  |  | 465,485 |  |  |  | 30,559 |  |  |  | -48,055 |  |  |  | 0 |  |  |  | 497,682 |
DISCONTINUED OPERATIONS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Profit for the year from discontinued operations |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
NET PROFIT FOR THE YEAR |  | -944 |  |  |  | 50,637 |  |  |  | 465,485 |  |  |  | 30,559 |  |  |  | -48,055 |  |  |  | — |  |  |  | 497,682 |
Interest of controlling stockholders |  | -944 |  |  |  | 50,637 |  |  |  | 465,485 |  |  |  | 30,411 |  |  |  | -48,055 |  |  |  | — |  |  |  | 497,534 |
Minority interests |  | — |  |  |  | — |  |  |  | — |  |  |  | 148 |  |  |  | — |  |  |  | — |  |  |  | 148 |
|  | -944 |  |  |  | 50,637 |  |  |  | 465,485 |  |  |  | 30,559 |  |  |  | -48,055 |  |  |  | — |  |  |  | 497,682 |

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Appendices

Investments / Capex – planned and realized

R$ ’000 |  | 2019 Realized |  |  |  | 2020 Proposed |
GENERATION |  | 90,711 |  |  |  | 184,821 |
Investment program |  | 25,777 |  |  |  | 95,373 |
Capital injections |  | 48,934 |  |  |  | 89,448 |
Aliança Norte |  | 953 |  |  |  | 3,988 |
SPC – Guanhães |  | 19,766 |  |  |  | — |
SPC – Amazônia Energia Participações (Belo Monte) |  | 127 |  |  |  | 4,857 |
Itaocara Hydroelectric Plant |  | 23,088 |  |  |  | 29,881 |
Renova |  | 5,000 |  |  |  | 50,722 |
Acquisitions of wind farms in Ceará |  | 16,000 |  |  |  | — |
TRANSMISSION |  | 222,637 |  |  |  | 249,764 |
Investment program |  | 222,637 |  |  |  | 249,764 |
Cemig D |  | 986,079 |  |  |  | 1,667,470 |
Investment program |  | 986,079 |  |  |  | 1,667,470 |
HOLDING COMPANY |  | 21,629 |  |  |  | 168,037 |
Infrastructure |  | — |  |  |  | — |
Capital injections |  | 19,471 |  |  |  | 168,037 |
Axxiom |  | 9,097 |  |  |  | — |
Cemig GD (Distributed Generation) |  | 10,337 |  |  |  | — |
Cemig Overseas |  | 37 |  |  |  | — |
Gas consortia |  | — |  |  |  | 0 |
Efficientia – Distributed generation |  | — |  |  |  | 168,037 |
Acquisitions – Centroeste |  | 2,158 |  |  |  | — |
TOTAL |  | 1,321,056 |  |  |  | 2,270,092 |

36

Table of Contents

Sources and uses of supply – Billed market

37

Table of Contents

Losses

38

Table of Contents

Generation plants

Power Plant |  | Company |  | Type |  | Cemig's Stake |  |  |  | Installed Capacity (MW) |  |  |  | Assured Energy (MW médio) |  |  |  | Expiration of Concession |
Emborcação |  | CEMIG GT |  | HPP |  | 100.0 | % |  |  | 1,192 |  |  |  | 500 |  |  |  | 23-jul-25 |
Belo Monte |  | Norte |  | HPP |  | 12.3 | % |  |  | 1,152 |  |  |  | 560 |  |  |  | 26-ago-45 |
Santo Antônio |  | SAE |  | HPP |  | 15.5 | % |  |  | 553 |  |  |  | 376 |  |  |  | 12-jun-46 |
Nova Ponte |  | CEMIG GT |  | HPP |  | 100.0 | % |  |  | 510 |  |  |  | 270 |  |  |  | 23-jul-25 |
Irapé |  | CEMIG GT |  | HPP |  | 100.0 | % |  |  | 399 |  |  |  | 208 |  |  |  | 28-fev-35 |
Três Marias |  | CEMIG G. TRÊS MARIAS |  | HPP |  | 100.0 | % |  |  | 396 |  |  |  | 72 |  |  |  | 4-jan-46 |
Aimorés |  | ALIANÇA |  | HPP |  | 45.0 | % |  |  | 149 |  |  |  | 82 |  |  |  | 20-dez-35 |
Igarapé |  | CEMIG GT |  | HPP |  | 100.0 | % |  |  | 131 |  |  |  | 71 |  |  |  | 13-ago-24 |
Salto Grande |  | CEMIG G. SALTO GRANDE |  | HPP |  | 100.0 | % |  |  | 102 |  |  |  | 23 |  |  |  | 4-jan-46 |
Amador Aguiar I (Capim Branco I) |  | ALIANÇA |  | HPP |  | 39.3 | % |  |  | 94 |  |  |  | 61 |  |  |  | 29-ago-36 |
Queimado |  | CEMIG GT |  | HPP |  | 82.5 | % |  |  | 87 |  |  |  | 56 |  |  |  | 2-jan-33 |
Nilo Peçanha |  | Light Energia |  | HPP |  | 22.6 | % |  |  | 86 |  |  |  | 75 |  |  |  | 4-jun-26 |
Amador Aguiar II (Capim Branco II) |  | ALIANÇA |  | HPP |  | 39.3 | % |  |  | 83 |  |  |  | 52 |  |  |  | 29-ago-36 |
Funil |  | ALIANÇA |  | HPP |  | 45.0 | % |  |  | 81 |  |  |  | 38 |  |  |  | 20-dez-35 |
Sá Carvalho |  | Sá Carvalho S.A |  | HPP |  | 100.0 | % |  |  | 78 |  |  |  | 56 |  |  |  | 1-dez-24 |
Rosal |  | Rosal Energia S. A |  | HPP |  | 100.0 | % |  |  | 55 |  |  |  | 29 |  |  |  | 8-mai-32 |
Itutinga |  | CEMIG G. ITUTINGA |  | HPP |  | 100.0 | % |  |  | 52 |  |  |  | 8 |  |  |  | 4-jan-46 |
Igarapava |  | ALIANÇA |  | HPP |  | 23.7 | % |  |  | 50 |  |  |  | 32 |  |  |  | 30-dez-28 |
Baguari |  | BAGUARI ENERGIA |  | HPP |  | 34.0 | % |  |  | 48 |  |  |  | 29 |  |  |  | 15-ago-41 |
Camargos |  | CEMIG G. CAMARGOS |  | HPP |  | 100.0 | % |  |  | 46 |  |  |  | 6 |  |  |  | 4-jan-46 |
Ilha dos Pombos |  | Light Energia |  | HPP |  | 22.6 | % |  |  | 42 |  |  |  | 25 |  |  |  | 4-jun-26 |
Volta do Rio |  | CEMIG GT |  | Wind farm |  | 100.0 | % |  |  | 42 |  |  |  | 18 |  |  |  | 26-dez-31 |
Retiro Baixo |  | Retiro Baixo Energética S.A. |  | HPP |  | 49.9 | % |  |  | 42 |  |  |  | 18 |  |  |  | 25-ago-41 |
Porto Estrela |  | ALIANÇA |  | HPP |  | 30.0 | % |  |  | 34 |  |  |  | 19 |  |  |  | 10-jul-32 |
Fontes Nova |  | Light Energia |  | HPP |  | 22.6 | % |  |  | 30 |  |  |  | 22 |  |  |  | 4-jun-26 |
Praias de Parajuru |  | CEMIG GT |  | Wind farm |  | 100.0 | % |  |  | 29 |  |  |  | 8 |  |  |  | 24-set-32 |
Pai Joaquim |  | CEMIG PCH S.A |  | SHP |  | 100.0 | % |  |  | 23 |  |  |  | 14 |  |  |  | 1-abr-32 |
Pereira Passos |  | Light Energia |  | HPP |  | 22.6 | % |  |  | 23 |  |  |  | 11 |  |  |  | 4-jun-26 |
Piau |  | CEMIG G. SUL |  | SHP |  | 100.0 | % |  |  | 18 |  |  |  | 4 |  |  |  | 4-jan-46 |
Gafanhoto |  | CEMIG G. OESTE |  | SHP |  | 100.0 | % |  |  | 14 |  |  |  | 2 |  |  |  | 4-jan-46 |
Outras |  |  |  |  |  |  |  |  |  | 317 |  |  |  | 130 |  |  |  |  |
Total |  |  |  |  |  |  |  |  |  | 5,955 |  |  |  | 2,875 |  |  |  |  |

