CIG.C Companhia Energetica de Minas Gerais Cemig

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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1. CONVOCATION OF EXTRAORDINARY GENERAL MEETING OF STOCKHOLDERS DATED MAY 22, 2017 TO BE HELD ON JUNE 27, 2017

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

EXTRAORDINARY GENERAL MEETING OF STOCKHOLDERS

JUNE 27, 2017

CONVOCATION

Stockholders are hereby called to an Extraordinary General Meeting of Stockholders to be held on June 27, 2017 at 11 a.m., at the company’s head office, Av. Barbacena 1200, 21 ^st floor, Belo Horizonte, Minas Gerais, Brazil to decide on the following matters:

Proxy votes

Any stockholder who wishes to be represented by proxy at the said General Meeting of Stockholders should obey the precepts of Article 126 of Law 6406 of 1976, and of Paragraph 1 of Clause 9 of the Company’s by-laws, by exhibiting at the time, or depositing, preferably by June 23, 2017, proofs of ownership of the shares, issued by a depositary financial institution, and a power of attorney with specific powers, at Cemig’s Corporate Executive Office ( Superintendência da Secretaria Geral ) at Av. Barbacena 1200 – 19th Floor, B1 Wing, Belo Horizonte, Minas Gerais.

Belo Horizonte, May 22, 2017

José Afonso Bicalho Beltrão da Silva

Chair of the Board of Directors

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PROPOSAL

BY THE BOARD OF DIRECTORS

TO THE

EXTRAORDINARY GENERAL MEETING OF STOCKHOLDERS

TO BE HELD ON JUNE 27, 2017

Dear Stockholders:

The Board of Directors of Companhia Energética de Minas Gerais – Cemig

– Whereas:

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– do now propose to you as follows:

As can be seen, the objective of this proposal is to meet legitimate interests of the stockholders and of the Company, and as a result it is the hope of the Board of Directors that it will be approved by the Stockholders.

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2. MINUTES OF THE ANNUAL AND EXTRAORDINARY MEETING OF STOCKHOLDERS HELD ON MAY 12, 2017

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

CNPJ 17.155.730/0001-64—NIRE 31300040127

MINUTES

OF THE

ANNUAL AND EXTRAORDINARY

GENERAL MEETINGS OF STOCKHOLDERS

HELD ON MAY 12, 2017

At 11 a.m. on the twelfth day of May of the year two thousand and seventeen, at the Company’s head office, Av. Barbacena 1200, Belo Horizonte, Minas Gerais, Brazil, stockholders representing more than two-thirds of the voting stock of Companhia Energética de Minas Gerais – Cemig met in Ordinary and Extraordinary General Meeting, on first convocation, as verified in the Stockholders’ Attendance Book, where all placed their signatures and made the required statements.

The stockholder The State of Minas Gerais was represented by Ms. Ana Paula Muggler Rodarte, State Procurator, in accordance with the legislation. The following were also present: Members of the Audit Board: Manuel Jeremias Leite Caldas and Rafael Amorim de Amorim; Deloitte Touche Tohmatsu Auditores Independentes: represented by Mr. Marcelo Salvador, CRC-1MG 089.422/O-0, and Mr. Leonardo Júnio Vilaça, CRC MG-078933/O; and the Chief Officer for Human Relations and Resources, Ms. Maura Galuppo Botelho Martins.

Initially, Ms. Anamaria Pugedo Frade Barros, General Manager of Cemig’s Corporate Executive Office, stated that there was a quorum for an Ordinary and an Extraordinary General Meeting of Stockholders. She further stated that under Clause 10 of the Company’s by-laws, the stockholders present should choose the Chair of this Meeting.

Asking for the floor, the representative of the Stockholder The State of Minas Gerais put forward the name of the stockholder Alexandre de Queiroz Rodrigues to chair the Meeting. This proposal was put to debate, and to the vote, and approved unanimously, that is to say by 345,659,090 votes.

The Chair then declared the Meetings open and invited me, Anamaria Pugedo Frade Barros , a stockholder, to be Secretary of the meeting, asking me to read the convocation notice, published on April 12, 13 and 18 of this year, in the newspaper Minas Gerais , official publication of the Powers of the State, on pages 28, 25 and 134, respectively; and on April 12, 13 and 14 in the newspaper O Tempo , on pages 32, 30 and 30 respectively, the content of which is as follows:

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“ COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

ORDINARY AND EXTRAORDINARY

GENERAL MEETINGS OF STOCKHOLDERS

MAY 12, 2017

CONVOCATION

Stockholders are hereby called to Ordinary and Extraordinary General Meetings of Stockholders to be held on May 12, 2017 at 11 a.m. (herein referred to as ‘AGM’ and ‘EGM’) at the Company’s head office, Av. Barbacena 1200, 21 ^st floor, Belo Horizonte, Minas Gerais, Brazil, to decide on the following matters:

Remote voting

Any stockholder who wishes to do so may exercise the right to vote using the remote voting system, under CVM Instruction 481/09, by sending the corresponding Remote Voting Statement ( Boletim de Voto à Distância , or BVD), through the stockholder’s custodian institution or mandated bank, or directly to the Company.

