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
3. Why investing in the power sector ?
Brazil is likely to experience a strong growth in energy demand in the near future
Supply & Demand Forecast (Avg. GW) Generation Expansion Alternatives
.5%
75 =4
GR • Increasing environmental licensing difficulties
CA ar
)
nd ye • New projects mainly in the Amazon region
70 m
a W Hydro
De 3G
(~
• Limited reservoirs
65
Avg. GW
60
• Natural gas deficit
55 • Single supplier
Natural Gas • High LNG prices
50
• Excessive penalty associated to fuel
45
unavailability
2007 2008 2009 2010 2011 2012 2013 2014
Exis tent / Under Construction Auction for New Energy
• Important complementary source
MPX Portfolio Energy Demand Alternative
• High price
Sources
Source: PSR Report
• Low associated energy
Demand Evolution (Volume)
3% 6% • Government projects
15% Nuclear / Structuring
23% 25% 26% • Political risk
Projects
• Challenges for implementation
97% 94%
85%
77% 75% 74%
• Abundant reserves
Coal Thermal • Highly traded
Plants • Located in areas of relatively low
2002 2003 2004 2005 2006 2007
geopolitical risk
Regulated - ACR Free Market - ACL
3
4. Ownership Structure
Controlling Shareholder Free Float
76% 24%
Market Capitalization1
US$ 3.5 billion
Power Generation
Power Generation Coal Supply
Coal Supply Power Marketing
Power Marketing
51.0% 99.9% 100.0% 2 50.0% 67.0% 99.9% 100.0% 2 70.0% 100.0% 99.9%
Amapari Colombian Energy
Seival II Porto do Açu Pecém Termopantanal Termomaranhão Castilla Seival Mine
Energia Mines Trading Co
Partners Partners Partners Partners
49% Eletronorte 50% EDP 33% Coop. Rural 30% Copelmi
de Electrificacion
1 – As of April 10, 2008
2 – According to the material fact released on February 19, 2008
4
5. Main Projects
PCH Capivara (Amapá) UTE Serra do Navio (Amapá)
(30 MW) (23 MW)
UTE Porto de Itaqui (Maranhão)
(720 MW)
UTE Porto do Pecém (Ceará)
(1,080 MW)
UTE Termopantanal
(Mato Grosso do Su)
(44 MW)
UTE Porto do Açú (Rio de Janeiro)
(5,400 MW)
UTE Castilla (Chile)
(1,400 MW) UTE Seival II & Seival Coal Mine
(Rio Grande do Sul)
(600 MW)
UHE Baixo Iguacu (Paraná)
(350 MW) Size (MW) MPX (MW)
Coal 9,200 6,800
Hydro 380 260
Natural Gas 44 29
Diesel 23 12
9,647 7,101
* Considering the total stake of UTE Açu and UTE Castilla, according to the relevant fact released on February 20, 2008, the amount owned by MPX would be 9,141 MW 5
6. Strategic Positioning
MPX’s business model will evolve towards a stronger role in renewable energy, turning
itself into a multi-fuel energy producer
Brazil offers competitive advantages to produce energy based on renewable
sources (solar, biomass, wind)
MPX has already identified some attractive alternatives to be developed in the
near future, such as the partnership with Yingli for solar energy projects
2008 Profile with Açu’s
2007 Profile 2nd phase with natural gas 2015 Outlook
Hydro Hydro
Renewables
4% 4%
10%
Hydro
8%
Natural
Gas
IGCC/
35%
Coal Coal
41% Coal
52%
55% Coal
61% Natural Gas
30%
6
7. Solar Energy Projects
A long term strategy that will not require relevant capex in the near future
MoU with Yingli: prospective partnership in solar-based power
generation projects
Evaluate opportunities to implement photovoltaic power plants as
well as photovoltaic modules manufacturing units in Brazil and
Latin America
0-6 months: business plan (investment,
operation, maintenance and energy sale) Initial project: pilot plant (50MW)
50
Equipments to be supplied by Yingli
Additional Capacity (MW)
Land and interconnection to the Accumulated Capacity (MW) 35
system to be arranged by MPX
20
Fiscal incentives
15 15
10
Local workforce training for 5
construction and operation to be
held by MPX
4Q08 3Q09 2Q10 4Q10
7
8. Solar Energy at a glance
A new frontier that will become a competitive energy source in the near future
Brazil, with its huge and available areas, is
uniquely positioned to take advantage of
demand growth coupled with low
investment requirements in the future
Low High
Radiation Radiation
PV Installed Capacity Forecast (MW) PV Capex Forecast (US$ / Watt)
25.000 12
Germany France 11
20.000 10 Wafer Module
Italy Spain
9
ROW 8 Hardware Installation
15.000
7
6
10.000 5
4
5.000 3
2
0 1
0
2007 2008 2009 2010 2011 2012
1990 1995 2000 2005 2010 2015 2020
Sources: UBS and Rise (Research Institute for Sustainable Energy) 8
