1
FINANCIAL STATEMENTS FINANCIAL STATEMENTS 33rdrd QUARTER 2001 QUARTER 2001
• Investor Relations OfficerInvestor Relations Officer• Chief Financial OfficerChief Financial Officer
• Investor Relations OfficerInvestor Relations Officer• Chief Financial OfficerChief Financial Officer
2
HIGHLIGHTS
OPERATING PERFORMANCE
P & L STATEMENT
OUTLOOK
AGENDA
3Result influenced by macro economical factors
• Real devaluation• Rationing• Increasing regulatory charges
(12)26
(209) (195)
324
-300
-200
-100
0
100
200
300
400
R$
mil
lion
HIGHLIGHTS
436% Real devaluation resulted in losses of R$650 million
0100200300400500600700800
R$
mil
ion
1st Q
uarte
r
2nd Q
uarte
r
3rd Q
uarte
r
Until S
ep.0
1
Until S
ep.0
0
Energy purchase from taipu
050
100150200250300350400450500
R$
mil
lio
n
1st Q
uarte
r
2nd Q
uarte
r
3rd Q
uarte
r
Until S
ep.0
1
Until S
ep.0
0
FX Expense
U.S. Dollar
1,80
2,00
2,20
2,40
2,60
2,80
3,00
R$
/US
$
.
Daily Rate Jan 2, 2001
HIGHLIGHTS
5Revenue reductionreached R$286 million
0500
1.0001.5002.0002.5003.0003.500
R$
mil
ion
1Q01 2Q01 3Q01 UntilSep. 01
UntilSep. 00
Gross Revenue
27,905
27,054
26,600
26,800
27,000
27,200
27,400
27,600
27,800
28,000
GW
h
Sales to Final Consumers
3rd Quarter 013rd Quarter 00
Reduction of 3%
HIGHLIGHTS
6Residential presentedthe rationing effects
1.898 1.873 1.882 1.922 1.8061.372
5.653 5.100
0
2,000
4,000
6,000
GWh Residential
0
5,000
10,000
15,000
20,000
GWh Industrial
0
1,000
2,000
3,000
GWh Commercial
Reduction of 9.8%
Reduction of4.3%
Reduction of 0.7%
HIGHLIGHTS
7Growth till Mayvery positive...
2.915
3.0402.982
3.2123.145
3.1993.274
3.125
3.3593.237
3.104 3.063
3.192 3.250
3.041
2.510
2.6192.683
2.0002.2002.400
2.6002.8003.0003.200
3.4003.600
Jan Feb Mar Apr May June July Aug Sep
GWh
2000 2001
...but, rationing has already reducedgrowth from June on
HIGHLIGHTS
8Fast growth after crisesFast growth after crisesshows the Company’s vigorshows the Company’s vigor
-200-100
0100200300400500600
R$
mill
ion
1996 1997 1998 1999 2000 UntilSep-01
Net profit (loss)
0
200
400
600
800R
$ m
illio
n
.
1996 1997 1998 1999 2000 UntilSep-01
CAPEX
In 1999 the Real devaluationreduced net income promptlyrecovered in 2000
Even under adverse conditions CEMIG was able to invest
HIGHLIGHTS
9
0
500
1000
1500
2000
2500
3000
3500
4000
R$ m
illi
on
.
