1q13 quarterly information (itr)

Independent Auditor’s Review Report of Quarterly Information (ITR)

MPX Energia S.A. (Publicly-held company)

Quarter ended March 31, 2013 With Independent Auditor’s Review Report of Quarterly Information (ITR)

1

Release de Resultados 1T13 1Q13 Earnings Release

Economic and Financial Performance In January, 2012, MPX and E.ON announced a partnership in order to build a more sizable and profitable

power business in Brazil. In May, 2012, a subsidiary was created, MPX E.ON Participações, 50% owned by

MPX and 50% owned by E.ON. The subsidiary incorporated 50% of MPX’s greenfield generation portfolio

and 100% of the MPX Power Trading unit.

Additionally, as a result of the partnership with E.ON, MPX’s Colombian coal mining assets were

segregated into a new and independent company - CCX Coal Colombia S.A. Adjusted financial statements,

excluding the CCX impact in 1Q12 are presented in Annex 1.

One should note that the new accounting standards set forth by IFRS 11 eliminate proportionate

consolidation as a method to account for jointly controlled entities (JCE). According to the new standards,

JCEs fall within the definition of joint venture and should be accounted for under the equity method. These

standards became effective for annual periods beginning on or after January 1, 2013 and must be applied

retroactively to joint ventures held on the date of initial application. Pecém I and MPX E.ON Participações

are now recognized under the equity method. For comparison purposes, we also present the 1Q12

statements in accordance with IFRS 11.

MPX’s consolidated financial statements presented below reflect the completion of the acquisition of the

EPC consortium of the Pecém and Itaqui power plants, MABE Brasil Ltda., as announced to the market on

March 27, 2013.

Net Operating Income

Net Operating Income Consolidated

(R$ thousand) 1Q13 1Q12 %

Gross Operating Income

Energy Supply 217,568 10,486 1974.8%

Energy Commercialization - 72,611 -100.0%

Taxes (21,470) (7,428) 189.1%

NET OPERATING Income 196,098 75,669 159.2%

In 1Q13, MPX recorded consolidated Net Operating Income of R$ 196.1 million, representing an increase

of 159.2% in relation to 1Q12. This growth was motivated largely by the start of Itaqui’s and Parnaíba I’s

(three of the four gas-fired turbines) Regulated Market Power Purchase Agreements (Contrato de

Comercialização de Energia Elétrica no Ambiente Regulado – CCEAR).

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According to the new accounting standard established by IFRS 11, as detailed above, the Consolidated

Net Income does not contemplate the Company’s interest in Pecém I, which was recognized under the

Equity Method.

Given the postponement of the start of operations, Itaqui had to purchase power in the Free Market in

order to ensure compliance with the plant’s energy supply agreements until the authorization to start

commercial operations, on February 5, 2013. The pass-through of this cost to the contracted distributors

amounted to was R$ 86.1 million in 1Q13. With the authorization for commencement of commercial

operations, Itaqui started to supply energy to a group of distribution companies under the terms of the

Regulated Market power purchase agreement, however proportionately to a 220 MW capacity, which

resulted in net revenues of R$ 43.5 million in the quarter. From April 3, 2013, the plant began to be

remunerated according to the total capacity of 360 MW.

Figure 01 – Net Operating Income of Itaqui (R$ million)

Net Operating Income - Itaqui

Commercial generation 46.7

Fixed Income 29.0

Variable Income 17.7

Pass-through of the energy acquisition cost 82.9

Total Net Operating Income 129.6

Parnaíba I’s net income in 1Q13 totaled R$ 57.0 million. The quarterly income does not reflect the full

capacity of the plant, 676 MW, reached on April 12, 2013 with the start of commercial operation of the

fourth and final turbine. In 1Q13, the Income resulting from commercial generation of turbines 1, 2 and 3

reflects the following schedule:

Parnaíba I Commercial Operation

1st turbine 02/01/13

2nd turbine 02/20/2013

3rd turbine 03/29/2013

Subsidiary MPX Amapari, which controls TPP Serra do Navio, a 51%/49% joint venture between MPX and

Eletronorte, recorded R$ 9.4 million in net operating revenues in 1Q13, unchanged in relation to 1Q12.