Proxy votes

Any stockholder who wishes to be represented by proxy at the said General Meetings of Stockholders should obey the precepts of Article 126 of Law 6406 of 1976, and of the sole paragraph of Clause 9 of the Company’s by-laws, by exhibiting at the time, or depositing, preferably by May 10, 2017, proofs of ownership of the shares, issued by a depositary financial institution, and a power of attorney with specific powers, at Cemig’s Corporate Executive Office ( Superintendência da Secretaria Geral ), Av. Barbacena 1200, 19th Floor, B1 Wing, Belo Horizonte, Minas Gerais.

Belo Horizonte, April 11, 2017.

José Afonso Bicalho Beltrão da Silva –

Chair of the Board of Directors ”

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The representative of the stockholder The State of Minas Gerais explained that the office of the Advocate-General of the State, as formal representative of the controlling stockholder, will be present at these Meetings, in the terms of Official Letter OF.SEF.GAB.SEC nº 275/2017 and Opinion SCGOVDCSG nº 02/2017, prepared by the Central Directorate for Corporate Governance Support, and will immediately make copies of these documents available.

In compliance with CVM Instruction 481/2009, the Chair then asked the Secretary to read the spreadsheet of summary consolidated voting, recording the votes given by Remote Voting Forms, published to the Market on May 11 of this year, which will be at the disposal of stockholders for any consultation.

The Chair then, in accordance with Item 2 of the agenda, placed in debate the Report of Management and the Financial Statements for the year ended December 31, 2016, and the related complementary documents, noting that these had been widely published in the press, since they were, respectively,

in Minas Gerais , the official publication of the Powers of the State,

in the editions of April 12, 13 and 18 of this year, on pages 28, 25 and 134, respectively,

and in the newspaper O Tempo , on April 12, 13 and 14, on pages 31, 30 and 30, respectively;

in Minas Gerais on pages 30 to 64, and

in O Tempo on pages 2 to 36 in the Financial Reports section.

The Chair put to the vote the Report of Management and the Financial Statements for the year ended December 31, 2016, and the respective complementary documents, and they were approved by majority, without any reservations: 345,294,925 votes in favor, no votes against, and 364,165 abstentions, including abstention due to legal impediment to voting.

The Chair then asked the Secretary to read the Proposal by the Board of Directors, which deals with items 1, 3, 4, 7 and 8 of the convocation, and also to read the Opinion of the Audit Board thereon. The contents of these documents are as follows:

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“ PROPOSAL

BY THE BOARD OF DIRECTORS

TO THE

ORDINARY AND EXTRAORDINARY GENERAL MEETINGS OF STOCKHOLDERS

TO BE HELD ON MAY 12, 2017, AT 11 A.M.

Dear Stockholders:

The Board of Directors of Companhia Energética de Minas Gerais – Cemig:

Whereas –

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– do now propose to you as follows:

Appendix I summarizes the calculation of the dividends proposed by Management, in accordance with the by-laws; Appendix II presents the capital budget for the 2017 business year.

As can be seen, the objective of this proposal is to meet the legitimate interests of the stockholders and of the Company, and as a result it is the hope of the Board of Directors that it will be approved.

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CAPITAL BUDGET

PROPOSAL OF MANAGEMENT

TO THE

ANNUAL GENERAL MEETING TO BE HELD IN 2017

– and –

“ OPINION OF THE AUDIT BOARD

The undersigned members of the Audit Board of Companhia Energética de Minas Gerais – Cemig, in performance of their functions under the law and under the by-laws, have examined the Proposal made by the Board of Directors to the Ordinary and Extraordinary General Meetings of Stockholders to be held, concurrently, on May 12, 2017, at 11 a.m., in relation to:

Allocation of the Net profit for 2016, in the amount of R$ 334,334,000, and of the balance of Retained earnings in the amount of R$ 37,258,000, as follows:

After carefully analyzing the said proposals and further taking into account that the applicable rules governing the matters have been complied with, it is opinion of the members of the Audit Board that they should be approved by the said General Meetings of Stockholders.

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Belo Horizonte, April 11, 2017

The above proposal was put to debate, and subsequently to a vote, and was approved, with voting as follows:

Continuing with the agenda, the Chair stated that the period of office of the members of the Audit Board ended with this present meeting, and that a new election should thus be held for that Board, with a period of office of (one) year, that is to say, up to the Ordinary General Meeting of Stockholders to be held in 2018.

The Chair said that this election would be carried out with separate voting, in the case of candidates indicated by holders of preferred shares and by minority stockholders of common shares.

He placed the election of the sitting and substitute members of the Audit Board in debate. Asking for the floor, as holders of preferred shares, the stockholders José Pais Rangel and FIA Dinâmica Energia , proposed the following appointments to the Audit Board:

– as sitting member:

– and as his substitute member:

The Chair then put to debate the nominations of the stockholders José Pais Rangel and FIA Dinâmica Energia .

