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
MPX to raise up to R$ 1,3 billion to fund development of key ventures MPX Parnaíba and
MPX Colombia.
In Colombia, potential resources surpass 4 billion tons of coal - annual production expected
to reach 35 million tons.
Environmental Licensing process for infrastructure in Colombia advanced with DAA for the
port approved and exemption from DAA requirement for 150 km railroad confirmed.
Exceptional success in the exploration of the Parnaíba Basin – in one well alone, test results
indicate potential daily production of up to 3.4 million m3 (AOF – absolute open flow).
Strategically positioned to capture the growth in gas-based generation: only private-sector
utility with integration of power generation to gas supply.
Largest growth portfolio in South America: reached 11GW in licensed projects with the
granting of environmental licenses to a 3,300 MW gas-fired plant at the Superporto do Açu
and a 2,100 MW coal-fired plant in Chile.
Construction of Energia Pecém, MPX Pecém II and MPX Itaqui power plants 90% complete.
Approximately 10 thousand jobs created.
4
5. Financial Performance
Cash balance in Dec/2010, including balance in scrow accounts
Parent: R$ 566.0 million
Consolidated: R$ 854.2 million
Parent Company Consolidated
R$ million dec/10 sep/10 dec/10 sep/10
Equity for Pecém I, II and Itaqui Current Assets 668.6 565.5 1,661.5 1,131.1
Noncurrent Assets 297.2 274.5 1,006.4 306.4
R$ 193 million in 2010
Fixed Assets 1,074.3 982.0 3,611.7 3,115.8
Total Assets 2,040.1 1,822.0 6,279.6 4,553.2
Current Liabilities 322.5 71.9 1,395.7 862.4
Gross Debt in Dec/2010
Non-current Liabilities 4.3 21.6 3,182.3 1,919.2
R$ 2,607.1 million
Minority Interests - - 43.4 43.1
89% Long-term Shareholders’ Equity 1,713.3 1,728.5 1,658.2 1,728.5
Total Liabilities 2,040.1 1,822.0 6,279.6 4,553.2
5
6. Parent Company’s G&A Expenses
Operating expenses Parent
Fair Value of Stock Options (IFRS):
R$ 16,1 million
(In thousands Reais) 4Q10 4Q09 % Var
Expenses Reclassification of R$ 6.5 million
Personnel and managers (45,634) (31,634) 44.3% previously booked as Deferred Assets
Material (45) (44) 3.6% (IFRS)
Outsourced services (10,027) (12,254) -18.2% R$ 4.3 million due to annual pay
Leases and Rentals (2,674) (693) 285.9% adjustment of 6.63%.
Insurance (83) (198) -57.8%
Taxes (102) (72) 41.2%
Other expenses (1,351) (2,397) -43.6%
Total (59,915) (47,291) 26.7%
R$ 1.9 million in rent expenses
Depreciation and amortization (203) (148) 37.9% relative to new headquartes
Total (60,119) (47,439) 26.7%
6
7. Capitalization of up to R$ 1.3 billion
Structure Convertible Debentures
Volume R$ 1.0 Bi – R$ 1.3* Bi (R$ 600M BNDES + R$ 200M EB + R$ 200M Gávea)
Tenure 3 years
Rate IPC-A + 4.00% aa
Conversion Price R$ 43.0/share
Principal escalated by IPC-A + 4% spread payable annually
* Considering 0% and 100%, respectively of free float subscription
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8. CCX: The “Carajás” of Compliance Coal
Unique geology within
MPX’s leases
In excess of 100 seams
22 seams >1.5m thick
8 coal seams >3m
Potential of >1.6 billion
mineable tonnes
Fully-integrated logistics
Heavy-haul 150km
railway: flat route,
parallel to existing road
Port: best combination
of deepest water &
flatter area in Guajira
8
9. A Low-Cost, Large Scale Coal Production System
Large production scale: 35 million tonnes per year
Competitive mining costs: estimated cost for underground mines US$25/t
Low cost logitics: 150km railway + private deep water port
PRODUCTION Ramp-up
40
35
30
25
MTPY
20
15
10
5
0
PHASE 1 PHASE 2
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10. Unique Onshore Natural Gas Portfolio with 15 Tcf
Discoveries
Block % MPX Well Prospect Status
OGX-16 Califórnia Concluded
OGX-22 Fazenda São
23,3% Concluded
PN-T-68 José
(33.3% * 70%)
OGX-23 In progress
Bom Jesus
since 13/02
Portfolio Potential
Potential resources of approx. 15 Tcf
OGX-16 OGX-22
Production potential of approx. 15M m3 / day
Pressure of 1,900 Production potential of
Approx. 20 mapped prospects psi 3.4M m3/day in
Absolute Open Flow
Flames approx.
15m high Pressure of 1,950 psi
Drilling schedule
Flames approx. 20m
Year 2010 2011 2012 Total high
Number of wells 3 9 3 15
2 onshore rigs secured
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11. Integrated to a 4,000 MW Generation Complex
Ownership Structure
OGX
1/3 2/3
PETRA OGX
Maranhão
70% 30% 30% 70%
Blocos
UTE
Exploratórios
11
12. Largest Licensed Greenfiled Power Generation
Portfolio in South America
11 GW in licensed greenfield power projects
Natural Gas
MPX Parnaíba (1863 MW)
MPX Açu (3300 MW)
Coal
MPX Açu (2100 MW)
MPX Sul (727 MW)
MPX Seival (600 MW)
MPX Castilla (2100 MW)
Renewables
Solar: MPX Tauá (1 MW)
12
13. MPX Castilla is the Largest Licensed Greenfield
Power Plant in Chile
MPX Castilla: robust license for 2,100 MW obtained after a 4-year licensing process
Integrated Project: Power Plant + Deep-Water Port + Desalination Plant
Strategic location:
SIC: Central Interconnected System (90% of GDP & 92% of population)
Large pent-up demand for energy and water
Port concession and environmental license granted
13
14. The Largest Licensed Greenfield Generation
Complex in Southeast Brazil
Environmental License to 5,400 MW (3,300 MW gas + 2,100 MW coal)
Strategic Location at the Açu Superport
Close to natural gas accumulations discovered in the Campos Basin
Potential supplier for industries located within the Açu Superport
Highly competitive energy supplier due to benefit from auto production sharing
14
15. Contracted Power Plants Start-up in 2H11
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$ 242.2 MM/y²
3Q08 Construction works at MPX Itaqui Spot¹ Fixed Gross Revenue: R$ 269.7 MM/y²
Construction works at Energia Pecem Spot ¹ Fixed Gross Revenue: R$ 255.1 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 Dec/2010
90% of construction completed.
10 thousand jobs created.
Operation teams hired and in training.
Minimum guarenteed revenues of approximately R$ 500 million in 2012 and over R$ 750 million
from 2013 on.
Long-term financial fully contracted and 73% disbursed.
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16. Energia Pecém: 720 MW starting up in 2H11
Energia Pecém
(720 MW)
EPC 87%
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17. MPX Pecém II: 365 MW starting up in 1H12
MPX Pecém II
(365 MW)
EPC 80%
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18. MPX Itaqui: 360 MW starting up in 2H11
MPX Itaqui
(360 MW)
EPC 85%
18
19. www.mpx.com.br
www.ebx.com.br www.descubraebx.com.br www.youtube/grupoebx www.eikebatista.com.br
All the rights reserved to MPX
March/2011