Operating Costs

Operating Costs Consolidated

3



Operating Costs

Personnel (5,313) (1,021) 420.3%

Materials (1,010) (241) 319.3%

Fuel (90,207) (17,237) 423.3%

Outsourced Services (3,707) (5,250) -29.4%

Leases and Rentals (15,440) (1,543) 901.0%

Insurance (545) (961) -43.3%

Taxes and Contributions (17) (31) -44.9%

CCC Subsidy 12,970 14,032 -7.6%

Energy Acquired for Resale (172,766) (67,501) 155.9%

Other Costs (19,317) (452) 4173.6%

Total (295.352) (80,204) 268,3%

Depreciation and Amortization (17,257) (1,593) 983.2%

TOTAL (312.609) (81,797) 282,2%

Consolidated Operating Costs totaled R$ 312.6 million in 1Q13, an increase of R$ 230.8 million in relation

to the amount recorded in the same period of the preceding year. Operating Costs were impacted mainly

by the increase of R$ 105.3 million in the Energy Acquired for Resale account, which refers to the

acquisition of energy to fulfill the contractual obligations of TPP Itaqui.

Given the postponement of the beginning of commercial operations at Itaqui, the project had to enter into

power purchase agreements in the free market to ensure compliance with contractual obligations, which

provided for start of energy supply to the integrated system on December 21, 2012. From January 1,

2013 until the start of commercial operations, that is, February 5, 2013, the costs reflected power

purchase agreements for 360 MW. From that date until the end of 1Q13, the cost of energy acquisition

reflected the acquisition of 140 MW, which corresponds to the difference between the plant’s full capacity

(360 MW) and the capacity authorized to generate commercially in the period (360 MW). The total cost of

energy acquisition in Itaqui in 1Q13 amounted to R$ 165.3 million. A portion of this cost, in the amount of

R$ 16.0 million, refers to compensation for downtime. The compensation is the difference between the

actual dispatch of the generating unit, when it is activated according to the order of merit of the system,

and its authorized capacity adjusted by the Chamber for the Commercialization of Electric Energy (Câmara

de Comercialização de Energia Elétrica – CCEE). Itaqui TPP reimbursed distributors by the difference

between the CVU and PLD1 for the energy not delivered, where the CVU is the contracted value for the

cost of generation in the supply contract.

In addition, fuel costs increased significantly in 1Q13 in relation to the same period of the preceding year,

due to the start of operations of TPPs Itaqui and Parnaíba I. The cost of R$ 90.2 million recorded in the

quarter is divided into R$ 44.6 million incurred by Itaqui (mainly coal – R$ 18.6 million and diesel oil – R$

24.6 million, which is used to start the coal-fired turbine); R$ 26.6 million incurred by Parnaíba I (natural

gas) and R$ 19.0 million by Amapari (diesel oil).

4


Operating Expenses

In the quarter, Consolidated Operating Expenses, excluding Depreciation & Amortization, amounted to R$

38.4 million, a 36.8% reduction compared to 1Q12. In the same period, the Company posted Operating

Expenses, excluding Depreciation & Amortization, of R$ 23.3 million, compared to the R$ 33.2 million

recorded in 1Q12. During the period, the IPCA inflation index increased by 1.9%.

Operating expenses Consolidated Company

(R$ thousand) 1Q13 1Q12 % 1Q13 1Q12 %

Expenses

Personnel (20,297) (26.799) -24.3% (11,121) (17.573) -36.7%

Material (271) (280) -3.2% (44) (57) -22.0%

Outsourced Services (14,062) (25.616) -45.1% (9,796) (12.902) -24.1%

Leases and Rentals (1,677) (4.194) -60.0% (1,080) (1.979) -45.4%

Insurance (299) (285) 4.9% (127) (64) 97.9%

Taxes (176) (447) -60.7% (12) - -

Other Expenses (1,609) (3.158) -49.1% (1,078) (613) 76.0%

Total (38.391) (60,780) -36,8% (23.258) (33,187) -29,9%

Depreciation and Amortization (638) (1.094) -41.7% (453) (393) 15.5%

TOTAL (39.029) (61,874) -36,9% (23.712) (33,579) -29,4%

The main variations are as follows:

• Personnel: The consolidated personnel expenses totaled R$ 20.3 million in 1Q13, compared to R$

26.8 million reported in the same period of the preceding year. The highlights are:

ü Decrease in non-cash expenses related to the Company’s outstanding stock options plans

(- R$ 4.3 million);

ü Reduction of personnel in the company resulting from corporate restructuring as a result of

the creation of MPX E.ON Participações (-R$ 2.3 million).

