Brazil 2008 -- UBS Pactual Ninth Annual CEO ConferenceBrazil 2008 UBS Pactual Ninth Annual CEO Conference                 ...
Disclaimer This presentation relating to MPX Energia S.A. (“MPX”) includes “forward-looking statements”, as that term is d...
EBX Holding Structure                                                                                              XHOW  M...
MPX Ownership Structure                                Controlling Shareholder                                            ...
Why investing in the power sector?Brazil is likely to experience an energy shortage in the near futureSupply & Demand Fore...
Generation Expansion AlternativesNowadays, the traditional energy sources in Brazil are dealing with implementationdifficu...
Coal Thermal Plants using Clean Coal TechnologyMPX´s projects will use Clean Coal Technology  This technology controls the...
Main Projects                     PCH Capivara    UTE Serra do Navio                          (30 MW)    (23 MW)          ...
Generation Ramp-Up MPX will be a leading integrated energy generation player through 9 plants and at least 2 Coal mines (a...
Competitive Advantages   Superior infrastructure strategically located and integrated with Super Ports                    ...
Shared Self-Production conceptA new concept of generation developed by MPX, focused on the Free Market                    ...
Porto do Açú - Coal Fired Power Plant                                                     Location: Porto do Açú, Rio de J...
Castilla – Coal Fired Power Plant                         Capacity: 1,400 MW (4 x 350 MW)                         Fuel: Co...
Pecém - Coal Fired Power Plant                                                        Location: Ceará State, Pecém Port.  ...
Termomaranhão – Coal Fired Power Plant                                  UTE Termomaranhão     Location: Maranhão State, ne...
Main Risks and MitigantsMPX has addressed all critical elements to become the largest private and integratedplayer in the ...
Management and BoardMPX has a high skilled, experienced and qualified management…                               Management...
Environmental Excellence“Conciliate economic development with nature preservation”  Brazil has unique conditions to suppor...
To sum up…                                       Leading                                    power generation              ...
Contacts           Andrea Pereira            Investor Relations Manager            andrea.pereira@mpx.com.br            +5...
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Ubs pactual presentation

  1. 1. Brazil 2008 -- UBS Pactual Ninth Annual CEO ConferenceBrazil 2008 UBS Pactual Ninth Annual CEO Conference February 2008 February 2008 1
  2. 2. Disclaimer This presentation relating to MPX Energia S.A. (“MPX”) includes “forward-looking statements”, as that term is defined in the Private Securities Litigation Reform Act of 1995, in Section 27A of the Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All statements other than statements of historical facts are statements that could be deemed forward-looking statements and are often characterized by the use of words such as “projects”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “may”, “will”, or “intends”, or by discussions or comments about our objectives, strategy, plans or intentions and results of operations. Forward-looking statements include projections regarding our operating capacity, operating expenditures, capital expenditures and start-up dates. By their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both general and specific. The risk exists that these statements may not be fulfilled or, even if they are fulfilled, the results or developments described in such statements may not be indicative of results or developments in future periods. We caution participants of this presentation not to place undue reliance on these forward-looking statements as a number of factors could cause future results to differ materially from these statements. Forward-looking statements may be influenced in particular by factors such as the ability to obtain all required regulatory approvals on a timely basis or at all, exploration for mineral resources and