1

FINANCIAL STATEMENTSFINANCIAL STATEMENTS11stst Quarter 2002 Quarter 2002

FINANCIAL STATEMENTSFINANCIAL STATEMENTS11stst Quarter 2002 Quarter 2002

• Cristiano Correa de BarrosCristiano Correa de Barros• Chief Financial OfficerChief Financial Officer• Chief Investor Relation OfficerChief Investor Relation Officer

2

Total debtR$2,280 Million

DebenturesR$ 625 Million

Highlights on Financials

Net IncomeR$ 220 Million

Return on Equity3%

Shareholders’ EquityR$ 7,122 Million

EBITDAR$ 406 Million

Interest ChargesR$ 55 Million

3Highlights on institutional affairs

CEMIG's SHAREHOLDING CAPITAL

MARCH/2002

State of Minas GeraisSouthern Electric Brasil Part. Ltda.Local Private Investors Foreign Private InvestorsOthers

f

ListingNew York Stock Exchange

BOVESPACorporate Governance

Level I

COMMON SHARES

51%

0% 33%4%

12%

PREFERRED SHARES

1%

0%

44%

53%

2%

TOTAL OF SHARES

23%

32%

1%

14%

30%

20,00

25,00

30,00

35,00

40,00

45,00

8,00

9,00

10,00

11,00

12,00

13,00

14,00

15,00

16,00

17,00

18,00

18/0

9/20

01

25/0

9/20

01

02/1

0/20

01

10/1

0/20

01

17/1

0/20

01

24/1

0/20

01

31/1

0/20

01

07/1

1/20

01

15/1

1/20

01

23/1

1/20

01

30/1

1/20

01

07/1

2/20

01

14/1

2/20

01

21/1

2/20

01

02/0

1/20

02

09/0

1/20

02

16/0

1/20

02

23/0

1/20

02

30/0

1/20

02

06/0

2/20

02

13/0

2/20

02

20/0

2/20

02

27/0

2/20

02

06/0

3/20

02

13/0

3/20

02

20/0

3/20

02

27/0

3/20

02

cig cmig4

4

Industry General Agreement

Industry Revitalization Expansion

IrapéFunding Structure

Porto Estrela112 MW

New consumers58 thousandconnected

CAPEXR$ 139.4 MI

Highlights on strategy

Revenue Losses

Non controllable costs

Purchase of non Regulated price energy

Other Regulatory costs

The MAE Energy transaction deadlock

Assurance on the capacity expansion

Moving along with the Industryrestructuring

5ECONOMIC INDICATORS

Estimated Actual Change %IGP-DI 1.52 0.48 (68.1)

DÓLAR 0.15 (1.05) (801.5)IGP-M 1.52 0.51 (66.1)INPC 1.03 2.01 94.6

Index Three month period ending on March 31, 2002

Major inflation index change in the 1st Quarter/2002Major inflation index change in the 1st Quarter/2002

6Consolidated statement of income – R$ MI Economic BasisConsolidated statement of income – R$ MI Economic Basis

SáCarvalho

Net Operating revenues 1,210.2 23.2 0.5 3.7 1.3 1,238.8

Operating Expenses 933.0 19.7 4.0 1.2 1.0 958.8

Financial Income (expense) 66.9 0.6 (1.5) 0.3 0.2 66.5

Non-operating Result (7.0) 0.0 0.0 0.0 0.0 (7.0)

Income before income tax 337.1 4.1 (5.0) 2.9 0.4 339.5

Net Income 118.6 1.5 (1.7) 1.0 0.1 119.5

Income after income tax 218.5 2.6 (3.3) 1.9 0.3 219.9

Ipatinga TotalDescription Cemig Gasmig Infovias

7

8Industry Agreement : losses recovery

R $ 3 0 2 ,7 69

C o nsu m e rsE x tra ord in ary R ev en ue

L o ng te rm re ce iva b les

A sse ts

R $ 3 0 2 ,7 69

S ha reh o lde rs ' E qu ity

L iab i li ties

B a la nce S he e t

R $ 2 6 8 ,9 40

E x tra ord in ary R ev en ue

O p era tin g R ev en ue

R $ 3 3 ,8 29

F ina n cia l R ev en ue

F ina nc ia l Incom e

S ta te m e n ts o f In co m e

Revenue Losses

9Industry Agreement : losses recovery

R $ 3 5 ,6 48

A sse ts

B a la nce S he e t

W ho lesa leR $ 3 2 ,2 72

O p era tin g R ev en ue

S ta te m e n ts o f In co m e

Energy sold as independent producer

10Industry Agreement : losses recovery

Energy purchased will be booked as operating expenses

C o nsu m e rs-E x tra ord in ary R ev en ue

R $ 6 3 ,1 15

L o ng te rm re ce iva b les

A sse ts

S up p lie rsR $ 6 1 ,0 18

C ur ren t L ia b i li ties

S up p lie rsR $ 5 8 ,6 95

L on g te rm L ia b i li ties

R $ (2 0 ,95 0)