9. Coal Thermal Plants using Clean Coal Technology
MPX´s projects will use Clean Coal Technology
This technology controls the emissions during
the coal combustion:
Reduction of NOx using Low NOx Burner and
“Over fire Air“
Reduction of SOx through the installation of a
FGD Fuel Gas Desulfurization
Reduction by 99.99% of particulate material
Clean Coal Technology also aim to improve the
efficiency of a power plant, leading to reduction
in fuel consumption and overall emissions
Source: EDP – UTE Edes/POR - CCT
9
10. Social & Environmental Update
Even during the pre-operational phase, MPX is already structuring its social and
environmental initiatives
Governance Structure Strategy and Actions
Board of Preservation Initiatives
Directors
RPPNs: 70 thousand hectares nominated as
world natural heritage site by UNESCO
Executive Bioatlantica: Rainforest conservation
Officers Botanic Garden in Ceará (partnership with
Rio de Janeiro’s Botanic Garden):
increasing from 20 to 100 hectares
Steering
Management
Committee Recovery of Degraded Areas
New projects in São João da Barra (Rio de
Communities Public
NGOs Partners Janeiro): where UTE Porto do Açu is located
Institutions
• Ecotrópica • Itaqui • Energias do • Environmental
• IHP • Pecém Brasil agencies
• IBio* • São João da Barra • Açu clients Renewable Resources
• Avina • Eletronorte
• Yingli
Algaes: partnership with Ceará university and
• FBDS
Haifa University (Israel)
Solar energy projects: MoU with Ceará
Government
Wind power projects: Rio de Janeiro (110MW)
Social and Environmental Responsibility
* Supported by The Nature Conservancy, Conservation International and others 10
11. Environmental Excellence
“Conciliate economic development with nature preservation”
Brazil has unique conditions to support CO2 emissions
Land availability
Water
Climate Conditions
EBX has expertise in managing the environment
MPX will invest up to US$30 million a year in environment preservation
Eliezer Batista Natural Reserve:
Eliezer Batista Natural Reserve:
50 thousand acres in the most
50 thousand acres in the most … MMX already excels in
… MMX already excels in … and Company already
… and Company already
preserved area in South Pantanal, …
preserved area in SouthPantanal, …
Pantanal, reforesting…
reforesting…
reforesting… envisioning new technologies
envisioning new technologies
11
12. Business Plan Update Highlights
The update of some projects start-up and a more comfortable disbursement
schedule enhanced our Business Plan
Porto do Açu 700 MW acceleration (MW)
Jul/2012 Jan/2013 Jul/2013 Jan/2015 Jan/2016 Jan/2017 Jan/2018
Business Plan 700 700 - 1,000 1,000 1,000 1,000
Update 700 700 700 1,100 1,100 1,100 -
Castilla adjustment (MW)
Jul/2012 Jan/2013 Jul/2013 Jan/2014
Business Plan 700 - 700 -
Update 350 350 350 350
Itaqui ( MW, 2nd phase)
Jan/2013 Jan/2014
Business Plan 360 -
Update - 360
Capex curve (%)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Business Plan 2% 15% 25% 15% 12% 10% 10% 8% 2% 1%
Update 4% 13% 15% 19% 17% 13% 10% 6% 2% -
12
13. Business Plan Comparison
The update of some projects start-up1 and a more comfortable disbursement
schedule enhanced our Business Plan
Projects Start-up (GW) Installed Capacity Ramp-Up (GW)
Feasibility study 9.6 9.6 9.6
Feasibility study
Revision Revision 8.5 8.6
7.4 7.6
6.6
6.3
5.6
5.0 5.0
2.8 2.8
1.8
1.2 2.6
1.1 0.9 1.0 1.1 1.0 1.1 1.0 1.1 1.0 2.2
0.6 0.6 1.2 1.2
0,0
2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018
Annual Capex Disbursement (%)
Feasibility study
25% Revision
19%
17%
15% 15% 15%
13% 13%
12%
10% 10%10%
8%
6%
4% 1% 0%
2% 2% 2%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
1 - UTEs Porto do Açu, 2nd phase of Porto de Itaqui and Castilla
13
14. Uses and Sources up to 2012 & DCF
The transfer, to MPX, of Centennial 30% stake in Porto do Açu and Castilla
projects will represent additional cash to the Company
Demonstrative DCF
Centennial contribution
Porto do Porto do Porto do Açu Castilla Seival II Other Total IPO Centennial Centennial Updated
Pecém Itaqui projects (phase 1 Açu (Açu phase Business
and Castilla) 2) Plan
Uses and Sources
US$ million 300 10,300
300
1,100
7,400
9,700
600
1,200
Capex Financial Pre-op Total of IPO Debt Cash Flow Customer Equity Sale
Expenses Capex and Uses Proceeds Advances Açu and