• Outsourced services: Consolidated expenses with outsourced services in 1Q13 totaled R$ 14.1

million, down 45.1% in relation to 1Q12. The highlights are:

ü Decrease in expenses with shared services in the company, resulting from optimization of

EBX’s service structure (-R$ 2.4 million);

ü Decrease in expenses with legal and technical advisory (-R$ 1.8 million);

5


ü Decrease in expenses with outsourced services, resulting from the spin-off of the

Colombian mining assets (-R$ 6.8 million).

• Leases and Rents: Consolidated expenses with leases and rents decreased R$ 2.5 million in 1Q13

in relation to 1Q12. The highlights are:

ü Decrease in expenses with real estate rental in the Company (-R$ 0,9 million);

ü Decrease in expenses as a result of the spin-off of the Colombian mining assets (-R$ 1.5

million).

• Other Expenses: The Other Operating Expenses account totaled R$ 1.6 million in 1Q13,

compared to R$ 3.2 million recorded in 1Q12. The variation is mainly attributable to the spin-off of

the Colombian mining assets.

Net Financial Results

Financial Result Consolidated


Fx Rate Fluctuations 1,625.3 13,324.7 -87.8%

Marking-to-market of derivatives (3,652.0) (9,987.9) -63.4%

Derivatives Liquidation (41.1) 2,232.4 -101.8%

Interest Revenue 9,876.1 28,100.5 -64.9%

Debt Service (58,087.9) (10,890.5) 433.4%

Fair Value - Debentures (464.3) (16,035.7) -97.1%

Other (27,083.1) (12,946.5) 109.2%

NET FINANCIAL RESULT (77,826.9) (6,202.9) 1154.7%

In 1Q13, MPX recorded net financial expenses of R$ 77.8 million, compared to net expenses of R$ 6.2

million in 1Q12, impacted mainly by the increase in interest expenses in the Company (-R$ 10.4 million),

Itaqui (-R$ 25.3 million) and Parnaíba I (-R$ 13.4 million). Given the end of the grace period for interest

payments on the Itaqui and Parnaíba I long-term debts, interest due, which until then was mostly

capitalized, started being expensed. Higher interest expenses at the holding level are related to the

growth in debt motivated by increased cash needs in the subsidiaries resulting from energy acquisition

costs due to delays in the start up of the power plants.

According to the new accounting standard detailed above, the Consolidated Net Financial Income does not

contemplate MPX’s participation in Pecém I.

6


Net Income

In 1Q13, MPX reported a Net Loss of R$ 250.9 million, impacted mainly by acquisition of energy in order

to comply with contractual obligations of Pecém I and Itaqui.

Consolidated Income Statement

(R$ million) 1Q13 1Q12 %

Net Operating Revenues 196.1 75.7 159.2%

Operating Costs (312.6) (81.8) 282.2%

Operating Expenses (39.0) (61.9) -36.9%

Net Financial Result (77.8) (6.2) 1154.7%

Equity Income (83.5) (19.4) 329.8%

Other Revenues/Expenses (1.0) 0.1 -1355.1%

Earnings Before Taxes (317.9) (93.6) 239.8%

Taxes Payable and Deferred 60.8 15.8 285.1%

Minority Interest 6.2 0.3 2102.2%

NET INCOME (250.9) (77.5) 223.8%

EBITDA (137.6) (65.3) 110.7%

Balance Sheet Analysis

Company Consolidated

(R$ thousand) mar-13 dec-12 mar-13 dec-12

Current Assets 272.2 234.2 818.0 765.9

Cash & Cash Equivalents 246.8 206.3 364.7 522.7

Noncurrent Assets 1,495.8 1,170.9 743.5 654.1

Fixed Assets 2,110.4 2,237.4 6,968.7 6,619.6

Property, Plant and Equipment + Intangible Assets

22.0 22.3 6,149.2 5,785.6

Total Assets 3,878.4 3,642.5 8,530.1 8,039.6

Current Liabilities 1,428.0 947.3 2,829.4 2,109.5

Short Term Debt 1,359.0 909.0 2,191.2 1,716.4

Non-current Liabilities 123.7 125.5 3,248.3 3,229.0

Long Term Debt 100.7 102.2 3,117.9 3,111.4

Minority Interests - - 145.2 151.5

Shareholders’ Equity 2,326.8 2,569.6 2,307.1 2,549.6

Total Liabilities 3,878.4 3,642.5 8,530.1 8,039.6

Release de Resultados 1T13

1Q13 Earnings Release

Cash and Cash Equivalents

Consolidated Cash and Cash Equivalents totaled R$ 364.7 million at the end of March 2013, a decrease of

R$ 158.0 million as compared to the balance of December 31, 2012 adjusted in accordance with the new

IFRS standard.