S ha reh o lde rs ' E qu ity

L iab i li ties

B a la nce S he e t

Energy purchased w ill be booked as operating expenses

11

Tariff R ecom p os it ion R even u eR $ 4 6 .2 2 4

O p era tin g R even u e

E n erg y p u rch ased fo r resa leR $ 1 0 4 .0 0 5

O p era tin g E xp en ses

F in an c ia l R even u eR $ 2 0 .2 6 7

F in an c ia l E xp en sesR $ 1 5 .7 0 8

F in an c ia l R esu lt

In com e S ta tem en ts

Energy sold as independent producer

IIndustry Agreement : losses recovery

Energy purchased will be booked as operating expenses

12Industry Agreement : losses recovery

CVA tracking accountCVA tracking account 1st Quarter 20021st Quarter 2002

C on su m ersE xtraord in ary R even u e

R $ 1 2 ,4 0 2

L on g Term s R ece ivab les

A sse ts

S h areh o ld ers ' E q u ityR $ 1 2 ,4 0 2

L iab ilit ies

B a lan ce S h ee t

W rite o ffR $ 7 8 2

O p era tin g exp en ses

In te res t ch arg esR $ 1 1 ,6 2 0

F in an c ia l R even u es

S ta tem en ts o f In com e

Operating Expensesover the forecasted at the tim e of the tariff increase

13Industry Agreement : losses recovery

Tax Impact

T a x c red itsR $ 2 7 ,3 29

L o ng te rm R ece iv ab les

A sse ts

T a x a nd S o c ia l C h arg e - V A T to p ayR $ 8 9 ,5 37

C urren t L ia b i li ties S ha reh o lde rs ' E qu ityR e du ction

R $ 1 1 6 ,8 66

L iab i li ties

Balance Sheet

14

Tax Impacts

R $ 2 3 ,1 04

G ross o p era tin g sa le s d ed u ction

R $ 2 ,3 98

F ina n cia l e xpe nses

R $ 9 1 ,3 64

In com e a nd so c ia l co n tr ib u tion taxes

Statem ents of Income

Industry Agreement : losses recovery

15Industry Agreement : losses recovery

STATEMENT OF INCOME : three months ending on March 31, 2002 R$ 1000

Extraordinary Revenue 315,164 Electricity sales to the interconnected power system 32,272 Deductions from Operating Revenues (23,104)Operating Expenses (103,223)Financial Revenues 63,318 Financial Expenses (15,708)Income and social contribution taxes (91,364)Total 177,355

After all the transations, Cemig will remain with After all the transations, Cemig will remain with a net balance of R$ 177 milliona net balance of R$ 177 million

16

Assets

Liabilities and Equity

Values in million of ReaisBalance Sheet: Holding

BS reflects the industry agreement booking rules

1st Quarter/2002 Dec-01 %

CURRENT 1,545,981 1,630,315 (5.17)

LONG TERM RECEIVABLES 4,009,742 3,503,619 14.45

PERMANENT 7,967,549 7,989,843 (0.28)

13,523,272 13,123,777 3.04

CURRENT 1,919,449 1,739,339 10.36

LONG TERM LIABILITIES 4,481,820 4,482,382 (0.01)

SHAREHOLDER'S EQUITY 7,122,003 6,902,056 3.19

13,523,272 13,123,777 3.04

17

R$ MI in 03/31/2002 % change

Results as of March 31, 2002Results as of March 31, 2002

Holding

Net Operating Revenue - R$ MI

Operating Expenses – R$ MI

EBITDA – R$ MI

FX losses – R$ MI

Net Income (Loss) – R$ MI

Operating Margin (%)

EBITDA Margin (%)

Retail Sales (GWh)

1,210.2

933.0

405.7

3.7

219.9

22.9

33.5

8,295

30.2 %

12.9 %

69.0 %

-

-

107.1 %

37.8 %

(13.6) %

18Quarterly net income growthR$ MI – Economic Basis

R$ million

82 136106

91(12) 26 (209)

673

220

-300

-150

0

150

300

450

600

750

19Statements of Income

Holding

1st Qua 2002

1st Qua 2001

4th Qua 2001 2001

Net Revenue 1.210 929 1.952 4.713

Operating Revenue (933) (827) (1.349) (3.804)

EBIT 277 103 603 909

Financial Result 67 (100) 328 (205)

Non Operating Result (7) (23) (28) (90)