1997 1998 1999 2000 Until Sep-00
Until Sep-01
Net Revenue Debt EBITDA
Even facing debt growth financial situation remains sound
HIGHLIGHTS
10
- Net loss R$ million (194.6)
- Stockholders' Equity R$ million 6,451
- Total debt R$ million 4,001
- Capital Expenditure R$ million 419
- Generating Installed Capacity MW 5,636
- Own Generation GWh 15,508
- Total Sales until Sep/ 01 GWh 27,015
- Retail Sales (last 12 months) % (1.9)
- Total Customers - Thousand # 5,343
- New Customers - Y to Sep/ 01 # 201,432
CEMIG as of September 2001
HIGHLIGHTS
11
US$ 90 MI Foreign debt rollover (up to Sept./2001)
Aimorés power plant – 330 MW: Construction start-up
Bovespa Level I of Corporate governance
NYSE ADR Level II listing
MAE electricity transactions recording
Material facts3rd Quarter 2001Material facts3rd Quarter 2001
HIGHLIGHTS
12
Net Operating Revenue
Operating Expenses
EBITDA
FX Losses
Net Loss
Operating Margin
EBITDA Margin
Sales (GWh)
Change in relation to 2000 shows impacts
2,760,750
2,455,389
680,695
(482,489)
(194,621)
11.06 %
24.66 %
33,439
3.5
14.3
(22.6 )
(1,637.5)
(160.1)
(43.1)
(25.3)
(0.5)
%Values in R$ thousandHIGHLIGHTS
13
Requirements Captive Market
Free Customers
Initial Contracts and Short-term Energy
13,566 GWh
13,141 GWh
5,740 GWh
TotalEnergy
33,439 GWh
Reduction(0.5) %
Losses 7.6 % 2,756 GWhReduction
(27) %
ENERGY BALANCE Year to September 2001ENERGY BALANCE Year to September 2001
Third party plant supply
992 GWh
Energy Generated 16,224 Own Generation 15,039 Third party plant output 716 Subsidiaries' Generation 469
Energy Purchased 19.971 Itaipu 8.929 FURNAS 2.171 Short-term Energy/MRE 8.808 Isolated Loads 44 Coruripe 19
Energy available for sale36,195 GWh
14Operating performance improves despite crises
5.2
39
4,2
48
4,4
73
4,7
23
4,9
17
5,1
41
5,1
86
5,3
43
11,23811,53611,73211,961
12,71815,060
11,596 11,233
0
1,000
2,000
3,000
4,000
5,000
6,000
1996 1997 1998 1999 2000 1Q01 2Q01 3Q01
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000Customers Employees
1997 1998 1999 2000Until
Sept/01Customers per Employee 352 391 418 446 480 MWh sold/ Employee 2.676 3.882 3.332 3.661 2.980 Labor expenses per net revenue( % ) 27,9 19,2 16,0 14,2 15,5 Net revenue per expenses 0,83 0,73 0,86 0,81 0,89 Added value ratio 1,21 1,38 1,16 1,24 1,12 Sales decreased (%) 2001/2000 3,10 2,20 (0,03) 7,00 (3,05) Operating expenses/ MWh 48,8 45,2 62,5 68,9 90,70
PDI
PDV
OPERAT I NG
15
2.7
1.7
2.3
3.33.6
1.8
2.31.8
1.2
1.4
3.9
2.1
1.2
1.4
0
2
4
6
Hou
rs p
er c
usto
mer
s
DEC FEC
Quartely figures
1Q/00 2Q/00 3Q/00 4Q/00 1Q/01 2Q/01 3Q/01
OperatingPerformance
Equivalent duration of outagesper consumer
Equivalent frequency of outages per consumer
OPERAT I NG
16
EBITDA – 22.63 %
121
60
29226
7
305336
292
252
22929
6
268
-50
100150200250300350400
1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01
R$ m
illion
10,0%
20,0%
30,0%
40,0%
EBITDA EBITDA Margin
880
681600
700
800
900
2000 2001
R$
mill
ion
EBITDA
OPERAT I NG
17
Assets Sep-01 June-01 Change %
CURRENT 1.297.621 1.564.327 (17,05)
LONG TERM RECEIVABLES 2.277.367 2.023.665 12,54
PERMANENT 9.343.816 9.366.675 (0,24)
12.918.804 12.954.667 0,28)
Liabilities and EquitySep-01 June-01 Change %
CURRENT 1,967,698 2,020,995 (6.56)
LONG TERM LIABILITIES 4,500,246 4,274,039 7.15
SHAREHOLDER'S EQUITY 6,450,860 6,659,633 (3.13)
12,918,804 12,954,667 -0.28
Value in thousand of reais
Balance Sheet
OPERAT I NG
18Rationing already presentsits first impacts