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RAP (Permitted Annual Revenue – Transmission) – 2019-20 cycle

RAP (Permitted Annual Revenue - Transmission ) - 2019/2020 cycle |
Annual Permitted Revenue (RAP) |  | RAP |  |  |  | % Cemig |  |  |  | Cemig |
Cemig GT |  | 704,516,559 |  |  |  | 100.00 | % |  |  | 704,516,559 |
Cemig GT |  | 678,468,095 |  |  |  | 100.00 | % |  |  | 678,468,095 |
Cemig Itajuba |  | 26,048,464 |  |  |  | 100.00 | % |  |  | 26,048,464 |
Centroeste |  | 19,527,260 |  |  |  | 100.00 | % |  |  | 19,527,260 |
Taesa |  | 2,735,489,644 |  |  |  | 21.68 | % |  |  | 593,054,155 |
Novatrans 2 |  | 330,901,554 |  |  |  |  |  |  |  | 63,488,599 |
TSN |  | 300,992,176 |  |  |  |  |  |  |  | 65,255,104 |
Munirah |  | 40,946,624 |  |  |  |  |  |  |  | 8,877,228 |
GTESA |  | 5,515,544 |  |  |  |  |  |  |  | 1,195,770 |
PATESA |  | 18,078,709 |  |  |  |  |  |  |  | 3,919,464 |
ETAU |  | 38,500,280 |  |  |  |  |  |  |  | 8,346,861 |
ETEO |  | 98,933,020 |  |  |  |  |  |  |  | 21,448,679 |
NTE |  | 86,286,553 |  |  |  |  |  |  |  | 18,706,925 |
STE |  | 48,636,153 |  |  |  |  |  |  |  | 10,544,318 |
ATE I |  | 167,264,727 |  |  |  |  |  |  |  | 36,262,993 |
ATE II |  | 258,668,882 |  |  |  |  |  |  |  | 56,079,414 |
EATE |  | 122,242,974 |  |  |  |  |  |  |  | 26,502,277 |
ETEP |  | 27,562,990 |  |  |  |  |  |  |  | 5,975,656 |
ENTE |  | 101,996,568 |  |  |  |  |  |  |  | 22,112,856 |
ECTE |  | 10,186,476 |  |  |  |  |  |  |  | 2,208,428 |
ERTE |  | 19,483,764 |  |  |  |  |  |  |  | 4,224,080 |
Lumitrans |  | 11,959,851 |  |  |  |  |  |  |  | 2,592,896 |
Transleste |  | 24,728,188 |  |  |  |  |  |  |  | 5,361,071 |
Transirapé |  | 20,073,621 |  |  |  |  |  |  |  | 4,351,961 |
Transudeste |  | 15,326,765 |  |  |  |  |  |  |  | 3,322,843 |
ATE III |  | 125,389,196 |  |  |  |  |  |  |  | 27,184,378 |
São Gotardo |  | 5,416,349 |  |  |  |  |  |  |  | 1,174,265 |
Mariana |  | 15,362,098 |  |  |  |  |  |  |  | 3,330,503 |
Miracema |  | 65,032,990 |  |  |  |  |  |  |  | 14,099,152 |
Janaúba |  | 194,059,383 |  |  |  |  |  |  |  | 42,072,074 |
Aimorés |  | 39,686,900 |  |  |  |  |  |  |  | 8,604,120 |
Paraguaçu |  | 59,239,231 |  |  |  |  |  |  |  | 12,843,065 |
Brasnorte |  | 27,559,465 |  |  |  |  |  |  |  | 5,280,371 |
STC |  | 18,932,098 |  |  |  |  |  |  |  | 4,104,479 |
EBTE |  | 34,360,035 |  |  |  |  |  |  |  | 7,449,256 |
ESDE |  | 7,046,946 |  |  |  |  |  |  |  | 1,527,778 |
ETSE |  | 4,026,515 |  |  |  |  |  |  |  | 872,948 |
ESTE |  | 56,088,981 |  |  |  |  |  |  |  | 12,160,091 |
Ivaí |  | 147,000,350 |  |  |  |  |  |  |  | 31,869,676 |
EDTE |  | 34,569,462 |  |  |  |  |  |  |  | 7,479,665 |
Sant'Ana |  | 60,934,539 |  |  |  |  |  |  |  | 13,167,171 |
São João |  | 47,572,593 |  |  |  |  |  |  |  | 10,313,738 |
São Pedro |  | 44,927,092 |  |  |  |  |  |  |  | 9,740,194 |
Light |  | 10,181,318 |  |  |  | 22.58 | % |  |  | 2,298,942 |
TOTAL RAP CEMIG |  |  |  |  |  |  |  |  |  | 1,319,396,915 |

