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May 2012
MPX CORPORATE PRESENTATION
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.
DISCLAIMER
2
MPX AT A GLANCE
1
A PROVEN RECORD OF ACHIEVEMENT
4
IPO: US$ 1.1
billion raised
1,080 MW
contracted in the
A-5 Auction
2007 First acquisition of
mining rights in
Colombia
365 MW contracted in
the A-5 Auction
Construction works at
TPP Pecém I begin
2008 Construction works
at TPPs Itaqui and
Pecém II begin
Acquisition of
interest in 7 onshore
exploratory blocks in
the Parnaíba basin
2009
MPX Colombia – 1st
Technical Report:
coal resources of
144 MM tons
License granted for
TPP Parnaiba
(1,863 MW)
Initiation of drilling
campaign in the
Parnaíba basin
2010
TPP Parnaíba licensed
capacity increased to
3,722 MW
Power supply
contracts secured for
1,193 MW and
construction works at
TPP Parnaíba begin
D&M estimates for
risked resources in the
Parnaíba basin
amount to over 11Tcf
Declaration of
commerciality for 2
gas fields with
estimated production
of 6 MM m3/day
2011 MPX/E.ON
partnership
Drawdown of bridge-
loans totaling R$ 1.6
billion for natural gas
production and
power generation in
the Parnaíba Basin
Spin-off of
Colombian coal
assets to a new
company listed at
the BM&FBOVESPA
2012
4
The First Five Years
A DIVERSIFIED ENERGY COMPANYLargest Portfolio Of Integrated Projects In South America
Açu TPP2,100 MW – Coal3,300 MW – Natural Gas
Amapari Energia23 MW
Itaqui TPP360 MW
Energia Pecém720 MW
Pecém II TPP365 MW
Solar Tauá1 MW
Parnaíba TPP1,531 MW
Exploratory blocks11.3 Tcf GN
Seival mine
Seival TPP600 MW
Sul TPP727 MW
Castilla TPP2,100 MW
Desalination Plant
740 l/s
Parnaíba TPP2,191 MW
JV
MPX
Power Generation
Power agreements secured for 3.0 GW
Environmental license for an additional 11 GW
JV with leading global player E.ON AG
Natural Resources
Natural Gas: >11 Tcf of risked resources in the Parnaiba Basin
5
EXPERIENCED MANAGEMENT TEAM TO EXECUTE ON
STRATEGIC VISION
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
Marcus Bernd Temke COO
Over 20 years of experience in operations at multinational corporations
COO at Rio Polímeros S.A.
Holds an MBA from COPPEAD-UFRJ
Over 25 years of experience in the financial area at multinational corporations
CFO at MMX Mineração e Metálicos S.A.
CFO at Unisys in Brazil and Germany
Eduardo KarrerCEO & IRO
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
CEO at El Paso Brasil Ltda.and Rio Polímeros S.A..
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, Cepel and Grupo Rede
Former president of the National Committee of Cigré (Conference Internationale des Grand Réseaux Électriques)
Bruno ChevalierGeneral Counsel
6
INVESTMENT CONSIDERATIONS
2
Exposure to Brazil’s growing energy demand
Tax-advantaged thermal power plants coming on-line in 2012
Attractive monetization of natural gas resources
Robust pipeline of thermal projects to meet Brazil’s need for a more reliable
electric system
Joint-venture with E.ON to develop strong portfolio of energy assets while
unlocking value of Colombian coal assets
Experienced management team to execute on strategic vision
INVESTMENT CONSIDERATIONS
8
EXPOSURE TO BRAZIL’S GROWING ENERGY DEMAND
3
Energy Deficit starting in 2015 = Investment Opportunities
BRAZIL WILL NEED ADDITIONAL 10 AVG GW FROM
2015-2019Power Supply/Demand
Source: ANEEL 10
2015-on: new generation required10 GW avg required from 2015 to 2019
Firm Energy
Energy Load (forecast)
Water storage capacity has stagnated, leading to decreased system autonomy
BRAZIL NEEDS NEW THERMAL CAPACITY TO
INCREASE SUPPLY RELIABILITY
11Source: ONS
Storage Capacity (Southeast)
Storage Capacity (SIN):
Autonomy = [Storage Capacity / (Load – Thermal Generation)]
New thermal plants are necessary to guarantee a reliable power supply.
