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Corporate Presentation
11-30-10
2010
Disclaimer
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.
22
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.
ABOUT MPX
MPX Investor Presentation
3
Diversified private-sector utility
with large portfolio of thermal
energy projects
Owner of high-potential coal and
natural gas assets in Colombia and
Brazil
MPX Highlights
4
Flexibility to supply natural
resources to its own plants or the
international market
An EBX Group Company
The strong rebound in demand in 2010 is bringing the demand curve back to its
trend level before the 2009 drop
Strong macroeconomic growth, with high levels of industrial production, driving
increased power demand
Thermal power plants still play reduced role in the Brazillian Energy Matrix
Brazil’s Increasing Power Demand
Power Demand in Brazil Energy Matrix in Brazil
5
20000
30000
40000
50000
60000
70000
80000
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
20
10
20
12
E
20
14
E
MW
av
g
2010E: 8% YoY
Power Demand in Brazil
Source: ONS, EPE, MPX estimates Source: Aneel Oct. 2010
Power
Rationing
Subprime
Crisis
1%
1%
2%
5%
6%
7%
10%
67%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Wind
Coal
Nuclear
Oil
Biomass
Imported
Natural Gas
Hydro
Energy Matrix in Brazil
And Growing Demand for Thermal
New hydro plants have reservoirs that are negligible in size, thus supply reliability depends on
the increase of thermal generation capacityRainfall
50%
100%
150%
200%
250%
300%
350%
%Média Histórica
Sudeste
Sul
Nordeste
Norte
% o
f h
isto
rica
l avg
System Autonomy (months)
282,000
284,000
286,000
288,000
290,000
292,000
294,000
EA
Rm
ax
(MW
me
d)
4.5
5.0
5.5
6.0
6.5
EA
Rm
x/C
arg
a
Ma
x st
ora
ge
ca
pa
city
(M
Wa
vg)
Ma
x st
ora
ge
ca
pa
city
/ L
oa
d
Southeast
South
Northeast
North
6
0
2000
4000
6000
8000
10000
jan fev mar abr mai jun jul ago set
MWmédio
Segurança Energética
Restrições Elétricas
Inflexibilidade
Ordem de Mérito
Thermal DispatchEnergy Stored in Reservoirs (end of month)
2010 2010
2010
MW
avg
0%
50%
jan fev mar abr mai jun jul ago set
280,000
2010 2011 2012 2013 2014
4.0
Ma
x st
ora
ge
ca
pa
city
(M
Wa
vg)
Ma
x st
ora
ge
ca
pa
city
/ L
oa
d
Source: ONS
40%
50%
60%
70%
80%
90%
100%
110%
120%
jan fev mar abr mai jun jul ago set
% Volume Máximo Armazenável Sudeste
Sul
Nordeste
Norte
% o
f m
axi
mu
m c
ap
aci
ty
Southeast
South
Northeast
North
Supply Reliability
Electric Restriction
Inflexibility
‘Order of Mert’
Brazil’s Economic Growth Drives Greater Role for Thermal
Brazil’s generation capacity shall increase to 130.3 GW in 2014 from 103.6 in 2009.
Thermal generation shall respond for 62% of such increase
54.30
14.3
72.30
4.4
20
40
60
80
GW
avg
Energy Balance
0.7 GWavg
54.30
14.3
72.30
3.08
20
40
60
80
GW
avg
Energy Balance
- 0.6 GWavg
ONS’ official supply estimate (2015)
Demand: avg growth rate (2011-2015) = 5.2%
Supply, assuming a 30% default rate for delayed projects (2015)
Demand: avg growth rate (2011-2015) = 5.2%
7
0Supply Demand
54.30
14.3
74.41
4.4
0
20
40
60
80
GW
avg
Energy Balance
- 1.4 GWavg
Supply Demand
0Supply Demand
54.30
14.3
74.41
3.08
0
20
40
60
80
GW
avg
Energy Balance
- 2.7 GWavg
Supply Demand
Supply, assuming a 30% default rate for delayed projects (2015)
Demand: avg growth rate (2011-2015) = 5.7%
ONS’ official supply estimate (2015)
Demand: avg growth rate (2011-2015) = 5.7%
2011-2014 capacity expansion: construction delayed2011-2014 capacity expansion: construction on schedule Supply in 2010
Source: ONS, Aneel, MPX estimates
EXECUTION CAPACITY
MPX Investor Presentation
8
Experienced management team with proven capacity for execution
Synergies with EBX Group companies to create competitive advantages
Positioned for leadership in Brazilian energy market – diversified project
portfolio
MPX: Positioned for Growth
9
Optionality through ownership of natural resources provides both
operational and financial flexibility and an array of strategic options
CFO at MMX Mineração e Metálicos S.A.