40

Table of Contents

Cemig D Tables (R$ million)

CEMIG D Market |
|  | (GWh) |  |  |  | GW |
Quarter |  | Captive Consumers |  |  |  | TUSD ENERGY1 |  |  |  | T.E.D2 |  |  |  | TUSD PICK3 |
1Q18 |  | 6,213 |  |  |  | 4,637 |  |  |  | 10,850 |  |  |  | 31 |
2Q18 |  | 6,343 |  |  |  | 4,873 |  |  |  | 11,216 |  |  |  | 30 |
3Q18 |  | 6,309 |  |  |  | 4,870 |  |  |  | 11,179 |  |  |  | 30 |
4Q18 |  | 6,406 |  |  |  | 4,906 |  |  |  | 11,313 |  |  |  | 31 |
1Q19 |  | 6,529 |  |  |  | 4,760 |  |  |  | 11,289 |  |  |  | 33 |
2Q19 |  | 6,288 |  |  |  | 4,910 |  |  |  | 11,198 |  |  |  | 33 |
3Q19 |  | 6,266 |  |  |  | 4,898 |  |  |  | 11,164 |  |  |  | 34 |
4Q19 |  | 6,516 |  |  |  | 4,783 |  |  |  | 11,299 |  |  |  | 33 |

1. | Refers to the quantity of electricity for calculation of the regulatory charges charged to free consumer clients ("Portion A")
2. | Total electricity distributed
3. | Sum of the demand on which the TUSD is invoiced, according to demand contracted ("Portion B").

Operating Revenues (R$ million) |  | 4Q19 |  |  |  | 3Q19 |  |  |  | 4Q18 |  |  |  | QoQ |  |  |  | YoY |
Sales to final consumers |  | 5,354 |  |  |  | 5,070 |  |  |  | 4,913 |  |  |  | 5.60 | % |  |  | 8.98 | %
Revenue from Use of Distribution Systems (the TUSD charge) |  | 751 |  |  |  | 718 |  |  |  | 630 |  |  |  | 4.60 | % |  |  | 19.21 | %
CVA and Other financial components in tariff adjustment |  | 13 |  |  |  | -35 |  |  |  | 189 |  |  |  | -137.14 | % |  |  | -93.12 | %
Construction revenue |  | 310 |  |  |  | 263 |  |  |  | 213 |  |  |  | 17.87 | % |  |  | 45.54 | %
Others |  | 363 |  |  |  | 415 |  |  |  | 322 |  |  |  | -12.53 | % |  |  | 12.73 | %
Subtotal |  | 6,791 |  |  |  | 6,431 |  |  |  | 6,267 |  |  |  | 5.60 | % |  |  | 8.36 | %
Deductions |  | 2,567 |  |  |  | 2,522 |  |  |  | 2,954 |  |  |  | 1.78 | % |  |  | -13.10 | %
Net Revenues |  | 4,224 |  |  |  | 3,909 |  |  |  | 3,313 |  |  |  | 8.06 | % |  |  | 27.50 | %

Operating Expenses (R$ million) |  | 4Q19 |  |  |  | 3Q19 |  |  |  | 4Q18 |  |  |  | QoQ |  |  |  | YoY |
Personnel |  | 196 |  |  |  | 210 |  |  |  | 296 |  |  |  | -6.87 | % |  |  | -33.86 | %
Employees' and managers' profit sharing |  | 73 |  |  |  | - 11 |  |  |  | 38 |  |  |  | -767.05 | % |  |  | — |
Forluz – Post- retirement obligations |  | 71 |  |  |  | 71 |  |  |  | 58 |  |  |  | -0.29 | % |  |  | 22.55 | %
Materials |  | 19 |  |  |  | 15 |  |  |  | 19 |  |  |  | 25.63 | % |  |  | -0.74 | %
Outsourced services |  | 282 |  |  |  | 247 |  |  |  | 261 |  |  |  | 14.13 | % |  |  | 7.94 | %
Amortization |  | 163 |  |  |  | 164 |  |  |  | 155 |  |  |  | -0.49 | % |  |  | 5.38 | %
Operating provisions |  | 52 |  |  |  | 854 |  |  |  | 39 |  |  |  | -93.91 | % |  |  | 33.23 | %
Charges for Use of Basic Transmission Network |  | 360 |  |  |  | 385 |  |  |  | 344 |  |  |  | -6.38 | % |  |  | 4.68 | %
Energy purchased for resale |  | 2,135 |  |  |  | 1,926 |  |  |  | 1,541 |  |  |  | 10.86 | % |  |  | 38.60 | %
Construction Cost |  | 310 |  |  |  | 263 |  |  |  | 213 |  |  |  | 17.87 | % |  |  | 45.47 | %
Other Expenses |  | 123 |  |  |  | 94 |  |  |  | 121 |  |  |  | 31.30 | % |  |  | 2.37 | %
Total |  | 3,785 |  |  |  | 4,218 |  |  |  | 3,084 |  |  |  | -10.27 | % |  |  | 22.73 | %

