February 2009
090202
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.
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MPX: A unique electrical bond
� Portfolio of opportunities for future growth
� 2,100 MW already licensed
� Over 4,800 MW under development
� Coal assets in Brazil and Colombia
� 3 projects contracted – 1,100 MW of capacity sold
�15-year PPAs secured, with full pass-through of fuel costs
� Lump-sum/turn-key EPC contracts secured
� Returns way above average electrical sector
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High liquidity and financial strength, yet trading below cash
Current Price
R$ 160/share
Avg. Target Price *
R$ 400 / share
150%potential upside
* Considering the DCF value from Santander, Itaú, Merrill Lynch and JP Morgan (including only Pecém I, II and Itaqui)
MPX Projected Cash Position (R$ MM)Financial strength and liquidity
� R$ 1.8 billion in cash
� Equity requirements from 3
projects ~ R$ 0.9 billion
Cash
R$ 265/share
Cash excluding equity requirements
R$ 132/share
0
400
800
1.200
1.600
2.000
2008 2009 2010 2011 2012 2013
5
720 MW
Coal
50% MPX
50% EDP
Pecém I Pecém II
360 MW
Coal
360 MW
Coal
100%
Capacity
Fuel
Partnership
23 MW
Diesel
51% MPX
49% Eletronorte
Capacity
Fuel
Partnership
Capacity
Fuel
Partnership 100%
SERRA DO NAVIO TPPAmapá
IN OPERATION
Brasília
Brazil
PECÉM I & IICeará
ITAQUI TPPMaranhão
AUGUST 2011
SEIVAL MINERio Grande do Sul
MINING RIGHTSGuajira
JUL-OCT/11 & JUN/12
Bogotá
Colômbia
By 2012, the company will have over 1,100 MW in installed capacity
6
MPX´s projects will start generating operating cash flows in 2011
Guaranteed Capacity Payments (R$ million) **
15-yr PPAs
207
221*
234
455
662
Pecém IItaqui Pecém II
* Considering the 50/50 partnership with EdB in Pecém I
Obs: Excluding Serra do Navio TPP** In real terms, as of September 2008
Gross Revenues (R$ million) **
PPAs in the Regulated Market start
in Jan 2012 and Jan 2013
Average Dispatch = 65%
0
200
400
600
800
1000
1200
1400
2012 2013
0
200
400
600
800
1000
1200
1400
2011 2012 2013 2014 2015
314
1,1471,216 1,199 1,208
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Porto do Pecém TPP is already under construction
• 720 MW (coal)
• Installation License(construction underway)
• Start-up: Jul/11 e Oct/11
• Partnership 50/50: MPX/EDP
• 15-yr PPA Secured(starting in 2012)
• Full pass-through of fuelcosts
• 360 MW (coal)
• Installation License
• Start-up: Jun/12
• 100% MPX
• 15-y PPA Secured(starting in 2013)
• Full pass-through of fuelcosts
Pecé
mI
Pecé
mII
Construction
Pecem Port
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And site preparation and worksite assembly have already started in Porto de Itaqui TPP
• 360 MW (coal)
• Federal (IBAMA) Partial Installation License
• Start-up: Aug/11
• 100% MPX
• 15-yr PPA Secured (starting in 2012)
• Full pass-through of fuel costsPor
to d
e Ita
qui
9
Cash balance is above equity requirements and final approval oflong term financing is expected soon
EquityEquity
(R$ 1.2 B)(R$ 1.2 B)
InvestmentsInvestments
(R$ 4.6 B)(R$ 4.6 B)
SG&ASG&A
(R$ 0.4 B)(R$ 0.4 B)
Sources of Capital Use of proceeds
Equity
Note: 1- Estimated based on Company’s projections and assumptions on pre-operational Phase2- Figures in real terms
ECA/MLA
Interest Income and Operating Cash
Estimated Investment includes:
Cumulative equity disbursement up to 2012;
Pecém I and Itaqui with eligibility for IDB;
Due Diligence concluded for both projects;
Board approval expected in 1Q09
Term sheet completed with IDB/B-lenders
Cash Generation of Pecém I and Itaqui starts in
2011
MPX SG&A
CAPEX necessary to develop Pecém I TPP,
Itaqui TPP and Pecém II TPP;
Includes IDC, capitalized interest and
financing fees;
Working Capital;
Estimated investments in Colombian
exploratory phase and development phase;
ECA/MLAECA/MLA
(R$ 0.7 B)(R$ 0.7 B)
BNDES (Projects included in the PAC)
Pecém I and Itaqui with eligibility for BNDES
and long term financing on domestic content.
