As of December 31, 2021, the Company’s issued and share capital is R$8,467 (R$7,594 at December 31, 2020 and R$7,294 at December 31, 2019), represented by 566,036,634 common shares (507,670,289 at December 31, 2020) and 1,127,325,434 preferred shares (1,011,082,312 at December 31, 2020), both of them with nominal value of R$5.00 (five Reais), as follows:

	Number of shares on December 31, 2021
Shareholders	Common		%		Preferred		%		Total		%
State of Minas Gerais		288,485,632		51		13,143		—		288,498,775		17
Other entities of Minas Gerais State		23,094		—		14,472,345		1		14,495,439		1
FIA Dinâmica Energia S.A.		153,354,328		27		80,004,762		7		233,359,090		14
BNDES Participações		63,082,911		11		22,141,720		2		85,224,631		5
BlackRock		—		—		123,325,741		11		123,325,741		7
Others
In Brazil		43,689,699		8		145,881,261		13		189,570,960		11
Foreign shareholders		17,400,970		3		741,486,462		66		758,887,432		45
Total		566,036,634		100		1,127,325,434		100		1,693,362,068		100

	Number of shares on December 31, 2020
Shareholders	Common		%		Preferred		%		Total		%
State of Minas Gerais		258,738,711		51		11,788		—		258,750,499		17
Other entities of Minas Gerais State		20,713		—		7,442,037		1		7,462,750		—
FIA Dinâmica Energia S.A.		114,172,677		22		43,975,272		4		158,147,949		10
BNDES Participações		56,578,175		11		27,299,432		3		83,877,607		6
BlackRock		—		—		153,689,970		15		153,689,970		10
Others
In Brazil		55,717,246		11		212,704,725		21		268,421,971		18
Foreign shareholders		22,442,767		5		565,959,088		56		588,401,855		39
Total		507,670,289		100		1,011,082,312		100		1,518,752,601		100

	Number of shares on December 31, 2019
Shareholders	Common		%		Preferred		%		Total		%
State of Minas Gerais		248,516,953		51		11,323		—		248,528,276		17
Other entities of Minas Gerais State		19,896		—		1,411,276		—		1,431,172		—
FIA Dinâmica Energia S.A.		48,700,000		10		55,133,744		6		103,833,744		7
BNDES Participações		54,342,992		11		26,220,938		3		80,563,930		6
Others
In Brazil		101,170,317		21		328,982,856		34		430,153,173		29
Foreign shareholders		34,864,055		7		559,378,251		57		594,242,306		41
Total		487,614,213		100		971,138,388		100		1,458,752,601		100

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

	2021		2020		2019
Net income for the year attributed to equity holders of the parent		3,751		2,864		3,194

Minimum mandatory dividend from net income for the year - preferred shares		1,309		986		509
Net income for the year not distributed - preferred shares		1,188		920		1,617
Total earnings - preferred shares (A)		2,497		1,906		2,126

Minimum mandatory dividend from net income for the year - common shares		657		496		256
Net income for the year not distributed - common shares		597		462		812
Total earnings - common shares (B)		1,254		958		1,068

Basic and diluted earnings per preferred share (A / number of preferred shares)		1.70		1.30		1.45
Basic and diluted earnings per common share (B / number of common shares)		1.70		1.30		1.45

	2021		2020		2019
Net income for the year from continuing operations attributed to equity holders of the parent		3,751		2,864		2,970

Minimum mandatory dividend from net income for the year from continuing operations – preferred shares		1,309		986		509
Net income for the year from continuing operations not distributed – preferred shares		1,188		920		1,468
Total earnings from continuing operations - preferred shares (A.1)		2,497		1,906		1,977

Minimum mandatory dividend from net income for the year from continuing operations - common shares		657		496		256
Net income for the year from continuing operations not distributed – common shares		597		462		737
Total earnings from continuing operations - common shares (B.1)		1,254		958		993

Basic and diluted earnings from continuing operations per preferred share (A.1 / number of preferred shares)		1.70		1.30		1.35
Basic and diluted earnings from continuing operations per common share (B.1 / number of common shares)		1.70		1.30		1.35

Capital reserves

	2021			2020			2019
Investment-related donations and subsidies		1,857			1,857			1,857
Goodwill on issuance of shares		394			394			394
Shares in treasury		(1	)		(1	)		(1	)
		2,250			2,250			2,250

Reserve for mandatory dividends not distributed

	2021
Dividends withheld, arising from the net income of 2015		623
Dividends withheld, arising from the net income of 2014		797
		1,420

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


Balances at December 31, 2019	744
Proposed dividends	1,482
Proposed dividends - Non-controlling interests	1
Withholding income tax on interest on capital	(50	)
Dividends retained – Minas Gerais state government (Note 11)	(130	)
Dividends paid	(598	)
Balances at December 31, 2020	1,449
Proposed dividends	1,967
Proposed dividends - Non-controlling interests	1
Withholding income tax on interest on capital	(91	)
Dividends retained – Minas Gerais state government (Note 11)	(13	)
Dividends paid	(1,403	)
Balances at December 31, 2021	1,910

Allocation of net income for 2021 – Management’s proposal

The Annual General Meeting (AGM) held on April 27, 2022 approved the following allocation of the net income for 2021, totaling R$3,753, less R$15 from realization of the deemed cost of PP&E, added to R$835 from the realization of the unrealized profit reserve and addition of R$39 to retained earnings, relating to post-employment benefits:

§ R$187 to be held in the Legal Reserve, as established in Brazilian corporate law.

§ R$1,967 for payment of the mandatory minimum dividends to Company’s holders, to be paid in two equal installments, by June 30 and December 30, 2022, as follows:

-

R$955 in the form of the mandatory dividends as of Interest on Equity, declared on December 07, 2021;

-

R$1,012 as dividends of 2021, to holders whose names are in the Company’s Nominal Share Registry on the date of the AGM.

§

R$1,552 to be held in the Profit retention reserve, to ensure the Company’s consolidated investments planned for 2022, as per capital budget.

§ R$21 to be recorded as Incentives Tax reserve, in reference to the tax incentive amounts obtained in 2020 in relation to the investments made in the region of Sudene.

The amount of R$835 remains as unrealized profit reserve, considering the reversal of the reserve constituted in 2020 and the new constitution in 2021, of the same amount.

Payment of the dividends will be made by December 30, 2022, in accordance with the availability of cash and at the decision of the Executive Board.

g)

Capital increase – Proposal by management

Considering that, on December 31, 2021, the share capital was R$8,467 and the amount of profit reserves, with the exclusion of the Tax Incentive Reserves and Unrealized Earnings Reserve, was R$9,989, exceeding the registered share capital by R$1,523, the Board of Directors will submit to the Annual General Meeting a proposal for increase of the registered share capital from R$8,467 to R$11,007, as per Article 199 of the Brazilian Corporate Law (Law 6,404/76), to be realized through capitalization of the balance of R$2,540 of the Profit retention reserve, through a stock bonus, with issuance of 508,009 new shares, each with nominal (unit) value of R$5.00 set in the by-laws, of which 169,811 will be common shares and 338,198 will be preferred shares.