Frequently Asked Questions

Cemig’s Bylaws establish the company’s dividend policy in Articles 5, 7, 28, 29, 30, and 31.

Article 5 of the Bylaws provides that preferred shares shall have priority in the event of share reimbursement and shall be entitled to a minimum annual dividend equal to the greater of the following amounts:

• 10% (ten percent) calculated on their par value

• 3% (three percent) of the book equity value of the shares.

Article 7 of the Bylaws provides that, in fiscal years in which the Company does not obtain sufficient profits to pay dividends to its shareholders, the State of Minas Gerais shall guarantee to the shares issued by the Company up to August 5, 2004, and held by private parties, a minimum dividend of 6% (six percent) per year, pursuant to Article 9 of State Law No. 828, of December 14, 1951, and State Law No. 15,290, of August 4, 2004.

Article 28 of the Bylaws provides that 50% of the net income for each fiscal year shall be allocated for distribution as the mandatory dividend to the Company’s shareholders, subject to the other provisions of these Bylaws and the applicable legislation.

Article 29 of the Bylaws provides that dividends shall be distributed in the following order:

a) The minimum annual dividend guaranteed to preferred shares
b) The dividend to common shares, up to the same percentage guaranteed to preferred shares.

Sole Paragraph – The General Meeting may allocate to shareholders an additional dividend beyond those provided in items “a” and “b” above, in which case preferred shares shall participate equally with common shares.

Article 30 provides that, without prejudice to the mandatory dividend, every two years, as from the 2005 fiscal year, or at shorter intervals if the Company’s cash availability permits, the Company shall use the profit reserve provided for in Article 28 of the Bylaws to distribute extraordinary dividends, up to the available cash limit, as determined by the Board of Directors in compliance with the Company’s Master Plan and the established dividend policy.

Therefore, although preferred shares have a minimum dividend established by the bylaws, the Company has extended equal treatment to common shares in the distribution of dividends.

The electric energy balances, once released, can always be found in the “Electric Energy Balances” section.

Energy produced for one’s own industrial process. Some large consumers, authorized by ANEEL, build power plants to meet their own consumption. This energy can replace or supplement the volume purchased from the distributor, and any surplus may be occasionally and temporarily sold, subject to ANEEL’s authorization.

The quality indicators DEC and FEC are regulatory metrics used in the electricity distribution sector in Brazil, defined by ANEEL (National Electric Energy Agency), to measure the continuity and quality of energy supply:

• DEC (Equivalent Duration of Interruption per Consumer Unit)

• FEC (Equivalent Frequency of Interruption per Consumer Unit)

The control of electrical losses is one of Cemig D’s strategic objectives, with a dedicated structure within the company for this purpose. Loss management in an electricity distribution company is one of the most critical aspects for the company’s operational and financial efficiency. These losses can be classified as:

• Technical losses: occur naturally in the process of energy transmission and transformation (Joule effect in cables, transformers, etc.).

• Non-technical (or commercial) losses: related to energy theft (“clandestine connections”), fraud, tampered meters, reading errors, and delinquency.

Shareholder services for Cemig are provided at any branch of Banco Itaú-Unibanco S.A. across the country, which is the Depositary Financial Institution for Cemig’s shares.

You should go to a Banco Itaú-Unibanco branch with your personal identification documents (CPF, photo ID, and proof of address) and request your position in Cemig-issued shares.

If you are an account holder at Banco Itaú-Unibanco, you can also check your position via Internet Banking under the Investments link, then Stocks → Position of Book-Entry Assets.

If your shareholding position is not found, you must update your registration at the branch using a specific form and provide a document proving your acquisition/right to the shares (such as certificates, old statements, or electricity bills).

The shareholder must go to a Banco Itaú-Unibanco branch of their choice and fill out the “Investor Registration Form” available at the bank’s branches. The form must be signed, have the signature notarized, and, if the shareholder is an individual, provide notarized copies of identification documents (CPF, photo ID, and proof of address). If the shareholder is a legal entity, corporate documents must be provided (CNPJ card, minutes, bylaws, and brief certificate from the Board of Trade), along with proof of bank account details that will centralize the credit of any declared dividends (copy of bank card or checkbook page).

Instructions regarding the required documents and requirements are included in the form itself.

If you go to a Banco Itaú-Unibanco branch and your Cemig shareholding position cannot be found using your CPF, your registration is likely outdated. To locate your shareholding position, you will need to update your registration as described in item 3 and also provide a document proving your acquisition/right to the shares (certificates, old statements, or electricity bills). After updating your registration and completing the search, if you hold or are entitled to Cemig shares, you will automatically receive an updated shareholding statement at your residence.

Dividends and/or Interest on Equity can be received from the payment start date through credit to the shareholder’s own bank account (accounts in third parties’ names are not allowed) at any bank participating in the national clearing system.

If the shareholder does not have updated bank account information, they must go to a Banco Itaú-Unibanco branch of their choice and request an update of their bank account details, following the procedures described in item 3. After the update, payment will be made automatically to the updated account.

For shareholders who already have their bank account information registered, dividend payments are made automatically on the payment start date.

If you have not received the annual income statement at your address, you should update your registration information as described in item 3. However, a second copy of the income statement is available at any Banco Itaú-Unibanco branch; you only need to bring your identification documents (CPF and photo ID).

Nominative share certificates are no longer valid, as they have been converted into book-entry shares. However, shareholders can request their updated shareholding position at any Banco Itaú-Unibanco branch of their choice. If the position is not found, the shareholder may request a search of the shares using the presented certificate, also providing identification documents (CPF, photo ID, and proof of address). After the search, Banco Itaú-Unibanco S.A. will send the updated shareholding statement.

To check the value of Cemig’s shares, you can contact a securities brokerage of your choice or access the Bovespa website at http://www.bmfbovespa.com.br/.

To buy or sell shares, you should choose a brokerage of your choice and request the transaction through the Stock Exchange. If you prefer to use Itaú-Unibanco Brokerage, you can also go to any Banco Itaú-Unibanco branch with your personal identification documents (CPF, photo ID, and proof of address); however, you must first verify and confirm that the shares are registered in your name.