Figure 03 – Consolidated Cash and Cash Equivalents (R$ million)

* The cash impact of the cost of power purchase to ensure compliance with contractual obligations electricity, totaling R$ 35.9

million, is included in OPEX.

Indebtedness

As of March 31, 2013, consolidated gross debt amounted to R$ 5,459.8 million, a 10.9% increase in

relation to the amount recorded as of December 31, 2012.

The balance of short term debt at the end of March 2013 was R$ 2,342.0 million, or R$ 522.0 million

higher than the amount recorded as of December 31, 2012. In 1Q13, R$ 450.0 million were raised at the

Parent level to cover working capital needs in Pecém I and Itaqui, resulting from delays in the start of

commercial operation of the plants.

It is important to emphasize that R$ 740.2 million of the balance of short term debt refer to Parnaíba I

(R$ 136.5 million) and Parnaíba II (R$ 603.7 million) bridge loans, which should be settled throughout

2013 with the disbursement of the long-term financing packages.

522.7

71.0

360.4

129.6

48.8 53.6

474.0

20.3 20.0

75.1 4.8

364.7

Cash and Cash Equivalents

(4Q12)

Revenues CAPEX OPEX SG&A Cash Flow from Financing

Debt Disrbursement

Debt Amortization

Intercompany loan with Pecém I

Contribution of Partners

Other Cash and Cash Equivalents

(1Q13)



In addition, R$ 204.9 million of the balance of short term debt refer to the current portion of the long-

term debts of Pecém II, Itaqui and Parnaíba I. According to the new IFRS standards, Pecém I’s debts are

no longer included in consolidated loans and financing.

Figure 04 – Consolided gross debt profile (R$ million)

As of the end of March 2013, the accumulated drawdown from the Brazilian Development Bank (BNDES),

Brazil Northeast Bank (BNB), the InterAmerican Development Bank (IDB) and their financial agents

amounted to R$ 4,861.7 million, or 94% of the total contracted financing.

Figure 05 – Cumulative drawdown of long-term debt as of March 31, 2013 (R$ million)

Disbursed % Disbursed Total

Pecém I* R$ 1,958.0 99% R$ 1,976.0

Itaqui R$ 1,235.7 99% R$ 1,241,0

Pecém II R$ 968.0 98% R$ 987.0

Parnaíba I R$ 700.0 79% R$ 887.5

Total R$ 4,861.7 94% R$ 5,091.5

* Figures reflect 100% of the project.

In March 2013, the average cost of MPX debt was 8.3% and the average maturity of the debt was 5.0

years.

2,342 (43%)3,118

(57%)

Short Term Long Term

1,498(27%)

3,962(73%)

Working Capital Project Finance



364.7

2,342.0**

208.8 234.2 239.1

2,435.8

Cash & Cash Equivalents

2013 2014 2015 2016 From 2017 on

Figure 06 – Debt Maturity Profile* (R$ million)

*Values incorporate principal + capitalized interest + charges and exclude outstanding convertible

debentures.

** R$ 740.1million, allocated in 2013, refers to the bridge loan of Parnaíba I & II, to be paid-off with

draw down from long-term financing

Net debt (total debt less cash and cash equivalents) in 1Q13 amounted to R$ 5,095.1 million, which was

10.9% higher than the value reported on December 31, 2012.

Capital Expenditures

In 1Q13, MPX invested a total of R$ 305.6 million in the construction of TPPs Pecém I and II, Itaqui and

Parnaíba I and II, excluding capitalized interest in the projects of R$ 58.1 million.

Figure 07 – Capital Expenditures (R$ million)

1Q13 4Q12

Project Capex Interest Capitalized

Capex Interest

Capitalized

Itaqui 65.7 13.7 99.7 39.7

Pecém II 54.0 24.0 23.2 21.7

Parnaíba I 60.7 6.7 117.5 29.5

Parnaíba II 125.2 13.7 107.1 14.2

Total 305.6 58.1 347.5 105.1

Additionally, MPX invested, through its joint venture with OGX, R$ 9.7 million in 1Q13 in the exploratory

campaign in the Parnaíba Basin and in the development of the Gavião Real and Gavião Branco fields.

