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. MPX Highlights
Diversified private-sector utility
with large portfolio of thermal
energy projects
Owner of high-potential coal and
natural gas assets in Colombia and
Brazil
Flexibility to supply natural
resources to its own plants or the
international market
An EBX Group Company
4
5. Brazil’s Increasing Power Demand
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
Power Demand in Brazil Energy Matrix in Brazil
Hydro 67%
80000
Natural Gas 10%
70000 2010E: 8% YoY
Imported 7%
60000
Biomass 6%
MWavg
50000
Oil 5%
40000 Subprime
Nuclear 2%
Crisis
30000 Power
Coal 1%
Rationing
20000 Wind 1%
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012E
2014E
0% 10% 20% 30% 40% 50% 60% 70% 80%
Source: ONS, EPE, MPX estimates Source: Aneel Oct. 2010
5
6. 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 capacity
System Autonomy (months) Rainfall
350%
294,000 6.5 Sudeste
Southeast
Max storage capacity (MWavg)
Sul
South
Max storage capacity / Load
300%
292,000 Northeast
Nordeste
6.0
250% North
Norte
%Média Histórica
% of historical avg
EARmax (MWmed)
290,000
EARmx/Carga
5.5 200%
288,000
286,000
5.0 150%
284,000 100%
4.5
282,000
50%
280,000 4.0
2010 2011 2012 2013 2014 0%
jan fev mar abr mai jun jul ago set
2010
Energy Stored in Reservoirs (end of month) Thermal Dispatch
120% 10000
Southeast
Sudeste Segurança Energética
Supply Reliability
% of Máximo Armazenável
110% South
Sul
% Volume maximum capacity
Electric Restriction
Restrições Elétricas
Northeast
Nordeste 8000 Inflexibility
Inflexibilidade
100% North
Norte
Ordem deMert’
‘Order of Mérito
90%
MWmédio
6000
MWavg
80%
70% 4000
60%
2000
50%
40%
jan fev mar abr mai jun jul ago set 0
jan fev mar abr mai jun jul ago set
Source: ONS 2010 2010
6
7. 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
ONS’ official supply estimate (2015) Supply, assuming a 30% default rate for delayed projects (2015)
Demand: avg growth rate (2011-2015) = 5.2% Demand: avg growth rate (2011-2015) = 5.2%
80 4.4 80 3.08
60 14.3 Energy Balance 14.3 Energy Balance
60
0.7 GWavg - 0.6 GWavg
GWavg
GWavg
40 40
72.30 72.30
54.30 54.30
20 20
0 0
Supply Demand Supply Demand
ONS’ official supply estimate (2015) Supply, assuming a 30% default rate for delayed projects (2015)
Demand: avg growth rate (2011-2015) = 5.7% Demand: avg growth rate (2011-2015) = 5.7%
80 4.4 80 3.08
14.3 Energy Balance Energy Balance
60 60 14.3
- 1.4 GWavg - 2.7 GWavg
GWavg
GWavg
40 74.41 40 74.41
54.30 54.30
20 20
0 0
Supply Demand Supply Demand
2011-2014 capacity expansion: construction delayed 2011-2014 capacity expansion: construction on schedule Supply in 2010
Source: ONS, Aneel, MPX estimates
7
9. MPX: Positioned for Growth
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
Optionality through ownership of natural resources provides both
operational and financial flexibility and an array of strategic options
9
10. Talented, Experienced Management Team
Eduardo Karrer CEO at El Paso Brasil Ltda.and Rio Polímeros S.A..
CEO & IRO 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
CFO at MMX Mineração e Metálicos S.A.
Rudolph Ihns
CFO at Unisys in Brazil and Germany
CFO
Over 25 years of experience in the financial area at multinational corporations
Former National Secretary for Energy
Xisto Vieira Filho Coordinator of the Subcommittees for Electricity Studies of the Interconnected System and Secretary of
Officer for Regulatory Affairs & National Energy Policy Committee of Brazil
Commercialization
Chairman 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)
Over 20 years of experience in operations at multinational corporations
Marcus Bernd Temke
COO COO at Rio Polímeros S.A.
Holds an MBA from COPPEAD-UFRJ
Partner at Villemor Amaral Advogados (2002-2004) and Tozzini, Freire & Silva Advogados (2001-2002)
Bruno Chevalier
General Counsel General Counsel at MMX Mineração e Metálicos S.A.
Legal Director at General Motors Corp. in Lisbon and Delphi Automotive Systems
Over 25 years of experience in the mining industry (Rio Tinto and BHP Billiton), in technical,
Gustavo Gomes
operational and strategic roles
Director for Mining & Natural
Resources Extensive international experience: managed projects in Brazil, India, Australia, US and Canada
Holds an MBA from MIT Sloan School of Management
10
11. A Proven Record of Achievement
Track record: reliable execution of complex, Drilling at Parnaiba
begin. LP MPX
technical projects delivers high-returns Parnaiba.