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Mr. Daniel Mendes Barbosa, representative of the stockholders Hagop Guerekmezian, Kathleen Nieto Guerekmezian, Karoline Guerekmezian Velloso and Regina Nieto Motra Guerekmezian , registered and filed with the Meeting Committee an impugnment of the candidacy of Mr. Manuel Jeremias Leite Caldas to membership of the Audit Board of Cemig, Cemig D and Cemig GT, reading, in part:

“. in view of the statement in the Attachment to the Proposal of Management presented by the Company that the said person is a candidate for election by separate voting, while not being independent, a requirement of Law 6404/76. It is probable that the candidate is not independent due to the fact, also stated in the résumé that has been made available, that he is a Member of the Investigation Committee (GIGI) of Eletrobras, a company that is a competitor of Cemig. According to information from the website of Eletrobras Mr. Manuel Jeremias Leite Caldas was contracted as a provider of services in 2015, as a result of which he has a relationship of subordination to the management of that company, and cannot be considered as an independent candidate to stand in elections at Cemig in separate voting. Nor is it stated in his resume that he is a member of the Board of Directors of CESP, a company whose activity is electricity generation, which is also an impediment to his standing for any position in Cemig without express authorization of the stockholders of Cemig in General Meeting. It is the stockholder’s opinion that the conditions of impediment applying to this candidate violate the requirement of Decree 47105 of December 16, 2016 made by the Governor of Minas Gerais State, which set rules on governance of a public company, a mixed-ownership company and its subsidiaries, referred to by Paragraph 1 of Article 1 of Federal Law 13303 of June 30, 2016. In relation to Federal Law 13303/16 there is a direct conflict between the candidate and the provision in Sub-item V of Paragraph 2 of Article 17, which in the opinion of this stockholder, ought to have, indeed, caused the candidacy to be refused by the company itself – thus the Chair of the Meeting should immediately impugn the candidacy or submit it to consideration by the stockholders present. If this requirement for impugnment is not accepted, the stockholder requests that this present PROTEST should be registered in the body of the minutes and attached to them in the version that is published on the website of the CVM.”

Asking for the floor, the stockholder José Pais Rangel stated that Mr. Manuel Jeremias Leite Caldas is no longer a member of the Investigation Committee referred to, and highlighted that this information is public.

The Chair then placed submitted the above-mentioned nominations of the stockholders José Pais Rangel and FIA Dinâmica Energia to separate voting – in which only holders of the preferred shares participated, and they were approved by majority votes, as follows:

Asking for the floor, the representative of the stockholder AGC Energia S.A. , for the minority of common stockholders with the right to vote, proposed the following appointments to the Audit Board:

As sitting member:

– and as his substitute member:

The above nominations were placed in debate, and then put to a vote – separately – and were approved by a majority of votes, as follows:

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Asking for the floor, the representative of the stockholder The State of Minas Gerais , as majority stockholder, put forward the following nominations for members of the Audit Board:

As sitting members:

- and as their respective substitute members:

The nominations of the representative of the stockholder The State of Minas Gerais were put to debate, and to the vote, and approved by majority, as follows:

The Members of the Audit Board elected declared – in advance – that they are not subject to any prohibition on exercise of commercial activity, and assumed a solemn undertaking to become aware of, obey and comply with the principles, ethical values and rules established by the Code of Professional Conduct of Companhia Energética de Minas Gerais – Cemig, and the Code of Ethical Conduct of Government Workers and Senior Administration of the State of Minas Gerais.

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Continuing with the agenda, the Chair placed in debate the remuneration of the Company’s Managers and members of its Audit Board.

Asking for the floor, the representative of the Stockholder The State of Minas Gerais asked the Chair to put the following proposal before the stockholders for consideration:

the monthly remuneration of the following to be as follows:

and the amounts currently earned by the Chief Officers for paid leave, bonuses and other benefits to be, in consequence, adjusted in the same proportion.

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and that the monthly remuneration of each substitute member of the Audit Board shall be equivalent to 80% of the monthly remuneration of a sitting member, that is to say, it shall be

R$ 10,618.18 (ten thousand, six hundred eighteen Reais and eighteen centavos) – excluding, in both cases, benefits as specified by law.

The above proposal by the representative of the stockholder The State of Minas Gerais in relation to the Managers and members of the Audit Board was put to debate, and to the vote, and approved by a majority, as follows:

The Chair then informed the meeting that Cemig’s publications specified by Law 6404 of December 15, 1976, as amended, would now be made in the newspaper Minas Gerais , the official publication of the powers of the State, and in the newspaper O Tempo , save that in the latter case – since the present contract will expire on April 21, 2018 – this shall be only until a decision is made, by tender, on choice of a large-circulation newspaper published in the location where the Company’s head office is situated; the foregoing being without prejudice to possible publication in other newspapers; and that Cemig will publish a Notice to Stockholders specifying the new newspaper for publications specified in that law.

The meeting being opened to the floor, since no-one else wished to speak, the Chair ordered the session suspended for the time necessary for the writing of these minutes.

The session being reopened, the Chair, after putting the said minutes to debate and to the vote and verifying that they had been approved unanimously, that is to say, by 345,659,090 votes, and signed, closed the meeting.

For the record, I, Anamaria Pugedo Frade Barros, Secretary, wrote these minutes and sign them together with all those present.