10


In the first quarter of 2013 the company completed the acquisition of Mabe Brasil Ltda. and, as a result,

Pecém I reversed the provision for contractual withholdings and offsetting of outstanding vendor liabilities,

both of which are reflected in the advances line, thus justifying the R$ 32.2 net reduction in the capex.

Nevertheless, capitalized interests in Pecém I during the same period totaled R$ 8.9 million.

A free translation of the independent auditor’s review report from Portuguese into English

Centro Empresarial Botafogo Praia de Botafogo, 370 8º Andar - Botafogo 22250-040-040 – Rio de Janeiro, RJ, Brasil Tel: (5521) 3263-7000 Fax: (5521) 3263-7004 www.ey.com.br

Independent Auditor’s Report on Review of Quarterly Information (ITR) The Shareholders, Board of Directors and Officers MPX Energia S.A. Rio de Janeiro – RJ Introduction We have reviewed the accompanying individual and consolidated interim financial information of MPX Energia S.A. (“Company”) contained in the Quarterly Information Form– ITR for the quarter ended March 31, 2013, which comprise the balance sheet as at March 31, 2013 and the related statement of operations, statements of comprehensive income, of changes in equity and cash flow statement for the three-month period then ended, including the explanatory information. Management is responsible for the preparation of the individual interim financial information in accordance with Accounting Pronouncement CPC 21 (R1) – Interim Financial Reporting, and of the consolidated interim financial information in accordance with Accounting Pronouncement CPC 21 (R1) – Interim Financial Reporting and with IAS 34 – Interim Financial Reporting, issued by the International Accounting Standards Board – IASB, as well as for the fair presentation of this information in conformity with the standards issued by the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation of Quarterly Financial Information (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review. Scope of the review We conducted our review in accordance with Brazilian and International Standards on Review Engagements (NBC TR 2410 and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion on the individual interim financial information Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual interim financial information included in the quarterly information referred to above is not prepared, in all material respects, in accordance with CPC 21(R1) applicable to the preparation of Quarterly Financial Information (ITR), consistently with the rules issued by the Brazilian Securities and Exchange Commission.

http://www.ey.com.br


Conclusion on the consolidated interim financial information Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information included in the quarterly information referred to above is not prepared, in all material respects, in accordance with CPC 21(R1) and IAS 34, applicable to the preparation of Quarterly Financial Information (ITR), consistently with the rules issued by the Brazilian Securities and Exchange Commission. Emphases of matter Going concern The interim financial information was prepared considering that the Company and its subsidiaries will continue as a going concern, including those mentioned in Note 1, which are in their pre-operational phase. The continuity of the Company’s and its subsidiaries’ business operations and recoverability of amounts recorded in noncurrent assets depend on the success of future operations of the Company and its subsidiaries, as well as on the financial support from shareholders and/or third-party funds until their operations can generate such funds. Management’s plans with respect to operating activities are described in Notes 1 and 12. Our conclusion is not modified with respect to this matter. Restatement of corresponding figures As mentioned in Note 5, due to a change in accounting practice related to the adoption of CPC 19 (R2) Joint Arrangements (IFRS 11 – Joint Arrangements), the corresponding (individual and consolidated) figures, related to the balance sheet as at December 31, 2012 and the corresponding interim financial information comprising the statements of operations, of comprehensive income, of changes in equity, cash flow statement and statement of value added (supplemental information) presented for comparative purposes, were adjusted and are being restated as required by CPC 23 - Accounting Policies, Changes in Accounting Estimates and Error Correction (IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors) and CPC 26(R1) - Presentation of Financial Statements (IAS 1- Presentation of Financial Statements). Our conclusion is not modified with respect to this matter.