Parnaíba: 1.7 Tcf of
natural gas contingent
resources certified
LT financing Pecém
and Itaqui : 1st
disbursement
Agreement Identified gas in well
with Evonik 3Q10 OGX-16 Block
Parnaíba
Construction 1Q10
works at Pecém
276 avg MW sold II begin
MPX Colombia: Business Plan
(A-5 auction) 4Q09
2nd Technical Report:
Measured + Indicated +
Construction 3Q09 Inferred coal resources of 144
works at
mln tons
Acquisition Pecém begin
Acquisition of
of mining
IPO: 2Q09 interest in Parnaiba
rights in
USD 1.1 billion Colombia
1Q09 MPX Colombia
623 avg MW sold 1st Technical Report:
(A-5 auction) 3Q08 Construction Indicated + Inferred coal
works at Itaqui resources of 110 mln tons
1Q08 begin
4Q07
11
12. Execution Capacity Enhanced by Relationship to EBX Group
EBX Group: Proven Execution Capacity
Financial Engineering Marketing Engineering
- US$8.7 bn in firm commitments in long-term - 50 iron ore and 4 energy long-term supply agreements
financing - 9 strategic partnerships (e.g. Petrobras, Anglo American,
- 4 IPOs and 1 spin-off (listing) EDP, Maersk, Wuhan and Perenco)
- 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
Social / Political Engineering
Placements and Rights Offering)
- 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
Logistics Engineering
- ~500 km iron ore pipeline THE Legal Engineering
- Railway access to major projects - More than 45 regulatory
- Integrated logistics solutions ZONE licenses obtained
- Strategically located sites to access ports
in Brazil, Colombia, Chile and Argentina
People / Team Engineering
- Around 2,000 employees
Engineering Engineering - Over 15,000 employees are working in the
- More than 40 feasibility studies (McCloskey,
construction of various ventures currently being
undertaken by the group;
PSR, Pinckock Allen, PSI, SRK, Verax, De&Mac,
Black&Veatch, among others) - Ability to attract and retain high qualified
- 2 super ports under construction
professionals (from CSN, Petrobras, Vale, ALL,
- 3 power plants under construction (1,440MW)
-
among others)
- 15 wells drilled all with oil shows
Environmental Engineering
More than US$1.0 bn in performance-based
compensation (stock options and cash) since
- 10 Mtpy integrated iron ore systems in operation
- More than 100 environmental inception
licenses obtained
12
13. The MPX Portfolio
MPX is developing 8 GW in greenfield power generation projects throughout Brazil,
which will enable it to benefit from the increase in electricity demand in the coming
years. The company is also licensing over 2GW in Chile.
Contracted Power Projects
Coal
Energia Pecém (720 MW)
MPX Pecém II (360 MW)
MPX Itaqui (360 MW)
Greenfield Power Projects
Natural Gas
MPX Parnaíba (1863 MW)
MPX Açu Phase II (3300 MW)
Coal
MPX Açu Phase I (2100 MW)
MPX Sul (600 MW)
MPX Seival (600 MW)
MPX Castilla (2100 MW)
Renewables
Wind: MPX Paracuru (32 MW)
Solar: MPX Solar (1 MW)
13
Environmental license granted
15. Contracted Power Plants – Construction on Track
MPX’s 3 power plants under construction are well-advanced, will start-up in 2011 and
2012 and are contracted for a period of 15 years.
Energy sold Capex
Capacity Term of PPA** EPC progress
(avg MW) (R$ 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
Energy sold in A-5
auction 2007 3Q11 4Q11 2012 3Q12 2013
• Energia Pecém
• MPX Itaqui Construction works at MPX Pecem II Spot¹ Fixed Gross Revenue: R$ 238.7 MM/y²
3Q08 Construction works at MPX Itaqui Spot¹ Fixed Gross Revenue: R$ 265.8 MM/y²
Construction works at Energia Pecem Spot ¹ Fixed Gross Revenue: R$ 251.4 MM/y²
4Q07 1Q09 2Q09
*Energia Pecém is a 50/50 partnership between MPX and EDP
Energy sold in A-5 auction 2008: **PPA – Power Purchase Agreement
• MPX Pecém II ¹ Energy sold in spot market before PPA start date
² As of SOct/2010
15
16. Investments & Financing – Power Generation Capex
Construction of Energia Pecém, MPX Pecém II and Itaqui on budget, fully funded
Estimated Capex Disbursement Curve Debt Disbursement
2007 - 2012
120,0% MPX
R$ 4,2 bi 47% 53%
Pecém II
2%
100,0% R$ 987 mm
80,0% 29% Disbursed
MPX
71% 29%
60,0% Itaqui
34% R$ 1,241 mm To be
100%
40,0% Disbursed
20% Energia
20,0% 76% 24%
Pecém
1% 15% R$ 988 mm
0,0%
2007A 2008A 2009A 2010E 2011E 2012E Total
0 500 1000 1500
Total Capex breakdown
Uses & Sources
Power Plants Capex (R$ billion) 120.0%
R$ 4.2 bi R$ 4.2 bi
Energia Pecém* 1.29 100.0%
10.1%
6.9%
80.0%
MPX Pecém II 1.28 BID
60.0% Debt
56.5% BNDES
100.0%
MPX Itaqui 1.62 40.0% Equity
Capex
20.0%
Total 4.20 26.5%
0.0%
*Considering MPX 50% stake in Energia Pecém Uses Sources
16
21. The Parnaíba Integrated Gas & Power Project
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.