Statement of Results (R$ million) |  | 4Q19 |  |  |  | 3Q19 |  |  |  | 4Q18 |  |  |  | QoQ |  |  |  | YoY |
Net Revenue |  | 4,224 |  |  |  | 3,909 |  |  |  | 3,313 |  |  |  | 8.06 | % |  |  | 27.50 | %
Operating Expenses |  | 3,785 |  |  |  | 4,218 |  |  |  | 3,084 |  |  |  | -10.27 | % |  |  | 22.73 | %
EBIT |  | 439 |  |  |  | -309 |  |  |  | 229 |  |  |  | -242.14 | % |  |  | 91.76 | %
EBITDA |  | 602 |  |  |  | -145 |  |  |  | 384 |  |  |  | -515.45 | % |  |  | 56.91 | %
Financial Result |  | 7 |  |  |  | -25 |  |  |  | 4 |  |  |  | -127.39 | % |  |  | 52.26 | %
Provision for Income Taxes, Social Cont & Deferred Income Tax |  | -53 |  |  |  | 19 |  |  |  | -45 |  |  |  | -379.69 | % |  |  | 18.96 | %
Net Income |  | 393 |  |  |  | -315 |  |  |  | 189 |  |  |  | -224.73 | % |  |  | 108.03 | %

41

Table of Contents

Cemig GT tables (R$ million)

Operating Revenues |  | 4Q19 |  |  |  | 3Q19 |  |  |  | 4Q18 |  |  |  | QoQ |  |  |  | YoY |
Sales to final consumers |  | 1.062 |  |  |  | 1073 |  |  |  | 1016 |  |  |  | -1,0 | % |  |  | 4,5 | %
Supply |  | 728 |  |  |  | 746 |  |  |  | 773 |  |  |  | -2,4 | % |  |  | -5,9 | %
Revenues from Trans. Network |  | 183 |  |  |  | 184 |  |  |  | 146 |  |  |  | -0,8 | % |  |  | 25,1 | %
Gain on monetary updating of Concession Grant Fee |  | 74 |  |  |  | 68 |  |  |  | 76 |  |  |  | 9,1 | % |  |  | -2,0 | %
Transactions in the CCEE |  | 25 |  |  |  | 9 |  |  |  | 17 |  |  |  | 174,5 | % |  |  | 44,1 | %
Construction revenue |  | 70 |  |  |  | 67 |  |  |  | 83 |  |  |  | 4,8 | % |  |  | -15,4 | %
Transmission indemnity revenue |  | 31 |  |  |  | 34 |  |  |  | 42 |  |  |  | -9,0 | % |  |  | -26,7 | %
Generation indemnity revenue |  | 0 |  |  |  | 0 |  |  |  | -27 |  |  |  | — |  |  |  | — |
PIS/PASEP and COFINS Taxes Credits Over ICMS |  | -11 |  |  |  | 0 |  |  |  | 0 |  |  |  | — |  |  |  | — |
Others |  | 44 |  |  |  | 52 |  |  |  | 37 |  |  |  | -14,9 | % |  |  | 18,8 | %
Subtotal |  | 2.206 |  |  |  | 2.233 |  |  |  | 2.164 |  |  |  | -1,2 | % |  |  | 1,9 | %
Deductions |  | 446 |  |  |  | 467 |  |  |  | 411 |  |  |  | -4,6 | % |  |  | 8,5 | %
Net Revenues |  | 1.760 |  |  |  | 1.766 |  |  |  | 1.753 |  |  |  | -0,3 | % |  |  | 0,4 | %

Operating Expenses |  | 4Q19 |  |  |  | 3Q19 |  |  |  | 4Q18 |  |  |  | QoQ |  |  |  | YoY |
Personnel |  | 76 |  |  |  | 78 |  |  |  | 93,0 |  |  |  | -3,0 | % |  |  | -18,7 | %
Employees' and managers' profit sharing |  | 25 |  |  |  | -4 |  |  |  | 12,3 |  |  |  | -714,7 | % |  |  | 99,8 | %
Post-retirement obligations |  | 22 |  |  |  | 23 |  |  |  | 18,6 |  |  |  | -2,4 | % |  |  | 20,5 | %
Materials |  | 8 |  |  |  | 5 |  |  |  | 10,0 |  |  |  | 57,6 | % |  |  | -21,5 | %
Outsourced services |  | 51 |  |  |  | 40 |  |  |  | 50,4 |  |  |  | 26,9 | % |  |  | 0,7 | %
Depreciation and Amortization |  | 44 |  |  |  | 57 |  |  |  | 39,3 |  |  |  | -22,3 | % |  |  | 12,7 | %
Operating provisions |  | 75 |  |  |  | 289 |  |  |  | 39,4 |  |  |  | -73,9 | % |  |  | 91,3 | %
Charges for Use of Basic Transmission Network |  | 48 |  |  |  | 50 |  |  |  | 44,3 |  |  |  | -5,0 | % |  |  | 7,2 | %
Energy purchased for resale |  | 1016 |  |  |  | 1126 |  |  |  | 987,3 |  |  |  | -9,8 | % |  |  | 2,9 | %
Construction Cost |  | 70 |  |  |  | 67 |  |  |  | 83,0 |  |  |  | 4,8 | % |  |  | -15,4 | %
Other Expenses |  | 183 |  |  |  | -3 |  |  |  | 8,4 |  |  |  | -6198,10 | % |  |  | 2089,9 | %
Total |  | 1.617 |  |  |  | 1.728 |  |  |  | 1.386 |  |  |  | -6,4 | % |  |  | 16,7 | %

