MPX CORPORATE PRESENTATION
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The material that follows is a presentation of general background information about MPX Energia S.A. and its subsidiaries (collectively, “MPX” or the “Company”) as of the date of the presentation. It is information in summary form and does not purport to be complete. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of this information.
This presentation may contain certain forward-looking statements and information relating to MPX that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like “may”, “plan”, “believe”, “anticipate”, “expect”, “envisages”, “will likely result”, or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. In no event, neither the Company, any of its affiliates, directors, officers, agents or employees nor any of the placement agents shall be liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements contained in this presentation or for any consequential, special or similar damages.
This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities.
Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.
Recipients of this presentation are not to construe the contents of this summary as legal, tax or investment advice and recipients should consult their own advisors in this regard.
The market and competitive position data, including market forecasts, used throughout this presentation were obtained from internal surveys, market research, publicly available information and industry publications. Although we have no reason to believe that any of this information or these reports are inaccurate in any material respect, we have not independently verified the competitive position, market share, market size, market growth or other data provided by third parties or by industry or other publications. MPX, the placement agents and the underwriters do not make any representation as to the accuracy of such information.
This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without MPX’s prior written consent.
DISCLAIMER
2
MPX AT A GLANCE
1
A PROVEN RECORD OF ACHIEVEMENT
4
IPO: US$ 1.1
billion raised
1,080 MW
contracted in the
A-5 Auction
2007 365 MW contracted in
the A-5 Auction
Construction works at
TPP Pecém I begin
2008 Construction works
at TPPs Itaqui and
Pecém II begin
Acquisition of
interest in 7 onshore
exploratory blocks in
the Parnaíba basin
2009
License granted for
TPP Parnaiba
(1,863 MW)
Initiation of drilling
campaign in the
Parnaíba basin
2010
TPP Parnaíba licensed
capacity increased to
3,722 MW
Power supply
contracts secured for
1,193 MW and
construction works at
TPP Parnaíba begin
D&M estimates for
risked resources in the
Parnaíba basin
amount to over 11Tcf
Declaration of
commerciality for 2
gas fields with
estimated production
of 6 MM m3/day
2011 MPX/E.ON
partnership
Acquisition of
Greenfield Wind
Projects in Northeast
Brazil (600 MW)
Drill-stem test in
well OGX-88 (Bom
Jesus) concluded
with 36 meters of
net pay, supporting
future development
MPX included in the
MSCI
2012
4
Power agreements secured for 3 GW
(Discos = 2.6 GW + Free mkt = 0.4 GW)
Environmental license for an additional
10 GW
Natural Gas E&P integrated to power
generation: >11 Tcf of risked gas
resources in the Parnaiba Basin
Joint-Venture with leading global player
E.ON AG
5
Joint-Venture w/ E.ON
MPX
Amapari Energia23 MW
Itaqui360 MW