Working Castilla
Capital
14
15. Coal Supply Update
MPX has made significant progress in order to secure coal supply to its plants
Colombia
► MPX Colombia branch established
► General Manager of MPX Colombia hired
► 2 concession areas secured
► Additional opportunities under analysis
Mozambique Update: feasibility study by AMCI to be concluded in June
Alternatives under analysis
► Colombia
► Australia
► South Africa/Mozambique
15
16. MPX Coal Mining Rights in Colombia
Potential geological resources estimated to be greater than 150 million tons
Cerrejón
(Anglo American/Xstrata/BHP)
Cerrejon Sur
El Paso
La Loma
Pribbenow
Drummond
16
17. Existing and future infrastructure in Colombia
PORT BOLIVAR
Brisas Port Project
Cienaga Port Project
RIOHACHA
SANTA MARTA
BARRANQUILLA Propuerto
Cerrejon North
CIENAGA Cerrejon Sur/Sur
Cerrejon Central
Guaimaral Cerrejon South
VALLEDUPAR
El Paso
La Francia
El Descanso
El Hatillo
Calenturitas
La Loma
Pribbenow
Drummond
-Carbones del Caribe
La Jagua -Carboandes
Magdalena -CMU
River
TAMALAMEQUE
17
18. MPX Coal Requirements
Strategic goal is to guarantee coal supply and mitigate commodity risk
First production to be dedicated to free market plants
Eliminate commodity risk
Secure upside to the plants with pass through mechanism
Million tons
18
16
14 Seival
12
10 Chile
8
Pass through
mechanisms
6 Regulated Market
4
2 Free Market
-
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
* Figures for 80% average dispatch
18
19. MPX Milestones Roadmap
1H08 2H08 1Q09
UTE Porto do Açu (2.100 1st phase UTE Porto do 1st phase UTE Porto do
UTE Porto do Pecém: Long UTE Castilla: Installation
MW): Environmental Impact Açu: Preliminary License term financing contract Açu: Installation License
License
Study filing ( 2,100 MW) ( 2,100 MW)
UTE Porto de Itaqui: UTE
UTE Porto de Itaqui: UTE Porto de Itaqui: Long Seival II: Preliminary UTE Seival II: Installation
Environmental Impact
Installation License term financing contract License License
Study filing
UTE Castilla: financing 2nd phase UTE Porto do UTEs Porto do Açu e UTE Porto do Açu: Long UTE Castilla: Long term
Term Sheet Pecém: Installation License Castilla: Bridge loan term financing contract financing contract
UTE Porto do Pecém: UTE Porto do Açu: Eligibility 2nd phase UTE Porto do UTE Porto do Açu: NTP for UTE Castilla: “Limited NTP”
Pecém: EPC contract EPC and down payment for EPC (down payment for
Bridge loan for BNDES long term financing
signature long lead items long lead items)
UTE Porto de Itaqui: Bridge 2nd phase UTE Porto do UTE Seival II: EPC contract
2nd phase UTE Porto do UTE Castilla: EPC contract
Pecém: NTP for EPC and down
loan Pecém: MOU for EPC signature signature
payment long lead items
UTEs Porto de Itaqui and UTE Seival II: NTP for EPC
UTE Porto do Açu: UTE Porto do Açu: EPC 1st phase UTE Porto do
Pecém: EPC contract and down payment long
MOU for EPC contract signature Açu: PPAs signature
signature lead items
Porto de Itaqui and Pecém: Solar energy pilot plant:
NTP for EPC and down Coal mine acquistion in the UTE Castilla: Installation License and UTE Seival II: MOU for
payment long lead items international market MOU for EPC construction PPAs
ANEEL’s approval to the 1st phase UTE Porto do 1st phase UTE Porto do UTE Castilla: strategic
structure of the Açu project Açu: MOU for PPAs Açu: MOU for PPAs partner selection
Solar energy pilot plant
UTE Porto do Açu and UTE Castilla: PPAs
Castilla 30% stake transference UTE Castilla: MOU for PPAs start-up
from Centennial to MPX signature
Solar energy pilot plant:
Solar Energy: Yingli Selection of the site and 1st phase UTE Porto do
partnership basic engineering Açu: PPAs signature
Participation in the A-5
auction for new energy
Legend:
Environmental Power Marketing and
Licensing Coal Supply
UTE Porto do Açu:
strategic partner selection Funding Strategic / Extraordinary
Notes: Engineering and
Construction (EPC) Accomplished Events
NTP – Notice to Proceed; EPC – Engineering, Procurement and Construction; MOU – Memorandum of Understanding; PPA – Power Purchase Agreement
19
20. MPX: commitment with value creation
Leading
power generation
company
Strategic Superior
partnerships power assets
Experienced Uniquely positioned
management & to capture
proven track record market growth
20
