26
September, 2013
September, 2013
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
Exposure to Brazil’s
Growing Energy Demand
1
Brazil is highly dependent on hydro generation
Newer hydropower predominantly run-of-the-river, leading to faster depletion of reservoirs
4
Dry season
Southeast Reservoirs
(~70% of total storage capacity)
Source: ANEEL
Brazil’s Generation Capacity: 131 GW
(Breakdown by source - 2012)
68.7%
9.9%
2.2%
1.6% 1.6%
16.0%
Hydro Gas Coal Nuclear Wind Others
67% 56%
76%
29%
38%
46%
54%
62%
0%
25%
50%
75%
100%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average 2007-2011 2012 2013
Water storage capacity has stagnated, leading to
decreased system autonomy
5 Source: ONS
Storage Capacity
(Southeast = 70% total capacity)
Autonomy = Storage Capacity / (Load – Thermal Generation)
Storage capacity
stagnation
Current reservoir autonomy ~ 5 months
New thermal plants are necessary to guarantee a reliable power supply
GW
/mo
nth
65.2
86.5
64.7
78.1
60,0
65,0
70,0
75,0
80,0
85,0
90,0
2013 2014 2015 2016 2017 2018 2019 2020
GW
avg
ENERGY DEMAND
PHYSICAL GUARANTEE
(with signed PPAs)
Sources: ONS, ANEEL 6
2016-on: new generation required
~8 GWavg required until 2020
Economic growth will boost power demand leading to
a supply deficit in 2016
Default and delays in greenfield projects might further increase need for new capacity
2 MPX at a Glance
Relevant Sector
Opportunities
Company Operating since 2012
Qualified and committed
Management Robust portfolio
of projects
Demand: significant growth in energy
consumption expected in the coming years
Supply: risk of delays in start-up of
relevant projects
Energy Matrix: concentrated
in hydropower
Team: prepared and aligned with the
interests of shareholders
Management: highly-qualified and aligned
with the company’s perpetuation
Thermal projects: to meet
the needs of Brazil
Diversified company: ancillary business
in power Generation and natural Gas E&P.
Steady revenue stream: Tax-advantaged
thermal power plants coming on-line in
2012/13
Onshore gas assets: High
operating margins and fast payback
on investment
8
Steady cash flows and differentiated competitive positioning
A unique investment case in Brazil’s energy market
9
Note : Annual Payments are indexed to the IPCA inflation index (Figures as of November, 2012)
Capacity (100% of project)
1,756 MW
Annual Capacity Payments (adjusted for ownership %)
R$ 878.2 million
Energy Source Coal Coal Gas – OCGT
Ownership after transaction MPX 50%/EDP 50% 100% MPX 70%/Petra 30%
Total Capacity (MW) 720 360 676
Capacity Payments (R$ MM/year) 567.2 299.8 421.2
Start up May/13 Feb/13 Apr/13
Operating power plants will generate annual revenues of at least R$ 878 million
MPX currently operates over 1.7 GW
PECÉM I PARNAÍBA I ITAQUI
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Minimum annual revenues of R$ 620 million will come from assets under construction
Additional 1.1 GW will come on stream in 2013
10
PECÉM II2 PARNAÍBA III Nova Venécia
PARNAÍBA II
Energy Source Coal Gas – CCGT Gas – OCGT Gas
MPX Stake after transaction 100% 100% MPX 70%/Petra 30% MPX 70%/Petra 30%
Total Capacity (MW) 365 517 176 56
Capacity Payments (R$ MM/year) 269.2 353.1 93.5 54.0
Start up 3Q13 4Q13 4Q13 4Q13
PARNAÍBA IV Free Market
Note : 1 - Annual Payments are indexed to the IPCA inflation index (Figures as of November, 2012. Parnaíba IV as of January, 2013 ). 2 - Pecém II was synchronized to Brazil’s National Interconnected System on June 2, electrical tests required by ONS were completed on June 29 and on July 2 the unit demonstrated full design capacity. Declaration for commercial operation (DCO) is now conditioned to the availability of the new 500kV substation/transmission line under construction by Chesf/TDG.
