MPX Corporate Presentation - December 2012

MPX CORPORATE PRESENTATION

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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.

DISCLAIMER

2

MPX AT A GLANCE

1

A PROVEN RECORD OF ACHIEVEMENT

4

IPO: US$ 1.1

billion raised

1,080 MW

contracted in the

A-5 Auction

2007 365 MW contracted in

the A-5 Auction

Construction works at

TPP Pecém I begin

2008 Construction works

at TPPs Itaqui and

Pecém II begin

Acquisition of

interest in 7 onshore

exploratory blocks in

the Parnaíba basin

2009

License granted for

TPP Parnaiba

(1,863 MW)

Initiation of drilling

campaign in the

Parnaíba basin

2010

TPP Parnaíba licensed

capacity increased to

3,722 MW

Power supply

contracts secured for

1,193 MW and

construction works at

TPP Parnaíba begin

D&M estimates for

risked resources in the

Parnaíba basin

amount to over 11Tcf

Declaration of

commerciality for 2

gas fields with

estimated production

of 6 MM m3/day

2011 MPX/E.ON

partnership

Acquisition of

Greenfield Wind

Projects in Northeast

Brazil (600 MW)

Drill-stem test in

well OGX-88 (Bom

Jesus) concluded

with 36 meters of

net pay, supporting

future development

MPX included in the

MSCI

2012

4

Power agreements secured for 3 GW

(Discos = 2.6 GW + Free mkt = 0.4 GW)

Environmental license for an additional

10 GW

Natural Gas E&P integrated to power

generation: >11 Tcf of risked gas

resources in the Parnaiba Basin

Joint-Venture with leading global player

E.ON AG

5

Joint-Venture w/ E.ON

MPX

Amapari Energia23 MW

Itaqui360 MW

Parnaíba1,556 MW

Natural Gas Exploratory blocks

11 Tcf

Parnaíba2,166 MW

Seival mine

Seival600 MW

Sul727 MW

Açu2,100 MW – Coal3,300 MW – Natural GasCastilla

TBD

Largest Portfolio Of Power Generation Projects In South America

A DIVERSIFIED ENERGY COMPANY

Pecém I720 MW

Pecém II365 MW

Solar Tauá1 MW

Ventos Wind Complex600 MW + 600 MW

Eike BatistaFree Float

MPX Participações

Amapari Energia

Parnaíba (expansion)

Açu TPPs

Ventos Wind

Itaqui TPPPecém II

TPPPecém I

TPP

SeivalCoal Mine

OGX Maranhão

Parnaíba IICCGT

Parnaíba IOCGT

Natural gas exploratory blocks in the

Parnaíba Basin

50% 100% 100% 51%

70% 70% 33% 70%

70%

35%

50%

Supply & Trading

35%

50%

50%

11.7%53.9%34.3%

Sul & SeivalTPPs

Castilla TPP

50% 50%

50% 50%

Tauá Solar

100% 100% 100%

50%

MPX OWNERSHIP STRUCTURE

6

INVESTMENT HIGHLIGHTS

2

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 and

accelerate growth

Experienced management team to execute on strategic vision

INVESTMENT HIGHLIGHTS

8

EXPOSURE TO BRAZIL’S GROWING

ENERGY DEMAND

3

Energy Deficit starting in 2015 = Investment Opportunities

BRAZIL WILL NEED ADDITIONAL 10 AVG GW FROM

2015-2019Power Supply/Demand

Source: ANEEL 10

2015-on: new generation required10 GW avg required from 2015 to 2019

Firm Energy

Energy Load (forecast)

Water storage capacity has stagnated, leading to decreased system autonomy

BRAZIL NEEDS NEW THERMAL CAPACITY TO

INCREASE SUPPLY RELIABILITY

11Source: ONS

Storage Capacity (Southeast)

Storage Capacity (SIN):

Autonomy = [Storage Capacity / (Load – Thermal Generation)]

New thermal plants are necessary to guarantee a reliable power supply.