Northeast = 19%
North = 5%
Storage capacity
stagnation
Southeast = 69%
South = 7%
2001: Energy Deficit(load reduction)1
Actual Reservoir Autonomy: ~ 5 months
Transmission expansion delays will affect reliability of energy supply: greater need for thermal plantes located close to power consumption centers
TRANSMISSION DELAYS REINFORCE THE IMPORTANCE
OF THERMAL PLANTS
12Source: ANEEL
Average delay = 1.2 year103 delays of up to 1 year100 delays greater than 1 year
TAX-ADVANTAGED THERMAL POWER PLANTS COMING ON-LINE STARTING IN 2012
4
POWER AGREEMENTS SECURED FOR 3.0 GWMinimum guaranteed revenues will reach R$ 1.4 billion in 2015
14
TOTAL CAPACITY
(MW)
ADJUSTED CAPACITY
(MW)
ENERGY SOLD (AVG MW)
ANNUAL CAPACITY PAYMENT3 FUEL SOURCE
PPA PERIOD
Energia Pecém TPP1 720 360 615 R$ 272 million Coal 2012-2027
Itaqui TPP 360 360 315 R$ 287 million Coal 2012-2027
Pecém II TPP 365 365 276 R$ 258 million Coal 2013-2028
Parnaíba TPP2 - Phase I 676 473 450 R$ 282 million Natural Gas 2013-2028
Parnaíba TPP2 - Phase II 517 362 450 R$ 237 million Natural Gas 2014-2034
Parnaíba TPP2 - Free Market 338 237 200 R$ 186 million Natural Gas 2019-2029
Total 2,976 2,157 2,306 R$ 1,538 million
Total Capacity: Does not include Amapari TPP and Taua Solar Plant.
Adjusted Capacity/Annual Capacity Payment: Figures adjusted for MPX’s ownership in each project
Notes: 1. Energia Pecém is a partnership between MPX (50%) and EDP Brasil (50%); 2. Parnaíba is a partnership between MPX (70%) and Petra (30%); 3. Capacity Payments are escalated
annually by the IPCA inflation index (Figures as of March, 2012).
STEADY AND PREDICTABLE CASH FLOWS
15
Minimum Guaranteed Gross Revenues3 (MM)Installed Capacity (MW)
2012 2013 2014
720
1,558
1,920
Energia Pecém TPP 1
Itaqui TPP
Pecém II TPP
Parnaíba TPP2 – Phase I
Parnaíba TPP2 – Phase II
CAGR: 63% CAGR: 3
4%
Figures adjusted considering MPX’s stake in each project
Notes: 1. TPP Energia Pecém is a partnership between MPX (50%) and EDP (50%); 2. TPP Parnaíba – Phases I and II are partnerships between MPX (70%) and Petra (30%); 3. Capacity Payments
are escalated annually by the IPCA inflation index (Figures as March, 2012).
2012 2013 2014 2015
190
730 817 819 307
1,113
1,2911,352
EBITDA
ENERGIA PECÉM TPP (720 MW)Execution highlights
The plant is in the commissioning phase
Coal conveyor belt already in operation
Next steps:
Steam to turbine and Turbine no load test
Synchronization and load tests
Commercial Operation
Estimated Remaining Capex until completion*: R$ 132 million
Expected EBITDA margin (assuming no dispatch): 80%
16Energia Pecém is a partnership between MPX (50%) and EDP Brasil (50%)
* From January 2012
ITAQUI TPP (360 MW)Execution highlights
Currently in hot commissioning stage. First firing of the boiler has been carried out
Turbine assembly completed
FGD (Flue Gas Desulfurization): electrical and instrumentation tests completed
Estimated Remaining Capex until completion*: R$ 120 million
Expected EBITDA margin (assuming no dispatch): 82%
17* From January 2012
PECÉM II TPP (365 MW)Execution highlights
The plant’s main equipment is in the final stage of construction and assembly
The coverage of the metal structure in the turbine building and the assembly of the surface condenser are in the process of being completed
Estimated Remaining Capex until completion*: R$ 200 million
Expected EBITDA margin (assuming no dispatch): 80%
18* From January 2012
PARNAÍBA TPP – PHASES I (676 MW) & II (517 MW)Execution highlights
EPC contracts signed with Duro Felguera (Phase I) and Initec Energia (Phase II) Implementation initiated and site preparation advanced
3 turbines and 3 electrical generators on site and other 2 already shipped to Brazil
Partnership with GE ensures timely equipment supply
