The document provides an overview of MPX Energia S.A., a diversified energy company in Brazil. It discusses MPX's portfolio of integrated energy projects including power generation, natural gas resources, and renewable energy. MPX has a proven track record of achievement over its first five years of operation. It is executing a strategic vision to develop a large portfolio of energy assets through partnerships with leading companies like E.ON. MPX's experienced management team is well positioned to capitalize on Brazil's growing energy demand through its tax-advantaged thermal power plants coming online in 2012 and robust pipeline of future projects.
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. A PROVEN RECORD OF ACHIEVEMENT
2012
2011
The First Five Years TPP Parnaíba licensed
MPX/E.ON
partnership
capacity increased to
Drawdown of bridge-
3,722 MW
loans totaling R$ 1.6
Power supply
billion for natural
2010 contracts secured for
gas production and
1,193 MW and
MPX Colombia – 1st power generation in
construction works at
Technical Report: the Parnaíba Basin
2009 coal resources of
TPP Parnaíba begin
Spin-off of
144 MM tons D&M estimates for
2008 Construction works risked resources in Colombian coal
at TPPs Itaqui and License granted for assets to a new
First acquisition of the Parnaíba basin
Pecém II begin TPP Parnaiba company listed at
2007 mining rights in
(1,863 MW)
amount to over 11Tcf
the BM&FBOVESPA
Colombia Acquisition of Declaration of
IPO: US$ 1.1 interest in 7 onshore Initiation of drilling commerciality for 2 Acquisition of
billion raised 365 MW contracted in
exploratory blocks in campaign in the gas fields with Greenfield Wind
the A-5 Auction
1,080 MW the Parnaíba basin Parnaíba basin estimated production Projects in Northeast
contracted in the Construction works at of 6 MM m3/day Brazil (600 MW)
A-5 Auction TPP Pecém I begin
4
5. A DIVERSIFIED ENERGY COMPANY
Largest Portfolio Of Integrated Projects In South America
Power Generation
Amapari Energia Power agreements secured for 3.0 GW
23 MW
Itaqui TPP
360 MW Environmental license for an additional
Exploratory blocks Pecém I 10 GW
11,3 Tcf GN 720 MW
Parnaíba TPP Pecém II
1.531 MW 365 MW Joint-Venture with leading global player
Parnaíba TPP
2.191 MW
Ventos Wind Complex E.ON AG
600 MW + 600 MW
Solar Tauá
1 MW
Natural Resources
Açu TPP Natural Gas: >11 Tcf of risked resources
2,100 MW – Coal
Castilla TPP
2.100 MW 3,300 MW – Natural Gas in the Parnaiba Basin
Desalination Seival mine
Plant Sul TPP
740 l/s 727 MW
Seival TPP
600 MW
MPX
JV
5
7. EXPERIENCED MANAGEMENT TEAM TO EXECUTE ON
STRATEGIC VISION
Over 22 years of experience in a wide range of M&A and corporate finance transactions related to the natural
Eduardo Karrer resources, electricity, sanitation and logistics sectors
CEO & IRO CEO at El Paso Brasil Ltda.and Rio Polímeros S.A..
Executive manager for the Gas&Energy and International Markets divisions at Petrobrás
Over 25 years of experience in the financial area at multinational corporations
Rudolph Ihns CFO at MMX Mineração e Metálicos S.A.
CFO
CFO at Unisys in Brazil and Germany
Former National Secretary for Energy
Xisto Vieira Filho Coordinator of the Subcommittees for Electricity Studies of the Interconnected System and Secretary of National
Officer for Regulatory Energy Policy Committee of Brazil
Affairs & Chairman of the Board of Directors of CHESF and Eletrosul and Board member of Eletrobrás, Furnas, Cepel and
Commercialization 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 at Rio Polímeros S.A.
COO Holds an MBA from COPPEAD-UFRJ
Partner at Villemor Amaral Advogados (2002-2004) and Tozzini, Freire & Silva Advogados (2001-2002)
Bruno Chevalier
General Counsel at MMX Mineração e Metálicos S.A.