Northeast = 19%

North = 5%

Storage capacity

stagnation

Southeast = 69%

South = 7%

2001: Energy Deficit(load reduction)

Actual Reservoir Autonomy: ~ 5 months

TAX-ADVANTAGED THERMAL POWER PLANTS

COMING ON-LINE STARTING IN 2012

4

Installed Capacity (MW) Capacity Payments (R$ billion)

2013 2014 2015

1.14 1.35 1.39

Capacity Payments

2012 2013 2014

720

1,558

1,920

Note 1. Figures adjusted for ownership

Note 2. Capacity Payments are indexed to the IPCA inflation index (Figures shown are in real terms, as of September, 2012)

OPERATIONS START IN 2012 Fully contracted power plants will generate steady revenues from 2012 onwards

13

POWER AGREEMENTS SECURED FOR 3 GWMinimum guaranteed revenues will reach R$ 1.4 billion in 2014

14

TOTAL CAPACITY

(MW)

ADJUSTED CAPACITY

(MW)

ENERGY SOLD (AVG MW)

ANNUAL CAPACITY PAYMENT FUEL SOURCE

PPA PERIOD

Pecém I 720 360 308 R$ 282 million Coal 2012-2027

Itaqui 360 360 315 R$ 298 million Coal 2012-2027

Pecém II 365 365 276 R$ 268 million Coal 2013-2028

Parnaíba I 676 473 315 R$ 293 million Natural Gas 2013-2028

Parnaíba II 517 362 315 R$ 246 million Natural Gas 2014-2034

Total – Reg Market 2,638 1,920 1,529 R$ 1,387 million

Note 1. Adjusted Capacity, Energy Sold and Annual Capacity Payment: Figures adjusted for MPX’s ownership in each project

Note 2. Capacity Payments are indexed to the IPCA inflation index (Figures as of September, 2012)

MPX and MMX signed an energy supply contract for 200 average MW, from January 2019 until May 2029, at a base

price of R$ 125/ MWh (as of May 2011).

Location Ceará, NE Brazil

Installed Capacity 720 MW

Firm Energy 615 avg MW

MPX Stake 50%

Total Investment R$ 3.0 billion

PPA Period 2012- 2027

Fuel Source Coal

PECÉM I

PECÉM I

100% contracted in the Regulated Market (pool of distribution companies)

Milestones to commercial operation (DCO):

Unit #1: DCO on Dec 01, 2012

Unit #2: Reinstatement –> By-pass operation –> Steam-to-turbine –> Electrical tests –> First synchronization –> Electrical load tests –> DCO

15

Location Ceará, NE Brazil



MPX Stake 100%



Fuel Source Coal

PECÉM II

PECÉM II



Cold commissioning First fire Steam blowing Reinstatement By-pass operation Steam to turbine Electrical

tests First synchronization Electrical load tests DCO

16

TPP PECÉM I & II

17

Location Maranhão, NE Brazil



MPX Stake 100%



Fuel Source Coal

ITAQUI

ITAQUI



Electrical load tests –> DCO

18

TPP ITAQUI

19


Installed Capacity 676MW


MPX Stake 70%



Fuel Source Natural Gas

PARNAÍBA I OCGT

PARNAÍBA I


EPC contract with Duro Felguera

Commissioning phase on schedule to start in 4Q12

A 363 MW expansion (cycle closing) is registered for the 2012 A-5 Auction, scheduled for December 201220




MPX Stake 70%



Fuel Source Natural Gas

PARNAÍBA II CCGT

PARNAÍBA II


EPC contract with Initec Energia

21

22

TPP PARNAÍBA I & II

NATURAL GAS E&P

5

MPX OWNS 23% OF A UNIQUE ONSHORE NATURAL

GAS PORTFOLIOOwnership Structure:

Gas Production at Gavião Real field to start in Jan 2013

Discovery Evaluation Plan for Bom Jesus field approved by ANP

Drill-stem test in well OGX-88 concluded with 36 meters of net pay

2 additional wells drilled with positive results, supporting development

Exploratory campaign has identified 4 accumulations and over 20

prospects

5 drill-rigs in operation: 3 exploratory wells underway

OGX MaranhãoBlocks

Total area:24,500 km²

24

On schedule to start production at Gavião Real in Jan, 2013

Estimated production capacity in 2013:

7.5 MM m³/day

16 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

GAS PRODUCTION IS PLANNED TO START IN 1H13Initial production of 6 MM m3/day will supply Parnaíba I & II GTs

25

2.5 GW licensed and still

uncontracted could demand further

12 MM m3/day

Inexpensive connection to the

electrical grid

Limited competition in gas-fueled power generation

Tax-advantaged region can attract industrial investments when gas is available

ATTRACTIVE OPPORTUNITIES TO MONETIZE

ADDITIONAL PRODUCTIONEfficient Integration of Natural Gas Resources with Power Generation

26

PARNAÍBA: E&P – NATURAL GAS

27

JOINT-VENTURE WITH E.ON TO ACCELERATE

GROWTH

6

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 is one of the world's largest investor-owned power and gas companies with 69 GW of

generation capacity

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$1.0 billion through a capital increase E.ON acquired a 11.7% equity interest in MPX @ R$ 14.7/share

CREATING VALUE THROUGH A JOINT-VENTURE

WITH E.ONLeveraging Strong Complementary Capabilities to Enhance Growth

29

FUTURE GROWTH OPPORTUNITIESMPX is positioned for leadership in the Brazilian energy market

30

Parnaíba2,166 MW

Seival600 MW

Sul727 MW

Açu2,100 MW – Coal3,300 MW – Natural Gas

CastillaTBD

Solar Tauá1 MW

Ventos Wind Complex600 MW + 600 MW

Parnaíba GT: Key competitive advantage

through the integration of natural gas

production and power generation in a tax-

advantaged region

Ventos Wind: High-quality greenfield assets in

one of Brazil’s best wind resource areas

Açu: Studies underway to assess installation of

regasification terminal at the port

MPX Sul + Seival: low generation cost in a

region with limited hydro potential and

transmission constraints

João Câmara

RN

VENTOS: A 600 MW WIND COMPLEX IN ONE OF

BRAZIL’S BEST WIND RESOURCE AREAS

Total Capacity: 600 MW + call option on

additional 600 MW

Estimated Load Factor: 48% (P50)

Location: Rio Grande do Norte, NE Brazil

Grid connection 30km from Complex

All land rights secured

158.7 MW registered for 2012 energy auctions

Environmental license granted

High-quality greenfield assets in northeast Brazil

31

AÇU: A 5.4 GW GREENFIELD GENERATION COMPLEX3.3 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%32

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.

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

33

FINANCIAL HIGHLIGHTS

7

STEADY AND PREDICTABLE CASH FLOWS

Capacity Payments (R$ billion)Installed Capacity (MW)

2012 2013 2014

720

1,558

1,920

Pecém I

Itaqui

Pecém II

Parnaíba I

Parnaíba II

Note 1. Figures adjusted for ownership.

Note 2. Capacity Payments are indexed to the IPCA inflation index (Figures shown are in real terms, as of September, 2012).

Note 3. EBITDA figures do not include MPX’s interest in the Parnaíba basin gas onshore blocks. 35

2013 2014 2015

1.14

1.35 1.39

Jun/12 Sep/12

67% 63%

33% 37%

Short Term

Long Term

Cash & Cash Equivalents

2012 2013 2014 2015 From 2016 on

1,003.0

169.8

2,095.3

278.3 265.2

2,902.4

R$ 1,454 million bridge-loan to

Parnaíba I & II power plants -> to be

paid-off with draw down from long-

term financing

36*Values incorporate principal + capitalized interest + charges and exclude outstanding convertible debentures.

Maturity Profile (R$ million)

R$ billion Jun/12 Sep/12

Gross Debt (R$ MM) 5.1 5.6

Net Debt (R$ MM) 4.0 4.6

Average Cost (%) 9.4 8.7

Average Tenure (years) 5.6 5.1

Debt Profile

INDEBTEDNESS

For more information, contact:Investor Relations (55 21) 2555-9215

[email protected]

mailto:[email protected]

MPX Corporate Presentation - December 2012

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