Other matters Statements of value added We have also reviewed the individual and consolidated Statements of value added for the three-month period ended March 31, 2013, prepared under the responsibility of Company management, the presentation of which in the interim information is required by the rules issued by the Brazilian Securities and Exchange Commission (CVM) applicable to preparation of Quarterly Financial Information (ITR), and as supplemental information under the IFRS, whereby no statement of value added presentation is required. These statements have been subject to the same review procedures previously described and, based on our review, nothing has come to our attention that causes us to believe that they are not prepared, in all material respects, consistently with the overall individual and consolidated interim financial statements. Rio de Janeiro, May 08, 2013 ERNST & YOUNG TERCO Auditores Independentes S.S. CRC - 2SP 015.199/O-6 - F - RJ Roberto Cesar Andrade dos Santos Accountant CRC – 1RJ 093.771/O-9

ITR - Quarterly Information - 3/31/2013 - MPX ENERGIA SA

Version : 1

Contents

Company Details

Breakdown of Paid-in Capital _ 1

Individual Financial Statements

Balance Sheet – Assets 2

Balance Sheet – Liabilities 3

Statement of Operations 4

Statement of Comprehensive Income (Loss) 5

Cash Flow Statement 6

Statements of Changes in Equity _

DMPL - 1/1/2013 to 3/31/2013 7

DMPL - 1/1/2012 to 3/31/2012 8

Statement of Added Value _ 9

Consolidated Financial Statements

Balance Sheet – Assets 10

Balance Sheet – Liabilities 11

Statement of Operations 13

Statement of Comprehensive Income (Loss) 14

Cash Flow Statement _ 15

Statement of Changes in Equity

DMPL - 1/1/2013 to 3/31/2013 17

DMPL - 1/1/2012 to 3/31/2012 18

Statement of Added Value 19

Other Information Considered Significant to the Company _ 20

Opinions and Representations

Special Review Report – Unqualified 26

Report of the Audit Committee or Equivalent Body 28

Representation of the Officers about the Financial Statements _ 29

Representation of the Officers about the Independent Auditors' Report 30


Company Data / Capital Breakdown

Version : 1

Number of Shares (thousand) Current Quarter 3/31/2013

Issued Capital

Common 578,416

Preferred 0

Total 578,416

Treasury stock

Common 0

Preferred 0

Total 0

PAGE: 1 of 30

ITR - Quarterly Information - 3/31/2013 - MPX ENERGIA SA Version : 1

Individual Financial Statements - Balance Sheet - Assets - (In thousands of Reais)

Account Code Account Description Current Quarter 3/31/2013 Prior Year 12/31/2012

1 Total Assets 3,878,444 3,642,481

1.01 Current Assets 272,238 234,244

1.01.01 Cash and Cash Equivalents 246,753 206,263

1.01.01.01 Cash and Banks 1,928 260

1.01.01.02 Fundo Multimercado MPX 63 244,825 206,003

1.01.06 Recoverable Taxes 24,590 22,068

1.01.06.01 Taxes Recoverable 24,590 22,068

1.01.08 Other Current Assets 895 5,913

1.01.08.03 Other 895 5,913

1.01.08.03.01 Other Advances 859 820

1.01.08.03.02 Dividends Receivable 0 2,040

1.01.08.03.03 Gain on derivatives 0 3,018

1.01.08.03.04 Escrow Deposits 36 35

1.02 Noncurrent Assets 3,606,206 3,408,237

1.02.01 Long-Term Assets 1,495,823 1,170,867

1.02.01.06 Deferred Taxes 114,400 114,400

1.02.01.06.01 Deferred Income and Social Contribution Taxes 114,400 114,400

1.02.01.07 Prepaid Expenses 841 841

1.02.01.09 Other Noncurrent Assets 1,380,582 1,055,626

1.02.01.09.04 Escrow Deposits 104,025 102,649

1.02.01.09.07 Recoverable Taxes 8,563 9,598

1.02.01.09.08 Accounts receivable from other related parties 1,134 1,134

1.02.01.09.09 AFAC at joint ventures 711,282 419,426

1.02.01.09.11 Loan with joint ventures 534,121 505,976

1.02.01.09.12 Accounts receivable from joint ventures 21,230 16,364

1.02.01.09.13 Embedded derivatives 227 479

1.02.02 Investments 2,088,347 2,215,107

1.02.02.01 Equity Interests 2,088,347 2,215,107

1.02.02.01.01 Interests in Affiliated Companies 26,043 31,861

1.02.02.01.02 Interests in Subsidiaries 1,206,817 1,319,057

1.02.02.01.03 Interests in Joint Ventures 793,392 802,094

1.02.02.01.04 Other Equity Interests 62,095 62,095

1.02.03 Property, plant and equipment 19,202 19,343

1.02.04 Intangible assets 2,834 2,920

PAGE: 2 of 30


Individual Financial Statements / Balance Sheet - Liabilities (In thousands of Reais)