Statement of Results |  | 4Q19 |  |  |  | 3Q19 |  |  |  | 4Q18 |  |  |  | QoQ |  |  |  | YoY |
Net Revenue |  | 1.760 |  |  |  | 1.766 |  |  |  | 1.753 |  |  |  | -0,3 | % |  |  | 0,4 | %
Operating Expenses |  | 1.617 |  |  |  | 1.728 |  |  |  | 1.386 |  |  |  | -6,4 | % |  |  | 16,7 | %
EBIT |  | 143 |  |  |  | 38 |  |  |  | 367 |  |  |  | 275,6 | % |  |  | -61,1 | %
Equity gain in subsidiaries |  | -71 |  |  |  | -20 |  |  |  | -102 |  |  |  | — |  |  |  | -29,9 | %
Restatement of prior equity holding in the subsidiaries acquired |  | 0 |  |  |  | 0 |  |  |  | 80 |  |  |  | — |  |  |  | — |
Adjustment for impairment of Investments |  | 0 |  |  |  | 0 |  |  |  | -127 |  |  |  | — |  |  |  | — |
EBITDA |  | 116 |  |  |  | 75 |  |  |  | 257 |  |  |  | 54,3 | % |  |  | -55,0 | %
Financial Result |  | -112 |  |  |  | -213 |  |  |  | 670 |  |  |  | -47,3 | % |  |  | -116,8 | %
Provision for Income Taxes, Social Cont & Deferred Income Tax |  | 84 |  |  |  | 61 |  |  |  | -301 |  |  |  | 37,8 | % |  |  | -127,9 | %
Net Income |  | 43 |  |  |  | -134 |  |  |  | 586 |  |  |  | -132,3 | % |  |  | -92,6 | %

Tables – Cemig Consolidated (R$ million)

Energy Sales (Consolidated)(GWh) |  | 4Q19 |  |  |  | 3Q19 |  |  |  | 4Q18 |  |  |  | QoQ |  |  |  | YoY |
Residential |  | 2,689 |  |  |  | 2,558 |  |  |  | 2,618 |  |  |  | 5.12 | % |  |  | 2.71 | %
Industrial |  | 4,061 |  |  |  | 4,145 |  |  |  | 4,554 |  |  |  | -2.03 | % |  |  | -10.83 | %
Commercial |  | 2,565 |  |  |  | 2,348 |  |  |  | 2,185 |  |  |  | 9.24 | % |  |  | 17.39 | %
Rural |  | 965 |  |  |  | 1,055 |  |  |  | 837 |  |  |  | -8.53 | % |  |  | 15.29 | %
Others |  | 945 |  |  |  | 869 |  |  |  | 915 |  |  |  | 8.75 | % |  |  | 3.28 | %
Subtotal |  | — |  |  |  | 10,975 |  |  |  | 11,109 |  |  |  | — |  |  |  | — |
Own Consumption |  | 11 |  |  |  | 11 |  |  |  | 8 |  |  |  | 0.00 | % |  |  | 37.50 | %
Supply |  | 2,731 |  |  |  | 2,979 |  |  |  | 3,223 |  |  |  | -8.32 | % |  |  | -15.27 | %
TOTAL |  | 13,967 |  |  |  | 13,965 |  |  |  | 14,340 |  |  |  | 0.01 | % |  |  | -2.60 | %

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Energy Sales |  | 4Q19 |  |  |  | 3Q19 |  |  |  | 4Q18 |  |  |  | QoQ |  |  |  | YoY |
Residential |  | 2,540 |  |  |  | 2,459 |  |  |  | 2,390 |  |  |  | 3.29 | % |  |  | 6.28 | %
Industrial |  | 1,225 |  |  |  | 1,239 |  |  |  | 1,305 |  |  |  | -1.13 | % |  |  | -6.13 | %
Commercial |  | 1,482 |  |  |  | 1,337 |  |  |  | 1,302 |  |  |  | 10.85 | % |  |  | 13.82 | %
Rural |  | 547 |  |  |  | 594 |  |  |  | 467 |  |  |  | -7.91 | % |  |  | 17.13 | %
Others |  | 535 |  |  |  | 520 |  |  |  | 510 |  |  |  | 2.88 | % |  |  | 4.90 | %
Electricity sold to final consumers |  | 6,329 |  |  |  | 6,149 |  |  |  | 5,974 |  |  |  | 2.93 | % |  |  | 5.94 | %
Unbilled Supply, Net |  | 62 |  |  |  | -30 |  |  |  | -14 |  |  |  | — |  |  |  | -542.86 | %
Supply |  | 729 |  |  |  | 756 |  |  |  | 749 |  |  |  | -3.57 | % |  |  | -2.67 | %
TOTAL |  | 7,120 |  |  |  | 6,875 |  |  |  | 6,709 |  |  |  | 3.56 | % |  |  | 6.13 | %

Operating Revenues |  | 4Q19 |  |  |  | 3Q19 |  |  |  | 4Q18 |  |  |  | QoQ |  |  |  | YoY |
Sales to final consumers |  | 7,123 |  |  |  | 6,875 |  |  |  | 6,708 |  |  |  | 3.61 | % |  |  | 6.19 | %
TUSD |  | 746 |  |  |  | 711 |  |  |  | 625 |  |  |  | 4.83 | % |  |  | 19.35 | %
CVA and Other financial components in tariff adjustment |  | 13 |  |  |  | -35 |  |  |  | 189 |  |  |  | -136.64 | % |  |  | -93.20 | %
Transmission concession revenue |  | 129 |  |  |  | 132 |  |  |  | 101 |  |  |  | -2.04 | % |  |  | 28.72 | %
Transmission Construction revenue |  | 70 |  |  |  | 67 |  |  |  | 83 |  |  |  | 0.00 | % |  |  | 0.00 | %
Transmission Indemnity Revenue |  | 31 |  |  |  | 34 |  |  |  | 42 |  |  |  | -7.97 | % |  |  | -26.66 | %
Generation Indemnity Revenue |  | 0 |  |  |  | — |  |  |  | -27 |  |  |  | — |  |  |  | — |
Distribution Construction revenue |  | 323 |  |  |  | 274 |  |  |  | 222 |  |  |  | 17.64 | % |  |  | 45.18 | %
Gain on monetary updating of Concession Grant Fee |  | 74 |  |  |  | 68 |  |  |  | 76 |  |  |  | 9.24 | % |  |  | -1.98 | %
Transactions in the CCEE |  | 25 |  |  |  | 10 |  |  |  | 28 |  |  |  | 152.23 | % |  |  | -11.92 | %
Gas supply |  | 585 |  |  |  | 582 |  |  |  | 543 |  |  |  | 0.54 | % |  |  | 7.74 | %
Fine for violation of continuity indicator |  | -15 |  |  |  | -8 |  |  |  | -13 |  |  |  | 86.28 | % |  |  | 14.43 | %
Recovery of PIS/Pasep and Cofins taxes credits over ICMS |  | -11 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Others |  | 425 |  |  |  | 470 |  |  |  | 389 |  |  |  | -9.65 | % |  |  | 9.19 | %
Deductions |  | -3,129 |  |  |  | -3,109 |  |  |  | -3,495 |  |  |  | 0.64 | % |  |  | -10.47 | %
Total |  | 6,390 |  |  |  | 6,071 |  |  |  | 5,472 |  |  |  | 5.25 | % |  |  | 16.77 | %