Net Income 220 (20) 673 478

Statement of Income

Values in million of Reais

20Net Revenue increased 30%Due to tariff readjustment

Holding

1st Qua 2002

1st Qua 2001

4th Qua 2001 2001

Retail Sales 1.134 1.185 1.091 4.553 Extraordinary revenues 315 - 1.058 1.058 Wholesale 39 8 88 144 Transmission Grid Revenue 38 36 39 153 Others 18 25 26 108 Deductions (335) (325) (350) (1.303)

Net Revenue 1.210 929 1.952 4.713

Operating Revenue

Values in million of Reais

21Non controllable costs increased faster

Holding

ExpensesValues in thousands of Reais

1st QUARTER

2002

1st QUARTER2

001

Change

Controllable 411,806 419,949 (2%)

Non controllable 521,184 406,633 28%

Total 932,990 826,582 13%

22Energy purchased reflects rationing adjustment

Holding

1st Qua 2002

1st Qua 2001

4th Qua 2001 2001

Energy Purchased 360 232 699 1,514 Labor 132 167 122 549 Depreciation and amortization 129 123 128 503 CCC 70 71 4 249 Transmission Grid Charges 65 66 46 251 Outsourced Services 50 46 51 214 Forluz - Employee post-retirement benefits 54 50 50 201 Other Expenses 73 72 98 323

Total 933 827 1,198 3,804

Operating ExpensesValues in million of Reais

23

FINANCIAL RESULTSUp to March Real Depreciation:

Up to Mar/02: 0.14% Up to Mar/01: 10.55%

FX gains in 2002 compared to FX losses in 2001

Holding

Financial ResultR$68.3 MI

Financial Result( R$96.1 MI )

FX GainsR$3.7 MI

Expenses (R$82.5 MI )

RevenueR$145.6 MI

RevenueR$88.9 MI

2002 2001

Expenses(R$66.5 MI)

FX Losses(R$122.9 MI)

Equity Income – AffiliatesR$1.5 MI

Equity Income – AffiliatesR$4.4 MI

24

Million of ReaisMillion of Reais

Foreign Currency debt reducedby Eurobond retirement

Holding

Foreign Currency

31%

69%

Short-term Long-term

Local Currency10%

90%

Short-term Long Term

Total DebtLocal Currency

47%

Foreign Currency

53%

Short-term Long-term TotalForeign Currency 403 895 1,299 Local Currency 121 1,044 1,165 Debt linked deposits (166) (18) (184) Total 358 1,922 2,280

25

332,6

391,4

472,1

434,8

372,5

41,7 36,6 30,3 28,7 28,7

104

17,6

90,7

0

50

100

150

200

250

300

350

400

450

500

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014/24

Debt Maturity as of March 31, 2002

In Reais Million

Debt Maturity as of March 31, 2002

In Reais Million

The debt is not included at FORLUZ

26

2002 2001

NON-OPERATING RESULTSUp to MarchUp to March

1st Quarter 2002: guidance

Non-operating Result(R$7 MI)

Non-operating Result(R$22,7 MI)

FORLUZ – operating expenses(R$2.2 MI)

Write-off and Disposal losses(R$3.4 MI)

Projects write-off and others(R$15,6 MI)

FORLUZ – operating expenses (R$2,2 MI)

Projects write-off and others(R$1.4 MI)

Write-off and Disposal losses(R$4,9 MI)

27

Energy delivered to the transmission grid Regulated price Market

Non regulated potencial market

Wholesale

ENERGY BALANCE 1st Quarter 2002ENERGY BALANCE 1st Quarter 2002

Third party plant supply

Energy for sale 11.656 GWh

4,046 GWh

4,029 GWh

2,382 GWh

Total Energy10,788 GWh

Losses 7.4 % 868 GWh

331 GWh

Energy Generated 5,424 Own Generation 4,849 Thirty party plant output 344 Subsidiaries'Generation 231

Energy Purchased 6,232 Itaipu 2,917 Other Utilities Acceptance 582 Short-term Energy/MRE 2,719 Isolated Loads 14

