Conference Call

2Q12

Highlights
Consumption growth of 1.5% compared to 2Q11, mainly driven by the commercial class with a consumption increase of 8.4%;
On June/12, non-technical losses ratio reached 42.3% over the low-voltage market, due to the criteria change of longtime default clients; Collection reached 103.9% on 2Q12 , 1.9 p.p. above the 102.0% reached on 2Q11; The quality indicators ELC and EFC, without removals, decreased from 3.29 to 2.74 and 1.40 to 1.68 respectively, when comparing the quarters;

DISTRIBUTION

In the first half, investments in distribution amounted R$ 302.3 million, 3.5% above the same period of the previous year.
Strong performance of the generation segment in the quarter, reflecting the increase in the spot prices and higher sales volume in the Free Market Environment; SHPP Paracambi, in partnership with Cemig, with 25 MW of installed capacity started its operation in May; The wind farm complex Alto Serto I, the largest in Latin America, belonging to Renova Energia, with 14 wind farms and 294,4 MW of installed capacity in Bahia, started its operation in July; Considering the stakes on the new plants, total installed capacity increased to 955 MW.

GENERATION

Highlights
12.1% increase in Net Revenue (without construction revenue) that reached R$ 1,635.7 million in 2Q12, highlighting the 48.3% increase in the net revenue generation segment.

RESULTS

PMSO consolidated cost reduced 3.9% in the quarter, down 5.3% in the distribution segment;. R$ 255.8 million EBITDA in 2Q12, 6.2% increase, with 15.4% margin. Considering the effect of regulatory assets and liabilities, EBITDA would be 34.5% higher than 2Q11. Net Income of R$ 39.8 million in 2Q12, a 12.3% reduction when compared to 2Q11. Considering the effect of regulatory assets and liabilities, Net Income would be 83.0% higher than 2Q11.

CAPITAL STRUCTURE

Operating cash flow (before interest payments and taxes) rose 16.4% to R $ 293.6 million in 2T12, R$ 41.3 million higher than operating cash generated in 2Q11. Including interest payments and taxes, the increase was 21.9%, or $ 34.3 million; Net debt of R$ 3,516.6 million, with net debt / EBITDA of 2.8x.

On August 7, the Federal Administrative Council of Tax Appeals (Carf) judged the case related to the foreign subsidiaries Light Overseas Investment Limited (LOI) and LIR Energy Limited (LIR), liquidated in 2008 and 2010, respectively. With a favorable judgment to the subsidiary Light Servios de Eletricidade (Light SESA), the tax assessment in the adjusted amount of R$529.4 million was dismissed, including fine and monetary restatement. There was no provision, therefore there is no effect on results.

Energy Consumption
Distribution
ELECTRICITY CONSUMPTION TOTAL MARKET (GWh)
+3.2% +1.5%

5,228

5,460

5,669

5,754
OTHERS 15%

FREE 15%

INDUSTRIAL 7%

23.4C

23.5C 22.7C 22.7C

Srie1
COMMERCIAL 29% RESIDENTIAL 34%

2T09 2Q09 2T09

2T10 2Q10 2T10

2T11 2Q11 2T11

2T12 2Q12 2T12

1Note:

To preserve comparability in the market approved by Aneel in the tariff adjustment process, the billed energy of the free customers Valesul, CSN and CSA were excluded in view of these customers planned migration to the Basic Network.

Total Market
ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET QUARTER
+1.5%

5,669

5,754

-3.6%

789
+8.4%

837

2,043

1,969
-1.8%

1,721 167 982 1.554

1,866 180
+3.5%

4.880 937 48 889

4.916

1,000

905 1.685 48 857

574 426
2T11 2Q11 2T12 2Q12 2T11 2Q11

609 373
2T12 2Q12

2T11 2Q11

2T12 2Q12

2T11 2Q11

2T12 2Q12

2T11 2Q11

2T12 2Q12

RESIDENTIAL

INDUSTRIAL

COMMERCIAL

OTHERS

TOTAL

CAPTIVE

FREE

Collection

COLLECTION RATE BY SEGMENT QUARTER COLLECTION RATE 12 MONTHS

97.5% 98.2%

102.0% 103.9%

100.7% 105.0%

101.4% 100.1%

108.3% 107.4%

Jun/11 set/09'
TOTAL Total RETAIL Varejo LARGE CLIENTS Grandes PUBLIC Pblico Poder SECTOR

