2. 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.
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.
2
3. 2011 HIGHLIGHTS & SUBSEQUENT EVENTS
MPX/E.ON partnership: accelerated growth to build a more sizable and profitable power business in
Brazil.
Competitive advantage in gas-fired power generation confirmed: long-term PPAs secured for an
additional 1,553 MW. Total contracted capacity reached 3,000 MW.
Declaration of commerciality for 2 gas fields in the Parnaíba Basin: available capacity expected to reach
6 million m3 per day in 2013. 3 rigs currently operating in the Basin to identify additional potential.
Funding for growth secured:
R$1.4 billion raised through convertible debentures
R$ 1.0 billion capital increase as part of the E.ON transaction
R$ 825 million bridge-loan + R$ 1.6 billion long-term financing for TPP Parnaíba
R$ 600 million bridge-loan for gas production development
Significant progress in Colombia: over 30,000 meters drilled, confirming existence of multiple coal
seams, up to 14 m thick:
Pre-feasibility study on San Juan mine expected in 1H12
3
4. TPP PECÉM I
The boilers first firing has already taken place;
Plant in commissioning phase: all peripheral systems
tested and are ready to support testing of main
components and systems (boiler, steam turbine and
electric generator);
Electrical system and connection to CHESF’s electrical
substation fully operational;
570,000 tons of coal unloaded from 5 ships: full fuel
supply secured;
In January 2012, ANEEL approved a postponement of 60
days for the commercial operation date (COD) of Pecém
I first turbine (360 MW) and 150 days for the second one
(360 MW). TPP PECÉM I – MARCH 2012
4
5. TPP PECÉM II
Main equipments in final stage of construction and
assembly: (i) Welding of pressure parts of boiler finalized,
(ii) coverage of metal structure in turbine building and
assembly of surface condenser near completion;
Main metal structure, hoppers and bag filter panels of Flue
Gas Desulfurizer (FGD) are being assembled;
Coal yard and final coal silo supply system under
construction.
TPP PECÉM II – MARCH 2012
5
6. TPP ITAQUI
Hot commissioning stage in process and first firing of
boiler carried out;
Power substation and transmission line, intake water
pipeline and coal conveyor belt finalized;
Performance tests initiated;
In January 2012, ANEEL approved a postponement of
90 days for the COD.
TPP ITAQUI – MARCH 2012
6
7. TPP PARNAÍBA
1,553 MW contracted in 2011
EPC contracts (Engineering, Procurement and Construction) signed
with Spanish companies Duro Felguera and Initec Energia S.A to
build Phases I and II, respectively
Timely equipment supply secured by partnership with GE
• 3 turbines and 3 electrical generators have already been shipped to
Brazil and a 4th is currently undergoing testing
Implementation initiated and site preparation advanced
Installation license granted for further 2.2 GW
R$ 825 million bridge-loan disbursed to fund Parnaíba – Phase I
(R$ 600 million in December 2011)
TPP PARNAÍBA– 3D PERSPECTIVE
7
8. NATURAL GAS E&P AT PARNAÍBA BASIN
On schedule to start production at Gavião Real and Gavião
Azul in 2H2012
Estimated available capacity in 2013 of 6 MM m³/day
5 development wells concluded and 1 in progress
Construction of Gas Treatment Unit initiated
Exploratory campaign already identified 4 accumulations
2 drill-rigs in operation and 3 seismic crews in the region
3rd onshore rig already being mobilized
R$ 600 million bridge-loan to fund production development
disbursed in January 2012.
8
9. MPX COLOMBIA (CCX) - DRILLING
27,714 m completed in 2011 and an additional 10,536 m
since beginning of 2012
38 positive boreholes drilled in 2011: multiple coal seams,
including seams of up to 14 meters thick
Pre-feasibility Study on San Juan mine expected in 1H2012
Geological model for certification process finalized by AMEC Americas
15 engineers from Golder Associates working on mine planning and
reserve certification
Drilling campaign expanded southwards to assess full
potential concessions in Southern Guajira
6 drill rigs operating on 24/7 basis
DRILLING MPX COLOMBIA
9
10. MPX COLOMBIA (CCX) – LICENSING
Process of public consultation on licensing for port formally initiated in Feb, 2012
Meeting with 4 leading native communities schedule to May, 2012
5 teams currently negotiating rights of ways in railroad and mine areas
Licensing for San Juan underground mine will be initiated upon completion of the
mine plan and reserves certification in 1H2012
10
11. MPX/E.ON JOINT-VENTURE
Creation one of the largest private energy solutions provider in Brazil, with
the goal of reaching 20 GW
E.ON will acquire a 10% stake at MPX through a R$1.0 billion capital
increase
Potential financing by E.ON of MPX’s equity proportion at the JV to
accelerate the implementation of its pipeline of projects
Colombian coal assets will be spun-off and become an independent
company, listed at the BM&FBovespa Novo Mercado, with a cash position
of up to R$ 814 million
11
12. NEW MPX OWNERSHIP STRUCTURE AFTER CCX SPIN-OFF
Eike Batista Free Float E.ON
~10.0%
MPX
100% 100%
50%
Power
Natural 50% MPX- E.ON
Generation
Resources JV
(with PPA)
50/50
Energia Pecém Seival
(365 MW)
Pecém II (365 OGX Maranhão 50% 100% 100% 100%
MW)
Itaqui(365 MW) Current
Current
TPP Parnaíba 50% Thermal Supply & NewGeneration
Renewable
(1,087 MW) Power Trading Projects
Pipeline
Amapari(12 MW) Pipeline
TPP Parnaíba MPX Power and Solar Tauá (1 MW)
(1,534 MW) Fuel Trading
Açu – Natural Gas
(3,300 MW)
Açu – Coal(2,100
MW)
Castilla - Coal
(2,100 MW)
Sul and Seival -
Coal (1,327 MW) 12
13. PARTNERSHIP WITH E.ON
Signing of definitive documents expected to end of Mar, 2012
Organizational structure of JV defined
Estimated timetable of the transaction:
Conclusion of CCX
Spin-Off - listed at
Debenture Holders the BM&FBOVESPA
General Meeting Novo Mercado
D + 20 D + 80
D+0 D + 30 D + 85
Conclusion of
Signing of Extraordinary General
MPX Capital
Definitive Shareholders’
Increase
Documents Meeting
13
14. FINANCIAL PERFORMANCE
MPX Holding SG&A
Operating expenses
2011 2010 % Var
(In R$ thousands)
Personnel and
(92,592) (117,583) -21.3%
managers
Outsourced services (46,683) (33,679) 38.6% Personnel and management: 21.3% decrease
as compared to 2010
Leases and Rentals (7,803) (7,187) 8.6%
(-R$ 19.6 million) - Reduced payroll expenses
Other expenses (8,107) (8,527) -4.9%
resulting from the transfer of employees to the
Total (155,185) (166,976) -7.1% Company’s projects.