CFO at Unisys in Brazil and Germany
Over 25 years of experience in the financial area at multinational corporations
Eduardo KarrerCEO & IRO
CEO at El Paso Brasil Ltda.and Rio Polímeros S.A..
Over 22 years of experience in a wide range of M&A and corporate finance transactions related to the natural resources, electricity, sanitation and logistics sectors
Executive manager for the Gas&Energy and International Markets divisions at Petrobrás
Rudolph IhnsCFO
Xisto Vieira FilhoOfficer for Regulatory Affairs & Commercialization
Former National Secretary for Energy
Coordinator of the Subcommittees for Electricity Studies of the Interconnected System and Secretary of National Energy Policy Committee of Brazil
Chairman of the Board of Directors of CHESF and Eletrosul and Board member of Eletrobrás, Furnas,
Talented, Experienced Management Team
10
Marcus Bernd TemkeCOO
Over 20 years of experience in operations at multinational corporations
COO at Rio Polímeros S.A.
Holds an MBA from COPPEAD-UFRJ
CommercializationChairman of the Board of Directors of CHESF and Eletrosul and Board member of Eletrobrás, Furnas, Cepel and Grupo Rede
Former president of the National Committee of Cigré (Conference Internationale des Grand Réseaux Électriques)
Bruno ChevalierGeneral Counsel
Partner at Villemor Amaral Advogados (2002-2004) and Tozzini, Freire & Silva Advogados (2001-2002)
General Counsel at MMX Mineração e Metálicos S.A.
Legal Director at General Motors Corp. in Lisbon and Delphi Automotive Systems
Gustavo GomesDirector for Mining & Natural Resources
Over 25 years of experience in the mining industry (Rio Tinto and BHP Billiton), in technical, operational and strategic roles
Extensive international experience: managed projects in Brazil, India, Australia, US and Canada
Holds an MBA from MIT Sloan School of Management
Construction
Agreement
with Evonik
LT financing Pecém
and Itaqui : 1st
disbursement
1Q10
Parnaíba: 1.7 Tcf of
natural gas contingent
resources certified
Drilling at Parnaiba
begin. LP MPX
Parnaiba.
3Q10Identified gas in well
OGX-16 Block
Parnaíba
A Proven Record of Achievement
Track record: reliable execution of complex,
technical projects delivers high-returns
11
623 avg MW sold
(A-5 auction)
4Q07
IPO:
USD 1.1 billion
3Q08
Construction
works at
Pecém begin
276 avg MW sold
(A-5 auction)
Acquisition
of mining
rights in
Colombia
Construction
works at Itaqui
begin
Construction
works at Pecém
II begin
MPX Colombia
1st Technical Report:
Indicated + Inferred coal
resources of 110 mln tons
Acquisition of
interest in Parnaiba
1Q08
1Q09
2Q09
3Q09
4Q09
1Q10
MPX Colombia: Business Plan
2nd Technical Report:
Measured + Indicated +
Inferred coal resources of 144
mln tons
EBX Group: Proven Execution Capacity
Marketing Engineering- 50 iron ore and 4 energy long-term supply agreements
- 9 strategic partnerships (e.g. Petrobras, Anglo American,
EDP, Maersk, Wuhan and Perenco)
Social / Political Engineering- Cleaning of Rodrigo de Freitas Lagoon
- Over 400,000 he of protected area and natural
heritage private reserves
- Support to 2016 Olympic Games in Rio de Janeiro
Financial Engineering- US$8.7 bn in firm commitments in long-term
financing
- 4 IPOs and 1 spin-off (listing)
- More than US$7.0 bn in asset sales
- 24 strategic transactions (i.e. OTPP, BNDES,
Wuhan, Hyundai, Anglo American, EDP)
- US$10 bn in equity issued (including IPOs, Private
Placements and Rights Offering)
Execution Capacity Enhanced by Relationship to EBX Group
12
THE
ZONE
Logistics Engineering- ~500 km iron ore pipeline
- Railway access to major projects
- Integrated logistics solutions
- Strategically located sites to access ports
in Brazil, Colombia, Chile and Argentina
