MPX CORPORATE PRESENTATION
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 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
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
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 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
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
6
INVESTMENT HIGHLIGHTS
2
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
8
TAX-ADVANTAGED THERMAL POWER PLANTS
COMING ON-LINE
3
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
11
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
PORTO DO PECÉM I & II TPP
12
ITAQUI TPP
13
14
PARNAÍBA I & II TPP
NATURAL GAS E&P
4
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
16
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
17
PARNAÍBA: E&P – NATURAL GAS
18
EXPOSURE TO BRAZIL’S GROWING
ENERGY DEMAND
5
BRAZIL WILL NEED ADDITIONAL 7.5 AVG GW UNTIL
2020
20
Energy Deficit starting in 2017 = Investment Opportunities
Power Supply/Demand
Sources: ONS, ANEEL
2017-on: new generation required
~7.5 GWavg required until 2020
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
JOINT-VENTURE WITH E.ON TO ACCELERATE
GROWTH
6
FUTURE GROWTH OPPORTUNITIES MPX is positioned for leadership in the Brazilian energy market
23
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
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
24
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
25
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
26
FINANCIAL HIGHLIGHT
7
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
For more information, contact: Investor Relations (55 21) 2163-9215 [email protected]