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3. NOTICE TO STOCKHOLDERS DATED MAY 12, 2017: AGM DECISIONS: DIVIDENDS AND INTEREST ON EQUITY

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

NOTICE TO STOCKHOLDERS

AGM: R$ 204mn dividend for preferred shares

Cemig advises its stockholders that the Ordinary (Annual) and Extraordinary General Meetings of Stockholders held, concurrently, on May 12, 2017, decided the following corporate action:

Stockholders whose shares are not held in custody by CBLC and whose registration details are not up to date should visit any branch of Banco Itaú Unibanco S.A. (the Institution which administers Cemig’s Nominal Share Registry System), carrying their personal identification documents, for the necessary updating.

Belo Horizonte, May 12, 2017

Adézio de Almeida Lima

Chief Finance and Investor Relations Officer

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4. MATERIAL ANNOUNCEMENT DATED JUNE 1, 2017: CEMIG ANNOUNCES DISINVESTMENT PROGRAM

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY – CNPJ 17.155.730/0001-64 – NIRE 31300040127

MATERIAL ANNOUNCEMENT

Cemig announces Disinvestment Program

Cemig ( Companhia Energética de Minas Gerais ), a listed company with securities traded on the stock exchanges of São Paulo, New York and Madrid, and its wholly-owned subsidiary Cemig Geração e Transmissão S.A. (‘Cemig GT’) , as per CVM Instruction 358 of January 3, 2002, as amended, hereby report to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (BM&F Bovespa S.A.) and the market as follows:

Cemig has today announced its disinvestment program, during its 22 ^nd Annual Meeting with the Capital Markets , a public event which is widely reported, including by video webcast. Implementation of this Disinvestment Program aims to re-establish Cemig’s financial equilibrium, through an accelerated reduction of net debt. The company’s criteria for choice of priorities in the Disinvestment Program are:

This table gives a summary of the Program:

Does not represent a guarantee or expectation of the real sale value of the assets.

Cemig will keep stockholders and the market timely and appropriately informed on the progress of this program.

Belo Horizonte, June 1, 2017

Adézio de Almeida Lima

Chief Finance and Investor Relations Officer

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5. XXII ANNUAL MEETING WITH CAPITAL MARKETS—DISINVESTMENT PROGRAM

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XXII
Annual Meeting with Capital Markets
Disinvestment ProgramCésar Vaz de Melo FernandesChief Officer for Business Development
CEMIG

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XXII
Annual Meeting with Capital Markets
After successfully executing its growth strategy, Cemig has now a valuable asset base, which needs to be disinvested to adjust its trajectory and reestablish its financial equilibrium.Implementation of the Disinvestment Program will bring Cemig’s net debt back to the level of 2.5x Ebitda, over a shorter-term horizon than foreseen in the ‘inertial’ scenario.Given that the sale processes are subject to legislative, corporate and regulatory constraints, a portfolio has been selected that meets the needs of deleveraging based on expectation of a success rate of at least 50% by the first half of 2018.
Disinvestment program
The strategy was designed to deleverage Cemig:
After successfully executing its growth strategy, Cemig has now a valuable asset base, which needs to be disinvested to adjust its trajectory and reestablish its financial equilibrium.
Implementation of the Disinvestment Program will bring Cemig’s net debt back to the level of 2.5x Ebitda, over a shorter-term horizon than foreseen in the ‘inertial’ scenario.
Given that the sale processes are subject to legislative, corporate and regulatory constraints, a portfolio has been selected that meets the needs of deleveraging based on expectation of a success rate of at least 50% by the first half of 2018.
CEMIG

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XXII
Annual Meeting with Capital Markets
Disinvestment program
Criteria for choice of priorities:
Assets with highest liquidity
1 Liquidity Non-strategic assets or in which we have less significant equity interests
3 Strategic Assets that are not expected to provide returns in the short term
2 Longer-term returns
CEMIG

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XXII
Annual Meeting with Capital Markets
Disinvestment program
As a result of this strategy, the following assets were sold between 2016 and 2017, for total proceeds of R$ 2.046 billion
Transchile S.A.
Sale of Cemig’s 49% interest in the Charrua-Nueva Temuco transmission line - cash inflow of R$ 180 mn
Taesa
Follow-on in shares of Taesa – proceeds of R$ 800 mn
Nova Energia Holding S.A. (Renova)
Sale of Alto Sertão II wind power complex for R$ 600 mn
Terraform Global (Renova)
Sale of Renova’s shares in TerraForm Global for R$ 352 mn
Ativas Data Center S.A.
Entry of new partner following a cash subscription of R$ 114 mn, reducing our interest from 49% to 19.6%
CEMIG

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XXII
Annual Meeting with Capital Markets
Companhia Energetica de Minas Gerais
Light/LEPSA 43,38%
Cemig D 100%
Cemig GT 100%
TAESA 31
GAsmig 99,57%
Transmineira 24,5%
Centroeste 51%
Trading Co.’s 100%
CEMIG Telecom 99,99%
Generation Subsidiaries 100%
Efficientia 100%
Axxiom 49%
Alianca Geracao 45%
Santo Antonio 18,13%
Amazonia 74,50%
Alianca Norte 49%
Baguari Energia 69,39%
Lot D’SPCs 100%
Retiro Baixo 49,90%
Lightger 49%
Cachoeirao 49%
Pipoca 49%
Renova Energia 34,2%
Wind farms of Ceará 49%
Guanhaes 49%
Itaocara 49%
CEMIG