Depreciation and
(1,120) (66) 68.2% (-R$13.4 million) - Lower expenses related to
amortization
Total (156,305) (167,642) -6.8% outstanding stock options plans.
14
15. FINANCIAL PERFORMANCE
Consolidated SG&A
Operating expenses
2011 2010 % Var Increase in the number of employees at Parnaíba e Castilla,
(In R$ thousands)
Personnel and following recent advances in the projects, and at Itaqui, given the
(148,690) (131,278) 13.3%
managers approach of start-up.
Outsourced services (93,516) (66,694) 40.2%
Leases and Rentals (13,856) (11,263) 23.0%
Other expenses (12,053) (10,010) 20.4%
Total (274,576) (224,150) 22.5%
Depreciation and
Colombia (+R$ 9.4 million): engineering, geology, environmental
(3,358) (2,017) 66.5%
amortization and legal consultancies.
Total (277,934) (226,167) 22.9%
Chile (+R$ 6.5 million): environmental, legal and communication
consultancies.
Parnaíba (+ R$ 4.4 million): start of construction works.
15
16. FINANCIAL PERFORMANCE
Consolidated Net Financial Results (as December, 2011)
Financial Result
Increased financial expenses as a result of the impact of
(In R$ thousands) 2011 2010 % Var
the outstanding convertible debentures (R$ 115.9 million):
Derivatives (Hedge) (62,197) (98,272) -36.7%
Fair Value: R$ 62.0 million
Fair Value - Debentures (62,003) - -
Interest: R$ 50.8 million
Interest - Debentures (50,857) - -
Cost: R$ 3.0 million
Cost - Debentures (3,018) - -
Other financial expenses (24,310) 55,527 -146.3%
Net Financial Result (202,385) (45,745) 342.4%
16
17. DEBT (as of Dec 31, 2011)
Debt (R$ million)
Total Consolidated Gross Debt: R$ 4,359.4 million
1,020.2
Short term: R$ 1,020.2 million 23%
R$ 600 million bridge loan to Parnaíba => to be paid-off
with draw down from long-term financing expected for
2H2012
R$ 279.7 million allocated at MPX Colombia => to be 3,339.2
77%
spun-off as part of the E.ON transaction
Short Term Long Term
Long term: R$ 3,339.2 million
Average amortization: 14 years Debt Maturity Profile* 2516.0
(R$ million)
1,451.9
Average cost of debt: 8.9% 910.8
672.9
Average tenure: 6.7 years 242.0
Cash & Cash 2012 2013 2014 2015 and until
Equivalents From 2015 on
the maturity
17
18. FINANCIAL PERFORMANCE
Capital Expenditures in Power Generation
Projects
2010 2011 4Q11
(R$ milliion)
In 2011, MPX invested a total of R$ 1,775.2
Pecém I 455.0 295.5 78.8
million (R$ 449.2 million in 4Q11) in the
Pecém II 406.4 462.4 80.3 construction of TPPs.
Itaqui 615.3 571.8 147.2
These values exclude Capitalized Interest, which
Parnaíba – Phase I 6.7 423.1 120.5
amounted to R$ R$ 480.2 million on December 31,
Parnaíba – Phase II - 22.4 22.4 2011.
Total 1,483.5 1,775.2 449.2
Including capital expenditures in Colombia, the
total investment in 2011 would amount to R$
2,091.3 million
18
19. CAPITAL MARKETS
MPXE3(R$) Performance 2011
12/31/2010 = 100
200,0
180,0
160,0
R$ 46.50 Best performing stock in the
Bovespa in 2011: up 90.2%
140,0
120,0
R$ 24.50 32,613
100,0
56,754
80,0
60,0
14/1/2011
28/2/2011
14/4/2011
14/5/2011
28/6/2011
12/8/2011
26/9/2011
29/1/2011
13/2/2011
15/3/2011
30/3/2011
29/4/2011
29/5/2011
13/6/2011
13/7/2011
28/7/2011
27/8/2011
11/9/2011
26/10/2011
10/12/2011
30/12/2010
11/10/2011
10/11/2011
25/11/2011
25/12/2011
IBOV MPXE3 IEEX
Daily average traded volume in
2011: R$ 15.2 million -> 30%
higher than in 2010
19