Operating Expenses |  | 4Q19 |  |  |  | 3Q19 |  |  |  | 4Q18 |  |  |  | QoQ |  |  |  | YoY |
Personnel |  | 290 |  |  |  | 304 |  |  |  | 422 |  |  |  | -4.57 | % |  |  | -31.27 | %
Employees’ and managers’ profit sharing |  | 103 |  |  |  | -15 |  |  |  | 54 |  |  |  | -787.10 | % |  |  | — |
Forluz – Post-Retirement Employee Benefits |  | 104 |  |  |  | 105 |  |  |  | 87 |  |  |  | -0.60 | % |  |  | 20.41 | %
Materials |  | 30 |  |  |  | 20 |  |  |  | 30 |  |  |  | 52.16 | % |  |  | 1.45 | %
Outsourced services |  | 345 |  |  |  | 308 |  |  |  | 335 |  |  |  | 11.88 | % |  |  | 3.00 | %
Energy purchased for resale |  | 3,132 |  |  |  | 3,034 |  |  |  | 2,508 |  |  |  | 3.23 | % |  |  | 24.87 | %
Depreciation and Amortization |  | 235 |  |  |  | 244 |  |  |  | 215 |  |  |  | -3.72 | % |  |  | 9.01 | %
Operating Provisions |  | 126 |  |  |  | 1,297 |  |  |  | 65 |  |  |  | -90.31 | % |  |  | 94.41 | %
Charges for use of the national grid |  | 349 |  |  |  | 376 |  |  |  | 339 |  |  |  | -7.21 | % |  |  | 3.07 | %
Gas bought for resale |  | 335 |  |  |  | 375 |  |  |  | 340 |  |  |  | -10.55 | % |  |  | -1.40 | %
Construction costs |  | 393 |  |  |  | 342 |  |  |  | 305 |  |  |  | 14.90 | % |  |  | 28.72 | %
Other Expenses |  | 311 |  |  |  | 96 |  |  |  | 140 |  |  |  | 223.46 | % |  |  | 121.07 | %
Total |  | 5,753 |  |  |  | 6,486 |  |  |  | 4,840 |  |  |  | -11.30 | % |  |  | 18.86 | %

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Financial Result Breakdown |  | 4Q19 |  |  |  | 3Q19 |  |  |  | 4Q18 |  |  |  | QoQ |  |  |  | YoY |
FINANCE INCOME |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income from cash investments |  | 20 |  |  |  | 30 |  |  |  | 35 |  |  |  | -33.51 | % |  |  | -42.34 | %
Arrears fees on sale of energy |  | 88 |  |  |  | 90 |  |  |  | 92 |  |  |  | -1.73 | % |  |  | -4.25 | %
Monetary variations |  | 10 |  |  |  | 7 |  |  |  | 5 |  |  |  | 41.79 | % |  |  | 117.61 | %
Monetary variations from CVA |  | 21 |  |  |  | 32 |  |  |  | 27 |  |  |  | -35.84 | % |  |  | -23.51 | %
Monetary updating on Court escrow deposits |  | 17 |  |  |  | 13 |  |  |  | 2 |  |  |  | 29.46 | % |  |  | 800.96 | %
Pasep and Cofins charged on finance income |  | -64 |  |  |  | -13 |  |  |  | -34 |  |  |  | 394.13 | % |  |  | 86.36 | %
Gain on Financial instruments - Hedge |  | -101 |  |  |  | 486 |  |  |  | 570 |  |  |  | -120.86 | % |  |  | -117.77 | %
Revenue from advance payments |  | 1 |  |  |  | 2 |  |  |  | 28 |  |  |  | -56.45 | % |  |  | -96.93 | %
Updating related to arbitration proceedings |  | 0 |  |  |  | 0 |  |  |  | 77 |  |  |  | — |  |  |  | -100.00 | %
Liabilities with related parties |  | 0 |  |  |  | 2 |  |  |  | 56 |  |  |  | -97.10 | % |  |  | -99.90 | %
Updating of the tax credits in PIS, Pasep and Cofins taxes |  | 5 |  |  |  | 22 |  |  |  | 0 |  |  |  | -76.45 | % |  |  | — |
Others |  | -31 |  |  |  | -52 |  |  |  | -4 |  |  |  | -39.70 | % |  |  | 753.46 | %
|  | -35 |  |  |  | 619 |  |  |  | 854 |  |  |  | -105.67 | % |  |  | -104.11 | %
FINANCE EXPENSES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Costs of loans and financings |  | -302 |  |  |  | -319 |  |  |  | -312 |  |  |  | -5.35 | % |  |  | -3.23 | %
Amortization of transaction cost |  | -4 |  |  |  | -20 |  |  |  | -7 |  |  |  | -82.43 | % |  |  | -46.63 | %
FX variation – loans and financings |  | 203 |  |  |  | -429 |  |  |  | 199 |  |  |  | -147.39 | % |  |  | 2.11 | %
FX adjustment – Itaipu Binacional |  | -1 |  |  |  | -8 |  |  |  | 15 |  |  |  | -82.75 | % |  |  | 0.00 | %
Monetary updating – loans and financings |  | -42 |  |  |  | -17 |  |  |  | -24 |  |  |  | 146.42 | % |  |  | 76.14 | %
Inflation adjustment – paid concession |  | -1 |  |  |  | 0 |  |  |  | 0 |  |  |  | - |  |  |  | -537.06 | %
Charges and monetary updating on post-retirement obligation |  | -12 |  |  |  | -11 |  |  |  | -15 |  |  |  | 7.01 | % |  |  | -19.39 | %
Inflation adjustment – advance from customers |  | 0 |  |  |  | 0 |  |  |  | -2 |  |  |  | — |  |  |  | 0.00 | %
Leasing – Inflation adjustment |  | -6 |  |  |  | -9 |  |  |  | 0 |  |  |  | -31.07 | % |  |  | — |
Finance Expense - P&D e PEE |  | -24 |  |  |  | 0 |  |  |  | -24 |  |  |  | — |  |  |  | 0.01 | %
Others |  | 10 |  |  |  | -39 |  |  |  | -18 |  |  |  | -126.65 | % |  |  | -159.36 | %
|  | -178 |  |  |  | -852 |  |  |  | -185 |  |  |  | -79.13 | % |  |  | -4.06 | %
NET FINANCE INCOME (EXPENSES) |  | -213 |  |  |  | -233 |  |  |  | 669 |  |  |  | -8.57 | % |  |  | -131.84 | %