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XXII
Annual Meeting with Capital Markets
Disinvestment program
Company Criterion % stake Book value R$ mn Status
taesa 19% 1,432(2)Negotiation of equity interests
Trasmineira 25% 77 Final phase of signature of contracts
Santo Antonio 18% 1,278 Binding proposal
Renova Energia - 315 Non-binding proposal
(primary capitalization)
Light 43% 530 Negotiation of equity interests
Cachoeirão, Pipoca, Paracambi 49% 127 Negotiation of equity interests
Gasmig 49% ON 100% PN 1,202 Preparing tender
CEMIG TELECOM 100% 193 Preparing tender
NorteEnergia 12% 1,392 Hiring advisors
Gas exploration concessions 24.5% 16 Preparing tender
Total 6,562
Value reported in the Company’s accounting. Does not represent a guarantee or expectation of the real sale value of the assets. Exceptions: Taesa, Transmineira, Renova and Light Energia
Market value (BM&F Bovespa) as of March 31, 2017: R$ 22.44/unit.
CEMIG

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XXII
Annual Meeting with Capital Markets
Other measures to improve cash position
Company Criterion Status
GUANHAES ENERGIA Non-binding proposal
UNE ITAOCARA De-contracting with distributors
VOLTA DO RIO PARAJURU MORGADO Compliance with arbitration judgment
RBE CENTROESTE Negotiations of crossover stockholdings with Furnas
UMBURANASNon-binding proposal
BRASIL PCH Non-binding proposal
ESPRA Non-binding proposal
CEMIG

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XXII
Annual Meeting with Capital Markets
CEMIG
Investor relations Tel: +55 (31) 3506-5024Fax: +55 (31) 3506-5025ri@cemig.com.brhttp://ri.cemig.com.br
CMIG3 NIVEL 1 CMIG4 NIVEL 1 LATIBEX XCMIG CORPORATE SUSTAINABILITY INDEX ISE 2017 DOW JONES SUSTAINABILITY INDICES CDP

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6. XXII ANNUAL MEETING WITH CAPITAL MARKETS—REPROFILING OF CEMIG’S DEBT

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XXII
Annual Meeting with Capital Markets
Reprofiling of Cemig’s debtA dézio de Almeida LimaChief Finance and Investor Relations Officer
CEMIG

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XXII
Annual Meeting with Capital Markets
Factors affecting debt increase
1 The most recent growth allowed to build a portfolio of holdings in important energy companies
Cemig invested in various projects to expand its asset portfolio – e.g.: Belo Monte and Santo Antônio hydroelectric plants, Renova and Light
2 Negative impact in recent years due to adverse conditions – political, regulatory and economic
Interaction with regulators on concession renewal of important generation assets
Reduction in energy sales and consumption
Demand for capital injection into assets undergoing complex situations
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XXII
Annual Meeting with Capital Markets
3 Factors affecting debt increase
High distribution of dividends:
FREE CASH FLOW
{R$ mn,nominal}
965 727 4,364 216 1,121
2011 2012 2013 2014 2015
DIVIDENDS PAID
{R$ mn,nominal}
2,041 1,731 4,397 3,918 770
2011 2012 2013 2014 2015
CEMIG

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XXII
Annual Meeting with Capital Markets
Company expansion
Extremely adverse regulatory and economic context at a time when the company was expanding capacity while generation and demand were declining, negatively impacting margins and cash flow generation.
Installed generation capacity (MW)
7158 7717 7800 8201
2013 2014 2015 2016
Volume sold(1) (GWh)
59,584 61,521 63,470 56,904 55,592
2012 2013 2014 2015 2016
2015 results were impacted by industry slowdown and lower wholesale volume sold to agents in Free and Regulated Markets
Net revenue (R$ mn)
14,137 14,627 19,540 21,868 18,773
2012 2013 2014 2015 2016
Aside from lower volume sold, revenue were affected by the transfer of São Simão plant to a quota regime
Ebitda (R$ mn), Ebitda margin (%) – IFRS
30% 35% 33% 25% 14%
4,237 5,186 6,381 5,538 2,638
2012 2013 2014 2015 2016
Margins were reduced because of higher volume of power purchased for resale, termination of some concessions plants and higher delinquency
(1) Excludes sales through CCEE (wholesale exchange).
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XXII
Annual Meeting with Capital Markets
Liquidity and debt
Substantial increase in leverage in recent years, due to:
investments high distribution of dividends regulatory changes...
Net debt (R$ mn) – IFRS
Ebitda reduced by more than 50%
1.8X 1.2X 1.8X 2.1X 5.0X
Acquisition of interest in Renova, and the capital increases in Santa Antônio and Madeira Energia
7,740 6,232 11,610 11,732 13,139
2012 2013 2014 2015 2016
Total consolidated debt: R$ 15.2 bn
Net debt, R$ mm – IFRS
Net debt / Ebitda – IFRS
Source: Cemig financial statements.
CEMIG