jun-11

Jun/12 set/10'

jun-12

Clientes

2Q112T11

2Q12 2T12

Loss Prevention
LOSS (12 MONTHS)
41.3% 42.3% 40.7% 41.3% 40.4%

ENERGY RECOVERY GWh

82.3
Reflets the change on treatment's criteria in the approach to long term delinquent customers, based on Aneel Resolution 414.
-31.0%

34.2%

56.7

7,619

7,627

7,582

7,665

7,839

5,326

5,229

5,247

5,316

5,466

1H11

1S11

1S12 1H12

2,293

2,328

2,335 Dec11 dez/11

2,349 Dec/11 mar/12

2,372 Mar/12 jun/12

INCORPORATION GWh
+16.9%

Jun/11 jun/11

Sep/11 set/11

36.8

43.1

Non-technical losses GWh % Non-technical losses/ LV Market

Technical losses GWh % Non-technical losses / LV Market - Regulatory 1H11 1S11 1H12 1S12

Net Revenue
NET REVENUE BY SEGMENT (2Q12)*

NET REVENUE (R$MM)

Generation 6.9%

Comercialization 4.2% Distribution 88.9%**

+6.6%

3,472.6
+9.8%

3,702,.2 299.7
* Eliminations not considered ** Construction revenue not considered

326.3
1,797.9 162.2 1,635.7 3,146.3

1,637.9 179.2 1,458.7

3,402.5

NET REVENUE FROM DISTRIBUTION (2Q12)

Others (Captive) 13% Industrial 6.7%

Network Use (TUSD) 9.8%

(Free + Concessionaires)

2T11 2Q11

2T12 2Q12

1S11 1H11

1S12 1H12

Construction Revenue Revenue w/out construction revenue

Commercial 30.4% Residential 40.1%

Operating Costs and Expenses

DISTRIBUTION MANAGEABLE COSTS (R$MN) COSTS (R$MM)* 2Q12
-9.8% -1.5%

661.5

651.6

Manageable (distribution): R$ 321.8

No gerenciveis; 1.053,0; 71,18% Non manageable

(21.8%)

2T12

356.8

321.8

(distribution): R$ 1,053.0
(71.2%)

Gerenciveis; 321,8; 21,75%

2T11 2Q11 2T12 2Q12 1S11 1H11 1S12 1H12

Generation and Commercialization: R$ 104.5

(7.1%)

Gerao e Comercializao ; 104,5; 7,07%

R$ MM PMSO Provisions
PCLD Contingencies

2Q11 179.4 99.3

79.5 19.8

2Q12 169.9 84.0

72.2 11.8

Var % -5.3% -15.4%

-9.2% -40.5%

1H11 348.0 159.6

143.9 15.7

1H12 337.6 170.5

133.9 36.7

Var % -3.0% 6.8%

-7.0% 133.1%

* Eliminations not considered

Depreciation Total

78.0 356.8

67.9 321.8

-13.0% -9.8%

15.9 661.5

143.6 651.6

-6.7% -1.5%

EBITDA
CONSOLIDATED EBITDA (R$MM) EBITDA BY SEGMENT* 2Q12

+2.0%

675.7

689.6

+6.2%

(EBITDA Margin: 11.3%) Distribuio ; 166,2; 63,68%

Distribution 63.7%

2T12

Generation 33.4%

(EBITDA Margin: 75.9%) Gerao; 87,2; 33,41%

240.8

255.8
Comercializao Commercialization 2.9%
; 7,6; 10.9%) (EBITDA Margin: 2,91%

2T11 2Q11

2T12 2Q12

1S11 1H11

1S12 1H12

*Eliminations not considered

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EBITDA
EBITDA 2Q12/2Q11 (R$ MM)
+34.5%

