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
4. Desde a última Execution Indicators
Bussiness Plan reunião pública...
3Q09 3Q10
Nº of jobs 2900 direct and indirect jobs 7400 direct and indirect jobs
Investiment R$ 1.2 billion invested and R$ 2.5 billion invested and
EPC evolution of 35% ECP evolution of 80%
Debt R$ 1,1 billion R$ 2.8 billion
Disbursement
Licensed
3571 MW 6035 MW
MW
Natural Coal Minning + Onshore Gas
Resources Coal Minning
exploration
MPX executes focused and efficiently its Business Plan, creating optionalities
and adding value to its shareholders
4
5. MPX 3Q10 Highlights
Completed the drilling of the first exploration well in the Parnaiba Basin, OGX-16, in
Block PN-T-68, where significant gas volumes were detected, indicating significant
hydrocarbon potential of the area where the Company has interests in seven
blocks;
On Oct 23, drilling of the second well in the Parnaiba basin, OGX-22, in the Block
PN-T-68 was initiated;
Filed the Environmental Impact Study (EIA) and the Engineering and Operating Plan
(PTO) for the Cañaverales mine with the Colombian Ministry of Environment
(MAVDT);
Defined the schedule of the drilling campaign for the purpose of certifying
underground resources in Colombia;
In October, BNDES disbursed the first tranche of the long-term financing of MPX
Pecém II in the amount of R$ 464 million.
6. Contracted: Projects on Track
Construction progressing according to schedule Energia Pecém
100%
80%
80%
Capacity PPA Start-up
(MW) Start Date Date 60%
40%
Energia Pecém 720 JAN12 3Q11/ 4Q11
MPX Pecém II 365 JAN13 2Q12 20%
MPX Itaqui 360 JAN12 4Q11
0%
MPX Itaqui MPX Pecém II
100% 100%
80%
80% 80%
72%
60% 60%
40% 40%
20% 20%
0% 0%
“Early” progress curve “Late” progress curve Actual progress curve OBS: September 2010
6
7. Contracted: Projects on Track
Key equipment assembly at an advanced stage
MPX Itaqui
(360 MW)
Energia Pecém &
MPX Pecém II
(1080 MW)
7
8. Contracted Projects: Capex & Debt Disbursement
Funding: Project Finance with Debt/Equity ratio of 75%/25%
Capex Disbursement Debt Disbursement
Curve 2007-2012
MPX ¹ 47% 53%
Pecém II
R$ 987 mm
Desmb
MPX
71% 29%
Itaqui a Desemb
R$ 1,241 mm
Energia
76% 24%
Pecém
R$ 988 mm
0 500 1000 1500
¹Disbursed in Oct/2010
Capex Breakdown
Uses & Sources
TPP Capex (R$ billion) 120%
R$ 4,2 bi R$ 4,2 bi
Energia Pecém* 1.29 100%
10,1%
6,6%
80% Total
MPX Pecém II 1.28
BNB
60% Debt
56,7% BID
MPX Itaqui 1.62 100,0%
40% BNDES
Total 4.20 20% Equity
26,5%
0%
*Considering MPX 50% stake in Energia Pecém
Uses Sources
8
9. Financial Performance
Gross Revenues increased 115.1%, to R$ 32.5 million, compared to 3Q09.
Accumulated Gross Revenues reached R$ 82.1 million in 2010.
SG&A reduction as compared to the first two quarters of 2010.
Cash and equivalents in the close of 3Q10 amounted to R$ 455 million in the
Parent Company and R$ 863 million in the Consolidated.
Parent Consolidated
R$ million 3Q10 3Q09 % Var 3Q10 3Q09 % Var
Gross Operating Revenues - - - 32,6 15,1 115,1%
Deductions - - - (3,3) (2,8) 20,9%
Operating Costs - - - (34,3) (20,8) 64,8%
Operating Expenses (17,3) (14,3) 21,1% (35,1) (36,7) -4,5%
Net Financial Result 14,2 30,6 -53,4% (42,3) (81,7) -48,3%
Equity Income (54,2) (92,5) -41,4% (4,1) - -
Other Revenues/(expenses) (7,8) (11,0) -28,9% (0,3) 0,1 -458,4%
Current and deferred taxes (1) (4) - 20,9 32,6 -36,0%
Minority interests - - - (0,2) 2,8 -107,3%
Net Income (66,1) (91,3) -27,6% (66,1) (91,3) -27,6%
9
10. The Parnaíba Integrated Gas & Power Project
MPX will develop a pioneering gas-powered generation complex, strategically located
on the PN-T-68 block: 50 km from a 500 kW substation and 30 km from a water
supply.
Ownership Structure
Licensing
Preliminary OGX
License for 1/3 2/3
1,863 MW
Granted OGX
PETRA
Maranhão
MPX Parnaíba 70% 30% 30% 70%
River
30 Km
Blocos
UTE
Exploratórios
Substation
50 Km
Site MPX
10
11. Parnaíba Basin: Gas Discovery Confirms High Potential
MPX has an interest in 7 onshore blocks with a high potential for gas production
confirmed by hydrocarbon shows at the first well drilled in a new frontier basin
Tcf boe
Contingent Resources - Total * 1.7 303 MM
Risked Prospective Resources - Total * 0.2 37 MM
* Certified by DeGolyer&MacNaughton Discovery in well OGX-16
Parnaíba Basin
State of Maranhão
20 prospects mapped
Potential resources of
approximately 15 Tcf
Exploratory campaign of 15 wells
through 2013
Exploratory capex estimated
between R$ 600 and R$ 700 M
11
12. 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.
Caribbean Sea La Guajira
Large scale, integrated mining
system (Mine – Rail – Port) MPX Port Highway: 150 Km
Traduzir p/ Inglês Benito
Apagar San
Open-pit mines: up to 5 Mty,
starting in 2012 Verificar fronteira com Venezuela
Papayal
San Juan Canaverales
Feasibility study for underground
mine to be concluded in 2H11 Venezuela
MPX Concessions Areas drilled Port
Total estimated capex: ~ USD 1 bn
As of March 2010
RESOURCES (IN SITU)
Mt Category
Open-pit1 143.9 Measured/Indicated
Underground 1,600.0 Potential
1Certified by John T. Boyd Company (http://www.jtboyd.com)
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13. 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
Production Ramp-up (*)
15.0
12.5
10.0
7.5
Mty
3.8
2.5
1.3
2012 2013 2014 2015 2016 2017 2018
Open-pit
Underground (*)
(*) MPX estimate based on potential resources and subject to results of new drilling campaign
13
14. MPX – Building Positive Momentum
Positive EBITDA generation in 2011
Operations of Pecém and Itaqui should begin ahead of the terms of the
PPAs in place
Negotiation of gas supply agreement with OGX Maranhão
underway
Drilling of a second well in the Parnaiba Basin started on October 23
Dedicated team in Colombia to speed the certification of
underground resources and licensing of mines, rail and port
logistics