Parnaíba1,556 MW
Natural Gas Exploratory blocks
11 Tcf
Parnaíba2,166 MW
Seival mine
Seival600 MW
Sul727 MW
Açu2,100 MW – Coal3,300 MW – Natural GasCastilla
TBD
Largest Portfolio Of Power Generation Projects In South America
A DIVERSIFIED ENERGY COMPANY
Pecém I720 MW
Pecém II365 MW
Solar Tauá1 MW
Ventos Wind Complex600 MW + 600 MW
Eike BatistaFree Float
MPX Participações
Amapari Energia
Parnaíba (expansion)
Açu TPPs
Ventos Wind
Itaqui TPPPecém II
TPPPecém I
TPP
SeivalCoal Mine
OGX Maranhão
Parnaíba IICCGT
Parnaíba IOCGT
Natural gas exploratory blocks in the
Parnaíba Basin
50% 100% 100% 51%
70% 70% 33% 70%
70%
35%
50%
Supply & Trading
35%
50%
50%
11.7%53.9%34.3%
Sul & SeivalTPPs
Castilla TPP
50% 50%
50% 50%
Tauá Solar
100% 100% 100%
50%
MPX OWNERSHIP STRUCTURE
6
INVESTMENT HIGHLIGHTS
2
Exposure to Brazil’s growing energy demand
Tax-advantaged thermal power plants coming on-line in 2012
Attractive monetization of natural gas resources
Robust pipeline of thermal projects to meet Brazil’s need for a more
reliable electric system
Joint-venture with E.ON to develop strong portfolio of energy assets and
accelerate growth
Experienced management team to execute on strategic vision
INVESTMENT HIGHLIGHTS
8
EXPOSURE TO BRAZIL’S GROWING
ENERGY DEMAND
3
Energy Deficit starting in 2015 = Investment Opportunities
BRAZIL WILL NEED ADDITIONAL 10 AVG GW FROM
2015-2019Power Supply/Demand
Source: ANEEL 10
2015-on: new generation required10 GW avg required from 2015 to 2019
Firm Energy
Energy Load (forecast)
Water storage capacity has stagnated, leading to decreased system autonomy
BRAZIL NEEDS NEW THERMAL CAPACITY TO
INCREASE SUPPLY RELIABILITY
11Source: ONS
Storage Capacity (Southeast)
Storage Capacity (SIN):
Autonomy = [Storage Capacity / (Load – Thermal Generation)]
New thermal plants are necessary to guarantee a reliable power supply.
Northeast = 19%
North = 5%
Storage capacity
stagnation
Southeast = 69%
South = 7%
2001: Energy Deficit(load reduction)
Actual Reservoir Autonomy: ~ 5 months
TAX-ADVANTAGED THERMAL POWER PLANTS
COMING ON-LINE STARTING IN 2012
4
Installed Capacity (MW) Capacity Payments (R$ billion)
2013 2014 2015
1.14 1.35 1.39
Capacity Payments
2012 2013 2014
720
1,558
1,920
Note 1. Figures adjusted for ownership
Note 2. Capacity Payments are indexed to the IPCA inflation index (Figures shown are in real terms, as of September, 2012)
OPERATIONS START IN 2012 Fully contracted power plants will generate steady revenues from 2012 onwards
13
POWER AGREEMENTS SECURED FOR 3 GWMinimum guaranteed revenues will reach R$ 1.4 billion in 2014
14
TOTAL CAPACITY
(MW)
ADJUSTED CAPACITY
(MW)
ENERGY SOLD (AVG MW)
ANNUAL CAPACITY PAYMENT FUEL SOURCE
PPA PERIOD
Pecém I 720 360 308 R$ 282 million Coal 2012-2027
Itaqui 360 360 315 R$ 298 million Coal 2012-2027
Pecém II 365 365 276 R$ 268 million Coal 2013-2028
Parnaíba I 676 473 315 R$ 293 million Natural Gas 2013-2028
Parnaíba II 517 362 315 R$ 246 million Natural Gas 2014-2034
Total – Reg Market 2,638 1,920 1,529 R$ 1,387 million
Note 1. Adjusted Capacity, Energy Sold and Annual Capacity Payment: Figures adjusted for MPX’s ownership in each project
Note 2. Capacity Payments are indexed to the IPCA inflation index (Figures as of September, 2012)
MPX and MMX signed an energy supply contract for 200 average MW, from January 2019 until May 2029, at a base
price of R$ 125/ MWh (as of May 2011).