People / Team Engineering- Around 2,000 employees
- Over 15,000 employees are working in the
construction of various ventures currently being
undertaken by the group;
- Ability to attract and retain high qualified
professionals (from CSN, Petrobras, Vale, ALL,
among others)
- More than US$1.0 bn in performance-based
compensation (stock options and cash) since
inception
Engineering Engineering- More than 40 feasibility studies (McCloskey,
PSR, Pinckock Allen, PSI, SRK, Verax, De&Mac,
Black&Veatch, among others)
- 2 super ports under construction
- 3 power plants under construction (1,440MW)
- 15 wells drilled all with oil shows
- 10 Mtpy integrated iron ore systems in operation
Legal Engineering- More than 45 regulatory
licenses obtained
Environmental Engineering- More than 100 environmental
licenses obtained
The MPX Portfolio
Greenfield Power Projects
MPX is developing 8 GW in greenfield power generation projects throughout Brazil,
which will enable it to benefit from the increase in electricity demand in the coming
years. The company is also licensing over 2GW in Chile.Contracted Power Projects
Coal
Energia Pecém (720 MW)
MPX Pecém II (360 MW)
MPX Itaqui (360 MW)
13
Greenfield Power Projects
Natural Gas
MPX Parnaíba (1863 MW)
MPX Açu Phase II (3300 MW)
Coal
MPX Açu Phase I (2100 MW)
MPX Sul (600 MW)
MPX Seival (600 MW)
MPX Castilla (2100 MW)
Renewables
Wind: MPX Paracuru (32 MW)
Solar: MPX Solar (1 MW)
Environmental license granted
CONTRACTED PROJECTS
MPX Investor Presentation
14
Contracted Power Plants – Construction on Track
MPX’s 3 power plants under construction are well-advanced, will start-up in 2011 and
2012 and are contracted for a period of 15 years.
CapacityEnergy sold
(avg MW)Term of PPA** EPC progress
Capex
(R$ billion)
Energia Pecém * 720 615 Jan 2012-Dec 2027 82% 1.29
MPX Pecém II 365 276 Jan 2013-Dec 2028 75% 1.28
MPX Itaqui 360 315 Jan 2012-Dec 2027 82% 1.62
15
2Q09
Spot¹
Spot¹ Fixed Gross Revenue: R$ 238.7 MM/y²
4Q07
3Q08
1Q09
2012 20134Q11 3Q123Q11
Fixed Gross Revenue: R$ 251.4 MM/y²
Fixed Gross Revenue: R$ 265.8 MM/y²
Construction works at Energia Pecem
Construction works at MPX Pecem II
Spot ¹
*Energia Pecém is a 50/50 partnership between MPX and EDP
**PPA – Power Purchase Agreement
¹ Energy sold in spot market before PPA start date
² As of SOct/2010
Energy sold in A-5
auction 2007
• Energia Pecém
• MPX Itaqui
Energy sold in A-5 auction 2008:
• MPX Pecém II
Construction works at MPX Itaqui
76%
71%
47%
24%
29%
53%
Energia
Pecém
MPX
Itaqui
MPX
Pecém II
Disbursed
To be
Disbursed
Investments & Financing – Power Generation Capex
Construction of Energia Pecém, MPX Pecém II and Itaqui on budget, fully funded
R$ 987 mm
R$ 1,241 mm
Debt Disbursement
100%
2%
29%
34%
20%20,0%
40,0%
60,0%
80,0%
100,0%
120,0%
Estimated Capex Disbursement Curve
2007 - 2012
R$ 4,2 bi
16
76% 24%
0 500 1000 1500
Pecém
100.0%
26.5%
56.5%
6.9%10.1%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
Uses Sources
Total Capex breakdownUses & Sources
BID
BNDES
Equity
Capex
R$ 4.2 bi R$ 4.2 bi
Debt
Power Plants Capex (R$ billion)
Energia Pecém* 1.29
MPX Pecém II 1.28
MPX Itaqui 1.62
Total 4.20
*Considering MPX 50% stake in Energia Pecém
R$ 988 mm1% 15%0,0%
20,0%
2007A 2008A 2009A 2010E 2011E 2012E Total
Energia Pecém and MPX Pecém II
17
Energia Pecém and MPX Pecém II
1818
MPX Itaqui
1919
DEVELOPMENT OF HIGH-POTENTIAL ASSETS
Natural Gas and Coal Minning
MPX Investor Presentation
20
Natural Gas and Coal Minning
The Parnaíba Integrated Gas & Power Project
Ownership StructureOwnership Structure
MPX will develop gas-fired plants that may add up to 1,863 MW, strategically located on the
PN-T-68 block at 50 km from a 500 kW substation and 30 km from water supply.