Statement of Results |  | 4Q19 |  |  |  | 3Q19 |  |  |  | 4Q18 |  |  |  | QoQ |  |  |  | YoY |
Net Revenue |  | 6,390 |  |  |  | 6,071 |  |  |  | 5,472 |  |  |  | 5.25 | % |  |  | 16.77 | %
Operating Expenses |  | 5,753 |  |  |  | 6,486 |  |  |  | 4,840 |  |  |  | -11.30 | % |  |  | 18.86 | %
EBIT |  | 637 |  |  |  | -415 |  |  |  | 632 |  |  |  | -253.35 | % |  |  | 0.75 | %
Share of profit (loss) in associates and joint ventures |  | -36 |  |  |  | -49 |  |  |  | -27 |  |  |  | -26.53 | % |  |  | 33.33 | %
EBITDA |  | 993 |  |  |  | 110 |  |  |  | 988 |  |  |  | 802.73 | % |  |  | 0.51 | %
Financial Result |  | -213 |  |  |  | -233 |  |  |  | 669 |  |  |  | -8.57 | % |  |  | -131.84 | %
Provision for Income Taxes, Social Cont & Deferred Income Tax |  | 48 |  |  |  | 117 |  |  |  | 440 |  |  |  | -59.08 | % |  |  | -89.12 | %
Net profit for the period attributable to non-controlling interests |  | 0 |  |  |  | 224 |  |  |  | 288 |  |  |  | — |  |  |  | -100.00 | %
NET PROFIT |  | 497 |  |  |  | -281 |  |  |  | 1,002 |  |  |  | -276.87 | % |  |  | -50.40 | %

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Cash Flow Statement |  | 2019 |  |  |  | 2018 |
Cash at beginning of period |  | 891 |  |  |  | 1,030 |
Cash generated by operations |  | 2,006 |  |  |  | 1,008 |
Net income for the period from going concern operations |  | 3,128 |  |  |  | 1,741 |
Current and deferred income tax and Social Contribution tax |  | -1,767 |  |  |  | -649 |
Depreciation and amortization |  | 958 |  |  |  | 849 |
CVA and other financial components |  | 307 |  |  |  | 908 |
Equity gain (loss) in subsidiaries |  | -125 |  |  |  | 103 |
Provisions (reversals) for operational losses |  | 2,401 |  |  |  | 467 |
Dividends received from equity holdings |  | 283 |  |  |  | 311 |
Interest and monetary variation |  | 1,190 |  |  |  | 1,207 |
Interest paid on loans and financings |  | -1,264 |  |  |  | -1,290 |
credits of taxes awarded in the ICMS tax case |  | -2,952 |  |  |  | 0 |
Others |  | -153 |  |  |  | -2,639 |
Financing activities |  | -1,172 |  |  |  | -937 |
Lease payments |  | -65 |  |  |  | 0 |
Payments of loans and financings |  | -4,883 |  |  |  | -3,527 |
Financings obtained and capital increase |  | 4,477 |  |  |  | 2,989 |
Interest on Equity, and dividends |  | -701 |  |  |  | -509 |
Capital Increase / Subscription of shares to be capitalized |  | 0 |  |  |  | 110 |
Investment activity |  | -1,813 |  |  |  | -865 |
Cash generated from discontinued operations |  | 0 |  |  |  | 0 |
Securities - Financial Investment |  | 158 |  |  |  | 290 |
Contract assets - Distribution and gas infrastructure |  | -1,856 |  |  |  | -800 |
Financial assets |  | -45 |  |  |  | -279 |
Fixed and Intangible assets |  | -70 |  |  |  | -76 |
Cash flow in investment activities from discontinued operations |  | 625 |  |  |  | 654 |
Cash at end of period |  | 537 |  |  |  | 890 |