Location Ceará, NE Brazil
Installed Capacity 720 MW
Firm Energy 615 avg MW
MPX Stake 50%
Total Investment R$ 3.0 billion
PPA Period 2012- 2027
Fuel Source Coal
PECÉM I
PECÉM I
100% contracted in the Regulated Market (pool of distribution companies)
Milestones to commercial operation (DCO):
Unit #1: DCO on Dec 01, 2012
Unit #2: Reinstatement –> By-pass operation –> Steam-to-turbine –> Electrical tests –> First synchronization –> Electrical load tests –> DCO
15
Location Ceará, NE Brazil
Installed Capacity 365 MW
Firm Energy 276 avg MW
MPX Stake 100%
Total Investment R$ 1.5 billion
PPA Period 2013- 2028
Fuel Source Coal
PECÉM II
PECÉM II
100% contracted in the Regulated Market (pool of distribution companies)
Milestones to commercial operation (DCO):
Cold commissioning First fire Steam blowing Reinstatement By-pass operation Steam to turbine Electrical
tests First synchronization Electrical load tests DCO
16
TPP PECÉM I & II
17
Location Maranhão, NE Brazil
Installed Capacity 360 MW
Firm Energy 315 avg MW
MPX Stake 100%
Total Investment R$ 2.2 billion
PPA Period 2012- 2027
Fuel Source Coal
ITAQUI
ITAQUI
100% contracted in the Regulated Market (pool of distribution companies)
Milestones to commercial operation (DCO):
Electrical load tests –> DCO
18
TPP ITAQUI
19
Location Maranhão, NE Brazil
Installed Capacity 676MW
Firm Energy 450 avg MW
MPX Stake 70%
Total Investment R$ 1.3 billion
PPA Period 2013- 2028
Fuel Source Natural Gas
PARNAÍBA I OCGT
PARNAÍBA I
100% contracted in the Regulated Market (pool of distribution companies)
EPC contract with Duro Felguera
Commissioning phase on schedule to start in 4Q12
20
Location Maranhão, NE Brazil
Installed Capacity 517 MW
Firm Energy 450 avg MW
MPX Stake 70%
Total Investment R$ 1.3 billion
PPA Period 2014- 2034
Fuel Source Natural Gas
PARNAÍBA II CCGT
PARNAÍBA II
100% contracted in the Regulated Market (pool of distribution companies)
EPC contract with Initec Energia
21
22
TPP PARNAÍBA I & II
NATURAL GAS E&P
5
MPX OWNS 23% OF A UNIQUE ONSHORE NATURAL
GAS PORTFOLIOOwnership Structure:
Gas Production at Gavião Real field to start in Jan 2013
Discovery Evaluation Plan for Bom Jesus field approved by ANP
Drill-stem test in well OGX-88 concluded with 36 meters of net pay
2 additional wells drilled with positive results, supporting development
Exploratory campaign has identified 4 accumulations and over 20
prospects
5 drill-rigs in operation: 3 exploratory wells underway
OGX MaranhãoBlocks
Total area:24,500 km²
24
On schedule to start production at Gavião Real in Jan, 2013
Estimated production capacity in 2013:
7.5 MM m³/day
16 production wells already drilled
Commissioning of Gas Treatment Unit
expected in 4Q12
Competitive costs:
Average operating cost: US$ 0.30/1,000ft³
R$ 600 million bridge-loan to fund production development disbursed in January 2012
GAS PRODUCTION IS PLANNED TO START IN 1H13Initial production of 6 MM m3/day will supply Parnaíba I & II GTs
25
2.5 GW licensed and still
uncontracted could demand further
12 MM m3/day
Inexpensive connection to the
electrical grid
Limited competition in gas-fueled power generation
Tax-advantaged region can attract industrial investments when gas is available
ATTRACTIVE OPPORTUNITIES TO MONETIZE
ADDITIONAL PRODUCTIONEfficient Integration of Natural Gas Resources with Power Generation
26
PARNAÍBA: E&P – NATURAL GAS
27
JOINT-VENTURE WITH E.ON TO ACCELERATE
GROWTH
6
MPX and E.ON AG recently formed a 50/50 joint-venture to develop a strong portfolio of
energy assets in Brazil and Chile E.ON is one of the world's largest investor-owned power and gas companies with 69 GW of
generation capacity