Estimated Remaining Capex until completion: Phase I: R$ 1.0 billion
Phase II: R$ 1.1 billion
R$ 825 million and R$ 225 million bridge-loan disbursed to fund Phase I and Phase II, respectively
Expected EBITDA margin (assuming no dispatch): Phase I: 51%
Phase II: 43%
19
ATTRACTIVE MONETIZATION OF NATURAL GAS RESOURCES
5
MPX OWNS 23% OF A UNIQUE ONSHORE NATURAL
GAS PORTFOLIO
Ownership Structure:
2 commercial production fields under development: Gavião Real and Gavião Azul
Prospective risked resources surpass 11 Tcf (2.0 bi boe)
3 drill-rigs in operation and 3 seismic crews in the region
Exploratory campaign has identified 4 accumulations and
over 20 prospects
14 exploratory wells planned until the end of 2013 at a cost of approximately US$ 15 MM per well 21
OGX MaranhãoBlocks
Total area:24,500 km²
On schedule to start production at Gavião Real and Gavião Azul in 2H2012 Estimated capacity in 2013: 6 MM m³/day (212
MM ft³) 6 development wells concluded and 2 in
progress Construction of Gas Treatment Unit initiated
(EPC by Valerus-Geogas)
Competitive costs: Estimated capex: US$ 450 MM Maintenance capex: < US$ 1.0 MM/year Average operating cost: US$ 0.30/1,000ft³
R$ 600 million bridge-loan to fund production development disbursed in January 2012
GAS PRODUCTION IS PLANNED TO START IN 2H12Initial production of 6 MM m3/day will supply TPP Parnaíba – Phases I & II
22
Thermal power plant located at < 2km from gas fields 2.2 GW licensed and still uncontracted
could demand further 11 MM m3/day Inexpensive connection to the
electrical grid
Limited competition in natural gas
Tax-advantaged region can attract industrial investments with gas is available
ATTRACTIVE OPPORTUNITIES TO MONETIZE
ADDITIONAL PRODUCTIONEfficient Integration of Natural Gas Resources with Energy Production
23
JOINT-VENTURE WITH E.ON TO DEVELOP ROBUST PIPELINE OF THERMAL PROJECTS
6
MPX and E.ON AG* recently formed a 50/50 joint-venture to develop a strong portfolio of energy
assets in Brazil and Chile
E.ON has committed to support MPX’s investment needs at the JV, at E.ON’s cost of equity in
Brazil, to expedite the development of the power generation projects of the JV
MPX will raise R$1.0 billion through a capital increase E.ON will also acquire a 10% equity interest in MPX through a capital investment of R$ 850 million
If minority shareholders do not exercise their preemptive rights, E.ON has committed to subscribe up to R$ 1.0 billion
CREATING VALUE THROUGH JOINT-VENTURE WITH
E.ONLeveraging Strong Complementary Capabilities to Enhance Growth
25
(*) E.ON has one of the broadest and most diverse power and gas asset bases in Europe.
Installed Capacity: 69 GW
2011 Traded Volumes: 2,000 billion kWh of power / 2,500 billion kWh of gas / 600 million metric tons of carbon / almost 300
million metric tons of coal
2011 Figures : Cash Position: EUR 6,610 million / Total assets: EUR 152,872 million / Sales: EUR 112,954 million
NEW MPX OWNERSHIP STRUCTURE
26
Eike Batista
Free Float
Power Generation(with PPA)
E.ON
Natural Resources
~10.0%
100% 100%
50%
50%
100%50%
50%
100%Energia Pecém (365 MW)Pecém II (365 MW)Itaqui (365 MW)TPP Parnaíba (1,087 MW)Amapari (12 MW)
Seival
OGX Maranhão
TPP Parnaíba (1,534 MW) Açu – Natural Gas (3,300 MW)Açu – Coal (2,100 MW)Castilla - Coal (2,100 MW)Sul and Seival - Coal (1,327 MW)
MPX Power and Fuel Trading
Solar Tauá (1 MW)
New Generation
Projects
Current Thermal
Power Pipeline
Supply & Trading
Current Renewable
Pipeline
MPX- E.ON JV
50/50
MPX
100%
11GW in Greenfield Licensed Thermal Capacity
FUTURE GROWTH OPPORTUNITIESPositions MPX for leadership in the Brazilian and Chilean energy markets
CURRENT THERMAL PIPELINE
TOTAL CAPACITY
(MW)
ADJUSTED CAPACITY (MW)
FUEL SOURCE
Parnaíba1 2,191 1,534 Natural Gas
Açu 3,300 3,300 Natural Gas