1st Quarter
2001
2nd Quarter
2001
3rd Quarter
2001Until
Sep/01Until
Sep/00
Net Revenue 929 1,004 828 2,761 2,666
Operating Expenses (786) (835) (834) (2,455) (2,148)
EBIT 143 168 (6) 306 518
Financial Result (141) (120) (272) (533) (245)
Non-Operating Result (23) (4) (35) (62) (42)
Net Income (13) 27 (209) (195) 324
Statement of income
Values in million of Reais
OPERAT I NG
19Operating revenue reflectsrationing losses from June on
1st Quarter
2001
2nd Quarter
2001
3rd Quarter
2001Until
Sep/01Until
Sep/00
Retail Sales 1,185 1,281 995 3,461 3,266 Wholesale 8 9 38 55 127 T Grid Revenue 36 36 42 114 104 Others 25 29 29 83 70 Deductions (325) (352) (275) (952) (902)
Net Revenue 929 1,003 829 2,761 2,665
Operating Revenue
Values in million of Reais
Wholesale revenues rose R$28 million as result of MAE electricity trading accounting
OPERAT I NG
20OPERATINGEXPENSES
ExpensesValues in million of Reais
3rd Quarter 00
3rd Quarter 01
Change
%
Controllable 382 337 -12
Non-Controllable 402 497 24
Total 784 834 6
OPERAT I NG
2114% increase in operating expenses in 2001
1st Quarter
2001
2nd Quarter
2001
3rd Quarter
2001Until
Sep/01Until
Sep/00
Energy Purchased 232 280 303 815 602 Labor 167 136 125 428 377 Depreciation and amortization 123 125 128 376 361 CCC 71 85 88 244 205 T Grid Charges 66 66 73 205 179 Outsourced Services 46 56 61 163 135 Forluz 75 Others Expenses 81 89 56 226 214
Total 786 837 834 2,457 2,148
Operating ExpensesValues in million of Reais
OPERAT I NG
22
Labor expenses
Description September/01 September/00 Charge (%)
Payroll 387.0 347.0 11.5
Voluntary dismissal program - PDV 32.5 - 0.0
Forluz Expenses 22.7 35.5 (36.1)
Fringe benefits 45.1 41.5 8.7
TOTAL EXPENSES 487.3 424.0 14.9
Capitalized expenses (60.3) (47.0) 28.3
P & L allocated expenses 427.0 377.0 13.3
Values in million of ReaisOPERAT I NG
23
Financial Result( R$532.6 million )
Financial Result( R$244.7 million)
FX Losses( R$482.5 million )
Expense ( R$364.3 million )
RevenueR$ 314.1 million
RevenueR$110.7 million
2001 2000
Expenses( R$327.6 million )
FX Losses(R$27.8 million)
FINANCIALRESULTSReal Depreciation: Until Sep/01: 36.61% Until Sep/00: 3.06%
F I NANC I ALS
24
Short-term Long-term TotalForeign Currency 661 956 1,617 Local Currency 70 414 484 Total 731 1,370 2,101
Foreign Currency
41%
59%
Short-term Long-term
Local Currency
14%
86%
Short-term Long-term
Total Debt
74%
26%
Foreign Currency Local Currency
Interest Rates
82%
18%
Fixed Variable
Foreign Debt increaseddue to Real devaluation
F I NANC I ALS
25
Non-operating Result( R$61.6 million )
Non-operating Result( R$42.1 million )
FORLUZ – Managerial cost(R$6.5 million)
Write-off and Disposal losses(R$32.8 million)
Projects write-off and others(R$25.2 million)
2001 2000
FORLUZ – Managerial cost (R$5.8 million)
NON-OPERATINGRESULTS
Projects write-off and others(R$22.3 million)
Write-off and Disposal losses(R$11.1 million)
F I NANC I ALS
26
Value in million of Reais Sep-30-01 Sep-30-00OPERATING ACTIVITIESNet Income (loss) (195) 324
Depreciation and amortization 375 361 Write-off of assets and other assets 75 59 Others 428 25
Cash provided by operating activities 683 769
Financing activities (70) (88) Proceeds from long-term debt 263 144 Proceeds from short-term debt - -Payments on long-term debt (252) (223) Special obligations – Consumers' Contributions 123 75 Early payment electricity sales (35) (58) Dividends and interest on capital (170) (26)
