Corporate presentation december

Corporate Presentation

11-30-10

2010

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.

22

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.

ABOUT MPX

MPX Investor Presentation

3

Diversified private-sector utility

with large portfolio of thermal

energy projects

Owner of high-potential coal and

natural gas assets in Colombia and

Brazil

MPX Highlights

4

Flexibility to supply natural

resources to its own plants or the

international market

An EBX Group Company

The strong rebound in demand in 2010 is bringing the demand curve back to its

trend level before the 2009 drop

Strong macroeconomic growth, with high levels of industrial production, driving

increased power demand

Thermal power plants still play reduced role in the Brazillian Energy Matrix

Brazil’s Increasing Power Demand

Power Demand in Brazil Energy Matrix in Brazil

5

20000

30000

40000

50000

60000

70000

80000

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

20

12

E

20

14

E

MW

av

g

2010E: 8% YoY

Power Demand in Brazil

Source: ONS, EPE, MPX estimates Source: Aneel Oct. 2010

Power

Rationing

Subprime

Crisis

1%

1%

2%

5%

6%

7%

10%

67%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Wind

Coal

Nuclear

Oil

Biomass

Imported

Natural Gas

Hydro

Energy Matrix in Brazil

And Growing Demand for Thermal

New hydro plants have reservoirs that are negligible in size, thus supply reliability depends on

the increase of thermal generation capacityRainfall

50%

100%

150%

200%

250%

300%

350%

%Média Histórica

Sudeste

Sul

Nordeste

Norte

% o

f h

isto

rica

l avg

System Autonomy (months)

282,000

284,000

286,000

288,000

290,000

292,000

294,000

EA

Rm

ax

(MW

me

d)

4.5

5.0

5.5

6.0

6.5

EA

Rm

x/C

arg

a

Ma

x st

ora

ge

ca

pa

city

(M

Wa

vg)

Ma

x st

ora

ge

ca

pa

city

/ L

oa

d

Southeast

South

Northeast

North

6

0

2000

4000

6000

8000

10000

jan fev mar abr mai jun jul ago set

MWmédio

Segurança Energética

Restrições Elétricas

Inflexibilidade

Ordem de Mérito

Thermal DispatchEnergy Stored in Reservoirs (end of month)

2010 2010

2010

MW

avg

0%

50%


280,000

2010 2011 2012 2013 2014

4.0

Ma

x st

ora

ge

ca

pa

city

(M

Wa

vg)

Ma

x st

ora

ge

ca

pa

city

/ L

oa

d

Source: ONS

40%

50%

60%

70%

80%

90%

100%

110%

120%


% Volume Máximo Armazenável Sudeste

Sul

Nordeste

Norte

% o

f m

axi

mu

m c

ap

aci

ty

Southeast

South

Northeast

North

Supply Reliability

Electric Restriction

Inflexibility

‘Order of Mert’

Brazil’s Economic Growth Drives Greater Role for Thermal

Brazil’s generation capacity shall increase to 130.3 GW in 2014 from 103.6 in 2009.

Thermal generation shall respond for 62% of such increase

54.30

14.3

72.30

4.4

20

40

60

80

GW

avg

Energy Balance

0.7 GWavg

54.30

14.3

72.30

3.08

20

40

60

80

GW

avg

Energy Balance

- 0.6 GWavg

ONS’ official supply estimate (2015)

Demand: avg growth rate (2011-2015) = 5.2%

Supply, assuming a 30% default rate for delayed projects (2015)


7

0Supply Demand

54.30

14.3

74.41

4.4

0

20

40

60

80

GW

avg

Energy Balance

- 1.4 GWavg

Supply Demand

0Supply Demand

54.30

14.3

74.41

3.08

0

20

40

60

80

GW

avg

Energy Balance

- 2.7 GWavg

Supply Demand

Supply, assuming a 30% default rate for delayed projects (2015)


ONS’ official supply estimate (2015)


2011-2014 capacity expansion: construction delayed2011-2014 capacity expansion: construction on schedule Supply in 2010

Source: ONS, Aneel, MPX estimates

EXECUTION CAPACITY


8

Experienced management team with proven capacity for execution

Synergies with EBX Group companies to create competitive advantages

Positioned for leadership in Brazilian energy market – diversified project

portfolio

MPX: Positioned for Growth

9

Optionality through ownership of natural resources provides both

operational and financial flexibility and an array of strategic options

CFO at MMX Mineração e Metálicos S.A.