Açu 2,100 2,100 Coal
Castilla (Chile) 2,100 2,100 Coal
Sul and Seival 1,327 1,327 Coal
Total 11,018 10,361
1 Parnaíba - partnership between MPX (70%) and Petra (30%)
27
Integrated Project: Power Plant + Deep-Water Port + Desalination Plant
SIC: Central Interconnected System (90% of GDP & 92% of population)
Located 700 Km North of Santiago
Port concession and environmental license granted
Power plant capacity: 6 x 350 MW = 2,100 MW
Desalination plant capacity: 740 l/s
Strategically located in a region with significant pent-up demand for energy and water
CASTILLA: 2.1 GW IN COAL-FIRED CAPACITY IN
CHILECastilla is the largest licensed greenfield power plant in the SIC
28
AÇU: A 5.4 GW GREENFIELD GENERATION COMPLEX3.3 GW in gas-fired + 2.1 GW in coal-fired capacity located in Brazil’s load center
Located in one of the most important port-industrial complex in Latin America
Total capacity of 5,400 MW Coal: 2,100 MW
Natural Gas: 3,300 MW
Located 150km from natural gas
accumulations discovered in the Campos Basin
The industries located within the Superport will
benefit from auto production sharing, which at
current prices represents a reduction in energy
costs by approximately 30%29
MPX Sul and MPX Seival: Capacity: 727 MW + 600 MW
Fluidized Coal Bed technology
Lower emissions resulting from the mix burning of coal and wood chips
Seival Mine: Partnership between MPX and Copelmi –
one of Brazil’s largest coal miner
Operating License granted
152 MM tons in proven reserves and 459 MM tons in total resources
Located in a region with limited hydro potential and transmission constraints.
SUL + SEIVAL: 1.3 GW INTEGRATED TO A LIGNITE
MINE Open-pit mine with low mining costs, located adjacent to the power plants, resulting in competitive fuel costs
30
FINANCIAL HIGHLIGHTS
7
FINANCIAL HIGHLIGHTS – POWER GENERATION*
32
EBITDA (R$ Bi)CAPEX (R$ Bi)
**Estimated CAPEX
2012 2013 2014 2015
0.2
0.9
1.0 1.0
*It also includes a participation interest of 23.3% in onshore blocks in the Parnaíba Basin
2007 2008 2009 2010 2011 2012** 2013** 2014**
0.1
0.6
0.8
1.5 1.5 1.6
0.3
0.1
Debt Maturity Profile**
(R$ million)
ADJUSTED DEBT* (as of Dec 31, 2011)
33
Total Consolidated Gross Debt: R$ 4,079 million
Short term: R$ 740 million
R$ 600 million bridge loan to Parnaíba => to be paid-off
with draw down from long-term financing expected for
2H2012
Long term: R$ 3,339 million
Average amortization: 14 years
Average cost of debt: 9.15%
Average tenure: 7.0 years
Debt (R$ million)
3.339(82
%)
740(18
%)
Long Term Short Term
* The position does not include MPX Colômbia
** Values incorporate principal + capitalized interest + charges
*** R$ 358 million bridge loan to Parnaíba
Cash & cash equivalents
2012 2014 From 2014 on
2013***
1,415.9
393.2242.0
2,516.0
910.8
CCX
9
Creation of major, integrated coal mining company Ongoing drilling activities to support a 35 Mtpa
production
Up to R$ 814 million in cash
Approval of CCX spin-off by MPX debenture holders => Creation of CCX, an independent company listed at the BM&F Bovespa Novo Mercado segment
CREATING VALUE THROUGH JOINT-VENTURE WITH
E.ONCCX Spin-off
MPX shareholders will be entitled to one share of CCX for each share of MPX they hold
Independent Resource Certification report expected to 1Q12
35
CREATING VALUE THROUGH JOINT-VENTURE WITH
E.ON
Estimated Timetable for the Transaction
36
Signing of Definitive Agreement
April 17, 2012 Debenture Holders
General Meeting
May 9, 2012May 16, 2012
Deadline to request conversion for
debenture holders who wish to receive both MPX and CCX shares
May 24, 2012
Extraordinary General Shareholders’ Meetings
of MPX and CCX
Beginning of Subscription Period for
MPX capital increase
36
For more information, contact:Investor Relations (55 21) 2555-9215
ri.mpx@mpx.com.br