General Counsel
Legal Director at General Motors Corp. in Lisbon and Delphi Automotive Systems 7
9. INVESTMENT CONSIDERATIONS
Exposure to Brazil’s growing energy demand
Tax-advantaged thermal power plants coming on-line in 2012
Attractive monetization of natural gas resources
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 while
unlocking value of Colombian coal assets
Experienced management team to execute on strategic vision
9
11. BRAZIL WILL NEED ADDITIONAL 10 AVG GW FROM
2015-2019
Power Supply/Demand
Energy Deficit starting in 2015 = Investment Opportunities
Energy Load (forecast)
Firm Energy
2015-on: new generation required
10 GW avg required from 2015 to 2019
Source: ANEEL 11
12. BRAZIL NEEDS NEW THERMAL CAPACITY TO
INCREASE SUPPLY RELIABILITY
Water storage capacity has stagnated, leading to decreased system autonomy
Storage Capacity (Southeast) Autonomy = [Storage Capacity / (Load – Thermal Generation)]
Actual
Reservoir
Autonomy:
~ 5 months
Storage
capacity
stagnation
2001: Energy
Deficit
(load reduction)1
Storage Capacity (SIN):
Southeast = 69% Northeast = 19% New thermal plants are necessary to guarantee
South = 7% North = 5% a reliable power supply.
Source: ONS 12
13. TRANSMISSION DELAYS REINFORCE THE
IMPORTANCE OF THERMAL PLANTS
Transmission expansion delays will affect reliability of energy supply: greater
need for thermal plantes located close to power consumption centers
Average delay = 1.2 year
103 delays of up to 1 year
100 delays greater than 1
year
Source: ANEEL
13
15. POWER AGREEMENTS SECURED FOR 3.0 GW
Minimum guaranteed revenues will reach R$ 1.4 billion in 2015
TOTAL ADJUSTED
ENERGY SOLD ANNUAL CAPACITY PPA
CAPACITY CAPACITY FUEL SOURCE
(AVG MW) PAYMENT3 PERIOD
(MW) (MW)
Pecém I 720 360 615 R$ 278 million Coal 2012-2027
Itaqui 360 360 315 R$ 294 million Coal 2012-2027
Pecém II 365 365 276 R$ 264 million Coal 2013-2028
Parnaíba I 676 473 450 R$ 289 million Natural Gas 2013-2028
Parnaíba II 517 362 450 R$ 242 million Natural Gas 2014-2034
Parnaíba (Free Market) 338 237 200 R$ 188 million Natural Gas 2019-2029
Total 2,976 2,157 2,306 R$ 1,555 million
Adjusted Capacity/Annual Capacity Payment: Figures adjusted for MPX’s ownership in each project
Notes: 1. Pecém I is a partnership between MPX (50%) and EDP Brasil (50%); 2. Parnaíba is a partnership between MPX (70%) and Petra (30%); 3. Capacity Payments are escalated
annually by the IPCA inflation index (Figures as of June, 2012). 4. Total Capacity: Does not include Amapari TPP and Taua Solar Plant. 15
16. STEADY AND PREDICTABLE CASH FLOWS
3
Installed Capacity (MW) Minimum Guaranteed Gross Revenues (MM)
1,367
1,920 1,305
1,125
1,558
720
95
2012 2013 2014 2012 2013 2014 2015
Pecém I1 Parnaíba2 I
Itaqui Parnaíba2 II
Pecém II
Figures adjusted considering MPX’s interest in each project
Notes: 1. Pecém I is a partnership between MPX (50%) and EDP (50%); 2. Parnaíba I & II are partnerships between MPX (70%) and Petra (30%); 3. Capacity Payments are escalated annually
by the IPCA inflation index (Figures as June, 2012); 4. EBITDA assuming no dispatch; it is no including the participation interest in gas onshore blocks in the Parnaíba Basin.
16
18. TAKEOVER OF CONSTRUCTION WORKS
More effective management of Pecém and Itaqui TPPs
In July 2012, MPX and EDP announced the joint acquisition of MABE, the EPC consortium formed
by Tecnimont and Efacec to build the Pecém and Itaqui TPPs
As part of the agreement:
Tecnimont and Efacec injected R$421MM at MABE, relinquished the R$185MM cash
retention withheld by the projects and paid in full all liabilities preceding Apr 30, 2012
Performance guarantees remained unchanged
Contractor pending claims and legal actions were eliminated
PECÉM I PECÉM II ITAQUI TOTAL
Cash injection at MABE 196 110 115 421
Cash retention relinquished 100 47 38 185
Performance guarantees 200 104 107 411
Guarantees for claims and contingencies 83 42 41 166
18
19. MILESTONES LEADING TO COMMERCIAL OPERATIONS
Coal Plants Under Construction
Pecém I: Unit #1
Repair turbine rotor bearings and machine turbine rotor
Capacity Ramp-up (MW) journals. Restart unit –> first synchronization –> electrical load
tests –> DCO.