reserves, difficulty in converting geological resources into mineral reserves, and changes in economic, political and regulatory conditions. We caution that the foregoing list is not exhaustive. When relying on forward-looking statements to make decisions, investors should carefully consider these factors as well as other uncertainties and events. MPX does not undertake to update our forward-looking statements unless required by law. This presentation is neither an offer to sell (which can only be made pursuant to definitive offering documents) nor a solicitation of an offer to buy any securities in the United States, or any other jurisdiction. The securities referred to herein have not been registered in any jurisdiction, and in particular, will not be registered under the U.S. Securities Act of 1933, as amended, or any applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. 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. 2
  3. 3. EBX Holding Structure XHOW MMX LLX OGX AMX REX PFX Mining Logistic Energy Oil & Gas Renewables Real Estate Entertaiment• Amapá • Açu Port • Coal Fired Power Plants • Water • MDX Day • Mr. LamSystem MPX Pecém Exploration Hospital • Brasil Port Termomaranhão • Pink Fleet• Corumbá Porto do Açú • Forests • SantaSystem Castilla Sustainable Teresa Handling Residence Seival II• Minas-Rio • Diesel / Fuel Oil Power PlantsSystem Serra do Navio • La Cañada de Pillar • Natural Gas Power Plants Termopantanal • Hacienda • Small Hydro Power Plant (PCH) Castilla Capivara • Hydro Power Plant (UEH) Baixo Iguaçú • Seival Coal Mine • New Coal Mines Developments 3
  4. 4. MPX Ownership Structure Controlling Shareholder Free Float 76% 24% Market Capitalization1 US$ 3.2 billion Power Generation Power Generation Coal Supply Coal Supply Power Marketing Power Marketing 51.0% 99.9% 70.0% 50.0% 67.0% 99.9% 70.0% 70.0% 99.9% Energy Trading Amapari Energia Seival II Porto do Açu Pecém Termopantanal Termomaranhão Castilla Seival Mine Co Partners Partners Partners Partners Partners Partners 49% Eletronorte 30% Centennial 50% EDP 33% Coop. Rural 30% Centennial 30% Copelmi de Electrificacion1 – As of February, 1st, 2008 4
  5. 5. Why investing in the power sector?Brazil is likely to experience an energy shortage in the near futureSupply & Demand Forecast (Avg. GW) Demand Evolution (Volume) .5% 3% 6% 75 =4 15% GR d CA ar) 23% 27% an ye 70 De m GW (~3 65Avg. GW 60 97% 94% 85% 77% 73% 55 50 45 2007 2008 2009 2010 2011 2012 2013 2014 2002 2003 2004 2005 2006* Existent / Under Construction Auction for New Energy Regulated (ACR) Free Market (ACL) MPX Portfolio Energy DemandSource: PSR Report Source: PSR Report Note: (*) Until September ____________________ Source: PSR MPX planned capacity will start to kick-in right in the beginning of the most critical period MPX planned capacity will start to kick-in right in the beginning of the most critical period 5
  6. 6. Generation Expansion AlternativesNowadays, the traditional energy sources in Brazil are dealing with implementationdifficulties... • Increasing environmental licensing difficulties Hydro • New projects mainly in the Amazon region • Limited reservoirs • Natural gas deficit • Single supplier Natural Gas • High LNG prices • Excessive penalty associated to fuel unavailability • Important complementary source Alternative Sources • High price • Low associated energy... presenting the following structuring alternatives • Government projects Nuclear / Structuring • Political risk Projects • Challenges for implementation • Abundant reserves Coal Thermal Plants • Highly traded • Located in areas of relatively low geopolitical risk 6
  7. 7. Coal Thermal Plants using Clean Coal TechnologyMPX´s projects will use Clean Coal Technology This technology controls the emissions during the coal combustion: Reduction of NOx using Low NOx Burner and “Over fire Air“ Reduction of SOx through the installation of a FGD – Fuel Gas Desulfurization Reduction by 99.99% of particulate material Clean Coal Technology also aim to improve the efficiency of a power plant, leading to a reduction in fuel consumption and overall emissions Source: EDP – UTE Edes/POR - CCT 7