Cash for investing activities 613 681
Investing activities 415 331 Investments 31 20Capital expenditure 384 311
Net increase in cash and cash equivalents 198 350
Cash flow changeCash and cash equivalents at beginning of year 287 69Cash and cash equivalents at end of year 485 419
198 350
Until
Sound Cash Flow affords negative impacts
F I NANC I ALS
27Debt maturity
Debt restructuring and local bonds included
159,8 146,3 129,4 134,3
448,3 422,429,0
362,7 351,9 374,3
100,3
61,9157,4
81,888,7 85,6 87,4
503,3
107,316,0
40,0
72,7
96,3
17,8 14,3 14,3
10,9
7,6
0
100
200
300
400
500
600
700
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014a
2024
R$
mill
ion
LOCAL CURRENCY FOREIGN CURRENCY
53,5
202,7 161,3 152,4 151,2 122,9
446,8
345,3338,5
208,7
54,9
115,9
359,5
85,18791,5 77,9150,9
59,87,6
10,9
14,314,317,8
96,2
27,3 17,816
0
100
200
300
400
500
600
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
a 2
024
R$
Mil
lion
LOCAL CURRENCY FOREIGN CURRENCY
OUTLOOK
28
Current situationCurrent situation
2001 Funding2001 Funding
1. Supplier´s and Buyer´s ....................................….R$ 111.5 million
2. Roll-over
a) Already done …….......................................….US$121.2 million Up to September/2001 .......................….US$ 91.2 million Central Bank approval in progress...….US$ 30.0 million
b) Eurobonds .................................................….US$148.1 million “Waiver”............................................…....US$ 26.7 million Loans under 4131-STN/BACEN facility ...US$115.0 million To be repaid ............................................US$ 6.4 million
3. Local bonds A Series: .........................................................R$ 312.5 million B Series:….......................................................R$ 312.5 million
OUTLOOK
29
R$3.9 billion planned for the next 5 years
CAPEX
2000(a)3rd Q 01(a)
2001 2002 2003 2004 2005
Generation 147.4 116.1 196.2 279.0 201.3 91.2 13.8
Transmission 8.0 21.4 89.1 71.1 96.6 104.2 94.9
Sub-transmission 40.6 16.0 67.7 86.2 130.9 121.9 126.7
Distribution 309.4 238.7 355.3 357.1 354.9 321.0 292.4
Others 43.8 26.9 42.2 133.1 64.7 87.9 90.5
TOTAL 549.2 419.1 750.5 926.5 848.4 726.2 618.2
OUTLOOK
30
MAJOR PROJECTS
SHARE CEMIGCEMIG MW R$ million START-UP
UHE Porto Estrela 33 112 39 Sep-01UTE Barreiro 100 13 22 Dec-02UHE Pai Joaquim 49 23 11 Sep-03UHE Queimado 83 105 110 April-03UHE Aimorés 49 330 206 Nov-03UTE Sul Minas 31 500 186 Dec-03UHE Capim Branco l ll 20 450 110 Not definedUHE Irapé 100 360 April-05UHE Funil 49 180 101 Dec-02PCH Poço Fundo 100 21 8 Jun-02
Total 2,094 793
Infovias (investments in 2001) 21 Gasmig (investments in 2001) 9
OUTLOOK
31
G E N C O1 0 0 %
5 .5 5 4 M W
T R A N S C O1 0 0 %
4 9 .6 3 K M
D IS C O /C O M E R C1 0 0 %
5 ,1 m ilh õ es c lien tes
G A S M IG9 5 %
1 ,8 M M M 3 /d ia
P o rto E strela3 3 %
1 1 3 M W
IN F O V IA S4 9 %
A im o rés4 9 %
3 3 0 M W
Ip a tin g a1 0 0 %
4 0 M W
H o rizo n tes E n erg ia1 0 0 %
S á C a rv a lh o1 0 0 %
7 8 M W
C E M IGH o ld in g
CEMIG’SRESTRUCTURING
OUTLOOK
32
• BOVESPA Level I: CMIG3 AND CMIG4BOVESPA Level I: CMIG3 AND CMIG4• NYSE Level II ADR: CIGNYSE Level II ADR: CIG• Dow Jones Sustainability Index 2000 and 2001Dow Jones Sustainability Index 2000 and 2001
• BOVESPA Level I: CMIG3 AND CMIG4BOVESPA Level I: CMIG3 AND CMIG4• NYSE Level II ADR: CIGNYSE Level II ADR: CIG• Dow Jones Sustainability Index 2000 and 2001Dow Jones Sustainability Index 2000 and 2001