+6.2%

177 76 246 6 241 (186) 8 15 256 332

EBITDA Adjusted Ajustado 2T11 EBITDA

2Q11

Regulatory Passivos Regulatrios Assets and Liabilities

Ativos e

EBITDA EBITDA 2T11

2Q11

Revenue

Receita Net Lquida

Custos No Custos NonManagable Gerenciveis Gerenciveis (PMSO) Managable Costs

Provisions

Provises

Costs

(PMSO)

EBITDA 2T12 2Q12

EBITDA -

Regulatory Passivos Ajustado Adjusted Regulatrios EBITDA 2T12 Assets and Liabilities 2Q12

Ativos e

EBITDA

11

Net Income
NET INCOME 2Q12/2Q11 (R$ MM)

+83,0%

50

90

49

15 45

-12.3%

10
(30) (1)

40

Adjusted Net Income 2Q11

Regulatory Assets and Liabilities

2Q11

EBITDA

Financial Result

Taxes

Others

2Q12

Regulatory Assets and Liabilities

Adjusted Net Income 2Q12

12

Indebtedness
NET DEBT
3,516.3 2,549.3 803 2.0 2.8 289
jan/12 Jun/12 9M10

AMORTIZATION SCHEDULE* (R$ MM) Average Term: 3.5 years

687

788

830

557

3T10

Jun/11 9M09
jan/11

2012 2012
* Principal only

2013 2013

2014 2014

2015 2015

2016 2016

After 2016 Aps 2016

Net Debt / EBITDA

COST OF DEBT
9.84% 5.30% 11.08% 11.01% 9.25%

CDI/Selic 77.3%

1T12

TJLP 21.4% US$/Euro 1.3%*

4.87%

4.51%

2007

2007 2008
2009 2009 2007

2008 2009
2011 2011 2009

4.13%

2009 set/10

set/10
* Considering Hedge

2010 2010 2008

Custo Nominal

jun/12 Jun/12 set/10

Custo Real

Real Cost Custo RealCusto Real

Nominal Cost Custo Nominal Custo Nominal

Custo Real

Custo Nominal

13

Investments
CAPEX (R$MM)
+32.5%

928.6 169.9

CAPEX BREAKDOWN (R$MM) 2Q12

Generation Maintenance 7.2
-2.6%

700.6 546.7 92.9 563.8 181.8 116.9 446.9 518.8

Generation Projects 1.3

758.7 337.1 45,1 292.0

328.4 26,0 302.3

Others 33.8

453.8

Quality Improvement 56.9

Develop. Of Distribution System 122.5

2008 2008

2009 2009

2010 2010

2011 2011

1H11 1S11

1H12 1S12 Losses Combat 106,6

Investments in Electric Assets (Distribution)

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Important Notice
This presentation may include declarations that represent forward-looking statements according to Brazilian regulations and international movable values. These declarations are based on certain assumptions and analyses made by the Company in accordance with its experience, the economic environment, market conditions and future events expected, many of which are out of the Companys control. Important factors that can lead to significant differences between the real results and the future declarations of expectations on events or business-oriented results include the Companys strategy, the Brazilian and international economic conditions, technology, financial strategy, developments of the public service industry, hydrological conditions, conditions of the financial market, uncertainty regarding the results of its future operations, plain, goals, expectations and intentions, among others. Because of these factors, the Companys actual results may significantly differ from those indicated or implicit in the declarations of expectations on events or future results. The information and opinions herein do not have to be understood as recommendation to potential investors, and no investment decision must be based on the veracity, the updated or completeness of this information or opinions. None of the Companys assessors or parts related to them or its representatives will have any responsibility for any losses that can elapse from the use or the contents of this presentation. This material includes declarations on future events submitted to risks and uncertainties, which are based on current expectations and projections on future events and trends that can affect the Companys businesses. These declarations include projections of economic growth and demand and supply of energy, in addition to information on competitive position, regulatory environment, potential growth opportunities and other subjects. Various factors can adversely affect the estimates and assumptions on which these declarations are based on.

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