2 Total Liabilities 3,878,444 3,642,481

2.01 Current Liabilities 1,428,004 947,341

2.01.01 Social and labor obligations 3,950 3,288

2.01.01.02 Labor Obligations 3,950 3,288

2.01.02 Trade accounts payables 6,594 3,847

2.01.02.01 Trade accounts payable - Domestic 6,594 3,847

2.01.03 Tax Obligations 742 402

2.01.03.01 Federal Tax Liabilities 742 402

2.01.03.01.01 Income taxes and contributions payable 742 402

2.01.04 Loans and Financing 1,397,473 924,464

2.01.04.01 Loans and Financing 1,397,310 924,353

2.01.04.01.01 local currency 1,397,310 924,353

2.01.04.02 Debentures 163 111

2.01.04.02.02 Interest 163 111

2.01.05 Other Obligations 19,245 15,340

2.01.05.01 Related-Party Transactions 8,856 6,523

2.01.05.01.02 Debts with Subsidiaries 3,595 3,859

2.01.05.01.04 Debts with Other Related Parties 5,261 2,664

2.01.05.02 Other 10,389 8,817

2.01.05.02.04 Losses on Derivative Transactions 1,572 0

2.01.05.02.07 Profit Sharing 8,726 8,726

2.01.05.02.09 Other Obligations 91 91

2.02 Noncurrent Liabilities 123,688 125,547

2.02.01 Loans and Financing 105,758 107,129

2.02.01.01 Loans and Financing 100,690 102,175

2.02.01.01.01 In local currency 100,690 102,175

2.02.01.02 Debentures 5,068 4,954

2.02.01.02.01 Principal 4,605 4,605

2.02.01.02.02 Interest 463 349

2.02.04 Provisions 17,930 18,418

2.02.04.02 Other Provisions 17,930 18,418

2.02.04.02.05 Negative Equity 17,930 18,418

2.03 Equity 2,326,752 2,569,593

2.03.01 Realized Capital 3,731,975 3,731,734

2.03.02 Capital Reserves 327,618 321,904

2.03.02.04 Options Awarded 327,618 321,904

2.03.05 Retained Earnings/Accumulated Losses -1,615,879 -1,364,978

2.03.06 Equity valuation Adjustments -116,962 -119,067

PAGE: 3 of 30


Individual Financial Statements / Income Statement - (In thousands of Reais)

Account Code Account Description Accrued Value of the Current

Year 1/1/2013 to 3/31/2013 Accrued Value of the Prior Year 1/1/2012 to 3/31/2012

3.04 Operating Income/Expenses -220,392 -67,216

3.04.02 General and Administrative Expenses -23,710 -33,579

3.04.02.01 Personnel and Management -11,121 -17,573

3.04.02.02 Outsourced Services -9,796 -12,902

3.04.02.03 Depreciation and Amortization -453 -392

3.04.02.04 Leasing and Rentals -1,080 -1,979

3.04.02.05 Other Expenses -1,260 -733

3.04.04 Other Operating Income 14 0

3.04.05 Other Operating Expenses -1,040 -1,555

3.04.05.01 Unsecured Liability -1,040 -1,555

3.04.05.02 Provision for investment losses 3 0

3.04.05.03 Losses on the sale of assets -3 0

3.04.06 Equity pick-up -195,656 -32,082

3.05 Income before financial income/loss and taxes -220,392 -67,216

3.06 Financial Income/Loss -30,509 -20,865

3.06.01 Financial Revenue 14,982 24,703

3.06.01.01 Exchange gains 3,407 -1

3.06.01.02 Short-term investments 13,268 20,116

3.06.01.03 Derivative Financial Instruments -1,443 -9,512

3.06.01.04 Fair value of debentures -251 13,000

3.06.01.05 Other Financial Revenue 1 1,100

3.06.02 Financial Expenses -45,491 -45,568

3.06.02.01 Foreign exchange Losses -1,981 -6


3.06.02.03 Debenture Interest/Cost -213 -29,035

3.06.02.05 Other Financial Expenses -40,466 -15,449

3.07 Income before taxes -250,901 -88,081

3.08 Income and social contribution taxes 0 10,600

3.08.02 Deferred charges 0 10,600

3.09 Net Earnings from Continued Operations -250,901 -77,481

3.11 Net Income/Loss for the Period -250,901 -77,481

3.99 Earnings per Share - (Reais / Share)

3.99.01 Basic Earnings per Share

3.99.01.01 Common -0.43377 -0.56671

PAGE: 4 of 30


Individual Financial Statements –Statement of Comprehensive Income (Loss)