OGX
OGX
2/31/3
Licensing
Preliminary License
Granted
21
MPX Parnaíba
Substation
50 Km
River
30 Km
Site MPX
OGXMaranhão
PETRA
Blocos Exploratórios
UTE
70% 30% 30% 70%
Parnaíba Basin: High Potential for Gas
MPX has a participating interest in 7 onshore blocks in a new frontier basin with high
potential of gas production confirmed by a well drilled in the past with hydrocarbon shows
Discoveries
Block % MPX Well Prospect Status
PN-T-68
23,3%(33.3% *
70%)
OGX-16 Califórnia Concluded
OGX-22 Fazenda São
José
In progress
since 10/23
Total Risked Resources
Total Contingent Resources
0.2 Tcf 1.7 Tcf
22
Pressure of
1,900 psi
Flames of
approx. 15m
high
Production
potential of 3.4M
m3/day in Absolute
Open Flow
Pressure of 1,950
psi
Flames of approx.
20m high
D&M Report (Set09)
Portfolio Potential
Potential resources of approx.
15 Tcf
Production potential of approx.
15M m3 / day
Approx. 20 mapped prospects
Year 2010 2011 2012 Total
Number of wells 3 9 3 15
Drilling schedule
1 onshore rig contracted and 1 being
contracted
OGX-16 OGX-22
MPX Colombia Overview
MPX is developing an integrated coal mining system in Colombia. An initial assessment
points to enough resources to reach a production of approximately 15-20 Mty.
Large scale integrated mining
system (Mine – Rail – Port)
Open-pit mines: up to 5 Mty,
starting in 2012
MPX Port
23
RESOURCES (IN SITU)As of March 2010
Mt Category
Open-pit1 143.9 Measured/Indicated
Underground 1,600.0 Potential
1Certified by John T. Boyd Company (http://www.jtboyd.com)
Feasibility stydy for underground
mine to be concluded in 2H11
Total estimated capex: ~ USD 1 bln
MPX Mines
MPX Colombia Key Milestones
MPX is currently working on licensing and engineering plans for open-pit mines. Based on
certified and potential resources, production may achieve 15 Mty by 2018.
Phase 1:
Licensing/engineering of open-pit mines and small-scale port
Certification of underground resources
Phase 2
Licensing/engineering of underground mine and railway
24
Open-pit
Underground (*)
Production Ramp-up (*)
(*) MPX estimate based on potential resources and subject to results of new drilling campaign
1.32.5
3.8
7.5
10.0
12.515.0
2012 2013 2014 2015 2016 2017 2018
Mty
PROJECTS UNDER DEVELOPMENT
MPX Investor Presentation
25
MPX Sul + MPX Seival
Seival Mine
Partnership 70/30: MPX / Copelmi
Operating License granted
152 MM tons in proven reserves
459 MM tons in total resources
Capex: ≈ USD 20 MM
MPX Sul and MPX Seival
Location of Assets
Vila
Joáo
Emílio
Vila CEEESEIVAL
Aeródromo
Ferrovia
BR-293
Arroio
BRAZILSeival Mine
MPX Sul
2626
Capacity: 600 MW
Coal consuptiom: 1 ton/ kwh
Estimated Capex: USD 2.400 / kW
Energy may be sold in Regulated
and/or Free Market
Licenses Granted
Sinergies for the implementation of
the projects
Ex-Projeto
Candiota III
CRM
CRM
CRM
CRM
UTE Pres. Médici
Vila CEEEPedreira
de Calcário
Cimbagé
UTE Seival
Projeto Aeródromo
Dario Lassance
Barragem I
Barragem IIRio Jaguarão
Arroio
Candiota
CandiotaRio Grande do Sul
Mina de
Seiva
MPX Seival
MPX Açu
General Information
•Phase I:
•Imported Coal: 2,100 MW
• Estimated Capex : USD 2,000 / kW
• EPC: Signed MOU with Hyundai
•Supercritical Technology : Clean Coal Tecnology
• Installation License
•Phase II:
27
•Phase II:
•Natural Gas: 3300 MW
•Estimated Capex : USD 1,300 / kW
•Licensing in process
Phase I + Phase IIRegulated and Free Markets
Synergies with Açu Superport
Strategically Located
Integrated Project
TPP + Port + Desalination
SIC: Central Interconnected System
Port Concession emitted
