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Guidance

Guidance. June /2014. Market. CAPTIVE MARKET (GWh). PREMISES. Continued economic growth in the concession area; Energy Incorporation (Reduced energy losses); R esidential and commercial segments strongly correlated with temperature; Temperature: use of historical average.

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Guidance

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  1. Guidance June/2014

  2. Market CAPTIVE MARKET (GWh) PREMISES • Continued economic growth in the concession area; • Energy Incorporation (Reduced energy losses); • Residential and commercial segments strongly correlated with temperature; • Temperature: use of historical average. +2.4% p.a. 22,446 20,391 20,054 19,877 2011 2012 2013 2017 2

  3. OPEX PREMISES MANAGEABLE COSTS AND EXPENSES (R$ MN)* • Synergy Project: gains of efficiency by redefining processes and seeking synergies with Cemig; • Continuous contract negotiation; • Feasibility study to the decision-making process • Efficiency aligned with regulatory costs of the last tariff revision. • Zero-BasedBudgetingimplementation and redesigning of operational processes. 985 +3.7% p.a. 53 851 772 716 20 932 831 2011 2012 2013 2017 * Nominal amounts Inflation estimates for the period: 5.53% p.a. (2014-17) 3

  4. PDA PDD / BILLED SUPPLY PREMISES • Implantation of the UPPs, with an increase in the collected volume; • Expansion of the Light Legal program (APZ); • New technologies that allow remote cuts(smart electronic meters); • Revision of the remuneration model of law firms. 3.2% 3.0% - 70 bps 1.9% 1.2% 2011 2012 2013 2017 4

  5. EBITDA (R$ MN)* PREMISES 2,303 +7.9% p.a. • Market growth; • Non-technical loss reduction; • PDD reduction; • Operational efficiency gain; • Migration of regulated contracts to free market, with the increase in the average selling price of energy. 255 1,739 42 1,456 1,238 2,048 1,697 2011 2012 2013 2017 * Nominal amounts Interest¹ ¹ EBITDA proportionate to the following interest: Renova, Guanhães, Belo Monte, LightGer and Axxiom. Note: In accordance with the IFRS rules, interest in joint ventures will no longer be consolidated as of 2013. 5

  6. Investments PREMISES (R$ MN)* 1,074 1,055 845 176 • Total Investment (2014-17): R$4.5 bn; • Investment in combat losses, including special obligations; • Investmentsneeded for World Cup and Olympics Games; • BNDES financing: 50% of CAPEX for distribution and 60% of the new generation projects. 797 155 61 30 63 26 40 77 102 73 31 95 26 733 713 698 672 Average2015 - 2017 2012 2013 2014 * Nominal amounts Distribution Generation Special Obligations Management Energy Efficiency 6

  7. Net Debt NET DEBT* AND NET DEBT/EBITDA (R$ MN) PREMISES 6,290 • Financing of generation expansion; • Gradual leverage reduction; • Increase in net debt due to the high volume of investments in network modernization and combat losses; • Leverage respecting the limit of covenants. 5,250 4,262 3,383 2.84 2.83 2.82 2.70 2011 2012 2013 2017 * Nominal amounts Net Debt Net Debt / EBITDA 7

  8. ImportantNotice 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 Company’s 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 Company’s 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 Company’s 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 Company’s 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 Company’s 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. 8

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