Guidance

June/2014
Market
2
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.
CAPTIVE MARKET
(GWh)
2011 2012 2013 2017
Mercado
2011 2012 2013 2017
19,877
20,054
20,391
22,446
+2.4% p.a.
ASSUMPTIONS
OPEX
3
Inflation estimates for the period: 5.53% p.a. (2014-17)
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-Based Budgeting implementation
and redesigning of operational
processes.
MANAGEABLE COSTS AND EXPENSES
(R$ MN)*
* Nominal amounts
+3.7% p.a.
2011 2012 2013 2017
716
772
851
985
831
20
53
932
ASSUMPTIONS
4
PDD / BILLED SUPPLY
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.
PDA
2011 2012 2013 2017
PDD/Forn Faturado
- 70 bps
1.9%
3.0%
3.2%
1.2%
2011 2012 2013 2017
ASSUMPTIONS
5
EBITDA
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.
(R$ MN)*
Note: In accordance with the IFRS rules, interest in joint ventures will
no longer be consolidated as of 2013.
Interest
EBITDA proportionate to the following interest: Renova, Guanhes, Belo
Monte, LightGer and Axxiom.
* Nominal amounts
2011 2012 2013 2017
2,048
+7.9% p.a.
255
2,303
1,238
1,456
1,739
1,697
42
ASSUMPTIONS
6
Investments
Total Investment (2014-17): R$4.5
bn;
Investment in combat losses,
including special obligations;
Investments needed for World Cup
and Olympics Games;
BNDES financing: 50% of CAPEX
for distribution and 60% of the new
generation projects.
INVESTMENTS (R$ MN)
2014-17
Average
BELO MONTE HPP 25
ITAOCARA HPP AUCTION 42
TOTAL 68
Distribution
Management
Energy Efficiency
Generation
(R$ MN)*
* Nominal amounts
2012 2013 2014 Average
2015 - 2017
672
713
698
733
26
73
26
40
61
31
95
77
155
102
63
176
797
845
1,055
1,074
30
Special
Obligations
ASSUMPTIONS
2011 2012 2013 - 2017
7
Net Debt
Net Debt Net Debt / EBITDA
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.
NET DEBT* AND NET DEBT/EBITDA
(R$ MN)
* Nominal amounts
2011 2012 2013 2017
3,383
4,262
5,250
6,290
2.70
2.83
2.84
2.82
ASSUMPTIONS
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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