Imported Coal: 6 x 350 MW (2,100 MW)
Desalination : 800 l/s
MPX Chile
28
PPA: fuel-cost pass-through
Potential consumers: Mining Companies
Estimated Capex: ≈ USD 1,800 / kW
EPC: MoU with INITEC signed
EPC Status Licensing
MoU signed In process
• First solar power plant in Latin America
•Photovoltaic Technology
• Project Startup: 1 MW (Capex of R$ 10 MM)
•Installation License for up to 5MW
•Start up: Mar/11
MPX Tauá – Solar Energy
29
•Expansion expectation: up to 50 MW
EPC Status Licensing
MoU signedInstalation
License
A LOOK AHEAD: STRATEGY & EXECUTION
MPX Investor Presentation
30
The MPX Business Model
E&P
Exploration & production of gas, coal
and other power fuel sources
E&P
Exploration & production of gas, coal
and other power fuel sources
Logistics
Logistics to supply power
plants and export surplus
production
Logistics
Logistics to supply power
plants and export surplus
production
Power Generation
Over 1.4 GW under
construction and a pipeline
of 10 GW in greenfield
projects
Power Generation
Over 1.4 GW under
construction and a pipeline
of 10 GW in greenfield
projects
Creating and sustaining superior performance through an integrated business model
The Creation of Value Chain
31
Power Commercialization
Competitive advantage through
integration and self-production
Power Commercialization
Competitive advantage through
integration and self-production
Fuel Commercialization
Supply to power plants and sale of
surplus production
Fuel Commercialization
Supply to power plants and sale of
surplus production
productionproductionprojectsprojects
Catalysts 2010-2012
2H10 2H111H11
Energia Pecém and Itaqui Start-upEnergia Pecém and Itaqui Start-upMPX Pecém II
Start-up
MPX Pecém II
Start-up
Positive EBITDA from Power GenerationPositive EBITDA from Power GenerationPro
ject
sU
nd
er
Co
nst
ruct
ion
Pro
ject
sU
nd
er
Co
nst
ruct
ion
Installation License Installation License PPAs MPX Parnaíba: PPAs MPX Parnaíba:
2012
Near-term catalysts will unlock the value of the optionalities in MPX’s portfolio of projects
32
Feasibility study for
underground mine
Feasibility study for
underground mine
GSA w/ OGX
Maranhão
GSA w/ OGX
MaranhãoD&M Resource ReportD&M Resource Report
MP
X P
arn
aib
aM
PX
Pa
rna
iba
MP
X C
olo
mb
iaM
PX
Co
lom
bia Drilling: Assessment of underground resourcesDrilling: Assessment of underground resources
Installation License
granted: MPX Parnaiba
Installation License
granted: MPX ParnaibaA-3 and A-5 Power Auctions A-3 and A-5 Power Auctions
Environmental License granted: Open pit
mines and MPX Port
Environmental License granted: Open pit
mines and MPX Port
Drilling: Assessment of resources in the 7 blocksDrilling: Assessment of resources in the 7 blocks
PPAs MPX Parnaíba:
Free Market
PPAs MPX Parnaíba:
Free Market
GSA = Gas Supply Agreement
Start-up of Open-pit MinesStart-up of Open-pit Mines
Positive EBITDA from MiningPositive EBITDA from Mining
SUSTENTABILITY
ECO 2010 Award
MPX – Apresentação Corporativa
33
New home, in better conditions through
proactive and satisfactory change to all;
Promote the preservation of environmental
heritage;
Encourage economic alternatives focused
on ecological production;
Track and monitor the setting of families in
the new area.
Nova Canaã Residential Village - ECO 2010 Award
34
the new area.
Blog X
"Helping these families has been a gift.
Having the initiative recognized by a
prestigious award of the area is even more
rewarding for our group and is a proof that
our energy transforms lives"
MPX Investor Presentation
35