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Page 1: MPX CORPORATE corporate presentation fevereiro

MPX CORPORATE PRESENTATION

Page 2: MPX CORPORATE corporate presentation fevereiro

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

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MPX AT A GLANCE

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A PROVEN RECORD OF ACHIEVEMENT

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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

Beginning of

commercial operations

of the first turbine at

Pecém I (360 MW)

2012 Aneel approves

changes in the

implementation

schedule for the

TPPs Parnaíba I and

Pecém

OGX Maranhão

declares

Commerciality of the

Bom Jesus

Accumulation in the

Parnaíba Basin

Beginning of

commercial

operations of TPPs

Itaqui (360 MW) and

Parnaíba I - turbines

1 and 2 (338 MW)

2013

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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

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Joint-Venture w/ E.ON

MPX

Amapari Energia 23 MW

Itaqui 360 MW

Parnaíba 1,556 MW

Natural Gas Exploratory blocks

11 Tcf

Parnaíba 2,166 MW

Seival mine

Seival 600 MW

Sul 727 MW

Açu 2,100 MW – Coal 3,300 MW – Natural Gas Chile

TBD

Largest Portfolio Of Power Generation Projects In South America

A DIVERSIFIED ENERGY COMPANY

Pecém I 720 MW

Pecém II 365 MW

Solar Tauá 1 MW

Ventos Wind Complex 600 MW + 600 MW

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Eike Batista Free Float

MPX Participações

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% 70% 33% 70%

70%

35%

50%

Supply & Trading

35%

50%

50%

11.7% 53.9% 34.3%

Sul & Seival TPPs

Castilla TPP

50% 50%

50% 50%

Tauá Solar

100% 100% 100%

50%

MPX OWNERSHIP STRUCTURE

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INVESTMENT HIGHLIGHTS

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Exposure to Brazil’s growing energy demand

Tax-advantaged thermal power plants coming on-line

Attractive monetization of natural gas resources

Exposure to Brazil’s growing energy demand

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

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TAX-ADVANTAGED THERMAL POWER PLANTS

COMING ON-LINE

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POWER AGREEMENTS SECURED FOR 3 GW

Minimum guaranteed revenues will reach R$ 1.4 billion in 2014

10 Note 1. Adjusted Capacity, Energy Sold and Annual Capacity Payment: Figures considering 100% of the project

Note 2. Capacity Payments are indexed to the IPCA inflation index (Figures as of October, 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).

Regulated Market Total Capacity

(MW)

Energy Sold

(Avg MW)

Annual Capacity Payment

(R$ MM/year) COD

Pecém I (1st turbine) 360 307.5 283.6 12/01/2012

Itaqui 360 315 299.8 02/05/2013

Parnaíba I (1st turbine) 169 112.5 105.3 02/01/2013

Parnaíba I (2nd turbine) 169 112.5 105.3 02/20/2013

TOTAL 1,058 847.5 794.0

POWER PLANTS IN OPERATION

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Regulated Market Total Capacity

(MW)

Energy Sold

(Avg MW)

Annual Capacity

Payment

(R$ MM/year)

COD

(Expected)

Pecém I (2nd turbine) 360 307.5 283.6 1Q13

Pecém II 365 276 269.2 2Q13

Parnaíba I (3rd and 4th turbines) 338 225 210.6 1Q13

Parnaíba I (5th turbine) 176 98 93.5 2Q13

Parnaíba II 517 450 353.1 4Q12

TOTAL 1,756 1,356.5 1,210.0

MILESTONES LEADING TO COMMERCIAL OPERATIONS

Pecém I (2nd turbine): electrical tests first synchronization electrical load tests COD

Pecém II: steam blowing reinstatement by-pass operation steam to turbine electrical tests first synchronization

electrical load tests COD

Parnaíba I: turbines 3 and 4 are in the final stages of electromechanical assembly

Parnaíba II: turbines 1 and 2, already at the site, are currently in the mechanical construction stage

Figures reflect 100% of the projects.

POWER AGREEMENTS SECURED FOR 3 GW

Minimum guaranteed revenues will reach R$ 1.4 billion in 2014

POWER PLANTS UNDER CONSTRUCTION

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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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NATURAL GAS E&P

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MPX OWNS 23% OF A UNIQUE ONSHORE NATURAL

GAS PORTFOLIO Ownership Structure:

Gas Production at Gavião Real field started in Nov, 2012 through

the commissioning of the GTU (Gas Treatment Unit)

Estimated production capacity in 2013: 7.5 MM m³/day

Declaration of Commerciality of the Bom Jesus accumulation

(Gavião Branco gas field) presented to ANP in Jan, 2013

Total estimated volume in place between 0.2 and 0.5 Tcf of gas

Exploratory campaign has identified 4 accumulations and over 20

prospects

OGX Maranhão Blocks

Total area:

24,500 km²

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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 PRODUCTION

Efficient Integration of Natural Gas Resources with Power Generation

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PARNAÍBA: E&P – NATURAL GAS

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EXPOSURE TO BRAZIL’S GROWING

ENERGY DEMAND

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BRAZIL WILL NEED ADDITIONAL 7.5 AVG GW UNTIL

2020

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Energy Deficit starting in 2017 = Investment Opportunities

Power Supply/Demand

Sources: ONS, ANEEL

2017-on: new generation required

~7.5 GWavg required until 2020

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Water storage capacity has stagnated, leading to decreased system autonomy

BRAZIL NEEDS NEW THERMAL CAPACITY TO

INCREASE SUPPLY RELIABILITY

21 Source: 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 = 18%

North = 5%

Storage capacity

stagnation

Southeast = 70%

South = 7%

2001: Energy Deficit (load reduction)

Actual Reservoir Autonomy: ~ 5 months

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JOINT-VENTURE WITH E.ON TO ACCELERATE

GROWTH

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FUTURE GROWTH OPPORTUNITIES MPX is positioned for leadership in the Brazilian energy market

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Parnaíba 2,166 MW

Seival 600 MW

Sul 727 MW

Açu 2,100 MW – Coal 3,300 MW – Natural Gas

Castilla TBD

Solar Tauá 1 MW

Ventos Wind Complex 600 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

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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 30 km from Complex

All land rights secured

Environmental license granted

High-quality greenfield assets in northeast Brazil

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AÇU: A 5.4 GW GREENFIELD GENERATION COMPLEX

3.3 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

Studies underway to assess installation of

regasification terminal at the port

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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

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FINANCIAL HIGHLIGHT

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593.9

1,915.4

333.1 315.4 314.3

3,189.2

Cash & CashEquivalents

2013 2014 2015 2016 From 2017 on

INDEBTEDNESS

28 Note: Values incorporate principal + capitalized interest + charges and exclude outstanding convertible debentures.

R$ billion Dec/12 Sep/12

Gross Debt (R$ MM) 6.0 5.6

Net Debt (R$ MM) 5.4 4.6

Average Cost (%) 8.7 8.7

Average Tenure (years) 5.1 5.1

R$ 724.6 million refer to outstanding bridge-

loans to Parnaíba I & II power plants -> to be

paid-off with draw down from long-term

financing.

R$ 234.3 million refer to debt amortization for

Pecém I, II and Itaqui -> amounts to be

amortized in 2013, with the beginning of

commercial operation and end of grace

periods

Debt Maturity Profile (R$ million)

Debt Profile

Sep/12 Dec/12

63% 68%

37% 32%

Short Term

Long Term

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For more information, contact: Investor Relations (55 21) 2163-9215 [email protected]


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