28Rationing reduced sales Volume in 13.6%

01,0002,0003,0004,0005,0006,000

GWh

Industri

al

Resid

entia

l

Comm

ercia

l

Rural

Other

s

Retail Sales

1Q 01 1Q 02

9598

7894

8295

1Q 01 4Q 01 1Q 02

Quarterly Retail Sales in GWh-13.6%

+5.1%

-9.3%

-21.9%-16.9% -19.1%

Retail Sales in R$ million

40%

34%

16%

4% 6%

Industrial Residential Commercial Rural Others

Retail Sales in GWh

62%18%

10%4% 6%

29PRODUCTIVITY GAINS

5.4

12

5,3

43

5.2

39

4,2

48

4,4

73

4,7

23

4,9

17

5,1

41

5,1

86

5,4

71

11,28811,36711,23811,64811,74811,96112,718

15,060

11,59611,357

1,500

3,000

4,500

6,000

4,000

8,000

12,000

16,000

Customers Employees

1997 1998 1999 2000 2001 1st T/02 1st T/01Customers per Employee 352 391 418 441 479 482 443 MWh sold / Employee 2,676 3,282 3,332 3,647 3,093 719 817 Labor expenses per net revenue ( % )27.9 19.2 16.0 14.2 11.7 10.9 17.9 Net revenue per expenses 0.83 0.73 0.86 0.81 0.81 0.60 0.89 Added value ratio 1.21 1.38 1.16 1.24 1.24 1.66 1.12 Sales decreased (%) 2001/2000 3.10 2.20 (0.03) 7.00 (16.2) (13.9) (7.2) Operating expenses / MWh 49 50 75 69 109 114 86

30Outlooks 2002

CEMIG increase tariff - 2002CEMIG increase tariff - 2002    ANEEL announced today, April 5th, 2002, the 176 rule, which reajusted the ANEEL announced today, April 5th, 2002, the 176 rule, which reajusted the

electricity rates, set a new auditing fee and new yearly revenues related to electricity rates, set a new auditing fee and new yearly revenues related to the Cemig’s transmission connection services, effective for the 2002/2003 the Cemig’s transmission connection services, effective for the 2002/2003 cycle. Itt also has announced a notice on the rate review process, which will cycle. Itt also has announced a notice on the rate review process, which will take place over the next 12 months and will result in new allowed revenue, take place over the next 12 months and will result in new allowed revenue, rate structure and the X factor that will affect the readjustment formula, and rate structure and the X factor that will affect the readjustment formula, and revenues from April 2003 on.revenues from April 2003 on.

  The 176 rule increased Cemig’s electricity rates by 10.5%, due mainly to:The 176 rule increased Cemig’s electricity rates by 10.5%, due mainly to:  (1) Non-manageable cost items increase: (1) Non-manageable cost items increase: 4,40%4,40%

(2) Manageable cost items increase: (2) Manageable cost items increase: 4,78%4,78%

(3) Sub-total increase :(3) Sub-total increase : 9,18%9,18%  (4) CVA related to October to March period increase(4) CVA related to October to March period increase[1] : : 1,90%1,90%

(5) ASMAE operating cost write-off(5) ASMAE operating cost write-off[2] : : -0,57%-0,57%  (6) Final rate increase (3 +4 + 5)(6) Final rate increase (3 +4 + 5) 10,51%10,51%    [1] Conta de Variação dos Itens da Parcela A - CVA Conta de Variação dos Itens da Parcela A - CVA[2] Structure Costs associated to Energy Gross Market, paid during 1999, 2000 and Structure Costs associated to Energy Gross Market, paid during 1999, 2000 and

2001, purged in 2002 by ANEEL2001, purged in 2002 by ANEEL

31

R$2.7 billion planned for the next 3 yearsEconomic Basis

Capital expenditure – R$ MI Economic Basis

Items 2001(A) 1 Q/02 2002 2003 2004

Generation 169.0 56.6 416.7 201.3 91.2

Transmission 46.8 6.6 44.6 96.6 104.2

Sub-transmission 31.5 11.0 98.8 130.9 121.9

Distribution 348.1 49.8 399.5 354.9 321.0

Other 40.0 15.4 120.0 64.7 87.9

TOTAL 635.3 139.4 1,079.6 848.4 726.2

32Major Projects

R$ MI Start-upUTE Barreiro 100 13 22 Mar. 03UHE Pai Joaquim 100 23 11 Dec. 03UTE Ouro Preto 100 24 15 Apr. 03UHE Aimorés 49 330 199 Dec. 03UTE Sulminas 31 488 186 Dec. 03UHE Capim Branco l ll 21 450 106 NDUHE Irapé 100 360 486 Jun. 05UHE Funil 49 180 95 Dec.02UTE Usiminas II 100 67 161

Total 1.935 1.281 Infovias 48 Efficientia S A 1

DescriptionCEMIG investment%

CEMIGMW

33

M inas Gerais State Government

ASSETSCurrent AssetsReceivable accounts 4,455Taxes and social recovarable charges

ICMS a Compensar 77,773Long term receivableReceivable accounts from Minas Gerais State Governament 1,533,943LIABILITIESCurrent LiabilitiesTaxes and social charges - State VATICMS payable 101,679

INCOMEGross sales 4,489Gross Sales Deduction – ICMS -240,592Interest and monetary restatement – Receivable accounts from theMinas Gerais State Governament

41,838

Values in thousands of ReaisValues in thousands of Reais

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