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XXII
Annual Meeting with Capital Markets
Liquidity and debt
... with significant obligations in coming years:
Debt amortization timetable (1) (R$ mn)
Excludes the put option in Light – which represents a cash outflow of R$ 1.6 bn.
2,009 4,837 3,880 1,828 1,794 1,794 1,586 561 224 470
Cash
2016 2017 2018 2019 2020 2021 2022 2023 +2024
Even with the measures taken in 2016, debt continues to be a challenge in context of the obligations over coming years
Source: Cemig financial statements.
(1) Amortization timetable is for loans and financings only. (2) Cash and short-term investments, at December 2016.
CEMIG

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XXII
Annual Meeting with Capital Markets
Current macroeconomic scenario
Basic interest rate
Selic at year-end 2017 expected to be 8.5% p.a. (*)
GDP
Each 1% reduction in Selic rate reduces debt expense by R$ 125 mn
Default
Market
(*) Brazilian Central Bank Focus report, May 12, 2017.
CEMIG

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XXII
Annual Meeting with Capital Markets
Key initiatives
Execution of divestment strateg
yVoluntary retirement program 1,550 employees : +/- 20% of headcount
Cost and expense reduction initiatives and operational efficiency improvements
Eurobond issuance
Partial payment of put option in Light with linked account funds
CEMIG

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XXII
Annual Meeting with Capital Markets
Debt evolution in 2016
Balance on December 31, 2015
(+) Loans and financings obtained
(+) Monetary and Exchange rate variation
(-) Borrowing costs paid
(-) Amortization of financings
(-) Securities of subsidiary companies
Balance on December 31, 2016
Cemig H
15.167
5.737
2.301
2.369
5.592
65
15.179
Cemig GT
7.739
3.382
1.247
1.116
2.591
27
8.634
Cemig D
7.020
2.250
1.010
1.209
2.873
0
6.198
Reais millions
Increase in Cemig GT reflects financing of R$ 2.2 bn concession grant fee for the 18 plants of Lot D auctioned by Aneel.
Cemig D’s debt declined.
Cemig’s total consolidated debt remained stable.
CEMIG

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XXII
Annual Meeting with Capital Markets
Basis for negotiation
Preserve the Company’s liquidity
Reduce refinancing needs in the following years
Grace periods and improvement of amortization profile
Commercial negotiation to avoid creditors’ losses
Maintain principal and interest paymentsMaintain existing guarantees with banks
Negotiations limited to main commercial banks – shift of Cemig’s financial flows focused on bilateral and bank-syndicated debt
CEMIG

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XXII
Annual Meeting with Capital Markets
Changing debt profile
Current Debt profile (R$ MM) (Balance as of December 31, 2016
7,000
6,000
5,000
4,000
3,000
2,000
1,000
2017 2018 2019 2020 2021 2022 2023 2024 2025 em diante
Debt profile proposal: Euobond (7-yr bullet) and banks (3-yr grace period and 5-yr amortization)
Debt profile after reficianing (R$ MM)
7,000
6,000
5,000
4,000
3,000
2,000
1,000
2017 2018 2019 2020 2021 2022 2023 2024 2025 em diante
Existing debt
Refinancing with banks
Refinancing with Eurobonds
New Debt profile
CEMIG

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XXII
Annual Meeting with Capital Markets
Cash Flow – 1Q17
From operations R$528
995 343 209 303 327
Initial cash 2016
Profit
Provisions
CVA+othercomponents
Other
Financing–R$ 517
517
Loans,and debentures Dividends
Investment–R$ 164
192 162 194
Cash Investments
Investments
Other
842 868 1,710
Final cash Securities Total cash+cash equivalents
CEMIG

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XXII
Annual Meeting with Capital Markets
Investor relations Tel: +55 (31) 3506-5024Fax: +55 (31) 3506-5025ri@cemig.com.brhttp://ri.cemig.com.br
CMIG3 NIVEL 1 CMIG4 NIVEL 1 LATIBEX XCMIG CORPORATE SUSTAINABILITY INDEX ISE 2017 DOW JONES SUSTAINABILITY INDICES CDPCEMIG
CEMIG

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7. EARNINGS RELEASE RESULTS FOR THE 1 ^ST QUARTER OF 2017 DATED MAY 16, 2017

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Conference call

Publication of 1Q17 results

Video webcast and conference call

May 16, 2017 (Tuesday), at 11 a.m. – Brasília time

This transmission on Cemig’s results will have simultaneous translation into English and can be seen in real time by Video Webcast, at http://ri.cemig.com.br or heard by conference call on:

+ 55 (11) 2188-0155 (1st option) or

+ 55 (11) 2188-0188 (2nd option)

Password: CEMIG

Cemig Investor Relations

http://ri.cemig.com.br/

ri@cemig.com.br

Tel.: +55 (31) 3506-5024

Fax: +55 (31) 3506-5025

Cemig’s Executive Investor Relations Team

Adézio de Almeida Lima

Antônio Carlos Vélez Braga

Robson Laranjo

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Disclaimer

Certain statements and estimates in this material may represent expectations about future events or results, which are subject to risks and uncertainties that may be known or unknown. There is no guarantee that the events or results will take place as referred to in these expectations.

