corporate presentation march
TRANSCRIPT
Corporate Presentation
2010
02-03-10
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 purportto be complete. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, theaccuracy, fairness, or completeness of this information.
This presentation may contain certain forward-looking statements and information relating to MPX that reflect the current viewsand/or expectations of the Company and its management with respect to its performance, business and future events. Forwardlooking 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 likelyresult”, or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties andassumptions. 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 itsaffiliates, directors, officers, agents or employees nor any of the placement agents shall be liable before any third party (includinginvestors) for any investment or business decision made or action taken in reliance on the information and statements containedin 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 recipientsshould consult their own advisors in this regard.
The market and competitive position data, including market forecasts, used throughout this presentation were obtained frominternal surveys, market research, publicly available information and industry publications. Although we have no reason to believethat any of this information or these reports are inaccurate in any material respect, we have not independently verified thecompetitive position, market share, market size, market growth or other data provided by third parties or by industry or otherpublications. MPX, the placement agents and the underwriters do not make any representation as to the accuracy of suchinformation.
This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole orin part without MPX’s prior written consent.
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Disclaimer
MPX Integrated Systems
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Sudeste System
Parnaíba System
Sul System
Colombia System
MPX Port
Colombian Mines
MPX Itaqui
Energia Pecém
MPX Pecém II
MPX Açu Phase I
MPX Açu Phase II
Açu Regas (LNG)
Seival MineMPX Sul
MPX Chile
Exploratory Blocks
MPX Parnaíba
MPX Colombia System
110 MM tons in certified resources
521 ha for MPX Port at 150 Km from mines
3 plants with energy sold in regulated market
Guaranteed revenues of R$ 720 M for 15 years
2100 MW in Açu - Licensed
2100 MW in Chile – License foreseen for 1H10
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2.0 Mty *
0.7 Mty *
3.5 Mty *
5.4 Mty **
Mty: Estimated demand of coal (MM tons/year)* 65% Dispatch** 90% Dispatch
Mines and MPX Port
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MPX Port
Papayal
Canaverales
San Benito
Underground mine
Highway: 150 Km
La Guajira
Venezuela
MPX Concessions Areas drilled Port
Caribbean Sea
Mines MPX
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Underground mine
Mines MPX
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3D Image - Mine
3D Image - Layers
40 Boreholes
37 Positive
Papayal (Open-pit mine)
On January 14, 2010
Drilled Without Coal
Drilled With Coal
Legend
Drilling With Coal
Schedule Short Term
Drilling
Scheduled
94 Boreholes
73 Positive
Cañaverales (Open-pit mine)
On January 14. 2010
Drilled Without Coal
Drilled With Coal
Legend
Drilling With Coal
Schedule Short Term
Drilling
Scheduled
88 Boreholes
49 Positive
San Benito (Open-pit mine)
On January 14. 2010
Drilled Without Coal
Drilled With Coal
Legend
Drilling With Coal
Schedule Short Term
Drilling
Scheduled
.
3 Boreholes
3 Positive
San Juan El Molino (Underground mines)
On January 14. 2010
Drilled Without Coal
Drilled With Coal
Legend
Drilling With Coal
Schedule Short Term
Drilling
Scheduled
Coal layers: up to 35
Cumulative thickness of
coal layers: up to 80 m
Length NS: 15.5 km
Length EW: 3.5 km
Depth of first coal layer:
between 385 and 450 m
Land secured: 521 ha
Length of coastline: 2.8 Km
20-meter draft
Capacity to export up tp 20 Mty
150 Km from MPX mines
Capex: aprox U$ 200 million
MPX Port
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Bello Horizonte
MPX Port
MPX Mines
Plants under construction in Brazil
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Installed
Capacity
(MW)
Energy Sold
(avgMW)
PPA
Start
date
EPC
Progress**
Fixed
Revenues
(R$ MM)**
Commercial
Operation Date Financing
Energia
Pecém *720 615
Jan
201248% 479.9
Jul 2011 (360 MW)
Out 2011 (360 MW)BNDES/ BID
MPX
Pecém II360 276
Jan
201333% 227.8 Jun 2012 BNDES
MPX
Itaqui360 315
Jan
201251% 253.2 Out 2011 BNDES/ BNB
* Energia Pecém is a 50/50 between MPX Energia and EDP.