E.ON has committed to support MPX’s investment needs at the JV, at E.ON’s cost of equity
in Brazil, to expedite the development of the power generation projects of the JV
MPX raised R$1.0 billion through a capital increase E.ON acquired a 11.7% equity interest in MPX @ R$ 14.7/share
CREATING VALUE THROUGH A JOINT-VENTURE
WITH E.ONLeveraging Strong Complementary Capabilities to Enhance Growth
29
FUTURE GROWTH OPPORTUNITIESMPX is positioned for leadership in the Brazilian energy market
30
Parnaíba2,166 MW
Seival600 MW
Sul727 MW
Açu2,100 MW – Coal3,300 MW – Natural Gas
CastillaTBD
Solar Tauá1 MW
Ventos Wind Complex600 MW + 600 MW
Parnaíba GT: Key competitive advantage
through the integration of natural gas
production and power generation in a tax-
advantaged region
Ventos Wind: High-quality greenfield assets in
one of Brazil’s best wind resource areas
Açu: Studies underway to assess installation of
regasification terminal at the port
MPX Sul + Seival: low generation cost in a
region with limited hydro potential and
transmission constraints
João Câmara
RN
VENTOS: A 600 MW WIND COMPLEX IN ONE OF
BRAZIL’S BEST WIND RESOURCE AREAS
Total Capacity: 600 MW + call option on
additional 600 MW
Estimated Load Factor: 48% (P50)
Location: Rio Grande do Norte, NE Brazil
Grid connection 30km from Complex
All land rights secured
Environmental license granted
High-quality greenfield assets in northeast Brazil
31
AÇU: A 5.4 GW GREENFIELD GENERATION COMPLEX3.3 GW in gas-fired + 2.1 GW in coal-fired capacity located in Brazil’s load center
Located in one of the most important port-industrial complex in Latin America
Total capacity of 5,400 MW Coal: 2,100 MW
Natural Gas: 3,300 MW
Located 150km from natural gas
accumulations discovered in the Campos Basin
The industries located within the Superport will
benefit from auto production sharing, which at
current prices represents a reduction in energy
costs by approximately 30%32
MPX Sul and MPX Seival: Capacity: 727 MW + 600 MW
Fluidized Coal Bed technology
Lower emissions resulting from the mix burning of coal and wood chips
Seival Mine: Partnership between MPX and Copelmi –
one of Brazil’s largest coal miner
Operating License granted
152 MM tons in proven reserves and 459 MM tons in total resources
Located in a region with limited hydro potential and transmission constraints.
SUL + SEIVAL: 1.3 GW INTEGRATED TO A LIGNITE
MINE Open-pit mine with low mining costs, located adjacent to the power plants, resulting in competitive fuel costs
33
FINANCIAL HIGHLIGHTS
7
STEADY AND PREDICTABLE CASH FLOWS
Capacity Payments (R$ billion)Installed Capacity (MW)
2012 2013 2014
720
1,558
1,920
Pecém I
Itaqui
Pecém II
Parnaíba I
Parnaíba II
Note 1. Figures adjusted for ownership.
Note 2. Capacity Payments are indexed to the IPCA inflation index (Figures shown are in real terms, as of September, 2012).
Note 3. EBITDA figures do not include MPX’s interest in the Parnaíba basin gas onshore blocks. 35
2013 2014 2015
1.14
1.35 1.39
Jun/12 Sep/12
67% 63%
33% 37%
Short Term
Long Term
Cash & Cash Equivalents
2012 2013 2014 2015 From 2016 on
1,003.0
169.8
2,095.3
278.3 265.2
2,902.4
R$ 1,454 million bridge-loan to
Parnaíba I & II power plants -> to be
paid-off with draw down from long-
term financing
36*Values incorporate principal + capitalized interest + charges and exclude outstanding convertible debentures.
Maturity Profile (R$ million)
R$ billion Jun/12 Sep/12
Gross Debt (R$ MM) 5.1 5.6
Net Debt (R$ MM) 4.0 4.6
Average Cost (%) 9.4 8.7
Average Tenure (years) 5.6 5.1
Debt Profile
INDEBTEDNESS
For more information, contact:Investor Relations (55 21) 2555-9215