These expectations are based on the present assumptions and analyses from the point of view of our management, in accordance with their experience and other factors such as the macroeconomic environment, market conditions in the electricity sector, and expected future results, many of which are not under Cemig’s control.

Important factors that could lead to significant differences between actual results and the projections about future events or results include Cemig’s business strategy, Brazilian and international economic conditions, technology, Cemig’s financial strategy, changes in the electricity sector, hydrological conditions, conditions in the financial and energy markets, uncertainty on our results from future operations, plans and objectives, and other factors. Due to these and other factors, Cemig’s results may differ significantly from those indicated in or implied by such statements.

The information and opinions herein should not be understood as a recommendation to potential investors, and no investment decision should be based on the veracity, currentness or completeness of this information or these opinions. None of Cemig’s professionals nor any of their related parties or representatives shall have any liability for any losses that may result from use of the content of this material.

To evaluate the risks and uncertainties as they relate to Cemig, and to obtain additional information about factors that could give rise to different results from those estimated by Cemig, please consult the section on Risk Factors included in the Reference Form filed with the Brazilian Securities Commission – CVM – and in the 20-F form filed with the U.S. Securities and Exchange Commission – SEC.

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Cemig’s shares: 2016-2017

Source: Economática.

Trading volume in Cemig’s preferred shares (CMIG4) totaled R$ 4.64 billion in 1Q17, a daily average of R$ 74.78 million – this level is 57% higher than in 1Q16. Considering total trading in its common (ON) and preferred (PN) shares, Cemig was the Brazilian electricity company with the highest trading liquidity, and one of the most traded on the Brazilian stock market.

On the New York Stock Exchange the volume traded in ADRs for Cemig’s preferred shares (CIG) in 1Q17 was US$ 1.05 billion: we see this as reflecting recognition by the investor market and maintaining Cemig’s position as a global investment option.

The São Paulo stock exchange (Bovespa) index (‘the Ibovespa’) rose 7.90% in the quarter, closing the quarter at 64,984 points. Cemig’s shares significantly outperformed the principal Brazilian stock index and also the electricity sector index:

The ADRs for Cemig’s preferred shares, traded in New York, rose 44.30% in 1Q17.

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Cemig’s long-term ratings

These tables show credit risk ratings and outlook for Cemig’s companies as provided by the principal rating agencies:

Brazilian ratings:

Global ratings:

Adoption of IFRS

The results presented below are prepared in accordance with the new Brazilian accounting rules, which embody a process of harmonization between Brazilian accounting rules and IFRS (International Financial Reporting Standards).

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Cemig’s consolidated electricity market

The Cemig Group sells electricity through its distribution company, Cemig Distribuição (‘Cemig D’), its generation and transmission company Cemig Geração e Transmissão (‘Cemig GT’), and other wholly-owned subsidiaries: Horizontes Energia, Termelétrica Ipatinga (up to January 2016), Sá Carvalho, Termelétrica de Barreiro, Cemig PCH, Rosal Energia and Cemig Capim Branco Energia (up to March 2015), Cemig Geração Camargos, Cemig Geração Itutinga, Cemig Geração Salto Grande, Cemig Geração Três Marias, Cemig Geração Leste, Cemig Geração Oeste, and Cemig Geração Sul.

This market comprises sales of electricity to:

In 1Q17 the Cemig group sold a total volume of 13,264,284 MWh, which was 0.2% less than in 2016.

Sales of electricity to final consumers plus Cemig’s own consumption totaled 10,370,168 MWh, or 2.1% less than in 1Q16.

Sales to distributors, traders, other generating companies and independent power producers in 1Q17 totaled 2,894,115 MWh – or 7.3% more than in 1Q16.

In March 2017 the Cemig group invoiced 8,286,564 clients – a growth of 2.0% in the consumer base in the year since March 2016. Of these, 8,286,197 are final consumers; and 367 are other agents in the Brazilian electricity sector.

This chart shows the breakdown of the Cemig Group’s sales to final consumers in the quarter, by consumer category:

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Total consumption of electricity (GWh)

The electricity market of Cemig D

Electricity billed to captive clients by Cemig D, and electricity transported for Free Clients and distributors with access to Cemig D’s networks, totaled 10,532,119 GWh in 2016, or 0.7% more than in 1Q16.

There are two components of this reduction: consumption by the captive market 2.3% lower YoY, and use of the network by Free Clients 5.5% higher YoY.

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In March 2017 Cemig D invoiced 8,284,442 clients – a growth of 2.0% in the consumer base in the year since March 2016.

Comments on the various consumer categories:

Residential

Consumption by residential users in 1Q17, at 2,537,050 MWh, totaled 24.1% of all electricity distributed by Cemig D, and was 1.9% higher than in 1Q16.

The lower level of residential consumption is due to:

Average monthly consumption per consumer was 125.9 kWh in 1Q17, or 0.4% less than in 1Q16 (126.4 kWh).

Industrial

Electricity used by captive clients was 6.1% of the volume of electricity distributed by Cemig D, and totaled 644,033 MWh in 1Q17 –or 22.5% less than in 1Q16.

