2. DISCLAIMER
The material that follows is a presentation of general background information about MPX Energia S.A. and its subsidiaries (collectively, âMPXâ or the
âCompanyâ) 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
âmayâ, âplanâ, âbelieveâ, âanticipateâ, âexpectâ, âenvisagesâ, âwill likely resultâ, 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
MPXâs prior written consent.
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5. DISCOVERIES
ï§ Fazenda Chicote accumulation - Net pay: 66 mFazenda
Santa Isabel accumulation â Net pay: 24 m
ï§ SĂŁo Raimundo accumulation â Net pay: 27 m
ï§ 3 rigs operating simultaneously: 2 focused on exploration
and 1 completion rig on the production development
GAVIĂO REAL
ï§ Beginning of commercial production in Jan/13
ï§ Current gas production: 4.1 million m3/day
GAVIĂO BRANCO
ï§ Declaration of commerciality presented to ANP
ï§ Total estimated volume in place between 0.2 and 0.5 Tcf
5
PARNAĂBA BASIN: NATURAL GAS E&P
7. 7
NET OPERATING REVENUES
75.7
196.1
1Q12 1Q13
159.2%
Net Revenues (R$ MM)
ï§ Consolidated Net Operating Revenues : R$ 196.1 MM in 1Q13.
ïŒ Itaqui: R$ 129.6 MM.
ïŒ ParnaĂba I: R$ 57.5 MM from turbines 1, 2 and 3 as the following
schedule from commercial operation:
Net Operating Revenues - Itaqui
Commercial generation 46.7
Fixed Revenue 29.0
Variable Revenue 17.7
Pass-through of the energy acquisition cost 82.9
Total Net Operating Revenues 129.6
ParnaĂba I Commercial Operation
1st turbine 02/01/13
2nd turbine 02/20/2013
3rd turbine 03/29/2013
8. OPERATING EXPENSES
8
Operating Expenses: - 36.9% vs. 1Q12
ï§ Personnel: - 24.3%, highlighted by:
ïŒ Optimization of the corporate structure (-R$ 4.3 MM)
ïŒ Non-cash expenses related to outstanding stock options plans (-
R$ 2.3 MM)
ï§ Outsourced Services: -45.1%, highlighted by:
ïŒ Shared services in the parent company (-R$ 2,4 MM)
ïŒ Legal and technical consulting expenses (-R$ 1.8 MM)
ïŒ Spin-off of Colombian mining assets (-R$ 6.8 MM)
ï§ Leases and Rents: -60.0%, highlighted by:
ïŒ Real estate rental in the parent company (-R$ 0.9 MM)
ïŒ Spin-off of Colombian mining assets (-R$ 1.5 MM)
61.9
39.0
1Q12 1Q13
Consolidated Operating Expenses
(R$ MM)
- 36.9%
33.6
23.7
1Q12 1Q13
Parent Operating Expenses
(R$ MM)
- 29.4%
9. ITAQUI
Gross generated energy : 267.5 MWh
Energy sold: 227.3 MWh
Itaqui Adjusted EBITDA: R$ 37.3 MM
Exclusion of non-recurring revenues and
expenses
âą Fixed Revenue adjusted to reflect the plantâs full
360 MW capacity
âą Revenues and costs related to energy acquisition
eliminated
âą Consumption of diesel and coal costs adjusted
so as to reflect steady state operational
standards
Itaqui Income Statement
(in million of R$) 1Q13 Adjusted 1Q13
Gross Generated Energy (GWh) 267.5 267.5
Energy Sold (GWh) 227.3 227.3
Gross Revenues 143.7 72.0
Fixed Revenues 32.2 46.4
Variable Revenues 19.6 19.6
Revenues with Pass Through of Energy
Acquisition
91.9 -
Deductions from Gross Revenue (14.0) (7.0)
Net Operating Revenue 129.7 65.0
Operating Costs (221.3) (24.0)
Costs with Energy Acquisition (164.9) -
Cost of Coal (19.0) (10.7)
Cost of Diesel Oil (24.7) (0.5)
Other Costs (12.8) (12.8)
Operating Expenses (3.6) (3.6)
EBITDA (95.3) 37.3
EBITDA Margin (%) -73.5% 57.5%
9
11. OGX MARANHĂO
Growing operating margins
Operations started in Jan/13 at the GaviĂŁo Real field, supplying gas for
1st turbine of ParnaĂba I OCGT
EBITDA margin of ~ 49% reflects the assetâs profitability
OGX MaranhĂŁo (100%)
(in thousand of R$) 1Q13
Operating Period(1)
68 days
Gas Production - in MMm3 (2)
83.5
Gross Revenue(3)
39,279
Deductions from Gross Revenues(4)
(4,522)
Net Revenues 34,757
Production Costs (3,597)
Royalties, Special Part. and Government Part. (2,718)
General and Administrative Expenses (6,317)
Exploration Expenses (5,010)
EBITDA 17,115
(1) Date of closing for book values: 25th day of the month.
(2) Gas production related to OGX MaranhĂŁoâs participation in the blocks (70%).
(3) Gross revenues comprised of revenues from gas sales and revenues from lease of the GTU.
(4) Deductions from Revenues: taxes such as PIS/COFINS/ICMS.
-
59.2% 60.6%
jan/13 feb/13 mar/13
EBITDA Margin (%)
3.6
35.4
44.5
jan/13 feb/13 mar/13
Average Gas Production
(MMm3)
11