1,445
Itaqui
365 Steam blowing –> reinstatement –> by-pass operation –>
1,080
steam to turbine –> electrical tests –> first synchronization –>
electrical load tests –> DCO.
360
Pecém I: Unit #2
360 Cold commissioning –> first fire –> steam blowing –>
reinstatement –> by-pass operation –> steam to turbine –>
electrical tests –> first synchronization –> electrical load tests
360 –> DCO.
3Q12 4Q12 1Q13 Pecém II
Construction completion –> cold commissioning –> first fire –>
Pecém I #1 Pecém I #2 Itaqui Pecém II steam blowing –> reinstatement –> by-pass operation –>
steam to turbine –> electrical tests –> first synchronization –>
electrical load tests –> DCO.
19
25. TPP PARNAÍBA I (676 MW) & II (517 MW)
Execution highlights
EPC contracts with Duro Felguera (Parnaíba I)
and Initec Energia (Parnaíba II)
Partnership with GE ensures timely equipment
supply
Electromechanical construction of 5 out of the
7 gas turbines completed
5 turbines on-site and 2 additional (Parnaíba
II) to be shipped to Brazil by the end of 3Q12
R$ 1,375 million in bridge-loans disbursed to
fund Parnaía I & II.
25
26. MPX OWNS 23% OF A UNIQUE ONSHORE NATURAL
GAS PORTFOLIO
Ownership Structure:
OGX Maranhão
Blocks
Total area:
24,500 km²
2 commercial production fields under development: Gavião Real
and Gavião Azul
Prospective risked resources surpass 11 Tcf (2.0 bi boe)
5 drill-rigs in operation
3 seismic crews in the region
Exploratory campaign has identified 4 accumulations and over 20
prospects
Drill-stem test in well OGX-88 (Bom Jesus) concluded with 36
meters of net pay, supporting future development
26
27. GAS PRODUCTION IS PLANNED TO START IN 2H12
Initial production of 6 MM m3/day will supply Parnaíba I & II TPPs
On schedule to start production at
Gavião Real in Jan, 2013
Estimated capacity in 2013: 6 MM m³/day
(212 MM ft³)
15 production wells already drilled
Commissioning of Gas Treatment Unit
expected in 4Q12
Competitive costs:
Average operating cost: US$ 0.30/1,000ft³
R$ 600 million bridge-loan to fund
production development disbursed in
January 2012
27
28. ATTRACTIVE OPPORTUNITIES TO MONETIZE
ADDITIONAL PRODUCTION
Efficient Integration of Natural Gas Resources with Energy Production
Thermal power plant located at
< 2km from gas fields
2.2 GW licensed and still
uncontracted could demand further
11 MM m3/day
Inexpensive connection to the
electrical grid
Limited competition in natural
gas
Tax-advantaged region can
attract industrial investments
with gas is available
28
30. CREATING VALUE THROUGH JOINT-VENTURE
WITH E.ON
Leveraging Strong Complementary Capabilities to Enhance Growth
MPX and E.ON AG* recently formed a 50/50 joint-venture to develop a strong portfolio of energy
assets in Brazil and Chile
E.ON has committed to support MPX’s investment needs at the JV, at E.ON’s cost of equity in
Brazil, to expedite the development of the power generation projects of the JV
MPX raised R$1.0 billion through a capital increase
E.ON acquired a 11.7% equity interest in MPX
E.ON’s participation in MPX shall be adjusted according to put/call option arrangements between Mr.
Eike Batista and E.ON to reach 10%
(*) E.ON has one of the broadest and most diverse power and gas asset bases in Europe.