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BALANCE SHEETS (CONSOLIDATED) - ASSETS |  | 2019 |  |  |  | 2018 |
CURRENT |  |  |  |  |  |  |
Cash and cash equivalents |  | 536 |  |  |  | 891 |
Marketable securities |  | 740 |  |  |  | 704 |
Customers and traders and concession holders - Transport of electricity |  | 4,524 |  |  |  | 4,092 |
Concession financial assets |  | 1,080 |  |  |  | 1,070 |
Concession contract assets |  | 172 |  |  |  | 131 |
Recoverable taxes |  | 99 |  |  |  | 124 |
Income and social contribution tax credits |  | 621 |  |  |  | 387 |
Dividends receivables |  | 186 |  |  |  | 120 |
Restricted cash |  | 12 |  |  |  | 91 |
Inventories |  | 39 |  |  |  | 36 |
Public Lighting Contribution |  | 165 |  |  |  | 149 |
Advances to suppliers |  | 40 |  |  |  | 7 |
Reimbursement of tariff subsidies payments |  | 97 |  |  |  | 91 |
Low-income customer subsidy |  | 30 |  |  |  | 30 |
Derivative financial instruments |  | 235 |  |  |  | 70 |
Others |  | 304 |  |  |  | 359 |
Assets classified as held for sale |  | 1,258 |  |  |  | 19,446 |
TOTAL CURRENT |  | 10,298 |  |  |  | 27,796 |
NON-CURRENT |  |  |  |  |  |  |
Marketable securities |  | 13 |  |  |  | 109 |
Advances to suppliers |  | — |  |  |  | 87 |
Customers and traders and concession holders - Transport of electricity |  | 77 |  |  |  | 81 |
Recoverable taxes |  | 6,349 |  |  |  | 242 |
Income and social contribution taxes recoverable |  | 228 |  |  |  | 6 |
Deferred income and social contribution taxes |  | 2,430 |  |  |  | 2,147 |
Escrow deposits |  | 2,540 |  |  |  | 2,502 |
Derivative financial instruments |  | 1,456 |  |  |  | 744 |
Accounts receivable from the State of Minas Gerais |  | 115 |  |  |  | 246 |
Concession financial assets |  | 4,850 |  |  |  | 4,927 |
Concession contract assets |  | 1,832 |  |  |  | 1,598 |
Investments - Equity method |  | 5,399 |  |  |  | 5,235 |
Property, plant and equipment |  | 2,450 |  |  |  | 2,662 |
Intangible assets |  | 11,624 |  |  |  | 10,777 |
Leasing - rights of use |  | 277 |  |  |  | — |
Others |  | 147 |  |  |  | 697 |
TOTAL NON-CURRENT |  | 39,790 |  |  |  | 32,059 |
TOTAL ASSETS |  | 49,927 |  |  |  | 59,855 |

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BALANCE SHEETS |  |  |  |  |  |
LIABILITIES AND SHAREHOLDERS' EQUITY | 2019 |  |  |  | 2018 |
CURRENT |  |  |  |  |  |
Suppliers | 2,080 |  |  |  | 1,801 |
Regulatory charges | 457 |  |  |  | 514 |
Profit sharing | 212 |  |  |  | 79 |
Taxes payable | 359 |  |  |  | 410 |
Income and social contribution tax | 134 |  |  |  | 112 |
Interest on equity and dividends payable | 1,579 |  |  |  | 864 |
Loans, financing and debentures | 2,746 |  |  |  | 2,198 |
Payroll and related charges | 200 |  |  |  | 284 |
Public Lighting Contribution | 252 |  |  |  | 281 |
Post-employment obligations | 288 |  |  |  | 253 |
Leasing | 85 |  |  |  | — |
Advances from customers | — |  |  |  | 79 |
Payable to related parties | 8 |  |  |  | — |
Others | 347 |  |  |  | 247 |
Liabilities directly associated to assets held for sale | 0 |  |  |  | 16,272 |
| 0 |  |  |  | 0 |
NON-CURRENT | 0 |  |  |  | 0 |
Regulatory charges | 147 |  |  |  | 179 |
Loans, financing and debentures | 12,030 |  |  |  | 12,574 |
Taxes payable | 1 |  |  |  | 29 |
Deferred income and social contribution taxes | 661 |  |  |  | 728 |
Provisions | 1,888 |  |  |  | 641 |
Post-employment obligations | 6,421 |  |  |  | 4,736 |
Pasep and Cofins taxes to be reimbursed to customers | 4,193 |  |  |  | 1,124 |
Derivative financial Instruments | 483 |  |  |  | 419 |
Leasing | 203 |  |  |  | — |
Other obligations | 97 |  |  |  | 92 |
TOTAL NON-CURRENT | 26,124 |  |  |  | 20,522 |
TOTAL LIABILITIES | 34,871 |  |  |  | 43,915 |
| 0 |  |  |  | 0 |
EQUITY | 0 |  |  |  | 0 |
Share capital | 7,294 |  |  |  | 7,294 |
Capital reserves | 2,250 |  |  |  | 2,250 |
Profit reserves | 7,915 |  |  |  | 6,362 |
Equity valuation adjustments | -2,407 |  |  |  | -1,327 |
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT | 15,052 |  |  |  | 14,579 |
NON-CONTROLLING INTERESTS | 4 |  |  |  | 1,361 |
TOTAL EQUITY | 15,056 |  |  |  | 15,939 |
TOTAL LIABILITIES AND EQUITY | 49,927 |  |  |  | 59,855 |

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4. Presentation of 2019 Results.

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5. Material Announcement Dated March 20, 2020: Renova accepts binding offer – with 30 days exclusivity for completion of documents.

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG
LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

MATERIAL ANNOUNCEMENT

Renova accepts binding offer
– with 30 days exclusivity for completion of documents

Cemig (Companhia Energética de Minas Gerais, listed in São Paulo, New York and Madrid), in compliance with CVM Instruction 358 of January 3, 2002 as amended, hereby reports to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (B3) and the market as follows:

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

“ | Renova Energia S.A. – in Judicial Recovery (RNEW3; RNEW 4 and RNEW11) (‘Renova’), in accordance with CVM Instruction 358/2002 as amended, hereby informs its stockholders and the public as follows: On today’s date the Board of Directors of Renova decided in favor of acceptance of the binding offer made by ARC Capital Ltda. (‘ARC’), jointly with G5 Administradora de Recursos Ltda (‘G5’), and XP Vista Asset Management Ltda. (‘XP’) for financing to conclude the works of Phase A of the Alto Sertão III wind farm complex, and to fund the current operational expenses of Renova (‘the Binding Offer’). Under the terms of the Binding Offer, Renova will grant a period of exclusivity for thirty calendars days from today’s date, for satisfactory negotiation of the documents of the transaction between the parties. Renova reiterates its commitment to keep stockholders and the market in general fully and timely informed in accordance with the applicable legislation. ”

Belo Horizonte, March 20, 2020.

Leonardo George de Magalhães
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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