  8. 8. Main Projects PCH Capivara UTE Serra do Navio (30 MW) (23 MW) UTE Termomaranhão (720 MW) UTE MPX (Pecém) (1,080 MW) UTE Termopantanal (44 MW) UTE Porto do Açú UTE Castilla (5,400 MW) (1,400 MW) UTE Seival II & Seival Coal Mine (600 MW) UHE Baixo Iguacu (350 MW) Size (MW) MPX (MW) Coal 9,200 6,800 Hydro 380 260 Natural Gas 44 29 Diesel 23 12 9,647 7,101 8
  9. 9. Generation Ramp-Up MPX will be a leading integrated energy generation player through 9 plants and at least 2 Coal mines (additional developments expected) 9.6 Total Capacity (GW) 8.6 Capacity Addition (GW) per year 2005 2006 2007 2008 2009 7.6 2010 2011 Capacity MPX (GW) 6.6 Capacity Addition MPX (GW) 5.6 Coal Assets 5.0 7.1 2.6 2.5 6.4 5.7 5.0 1.4 4.3 1.2 1.2 3.7 1.0 1.0 1.0 1.0 1.9 0.6 1.8 0.8 0.8 1.0 0.6 0.7 0.7 0.7 0.7 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Serra do Navio Mozambique Pecém (Coal) Açu Plant Pecém (Coal) UTE Seival II Açu Plant (Coal) (Diesel) coal mine (Coal) (Coal) Estimate of 3mtpy Termomaranhão Castilla (Coal) Termomaranhão (Coal) (Coal) PCH Capivara Açu Plant (Hydro) (Coal) Termopantanal Castilla (Natural Gas) (Coal) Seival Mine Baixo IguAçu Up to 14mtpy (Hydro) 57% of the Output Energy until 20121 with Contracts being finalized 57% of the Output Energy until 20121 with Contracts being finalizedNote: 1- Phase I comprised of projects starting before 2012 9
  10. 10. Competitive Advantages Superior infrastructure strategically located and integrated with Super Ports Coal Supply: Colombia Brazilian Existing Port Facilities Limited draft (between 10-12m) makes it difficult to Porto do Itaqui berth large vassels in Paranaguá, Rio de Janeiro, Porto do Pecém Vitória and Vilha Velha Limited back areas for implementation of projects Suape Surrounded by urban areas Salvador Ports Hosting MPX Projects Vitória & Chile Vila Velha Porto do Açu World class, state-of-the-art port design and systems Porto Rio de Janeiro Santos Paranaguá Deep drafts, more than 15m, with limited need for Itajaí dredging and capable of berthing Cape Size vessels Port in Coal Supply: Punta Cachos Mozambique, Indonesia Superiorly structured to receive bulk cargos Rio Grande or South Africa Large land holdings for adjacent industrial complexesCoal Supply: Australia Complies with International Ship and Port Facility Security Code regulations 10
  11. 11. Shared Self-Production conceptA new concept of generation developed by MPX, focused on the Free Market 11
  12. 12. Porto do Açú - Coal Fired Power Plant Location: Porto do Açú, Rio de Janeiro State Shareholders: 70% 30% future strategic partner UTE Porto do Açú (5,400 MW) Fuel: Coal (imported) Submarket: SE First Phase: Second Phase: Capacity: 1,400 MW (2x700 MW) Capacity: 4,000 MW Environmental Process: started on Environmental Process: will start on August/2007 January/2009. Project site acquired CAPEX: US$ 8.2 Billions CAPEX: US$ 2.7 Billions Start Up Operation – 2015 (1000 MW / year until 2018) Start Up Operation – Jul-2012 Off Taker: Free Market (ACL) & Regulated Off Taker: Free Market (ACL) Market (CCEAR) 12
  13. 13. Castilla – Coal Fired Power Plant Capacity: 1,400 MW (4 x 350 MW) Fuel: Coal (imported) Location: 3rd Region, near Copiapó City Shareholder: 70%UTE Castilla(1,400 MW) 30% future strategic partner Environmental Process: started on September/2007 Feasibility Study started on August/2007 CAPEX: US$ 2.7 Billions Start Up Operation: Jul-2012 13
  14. 14. Pecém - Coal Fired Power Plant Location: Ceará State, Pecém Port. UTE MPX (Pecém) (1,080 MW) Shareholder: 50% 50% Fuel: Coal (imported) Submarket: NE First Phase: Second Phase (100% MPX): Capacity: 720 MW (2 x 360 MW) Capacity: 360 MW Environmental Process: LI Issued Environmental Process: starts on january/2008 CAPEX: US$ 1.2 Billions CAPEX: US$ 0.7 Billion Start Up Operation – 2011 Start Up Operation – 2013 Off Taker: Regulated Market (CCEAR) and Off Taker: Regulated Market (CCEAR) and Free Free Market (ACL) Market (ACL) 14
  15. 15. Termomaranhão – Coal Fired Power Plant UTE Termomaranhão Location: Maranhão State, near Itaqui Port. (720 MW) Shareholder: 100% Fuel: Coal (imported) Submarket: N First Phase: Second Phase: Capacity: 360 MW Capacity: 360 MW Environmental Process: with Previous Environmental Process: starts on january/2008. License CAPEX: US$ 0.7 Billion CAPEX: US$ 0.7 Billion Start Up Operation – 2013 Start Up Operation – 2011 Off Taker: Regulated Market (CCEAR) and Free Off Taker: Regulated Market (CCEAR) and Market (ACL) Free Market (ACL) 15
