Institutional Presentation. April, 2016

Institutional Presentation

Growth Strategy

The Company’s History

Corporate Profile

Growth Strategy

The Company’s History

Corporate Profile

Creation of Aliança Energia and Aliança Norte Energia

Norte Energia S.A.

HPP Igarapava HPP Porto Estrela HPP Funil HPP Aimorés HPP Capim Branco I HPP Capim Branco II Igarapava Porto

Estrela Funil Aimorés

Capim Branco I Candonga Capim Branco II 51.0% 49.0% 9.0% 100.0% 38.1% 33.3% 51.0% 51.0% 60.9% 50.0% 60.9% 14.5% 33.3% 49.0% 49.0% 26.5% 26.5% 55.0% 66.7% 100.0% 100.0% 87.4% 50.0% 87.4%

Aliança Geração de Energia S.A. Aliança Norte Energia S.A.

Aliança Energia and Aliança Norte Energia were created from the merger of assets between Vale and

Cemig

Strategic rationale for the creation of Aliança Energia

Aliança Energia

Creation of a one of the largest private power generation platforms in Brazil, with 1,158 MW of installed capacity and 652 MW of assured energy1

 Aliança Energia is preferred vehicle for growth in the power generation sector and focused on adding value to its shareholders

Strong cash flow generating platform, self-sustainable for future investments

 Revenues of R$1 billion in 2015  EBITDA of R$500 million in 2015  Positive net cash position

Operational and financial synergies

 Combination of operational, financial and project management experience of its shareholders  Shared services center

 Benefits from integrated administration (reduction in general and administrative expenses)

Contracted revenues through long term PPAs

 Inflation protection

 Predictable cash flows with attractive returns  High margins

Growth strategy based on M&A and greenfield

 Capacity to use leverage for M&A opportunities and capacity to develop a high quality pipeline of projects, including Santo Inácio wind power project

Senior management

Board of Directors

Advisory Committees

Corporate structure Board of directors

Vania Somavilla Chairwoman of the Board Ricardo Batista Mendes Member of the Board Juan Franco Merlini Member of the Board César Vaz de Melo Fernandes Member of the Board Paulo Sérgio Machado Ribeiro Member of the Board Glauco Gonçalves

Director of Operation and Corporate Management

Gilberto Cardoso Director of Engineering,

Trading and Finance Shareholders’ agreement

All decisions made by consensus between Cemig and Vale

Growth Strategy

The Company’s History

Corporate Profile

 Annual revenue of R$1.0 billionin 2015E

 EBITDA of R$500 million in 2015E

 100% of energy output sold in the long-term through PPAs  7 hydro power plants in full operation

 1,158 MW of installed capacity

 Assured energy average of 652 MW

Selected highlights

Main operational and financial highlights of Aliança Energia

Hydro Power Plants Total Installed Capacity (MW) Total Assured Energy (MW average) ALIANÇA ENERGIA Stake (%) Proportional Installed Capacity (MW) Proportional Assured Energy (MW average) Concession Expiration Location

1) Aimorés 330 172 100.0% 330 172 Dec. 2035 Aimorés/MG (Doce River)

2) Funil 180 89 100.0% 180 89 Dec. 2035 ₍Perdões/MG _{Grande River)}

3) Capim Branco I 240 155 87.4% 210 135 Aug. 2036 _{(Araguari River}Araguari/MG ₎

4) Capim Branco II 210 131 87.4% 184 114 Aug. 2036 (Araguari RiverAraguari/MG )

5) Porto Estrela 112 56 66.7% 75 37 Jul. 2032 (Sto. Antônio Joanésia/MG River)

6) Igarapava 210 136 52.6% 110 72 Dec. 2028 Conquista/MG (Grande River)

7) Candonga 140 65 50.0% 70 32 May. 2035 Rio Doce/MG (Doce River)

TOTAL 1,422 803 - 1,158 652 - - 6 5 2 7 1 3 4 Geographic location

Seven hydro power plants fully operational in portfolio

Minas Gerais state

54% 32%

14%

Revenue profile

 Solid and stable annual revenue of ~R$1 billion in 2015E

 Management results: Growth focused on value creation

 Low financial leverage evidenced by positive net cash position

 Long term PPA contracts

 Free Market  Vale and Cemig

 Regulated Market  More than 90 distributors

 Annual tariff adjustment  According to IPCA

Vale Cemig Regulated Market

Financial position supports growth strategy

1,158 1,820 2,199 2,200 2,241 2,658 7,054 Aliança Neoenergia CPFL Eneva Duke Energy AES Tiete Tractebel Installed Capacity 2015 - MW (1) Integrated companies 1ª 2ª 3ª 4ª 5ª 6ª 7ª (1) (1)

Well-positioned in the Brazilian power generation sector

Growth Strategy

The Company’s History

Corporate Profile



Create value through acquisitions



Opportunities to invest in various segments:

 Hydro power  Thermal power  Wind power

Acquisitions



Develop the Santo Inácio wind power project



Sale of energy in the Free Market



Participation in new energy auctions

New

projects

Technical Characteristics

 47 wind turbines of 2.1 MW  total installed capacity of 98.7 MW and 44.1 MW average of assured energy (P90)

Energy Destination

 100% of energy will be sold to Vale since April, 2017 for the entire period of concession

Location

 Icapuí / CE

 ~200 km of Fortaleza/CE

Suppliers

 WEG, Siemens, Energy and Cortez Engenharia

Total Investments

 Capex total of R$548 million

 Funding: Equity, BNDES Finem and debentures

Connection to the National Interconnected System

 Substation 230kV Mossoró IV in Rio Grande do Norte state – Around 8 km of the power plant

 CHESF property

Santo Inácio wind power project has a total installed capacity of 98.7 MW and 44.1 MW avg of assured

energy

Investors Relations

E-mail: [email protected]

Website: http://ri.aliancaenergia.com.br