** In Dec/09
MPX Itaqui Energia Pecém MPX Pecém II
Itaqui
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Pecém I
15
Pecém II
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Pecém I & II
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Consulting and O&M Strategic Partnership
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Consulting and O&M Strategic
Partnership with Evonik;
Clean coal tecnology;
Energy Research Center in
partnership with Coppe-UFRJ.
Installation License for 2,100 MW
(imported coal TPP);
Proximity to Southeast load center;
Privileged logistics;
Synergies with Açu super port;
Energy Sale – Regulated and Free
Market.
MPX Açu TPP (2,100 MW)
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License (2,100 MW) foreseen 1H10;
Integrated project: TPP, Port and Desalting ;
Port concession granted;
Potential strategic partnership;
Capacity PPA with fuel pass through.
MPX Castilla TPP (2,100 MW – Chile)
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MPX Sul SystemSeival Mine and MPX Sul TPP (600 MW)
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Location of Assets
Seival Mine
Partnership 70/30: MPX / Copelmi
Operating License granted
152 MM tons in proven reserves
459 MM tons in total resources
Additional studies will increase total reserves
MPX Sul (600 MW)
Energy may be sold in Regulated and Free Market
Coal demand: 4 Mty*
EPC contract secured
Ex-Projeto
Candiota III
CRM
CRM
CRM
CRM
UTE Pres. Médici
Vila CEEEPedreira
de Calcário
Cimbagé
UTE Seival
Projeto
Vila
Joáo
Emílio
Vila CEEESEIVAL
Aeródromo
Aeródromo
Ferrovia
BR-293
Dario Lassance
Barragem I
Barragem IIRio Jaguarão
Arroio
Candiota
CandiotaRio Grande do Sul
Mina de
Seiva
BRAZIL
* Assuming 80% dispatch rate
Seival Mine
MPX Sul
MPX Parnaíba System
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Exploratory Blocks
MPX Parnaíba
Exploratory Blocks
7 onshore blocks;
Seismic campaign underway
High potential for natural gas exploration;
Potential negotiation of gas surplus to
distributors;
Parnaíba TPP;
Licensing for 1,000 MW in process;
Combined and open cycle plants;
Energy Sale – Regulated and Free Market;
Strategic site acquired;
Proximity to 500 kV substation.
Exploratory Blocks and MPX Parnaíba TPP
Exploratory Blocks
MPX Parnaíba
2010 2011 2012
1 5 1
Drilling Schedule
Tcf boe
Total contingent resources* 1.7 303 MM
Risked prospective resources* 0.2 37 MM
Site – SE
50 Km
Site – Rio
30 Km
* Certified by DeGolyer&MacNaughton
Ownership Structure
* Subject to ANP approval
MPX Sudeste System
Licensing for a 3,300 MW gas-fired plant in process at Açu Super Port;
Regaseification terminal at Açu Super Port;
Synergies with OGX
NG integrated projects;
Development of projects in RJ, SP and ES;
Strategic site identification.
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Social and Environmental Responsibility
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In July 2009, project LIFE (Lasting Initiative for the Earth) was launched, creating a pioneer certification for companies that are committed to developing actions to promote the preservation of the Earth’s natural heritage. MPX is amongst a series of supporting entities and is also part of the Board of the LIFE institute.
Ecological Corridor of Muriqui
Private Reserves
By the end of 2010, MPX will have a 10,000 MW portfolio of licensed projects
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Power Additional long-term PPAs (Regulated and Free Market)
Development of new natural gas projects (RJ, SP e ES)
Licensing
Installation License for MPX Sul TPP
Preliminary License for MPX Parnaíba and MPX Açu Phase 2 TPP
Environmental License for Castilla TPP, mines and port in Colombia
Renewables Wind energy portfolio (CE, RN e RJ)
1st MW of Solar Energy in Brazil
Natural Resources
10-year Business Plan for Colombia
2nd Coal Resource and Reserve report
2nd well in Parnaíba Basin
Financing Final approval and disbursement of long-term financing for MPX Pecém II