This lower consumption mainly reflects migration of captive consumers to the Free Market – which was also responsible for part of the increase in the total volume of power distributed.

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Electricity transported for captive clients was 37.7% of the volume of electricity distributed by Cemig, totaling 3,969,239 MWh in 1Q17, or 3.1% more than in 1Q16.

Both these segments of the market are affected by the trends in economic activity, both in the state of Minas and in Brazil as a whole:

Total energy consumption was higher, YoY, in some sectors, and lower in others, in the quarter. It was higher in: Steel (+16.5%), Non-ferrous metals (+3.8%), Vehicles (+4.7%), and Textiles (8.3%); – and lower in Non-metallic mining (–4.0%), Mining (–35.3%), Food products (–0.6%), and Chemicals (–12.7%).

The electricity market of Cemig GT

Cemig GT billed a total of 6,690,691 MWh in 1Q17, 0.2% less than in 1Q16.

The total number of clients billed by Cemig GT in March – a total of 1,081 – was 64.2% higher than in March 2016. Of these, 1,023 were industrial and commercial clients; 46 were distribution companies; and 12 were companies in the category of traders, generators and independent power producers.

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Free Clients consumed 3,779,418 MWh in 1Q17, or 56.5% of the total electricity provided by Cemig GT, and 4.9% less than in 1Q16.

This lower total reflects consumption 13.8% lower by industrial clients, due to:

Between the end of 1Q16 and the end of 1Q17 Cemig GT added no less than 208 new industrial clients, and 192 clients in the commercial and services category – in the latter category the year-on-year increase in consumption was 201%.

Sales and trading transactions in electricity with other agents of the electricity sector in the Free Market can result from selling opportunities that originate in spot market contracts. In 1Q17 total sales of electricity were 2,260,527 MWh, or 10.3% more than in 1Q16.

Sales in the Regulated Market, including sales to Cemig D, totaled 650,747 MWh in 1Q17, which was 4.1% less than in 1Q16. This was due to:

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Physical totals of transport and distribution – MWh

QUALITY INDICATORS – SAIDI AND SAIFI

Cemig is continuously taking action to improve operational management, organization of the logistics of emergency services, and its permanent regime of inspections and preventive maintenance of substations, lines and distribution networks. It also invests in training of its staff for improved qualifications, state-of-the-art technologies, and standardization of work processes, aiming to uphold the quality of electricity supply, and as a result maintain the satisfaction of clients and consumers.

The charts below show Cemig’s indicators for duration and frequency of outages – SAIDI (System Average Interruption Duration Index, in hours), and SAIFI (System Average Interruption Frequency Index, in number of outages), since January 2016.

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Consolidated operational revenue

Revenue from supply of electricity:

Total revenue from supply of electricity in 1Q17 was R$ 5.772 billion, 2.42% lower than in 1Q16 (R$ 5.915 bn).

Final consumers

Total revenue from electricity sold to final consumers, excluding Cemig’s own consumption, in 1Q17 was R$ 5,087 million, or 3.40% less than the figure for 1Q16, of R$ 5,266 million.

The main factors in this revenue were:

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Revenue from Use of Distribution Systems (the TUSD charge)

This is revenue from charging Free Consumers the Tariff for Use of the Distribution System ( Tarifa de Uso do Sistema de Distribuição , or TUSD). In 1Q17 this revenue totaled R$ 463 mn, or 13.19% more than in 1Q16 (R$ 409 mn).

The higher figure mainly reflects volume of energy distributed 5.41% higher, due largely to the growth in the consumer base. On May 28, 2016 the tariff for Free Consumers was reduced by 0.52%.

CVA and Other financial components in tariff adjustment

In its interim accounting information Cemig recognizes the difference between actual non-controllable costs (in which the CDE, and electricity bought for resale, are significant components) and the costs that were used as the basis of decision of the rates charged to consumers. This balance is the amount that will be passed through to the consumer (or reimbursed to the consumer) through Cemig D’s next subsequent tariff adjustment. In 1Q17 the amount for reimbursement in the subsequent tariff was R$ 303mn, compared to a total of R$ 132mn for reimbursement in 1Q16. This variation mainly reflects a greater reduction in costs of supply acquired in auctions in 2017 when compared with the figures for tariffs.

Transmission indemnity revenue

In 1Q17 the Company recognized a revenue as an item of R$ 66 mn for updating, by the IPCA index, of the balance of the indemnity receivable existing in 1Q16 (R$ 31 mn). This basically reflects the new parameters for monetary updating set by Ministerial Order 120 of April 22, 2016.

Revenue from transactions in the Wholesale Trading Market (CCEE)

Revenue from transactions in electricity on the CCEE in 1Q17 was R$ 227 mn, compared to R$ 3 mn in 1Q16 – a YOY increase of R$ 224 mn. The main factors in this difference are:

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Revenue from supply of gas

Cemig reports revenue from supply of gas totaling R$ 411 million in 1Q17, compared to R$ 379 million in 1Q16 – an increase of 8.42%. This basically reflects volume of gas sold 2.48% higher YoY (296,125m³ in 1Q17, vs. 288,959m³ in 1Q16), with tariff increases.