Capacity (100% of projetct)
1,114 MW
Annual Capacity Payments1
(adjusted for ownership %)
R$ 619.6 million
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COAL
Açu Coal: 2.1 GW
Sul + Seival: 1.3 GW
- Integrated to the Seival Mine: Operating
License granted and 152 MM tons in proven
reserves
WIND
Ventos Wind: up to 1.2 GW
- High-quality greenfield assets in one of
Brazil’s best wind resource areas
- Capacity: up to 600 MW (321 MW with
environmental license)
- Estimated Load Factor: 48% (P50)
- Grid connection 30 km from project location
- All land rights secured
- Option to acquire project’s expansion (+600
MW)
GAS
Parnaíba Expansion: 2.3 GW
- Key competitive advantage through the
integration of natural gas production and
power generation in a tax-advantaged
region
Açu CCGT: 3.3 GW
- Located 150km from natural gas
accumulations discovered in the Campos
Basin at a port with a license to build a
regasification terminal
Maranhão Rio de Janeiro Rio de Janeiro Rio Grande do Sul Rio Grande do Norte
MPX holds a robust portfolio of greenfield assets
Over 9 GW in licensed base-load and wind power generation projects
Natural Gas E&P
3
Integrated onshore gas fields supply MPX power plants in the
Parnaíba Basin Strong competitive position in gas-fired generation
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MA
OGX Maranhão Blocks Total area: 24,500 km²
FAZENDA CHICOTE
GAVIÃO BRANCO
GAVIÃO REAL
Parnaíba Power Generation
Discovery Fields
SANTA ISABEL
SÃO RAIMUNDO
MA
33.3% stake in OGX Maranhão, owner and
operator of 8 onshore gas fields
3 rigs operating simultaneously: 2 focused on
exploration and 1 completion rig on the
production development
GAVIÃO REAL
Beginning of commercial production in Jan/13
Current gas production: 4.1 million m3/day
GAVIÃO BRANCO
Declaration of commerciality presented to ANP
Total estimated volume in place between 0.2
and 0.5 Tcf
With attractive opportunities to monetize new discoveries
Unique competitive position in gas-fired generation
Gas Field GTU
Power Generation
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EXPLORATION
In 2Q13, 5 new wells drilled by OGX, 3 of them are
wildcats*:
Fazenda Alencar prospect (OGX-112): 22 meters of
net pay of gas discovered
Fazenda Sossego prospect (OGX-114): 14 meters of
net pay of gas discovered
Fazenda Havana prospect (OGX-115): In progress
Additionally, 2 wildcat adjacent wells commenced to be
drilled:
SE Bom Jesus (OGX-111), adjacent to Bom Jesus
(OGX-88): 20 meters of net pay of gas discovered
NW Fazenda Chicote (OGX-113), adjacent to Fazenda
Chicote (OGX-107): Gas shows were found
*A wildcat well is the first well drilled on a new prospect.
Financial Highlights
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Debt
Consolidated gross debt profile (R$ million)
2,651 46%
3,082 54%
Short Term Long Term
2,651
1,121 1,530
Project Holding
Short Term Debt (R$ million)
100 350
Paid-off by capital increase
Project debentures
1,080
LT debentures at holding
Short Term Debt (2Q13):
R$ 1,121.5 million at project level:
• R$ 845.2 million refer to outstanding bridge-loans to Parnaíba
I & II power plants to be paid-off with draw down from
long-term financing.
• R$ 276.2 million refer to current portion of the project finance
debts of Pecém II, Itaqui and Parnaíba I
MPX holding plans to eliminate outstanding intercompany
loans with its subsidiaries through the issue of LT tax-
advantaged infrastructure debentures at project level with
subsequent use of funds to pay-off loans
The remaining short-term debt balance at the holding level
will be replaced by a long-term debenture, with an estimated
5 to 7-year maturity
Total: R$ 5,733 MM
Joint-control with E.ON
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EIKE BATISTA FREE FLOAT
Joint-Venture MPX E.ON (JV)
Amapari Energia
Parnaíba (expansion)
Açu TPPs
Ventos Wind
Itaqui TPP Pecém II
TPP Pecém I
TPP
Seival Coal Mine
OGX Maranhão
Parnaíba II CCGT
Parnaíba I OCGT
Natural gas exploratory blocks in the
Parnaíba Basin
50% 100% 100% 51%
70% 100% 33% 70%
70%
35%
50%
Supply & Trading
35%
50%
50%
36.2% 29.0% 34.8%
Sul & Seival TPPs
Castilla TPP
50% 50%
50% 50%
Tauá Solar
100% 100% 100%
50%
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MPX current ownership structure
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Share Capital Increase
MPX Shareholding Structure as of June 30, 2012
36.2% 29.0%
EIKE BATISTA
FREE FLOAT
34.8% ~38% ~24%
EIKE BATISTA
FREE FLOAT
~38%
MPX Indicative Shareholding Structure after the
Capital Increase
A R$ 800 million private capital increase was approved by the Board of Directors on July 03;
81,235,437 newly-issued common shares, equivalent to approximately R$ 524 million, were
subscribed and paid-in during the Initial Preemptive Right Period, which ended on Aug 8;
The First Additional Subscription Period begins on Aug 14 and will end on Aug 16.
Obs: Assuming no subscription by Eike Batista and R$ 366.7 million by E.ON
Robust pipeline of thermal projects to meet
Brazil’s need for a more reliable electric system
Attractive monetization of natural gas resources
E.ON to join control group further supporting
development of strong portfolio of energy assets
Experienced management team to execute on
strategic vision
Stronger capital structure and enhanced execution capabilities to develop robust pipeline of licensed greenfield thermo generation projects
Deficit in the demand-supply balance
Energy matrix concentrated in hydropower
Stagnated storage capacity
Reservoirs at levels similar to those of 2001’s
energy rationing
Spot prices (PLD) at historical highs for the last 10
years
Need to increase the base generation capacity
OPPORTUNITIES
INVESTMENT HIGHLIGHTS
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MPX is well-positioned to capture market opportunities
Appendix - Images
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PORTO DO PECÉM I & II TPP
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ITAQUI TPP
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PARNAÍBA I & II TPP
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PARNAÍBA: E&P – NATURAL GAS
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