  16. 16. Main Risks and MitigantsMPX has addressed all critical elements to become the largest private and integratedplayer in the Brazilian power sectorEnvironmental Permits Secured Fuel Supply EBX group successful track record Seival Mine + AMCI Group agreement Highest environmental standards Coal is an abundant resource – “Clean Coal Technology” Backhaul from iron ore exports – World Bank / Equator principles 5 projects already with environmental permitsEnergy Placement Significant Secured Debt Financing Execution Risk Pecém and Termomaranhão 100% sold Mitigants Pecém and Termomaranhão secured Anchor off-taking in final negotiations Porto do Açu: US$1bn firm commitment Supply & demand imbalance BNDES support for infrastructure Unregulated markets willing to secure long MLAs/ECAs aggressive funding term energy supply Currency, Commodity, Interest RatesConstruction Management Risks EPC lump sum and turn key Pass-through of fuel costs in the Performance bonds and completion guarantees regulated market Proven technology, widely used Own coal mines for coal supply for free market EBX track record (Termoceará) BNDES Debt: stable and low interest Management expertise rates 16
  17. 17. Management and BoardMPX has a high skilled, experienced and qualified management… Management Other Board MembersName / Position Board Members Founder and CEO of EBX Group, entrepreneurial conglomerateEike Batista (50) founded in 1983 Eliezer Batista da SilvaChairman and Founder Luiz Rodolfo Landim Machado Marcelo Cheniaux Former Petrobras Senior Manager, El Paso CEO and RioEduardo Karrer (46) Polímeros CEO Flavio Godinho 25 years of experience in the energy sectorCEO Raphael de Almeida Magalhães Civil Engineer Former Rio Polimeros Industrial DirectorMarcus Temke (45) 23 years implementing and operating industrial plants Independent Board Members Worked with Degussa (Germany), Sandoz and Rio PolimerosCOO Chemical Engineer Luiz do Amaral de França Pereira Former Director of Enersul and Termoceará Rodolpho Tourinho NetoPaulo Monteiro (50) 25 years of experience in the energy sectorBusiness Development Electrical Engineer Samir Zraick Former Unisys CFO (Brazil & Germany), Arco PetroleumRudolph Ihns (50) Products Director (Brazil & USA) and MMX CFO Senior Advisor 25 years of experience in the financial areaCFO Mechanical Engineer Francisco GrosXisto Vieira Filho (64) Former Eletrobras Director, El Paso Senior VP and Secretary of Energy in the Brazilian GovernmentPower Marketing & 35 years of experience in the energy sectorRegulation Director Electrical Engineer Former partner of Villemor Amaral Advogados, law firmBruno Chevalier (43) Former legal director for Delphi Automotive Systems, and legal manager in General Motors (Lisbon) and MMXLegal Director Lawyer graduation and LLM for Queen Mary College … combined to a board with a unique track record 17
  18. 18. Environmental Excellence“Conciliate economic development with nature preservation” Brazil has unique conditions to support CO2 emissions Land availability Water Climate Conditions EBX has expertise in managing the environment MPX will invest up to US$30 million a year in environment preservation Eliezer Batista Natural Reserve: Eliezer Batista Natural Reserve: 50 thousand acres in the most 50 thousand acres in the most … MMX already excels in … MMX already excels in … and Company already … and Company alreadypreserved area in South Pantanal, … preserved area in SouthPantanal, … Pantanal, reforesting… reforesting… reforesting… envisioning new technologies envisioning new technologies 18
  19. 19. To sum up… Leading power generation company Strategic Superior partnerships power assets Experienced Uniquely positioned management & to capture proven track record market growth 19
  20. 20. Contacts Andrea Pereira Investor Relations Manager andrea.pereira@mpx.com.br +55 21 2555-5279 Daniel Haddad Investor Relations Analyst daniel.haddad@mpx.com.br +55 21 2555-4015 www.mpx.com.br 20
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