Due diligence concluded for both projects.
Board approval expected in 1Q09;
Pecém II with BNDES eligibility for the totality
of the long term financing;
BNDESBNDES
(R$ 2.7 B)(R$ 2.7 B)
Cumulative SG&A up to 2012;
Cash Cash
GenerationGeneration
(R$ 0.6 B)(R$ 0.6 B)
Cash Cash
AvailabilityAvailability
(R$ 0.8 B)(R$ 0.8 B)MPX S.A. Cash availability by 2012
New New
ProjectsProjects
3- Financing Includes the capitalized interest portion4- Equity already includes the Interest During Construction paid
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MPX has already identified coal resources in Colombia
Mining Rights in Colombia
• Cerrejon Sur Sur region – 60 thousand hectars
• Drilling campaign underway – mineral resources already identified
• New areas under analysis
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Negotiations are underway to secure logistics to bring coal from
Colombia to Brazil at competitive costs
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Additionally, MPX controls a coal mine in Brazil with proven reserves
Seival Mine
• Partnership 70/30: MPX / Copelmi
• Proven resources of 152 MM tons of coal (above the
supply needs of a 600 MW thermal plant for 20 years)
• Operating License granted
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MPX currently has over 4,800 MW under development, which will
allow it to benefit from high future energy prices
Licensing process for 2,100 MW (coal) initiated
Licensing process for 600 MW (domestic coal) initiated
Preliminary license for 2,100 MW (coal) obtained
SERRA DO NAVIO TPPAmapá
MINING RIGHTSGuajira
ITAQUI TPPMaranhão
PECÉM I & IICeará
PORTO DO AÇURio de Janeiro
SEIVAL MINERio Grande do Sul
MPX SUL TPPRio Grande do Sul
CASTILLA TPPIII Region - Atacama
Santiago
Chile
Brasília
Brazil
Bogotá
Colômbia
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Additional Information
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EPC (Engineering, Procurement and Construction)*
MPX has signed lump-sum/turn-key contracts, ensuring startup of
operations in advance of beginning of energy supply contracts
• MABE: Maire Tecnimont and EFACEC
• Incentive mechanisms for anticipation of start-up
• Boilers from Doosan Babcock and turbines from
Siemens
• Contract Guarantees:
Lump-sum/Turn-key contract
Delay Damages
Performance Liquidated Damages
Performance Bond
Advance Payment Bond
Parent Company Guarantee
• Coal Berth defined
* Valid for Pecém I, Itaqui and Pecém II
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Capex
And USD-denominated equity disbursements have been fullyhedged
Porto do Pecém I TPP
• Capex ~ R$ 3,300 / kW
• Considering 65% R$ / 35% US$
• Hedged @ spot rate of 1.81 R$ / US$
Porto do Pecém II TPP
• Capex ~ R$ 3,300 / kW
• Considering 57% R$ / 43% US$
• Hedged @ spot rate of 1.92 R$ / US$
Porto de Itaqui TPP
• Capex ~ R$ 4,000 / kW
• Considering 65% R$ / 35% US$
• Hedged @ spot rate of 1.81 R$ / US$
DisbursementCurve
DisbursementCurve
DisbursementCurve
25%
54%
16%
6%
2009 2010 2011 2012
2%
32%
23%
5%
38%
2007 2008 2009 2010 2011
3%
28%
41%
19%
10%
2007 2008 2009 2010 2011