MPX Corporate Presentation

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Transcript of MPX Corporate Presentation

  • 1. Rio de Janeiro | January 2012 MPX Corporate Presentation

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 likemay, 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. 3. Highlights 1 4. Creation of CCX, listed at the BM&FBovespa Novo Mercado, with a cash position of up to R$ 814 million Strengtheningof CCX Creation one of the largest private energy solutions provider in Brazil, with the goal of reaching 20 GW A Giant is Born MPX will raise R$1.0 billion through a capital increase of which E.ON shall ultimately invest approximately R$850 million for a 10% stake at MPX Significant Value Unlocked E.ON and MPX will on a project-by-project basis - decide on E.ON spotential pre-financing of MPX s equity proportion at the JV level to accelerate the implementation of its pipeline of projects Equity Financing E.ON s international know-how and operational capabilities will contribute to the strengthening of MPX s gas and renewable platforms Gas & Renewables Highlights 5. E.ON 2 6. E.ON OVERVIEW A leading private global energy company Generation Portfolio mix (end of 2010)

  • Over 85,000 employees and USD120 billion in revenues in 2010
  • Cross technology project management expertise
  • In 2010, more than 2.6 GW of capacity were commissioned;
  • In 2011, 3.8 GW of new capacity will go online
  • Leading global renewables player
  • Global trading and supply
  • Strong Balance Sheet
  • Committed to expansion in Brazil

Germany Rest of the World 8.6 2.8 0.8 1.5 6.0 10.9 3.8 19.6 1.1 3.0 2.5 3.1 0.2 3.3 0.3 0.9 23.3 45.1 Total 11.3 2.3 16.9 23.4 4.1 5.6 3.6 1.3 68.5 GW in 2010 Nuclear Lignite Coal Natural Gas Oil Hydro Wind Other Total 7. GLOBAL OPERATIONS Geographically diversified business platform Conventional generation Renewables Oil & Gas Trading Countries where E.ON operates 8. Market Cap Stock Price Performance (EUR/share) (21.3%) (17.3%) As of January 10, 2012. FINANCIAL HIGHLIGHTSSolid financials despite European economic downturn E.ON # shares (mm) 2,001.0 (x) Price (EUR / share) 16.86 (=) Market Cap (EUR MM) 33,746.9 USD bi 2009 2010 2011E Net Revenues 117.4 124.6 124.5 Gross Profit 16.7 15.4 EBITDA 13.9 13.8 12.3 Net Profit 12.3 9.0 3.0 9. The Transaction 3 10. MPX Eike Batista Colombian Coal Assets Free Float CCX MPX Eike Batista Free Float Trading Natural Resources Generation Trading Natural Resources Generation Colombian Coal Assets CCX SPIN-OFF Creation of major, integrated coal mining company with ongoing drilling activities to support a 35 Mtpa production and up to R$ 814 million in cash

  • Approval of CCX spin-off by MPX debenture holders => Creation of CCX, an independent company listed at the BM&F Bovespa Novo Mercado segment
  • MPX shareholders will be entitled to one share of CCX for each share of MPX they hold
  • Independent Resource Certification report expected to 1Q12

11. CREATION OF JV AND MPX CAPITAL INCREASE Leveraging strong complementary capabilities to accelerate growth

  • MPX and E.ON form a 50/50 joint-venture
    • JV will be the sole investment vehicle for new projects in Brazil and Chile by both MPX and E.ON.
    • Development, execution and operation of thermal and renewable projects and supply and trading activities.
  • Equity pre-financing by E.ON
    • E.ON and MPX will on a project-by-project basis - decide on E.ON spotential pre-financing of MPX s equity proportion at the JV level to accelerate the implementation of its pipeline of projects.
  • E.ON to achieve 10% Equity Interest in MPX through a Capital Increase
    • MPX will raise R$1.0 billion through a capital increase.
    • E.ON shall ultimately invest approximately R$850 million for a 10% stake at MPX.

12. NEW MPX OWNERSHIP STRUCTURE

  • Energia Pecm(365 MW)
  • Pecm II(365 MW)
  • Itaqui(365 MW)
  • TPP Parnaba(1,087 MW)
  • Amapari(12 MW)
  • Seival
  • OGX Maranho

Eike Batista Free Float MPX Current Thermal Pipeline Power Generation (with PPA) Supply & Trading E.ON MPX- E.ON JV 50/50 Current Renewable Pipeline Natural Resources ~10.0% 100% 100% 50% 50% 100% 100% 50% 50% NewGeneration Projects 100% 13. MPX / E.ON - Bigger, Better and Faster Together 4 14. 1Parnaba figures consider a 70% interest on the project (remaining 30% owned by Petra Energia S.A.). 2E.ON has a call on behalf of the JV for additional 38.9% of the Au Project at Book Value MPX / E.ON JV - Bigger, Better and Faster Together MPX will be the only listed company in Brazil exposed to the JV Current Thermal Pipeline Supply & Trading JV MPX- E.ON 50/50 Current Renewable Pipeline 100% 100% 50% New Generation Projects 100% 15.

  • MPX: A differentiated player in the Brazilian energy market
    • Extensive knowledge of the Brazilian power market
    • Proven development and licensing expertise(14 GW pipeline of licensed projects)
    • Commercial acumen
    • Top notch stakeholder management expertise
    • Successful, vertically integrated strategy secures highly competitive fuel supply
    • Wide ranging expertise and track record in structuring large infrastructure projects

SIGNIFICANT COMPLEMETARY CAPABILITIES Together MPX and E.ON can create a business that is much more that the sum of the parts

  • E.ON: A leading private global energy company
    • Cross technology project development expertise
    • Specialist project management and commissioning teams
    • Leading global renewable player, procurement and optimization value add
    • Global trading and supply
    • Significant E&P and LNG experience across the North Sea, Russia and North Africa
    • Strong Balance Sheet

16.

  • Highly strategic and value enhancing partnership
  • The MPX s knowledge of the Brazilian power market added to E.ON s experience worldwide and technology project development expertise can build a more sizable and profitable energy company;
  • E.ON has significant E&P and LNG experience and is one of the Europe s leading gas companies, which can accelerate the development of Au and Parnaiba Gas TPP;
  • E.ON has 17 GW of installed capacity of coal power plants around the word and in 2010 alone, E.ON's trading arm traded almost