CFO at Unisys in Brazil and Germany

Over 25 years of experience in the financial area at multinational corporations

Eduardo KarrerCEO & IRO

CEO at El Paso Brasil Ltda.and Rio Polímeros S.A..

Over 22 years of experience in a wide range of M&A and corporate finance transactions related to the natural resources, electricity, sanitation and logistics sectors

Executive manager for the Gas&Energy and International Markets divisions at Petrobrás

Rudolph IhnsCFO

Xisto Vieira FilhoOfficer for Regulatory Affairs & Commercialization

Former National Secretary for Energy

Coordinator of the Subcommittees for Electricity Studies of the Interconnected System and Secretary of National Energy Policy Committee of Brazil

Chairman of the Board of Directors of CHESF and Eletrosul and Board member of Eletrobrás, Furnas,

Talented, Experienced Management Team

10

Marcus Bernd TemkeCOO

Over 20 years of experience in operations at multinational corporations

COO at Rio Polímeros S.A.

Holds an MBA from COPPEAD-UFRJ

CommercializationChairman of the Board of Directors of CHESF and Eletrosul and Board member of Eletrobrás, Furnas, Cepel and Grupo Rede

Former president of the National Committee of Cigré (Conference Internationale des Grand Réseaux Électriques)

Bruno ChevalierGeneral Counsel

Partner at Villemor Amaral Advogados (2002-2004) and Tozzini, Freire & Silva Advogados (2001-2002)

General Counsel at MMX Mineração e Metálicos S.A.

Legal Director at General Motors Corp. in Lisbon and Delphi Automotive Systems

Gustavo GomesDirector for Mining & Natural Resources

Over 25 years of experience in the mining industry (Rio Tinto and BHP Billiton), in technical, operational and strategic roles

Extensive international experience: managed projects in Brazil, India, Australia, US and Canada

Holds an MBA from MIT Sloan School of Management

Construction

Agreement

with Evonik

LT financing Pecém

and Itaqui : 1st

disbursement

1Q10

Parnaíba: 1.7 Tcf of

natural gas contingent

resources certified

Drilling at Parnaiba

begin. LP MPX

Parnaiba.

3Q10Identified gas in well

OGX-16 Block

Parnaíba

A Proven Record of Achievement

Track record: reliable execution of complex,

technical projects delivers high-returns

11

623 avg MW sold

(A-5 auction)

4Q07

IPO:

USD 1.1 billion

3Q08

Construction

works at

Pecém begin

276 avg MW sold

(A-5 auction)

Acquisition

of mining

rights in

Colombia

Construction

works at Itaqui

begin

Construction

works at Pecém

II begin

MPX Colombia

1st Technical Report:

Indicated + Inferred coal

resources of 110 mln tons

Acquisition of

interest in Parnaiba

1Q08

1Q09

2Q09

3Q09

4Q09

1Q10

MPX Colombia: Business Plan

2nd Technical Report:

Measured + Indicated +

Inferred coal resources of 144

mln tons

EBX Group: Proven Execution Capacity

Marketing Engineering- 50 iron ore and 4 energy long-term supply agreements

- 9 strategic partnerships (e.g. Petrobras, Anglo American,

EDP, Maersk, Wuhan and Perenco)

Social / Political Engineering- Cleaning of Rodrigo de Freitas Lagoon

- Over 400,000 he of protected area and natural

heritage private reserves

- Support to 2016 Olympic Games in Rio de Janeiro

Financial Engineering- US$8.7 bn in firm commitments in long-term

financing

- 4 IPOs and 1 spin-off (listing)

- More than US$7.0 bn in asset sales

- 24 strategic transactions (i.e. OTPP, BNDES,

Wuhan, Hyundai, Anglo American, EDP)

- US$10 bn in equity issued (including IPOs, Private

Placements and Rights Offering)

Execution Capacity Enhanced by Relationship to EBX Group

12

THE

ZONE

Logistics Engineering- ~500 km iron ore pipeline

- Railway access to major projects

- Integrated logistics solutions

- Strategically located sites to access ports

in Brazil, Colombia, Chile and Argentina

People / Team Engineering- Around 2,000 employees

- Over 15,000 employees are working in the

construction of various ventures currently being

undertaken by the group;