Ownership Structure
Licensing
Preliminary License OGX
Granted
1/3 2/3
PETRA OGX
Maranhão
MPX Parnaíba 70% 30% 30% 70%
River
30 Km
Blocos
UTE
Exploratórios
Substation
50 Km
Site MPX
21
22. 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
OGX-16 Califórnia Concluded
23,3%
PN-T-68 (33.3% *
OGX-22 Fazenda São In progress
70%)
José since 10/23
Portfolio Potential
Potential resources of approx.
15 Tcf
D&M Report (Set09)
Total
Production potential of approx.
Total Risked Contingent OGX-16 OGX-22
Resources Resources
15M m3 / day 0.2 Tcf 1.7 Tcf Pressure of Production
1,900 psi potential of 3.4M
Approx. 20 mapped prospects
m3/day in Absolute
Flames of Open Flow
Drilling schedule
approx. 15m Pressure of 1,950
Year 2010 2011 2012 Total high psi
Number of wells 3 9 3 15 Flames of approx.
1 onshore rig contracted and 1 being 20m high
contracted
22
23. 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) MPX Port
Open-pit mines: up to 5 Mty,
starting in 2012
MPX Mines
Feasibility stydy for underground
mine to be concluded in 2H11
Total estimated capex: ~ USD 1 bln
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)
23
24. 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
24
26. MPX Sul + MPX Seival
Seival Mine Location of Assets
Partnership 70/30: MPX / Copelmi
Operating License granted
BR-293
Aeródromo
152 MM tons in proven reserves
SEIVAL
459 MM tons in total resources Vila CEEE
MPX Sul
Capex: ≈ USD 20 MM BRAZIL
Seival Mine Ferrovia
Vila
Joáo
MPX Sul and MPX Seival Emílio
Arroio
Capacity: 600 MW MPX
UTE Seival
Seival
Projeto
Candiota
Aeródromo
Coal consuptiom: 1 ton/ kwh
Ex-Projeto
CRM
Estimated Capex: USD 2.400 / kW Rio Jaguarão Candiota III
Barragem II
Dario Lassance
Energy may be sold in Regulated UTE Pres. Médici
Barragem I
and/or Free Market
CRM CRM Pedreira
Vila CEEE de Calcário
Licenses Granted
CRM
Cimbagé
Sinergies for the implementation of Mina de
Candiota Seiva
the projects Rio Grande do Sul
26
27. 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:
•Natural Gas: 3300 MW
•Estimated Capex : USD 1,300 / kW
•Licensing in process
Phase I + Phase II
Regulated and Free Markets
Synergies with Açu Superport
Strategically Located
27
28. MPX Chile
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
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
28
29. MPX Tauá – Solar Energy
• 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
•Expansion expectation: up to 50 MW
EPC Status Licensing
Instalation
MoU signed
License
29
31. The MPX Business Model
Creating and sustaining superior performance through an integrated business model
The Creation of Value Chain
Logistics Power Generation
E&P
Over 1.4 GW under
Logistics to supply power
Exploration & production of gas, coal construction and a pipeline
plants and export surplus
and other power fuel sources of 10 GW in greenfield
production projects
Fuel Commercialization Power Commercialization
Supply to power plants and sale of Competitive advantage through
surplus production integration and self-production
31
32. Catalysts 2010-2012
Near-term catalysts will unlock the value of the optionalities in MPX’s portfolio of projects
2H10 1H11 2H11 2012
Projects Under
Construction
MPX Pecém II
Energia Pecém and Itaqui Start-up
Start-up
Positive EBITDA from Power Generation
PPAs MPX Parnaíba: Installation License
A-3 and A-5 Power Auctions
Free Market granted: MPX Parnaiba
MPX Parnaiba
GSA w/ OGX
D&M Resource Report
Maranhão
Drilling: Assessment of resources in the 7 blocks
Feasibility study for
Drilling: Assessment of underground resources Start-up of Open-pit Mines
MPX Colombia
underground mine
Environmental License granted: Open pit
Positive EBITDA from Mining
mines and MPX Port
GSA = Gas Supply Agreement
32
34. Nova Canaã Residential Village - ECO 2010 Award
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.
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"
34