Installed Capacity: 69 GW
2011 Traded Volumes: 2,000 billion kWh of power / 2,500 billion kWh of gas / 600 million tons of carbon / 300 million tons of coal
2011 Figures : Cash Position: EUR 6,610 million / Total assets: EUR 152,872 million / Sales: EUR 112,954 million
30
32. FUTURE GROWTH OPPORTUNITIES
MPX is positioned for leadership in the Brazilian energy market
TOTAL
CURRENT THERMAL
CAPACITY FUEL SOURCE
PIPELINE
(MW)
Ventos1 600 Wind
Parnaíba2 2,191 Natural Gas
Açu 3,300 Natural Gas
Açu 2,100 Coal
Sul and Seival 1,327 Coal
Castilla (Chile) 3 2,100 Coal
Total 11,618
1MPX has call option on additional 600 MW; 2 Parnaíba - partnership between MPX (70%) and Petra (30%); 3 In August 2012, Chilean Supreme Court Decision Cancels the Castilla Project
Environmental Permit 32
33. VENTOS: A 600 MW WIND COMPLEX IN ONE OF
BRAZIL’S BEST WIND RESOURCE AREAS
High-quality greenfield assets in northeast Brazil
Total Capacity: 600 MW + call option on
additional 600 MW
João
Estimated Load Factor: 48% (P50)
Câmara
Location: Rio Grande do Norte, NE Brazil
RN
Grid connection 30km from Complex
All land rights secured
158.7 MW registered for 2012 energy auctions
Environmental license granted
33
34. 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
The industries located within the Superport will
benefit from auto production sharing, which at
current prices represents a reduction in energy
costs by approximately 30%
34
35. 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
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.
35
36. CASTILLA: 2.1 GW IN COAL-FIRED CAPACITY
IN CHILE
Strategically located in a region with significant pent-up demand for energy
and water
Integrated Project: Power Plant + Deep-Water Port
+ Desalination Plant
SIC: Central Interconnected System (90% of GDP &
92% of population)
Located 700 Km North of Santiago
Power plant capacity: 6 x 350 MW = 2,100 MW
Desalination plant capacity: 740 l/s
36
38. CONSOLIDATED CASH POSITION
Consolidated Cash & Cash Equivalents
394.5
78.9
78.8 610.9
178.0 14.8
686.4
445.0
151.9
1,325.1
1,113.3
Cash and Cash Revenues EPC bank OPEX & CAPEX Cash Flow from Debt E.ON Capital Cash Injection Spin-off* Escrow Cash and Cash
Equivalents guarantees & SG&A Financing Disrbursement Contribution at CCX Accounts Equivalents
(1Q12) executed (2Q12)
* cash withheld by projects transferred to JV (50%) and CCX (100%)
38
39. CONSOLIDATED DEBT
Debt (R$ million)
Total Consolidated Gross Debt: R$ 5,103.8 million
Short term: R$ 1,662.2 million
R$ 825 million bridge loan to Parnaíba I and R$ 325 million to
Paraníba II => to be paid-off with draw down from long-term
financing expected in 2H2012
With the conclusion of CCX’s spin-off, a balance of R$ 422.5 million
in short-term debt was transferred to CCX
Debt Maturity Profile*
(R$ million) 2,803.7
Long term: R$ 3,441.6 million
Average amortization: 14 years
1,113.2 1,288.8
541.9
262.0 228.5
Average cost of debt: 9.4%
Average tenure: 5.6 years Cash & Cash 2012 2013** 2014 2015 From 2016
Equivalents on
*Values incorporate principal + capitalized interest + charges and exclude outstanding convertible debentures. ** R$ 258.7
million in 2012 and R$ 1,168.4 million in 2013 of bridge loan to Parnaíba, to be paid-off with draw down from long-term financing
expected for 2H12.
39
40. For more information, contact:
Investor Relations
(55 21) 2555-9215
ri.mpx@mpx.com.br
Editor's Notes
Isso já considera plantas em default canceladas? Sim Onde posso achar esses dados?Garantia Física (projetos existentes): http://www.aneel.gov.br/aplicacoes/capacidadebrasil/energiaassegurada.aspGarantia Física (EXPANSÃO): Portarias de Garantia Física publicadas a cada ano antes dos respectivos leilões.Previsão de carga de Energia: deck Newave (necessário ser agente da CCEE), o mercado não tem acesso a essa previsão de carga