- Ability to attract and retain high qualified

professionals (from CSN, Petrobras, Vale, ALL,

among others)

- More than US$1.0 bn in performance-based

compensation (stock options and cash) since

inception

Engineering Engineering- More than 40 feasibility studies (McCloskey,

PSR, Pinckock Allen, PSI, SRK, Verax, De&Mac,

Black&Veatch, among others)

- 2 super ports under construction

- 3 power plants under construction (1,440MW)

- 15 wells drilled all with oil shows

- 10 Mtpy integrated iron ore systems in operation

Legal Engineering- More than 45 regulatory

licenses obtained

Environmental Engineering- More than 100 environmental

licenses obtained

The MPX Portfolio

Greenfield Power Projects

MPX is developing 8 GW in greenfield power generation projects throughout Brazil,

which will enable it to benefit from the increase in electricity demand in the coming

years. The company is also licensing over 2GW in Chile.Contracted Power Projects

Coal

Energia Pecém (720 MW)

MPX Pecém II (360 MW)

MPX Itaqui (360 MW)

13

Greenfield Power Projects

Natural Gas

MPX Parnaíba (1863 MW)

MPX Açu Phase II (3300 MW)

Coal

MPX Açu Phase I (2100 MW)

MPX Sul (600 MW)

MPX Seival (600 MW)

MPX Castilla (2100 MW)

Renewables

Wind: MPX Paracuru (32 MW)

Solar: MPX Solar (1 MW)

Environmental license granted

CONTRACTED PROJECTS


14

Contracted Power Plants – Construction on Track

MPX’s 3 power plants under construction are well-advanced, will start-up in 2011 and

2012 and are contracted for a period of 15 years.

CapacityEnergy sold

(avg MW)Term of PPA** EPC progress

Capex

(R$ billion)

Energia Pecém * 720 615 Jan 2012-Dec 2027 82% 1.29

MPX Pecém II 365 276 Jan 2013-Dec 2028 75% 1.28

MPX Itaqui 360 315 Jan 2012-Dec 2027 82% 1.62

15

2Q09

Spot¹

Spot¹ Fixed Gross Revenue: R$ 238.7 MM/y²

4Q07

3Q08

1Q09

2012 20134Q11 3Q123Q11

Fixed Gross Revenue: R$ 251.4 MM/y²

Fixed Gross Revenue: R$ 265.8 MM/y²

Construction works at Energia Pecem

Construction works at MPX Pecem II

Spot ¹

*Energia Pecém is a 50/50 partnership between MPX and EDP

**PPA – Power Purchase Agreement

¹ Energy sold in spot market before PPA start date

² As of SOct/2010

Energy sold in A-5

auction 2007

• Energia Pecém

• MPX Itaqui

Energy sold in A-5 auction 2008:

• MPX Pecém II

Construction works at MPX Itaqui

76%

71%

47%

24%

29%

53%

Energia

Pecém

MPX

Itaqui

MPX

Pecém II

Disbursed

To be

Disbursed

Investments & Financing – Power Generation Capex

Construction of Energia Pecém, MPX Pecém II and Itaqui on budget, fully funded

R$ 987 mm

R$ 1,241 mm

Debt Disbursement

100%

2%

29%

34%

20%20,0%

40,0%

60,0%

80,0%

100,0%

120,0%

Estimated Capex Disbursement Curve

2007 - 2012

R$ 4,2 bi

16

76% 24%

0 500 1000 1500

Pecém

100.0%

26.5%

56.5%

6.9%10.1%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Uses Sources

Total Capex breakdownUses & Sources

BID

BNDES

Equity

Capex

R$ 4.2 bi R$ 4.2 bi

Debt

Power Plants Capex (R$ billion)

Energia Pecém* 1.29

MPX Pecém II 1.28

MPX Itaqui 1.62

Total 4.20

*Considering MPX 50% stake in Energia Pecém

R$ 988 mm1% 15%0,0%

20,0%

2007A 2008A 2009A 2010E 2011E 2012E Total

Energia Pecém and MPX Pecém II

17

Energia Pecém and MPX Pecém II

1818

MPX Itaqui

1919

DEVELOPMENT OF HIGH-POTENTIAL ASSETS

Natural Gas and Coal Minning


20

Natural Gas and Coal Minning

The Parnaíba Integrated Gas & Power Project

Ownership StructureOwnership Structure

MPX will develop gas-fired plants that may add up to 1,863 MW, strategically located on the

PN-T-68 block at 50 km from a 500 kW substation and 30 km from water supply.

