MPX Corporate Presentation

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

Itaqui TPP360 MW

Parnaíba GT1,556 MW

Natural Gas Exploratory blocks

11 Tcf


Seival mine

Seival TPP600 MW

Sul TPP 727 MW

Açu TPP2,100 MW – Coal3,300 MW – Natural GasCastilla TPP

TBD

Largest Portfolio Of Power Generation Projects In South America

A DIVERSIFIED ENERGY COMPANY

Pecém I TPP720 MW

Pecém II TPP 365 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)1

Actual Reservoir Autonomy: ~ 5 months

TAX-ADVANTAGED THERMAL POWER PLANTS

COMING ON-LINE STARTING IN 2012

4

POWER AGREEMENTS SECURED FOR 3 GWMinimum guaranteed revenues will reach R$ 1.4 billion in 2014

13

TOTAL CAPACITY

(MW)

ADJUSTED CAPACITY

(MW)

ENERGY SOLD (AVG MW)

ANNUAL CAPACITY PAYMENT FUEL SOURCE

PPA PERIOD

Pecém I 720 360 308 R$ 278 million Coal 2012-2027

Itaqui 360 360 315 R$ 294 million Coal 2012-2027

Pecém II 365 365 276 R$ 264 million Coal 2013-2028

Parnaíba I 676 473 315 R$ 289 million Natural Gas 2013-2028

Parnaíba II 517 362 315 R$ 242 million Natural Gas 2014-2034

Total – Reg Market 2,638 1,920 1,529 R$ 1,367 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 June, 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: First synchronization –> Electrical load tests –> DCO

Unit #2: Steam blowing –> Reinstatement –> By-pass operation –> Steam-to-turbine –> Electrical tests –> First synchronization –> Electrical load tests –> DCO

14

Location Maranhão, NE Brazil



MPX Stake 100%



Fuel Source Coal

ITAQUI

ITAQUI



By-pass preparation –> By-pass operation –> Steam to turbine –> Electrical tests –> First synchronization –>

Electrical load tests –> DCO

15

Location Ceará, NE Brazil



MPX Stake 100%



Fuel Source Coal

PECÉM II

PECÉM II



Construction completion –> Cold commissioning –> First fire –> Steam blowing –> Reinstatement –> By-pass

operation –> Steam to turbine –> Electrical tests –> First synchronization –> Electrical load tests –> DCO

16


Installed Capacity 676MW


MPX Stake 70%



Fuel Source Natural Gas

PARNAÍBA I OCGT

PARNAÍBA I


EPC contract with Duro Felguera

Commissioning phase on schedule to start in 4Q12

A 363 MW expansion (cycle closing) is registered for the 2012 A-3 and A-5 Auctions17




MPX Stake 70%



Fuel Source Natural Gas

PARNAÍBA II CCGT

PARNAÍBA II


EPC contract with Initec Energia

1 gas turbine already in Brazil and the second one to be shipped by the end of October

18

NATURAL GAS E&P

5

MPX OWNS 23% OF A UNIQUE ONSHORE NATURAL

GAS PORTFOLIOOwnership Structure:

2 commercial production fields under development: Gavião Real and Gavião Azul

Prospective risked resources surpass 11 Tcf (2.0 bi boe)

5 drill-rigs in operation

3 seismic crews in the region

Exploratory campaign has identified 4 accumulations and over 20

prospects

Drill-stem test in well OGX-88 (Bom Jesus prospect) concluded

with 36 meters of net pay, supporting future development

20

OGX MaranhãoBlocks

Total area:24,500 km²

On schedule to start production at Gavião Real in Jan, 2013

Estimated capacity in 2013: 6 MM m³/day

(212 MM ft³)

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 2H12Initial production of 6 MM m3/day will supply Parnaíba I & II GTs

21

2.2 GW licensed and still

uncontracted could demand further

11 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

22

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 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

E.ON’s participation in MPX shall be adjusted according to put/call option arrangements between Mr.

Eike Batista and E.ON to reach 10%

CREATING VALUE THROUGH JOINT-VENTURE WITH

E.ONLeveraging Strong Complementary Capabilities to Enhance Growth

24

(*) E.ON has one of the broadest and most diverse power and gas asset bases in Europe.

Installed Capacity: 69 GW

2011 Traded Volumes: 2,000 billion kWh of power / 2,500 billion kWh of gas / 600 million tons of carbon / 300 million tons of coal

2011 Figures : Cash Position: EUR 6,610 million / Total assets: EUR 152,872 million / Sales: EUR 112,954 million

FUTURE GROWTH OPPORTUNITIESMPX is positioned for leadership in the Brazilian energy market

25


Seival TPP600 MW

Sul TPP 727 MW

Açu TPP2,100 MW – Coal3,300 MW – Natural GasCastilla TPP

TBD

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

Located 150km from natural gas

accumulations in the Campos Basin

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

158.7 MW registered for 2012 energy auctions

Environmental license granted

High-quality greenfield assets in northeast Brazil

26

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%27

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

28

Integrated Project: Power Plant + Deep-Water Port + Desalination Plant

SIC: Central Interconnected System (90% of GDP & 92% of population)

Located 700 Km North of Santiago

Power plant capacity: under review

CASTILLA: COAL-FIRED CAPACITY IN CHILE

Strategically located in a region with significant pent-up demand for energy and water

29

FINANCIAL HIGHLIGHTS

7

STEADY AND PREDICTABLE CASH FLOWS

31

Capacity Payments2& EBITDA

3

(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 as June, 2012)

Note 3. EBITDA figures do not include MPX’s interest in the Parnaíba basin gas onshore blocks

2013 2014 2015 2016

0.8 0.9 0.9 0.9

1.1 1.3

1.4 1.4

EBITDA Capacity Payments

Debt Maturity Profile*

(R$ million)

CASH & INDEBTEDNESS – As of Jun 30, 2012

32

Consolidated Cash and Cash Equivalents: R$ 1,113.2 million

Total Consolidated Gross Debt: R$ 5,103.8 million

Short term: R$ 1,662.2 million

R$ 825 million bridge loan to Parnaíba I and R$ 550 million to Parnaíba II

=> to be paid-off with draw down from long-term financing expected in

2H2012

Debt (R$ million)

*Values incorporate principal + capitalized interest + charges and exclude outstanding convertible debentures. ** R$ 258.7 million in 2012 and R$ 1,168.4 million in 2013 of bridge loan to Parnaíba, to be paid-off with draw down from long-term financing expected for 2H12.

Cash & Cash Equivalents

2012 2013** 2014 2015 From 2016 on

1,113.2

541.9

1,288.8

262.0 228.5

2,803.7Long term: R$ 3,441.6 million

Average amortization: 14 years

Average cost of debt: 9.4%

Average tenure: 5.6 years

For more information, contact:Investor Relations (55 21) 2555-9215

[email protected]

mailto:[email protected]

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