OGX

OGX

2/31/3

Licensing

Preliminary License

Granted

21

MPX Parnaíba

Substation

50 Km

River

30 Km

Site MPX

OGXMaranhão

PETRA

Blocos Exploratórios

UTE

70% 30% 30% 70%

Parnaíba Basin: High Potential for Gas

MPX has a participating interest in 7 onshore blocks in a new frontier basin with high

potential of gas production confirmed by a well drilled in the past with hydrocarbon shows

Discoveries

Block % MPX Well Prospect Status

PN-T-68

23,3%(33.3% *

70%)

OGX-16 Califórnia Concluded

OGX-22 Fazenda São

José

In progress

since 10/23

Total Risked Resources

Total Contingent Resources

0.2 Tcf 1.7 Tcf

22

Pressure of

1,900 psi

Flames of

approx. 15m

high

Production

potential of 3.4M

m3/day in Absolute

Open Flow

Pressure of 1,950

psi

Flames of approx.

20m high

D&M Report (Set09)

Portfolio Potential

Potential resources of approx.

15 Tcf

Production potential of approx.

15M m3 / day

Approx. 20 mapped prospects

Year 2010 2011 2012 Total

Number of wells 3 9 3 15

Drilling schedule

1 onshore rig contracted and 1 being

contracted

OGX-16 OGX-22

MPX Colombia Overview

MPX is developing an integrated coal mining system in Colombia. An initial assessment

points to enough resources to reach a production of approximately 15-20 Mty.

Large scale integrated mining

system (Mine – Rail – Port)

Open-pit mines: up to 5 Mty,

starting in 2012

MPX Port

23

RESOURCES (IN SITU)As of March 2010

Mt Category

Open-pit1 143.9 Measured/Indicated

Underground 1,600.0 Potential

1Certified by John T. Boyd Company (http://www.jtboyd.com)

Feasibility stydy for underground

mine to be concluded in 2H11

Total estimated capex: ~ USD 1 bln

MPX Mines

MPX Colombia Key Milestones

MPX is currently working on licensing and engineering plans for open-pit mines. Based on

certified and potential resources, production may achieve 15 Mty by 2018.

Phase 1:

Licensing/engineering of open-pit mines and small-scale port

Certification of underground resources

Phase 2

Licensing/engineering of underground mine and railway

24

Open-pit

Underground (*)

Production Ramp-up (*)

(*) MPX estimate based on potential resources and subject to results of new drilling campaign

1.32.5

3.8

7.5

10.0

12.515.0

2012 2013 2014 2015 2016 2017 2018

Mty

PROJECTS UNDER DEVELOPMENT


25

MPX Sul + MPX Seival

Seival Mine

Partnership 70/30: MPX / Copelmi

Operating License granted

152 MM tons in proven reserves

459 MM tons in total resources

Capex: ≈ USD 20 MM

MPX Sul and MPX Seival

Location of Assets

Vila

Joáo

Emílio

Vila CEEESEIVAL

Aeródromo

Ferrovia

BR-293

Arroio

BRAZILSeival Mine

MPX Sul

2626

Capacity: 600 MW

Coal consuptiom: 1 ton/ kwh

Estimated Capex: USD 2.400 / kW

Energy may be sold in Regulated

and/or Free Market

Licenses Granted

Sinergies for the implementation of

the projects

Ex-Projeto

Candiota III

CRM

CRM

CRM

CRM

UTE Pres. Médici

Vila CEEEPedreira

de Calcário

Cimbagé

UTE Seival

Projeto Aeródromo

Dario Lassance

Barragem I

Barragem IIRio Jaguarão

Arroio

Candiota

CandiotaRio Grande do Sul

Mina de

Seiva

MPX Seival

MPX Açu

General Information

•Phase I:

•Imported Coal: 2,100 MW

• Estimated Capex : USD 2,000 / kW

• EPC: Signed MOU with Hyundai

•Supercritical Technology : Clean Coal Tecnology

• Installation License

•Phase II:

27

•Phase II:

•Natural Gas: 3300 MW

•Estimated Capex : USD 1,300 / kW

•Licensing in process

Phase I + Phase IIRegulated and Free Markets

Synergies with Açu Superport

Strategically Located

Integrated Project

TPP + Port + Desalination

SIC: Central Interconnected System

Port Concession emitted

Imported Coal: 6 x 350 MW (2,100 MW)

Desalination : 800 l/s

MPX Chile

28

PPA: fuel-cost pass-through

Potential consumers: Mining Companies

Estimated Capex: ≈ USD 1,800 / kW

EPC: MoU with INITEC signed

EPC Status Licensing

MoU signed In process

• First solar power plant in Latin America

•Photovoltaic Technology

• Project Startup: 1 MW (Capex of R$ 10 MM)

•Installation License for up to 5MW

•Start up: Mar/11

MPX Tauá – Solar Energy

29

•Expansion expectation: up to 50 MW

EPC Status Licensing

MoU signedInstalation

License

A LOOK AHEAD: STRATEGY & EXECUTION


30

The MPX Business Model

E&P

Exploration & production of gas, coal

and other power fuel sources

E&P

Exploration & production of gas, coal

and other power fuel sources

Logistics

Logistics to supply power

plants and export surplus

production

Logistics

Logistics to supply power

plants and export surplus

production

Power Generation

Over 1.4 GW under

construction and a pipeline

of 10 GW in greenfield

projects

Power Generation

Over 1.4 GW under

construction and a pipeline

of 10 GW in greenfield

projects

Creating and sustaining superior performance through an integrated business model

The Creation of Value Chain

31

Power Commercialization

Competitive advantage through

integration and self-production

Power Commercialization

Competitive advantage through

integration and self-production

Fuel Commercialization

Supply to power plants and sale of

surplus production

Fuel Commercialization

Supply to power plants and sale of

surplus production

productionproductionprojectsprojects

Catalysts 2010-2012

2H10 2H111H11

Energia Pecém and Itaqui Start-upEnergia Pecém and Itaqui Start-upMPX Pecém II

Start-up

MPX Pecém II

Start-up

Positive EBITDA from Power GenerationPositive EBITDA from Power GenerationPro

ject

sU

nd

er

Co

nst

ruct

ion

Pro

ject

sU

nd

er

Co

nst

ruct

ion

Installation License Installation License PPAs MPX Parnaíba: PPAs MPX Parnaíba:

2012

Near-term catalysts will unlock the value of the optionalities in MPX’s portfolio of projects

32

Feasibility study for

underground mine

Feasibility study for

underground mine

GSA w/ OGX

Maranhão

GSA w/ OGX

MaranhãoD&M Resource ReportD&M Resource Report

MP

X P

arn

aib

aM

PX

Pa

rna

iba

MP

X C

olo

mb

iaM

PX

Co

lom

bia Drilling: Assessment of underground resourcesDrilling: Assessment of underground resources

Installation License

granted: MPX Parnaiba

Installation License

granted: MPX ParnaibaA-3 and A-5 Power Auctions A-3 and A-5 Power Auctions

Environmental License granted: Open pit

mines and MPX Port

Environmental License granted: Open pit

mines and MPX Port

Drilling: Assessment of resources in the 7 blocksDrilling: Assessment of resources in the 7 blocks

PPAs MPX Parnaíba:

Free Market

PPAs MPX Parnaíba:

Free Market

GSA = Gas Supply Agreement

Start-up of Open-pit MinesStart-up of Open-pit Mines

Positive EBITDA from MiningPositive EBITDA from Mining

SUSTENTABILITY

ECO 2010 Award

MPX – Apresentação Corporativa

33

New home, in better conditions through

proactive and satisfactory change to all;

Promote the preservation of environmental

heritage;

Encourage economic alternatives focused

on ecological production;

Track and monitor the setting of families in

the new area.

Nova Canaã Residential Village - ECO 2010 Award

34

the new area.

Blog X

"Helping these families has been a gift.

Having the initiative recognized by a

prestigious award of the area is even more

rewarding for our group and is a proof that

our energy transforms lives"


35

Documents

Corporate presentation december