(In thousands of Reais)



4.01 Net Income for the Period -250,901 -77,481 4.02 Other Comprehensive Income -1,763 -9,251 4.02.01 Cash flow hedges - hedge accounting -1,100 -8,176

4.02.02 Effective portion of the changes in fair value of cash flow hedges - hedge accounting -1,005 -1,629

4.02.03 Deferred income and social contribution taxes - hedge accounting 342 554

4.03 Comprehensive Income (Loss) for the Period -252,664 -86,732

PAGE: 5 of 30


Individual Financial Statements / Statement of Cash Flow – Indirect Method




6.01 Net Cash from Operating Activities -20,076 -17,499

6.01.01 Cash Generated from Operating Activities -19,276 -24,282

6.01.01.01 Net income/loss before IR and CSLL -250,901 -88,081

6.01.01.02 Depreciation and Amortization 453 392

6.01.01.03 Equity in Net Income of Subsidiaries 195,656 32,082

6.01.01.04 Operations with derivative financial instruments 4,274 10,590

6.01.01.05 Stock Options Awarded 5,714 10,119

6.01.01.07 Investment devaluation -3 0

6.01.01.08 Provision for capital deficiency 1,040 1,555

6.01.01.13 Debenture Interest/Cost 213 28,435

6.01.01.14 Fair value of debentures 251 -12,400

6.01.01.15 Interest on loans and related parties 21,922 2,831

6.01.01.17 Equity valuation 2,105 -9,805

6.01.02 Changes in Assets and Liabilities -800 6,783

6.01.02.01 Other Advances -39 -191

6.01.02.02 Prepaid Expenses 0 64

6.01.02.05 Taxes recoverable -1,486 -2,413

6.01.02.09 Taxes, Duties and Contributions 341 221

6.01.02.10 Trade accounts payable 2,746 119

6.01.02.11 Provisions and payroll charges 661 352

6.01.02.12 Accounts Payable 0 -27

6.01.02.14 Debts / Credits with related parties -2,531 7,097

6.01.02.17 Other Assets and Liabilities -492 1,561

6.02 Net Cash from Investment Activities -389,496 -435,427

6.02.01 Acquisition of PPE and intangible assets -226 -708

6.02.04 Change in Investments -69,933 -213,951

6.02.06 AFAC to associated companies -291,856 -155,552

6.02.07 Loan related parties -28,145 -3,885

6.02.08 Dividend 2,040 0

6.02.10 Escrow Deposits -1,376 -61,331

6.03 Net Cash from Financing Activities 450,061 6,036

6.03.01 Financial Instruments 315 2,558

6.03.02 Capital Increase 241 660

6.03.07 Loans and Financing Obtained 449,550 3,431

6.03.10 Issuance (payment) of debentures -45 -613

6.05 Increase (Decrease) in Cash and Cash Equivalents 40,489 -446,890

6.05.01 Opening Balance of Cash and Cash Equivalents 206,263 960,257

6.05.02 Closing Balance of Cash and Cash Equivalents 246,752 513,367

PAGE: 6 of 30


Individual Financial Statements - Statements of Changes in Equity - 1/1/2013 to 3/31/2013 (In thousands of Reais)

Account Code Account Description Paid-in share capital Profit Reserves

Retained Earnings or Accumulated Losses

Other Comprehensive Income

Equity

5.01 Opening Balances 3,731,734 321,904 0 -1,364,978 -119,067 2,569,593 5.03 Adjusted Opening Balances 3,731,734 321,904 0 -1,364,978 -119,067 2,569,593 5.04 Capital Transactions with Partners 241 5,714 0 0 0 5,955 5.04.01 Capital Increases 241 0 0 0 0 241 5.04.03 Awarded Options Recognized 0 5,714 0 0 0 5,714 5.05 Total Comprehensive Income (Loss) 0 0 0 -250,901 2,105 -248,796 5.05.02 Other Comprehensive Income (Loss) 0 0 0 -250,901 2,105 -248,796 5.05.02.01

Financial Instrument Adjustments 0 0 0 0 1,005 1,005 5.05.02.04

Translation Adjustments in the Period 0 0 0 0 1,100 1,100 5.05.02.07

Loss for the Period 0 0 0 -250,901 0 -250,901 5.07 Closing Balances 3,731,975 327,618 0 -1,615,879 -116,962 2,326,752

PAGE: 7 of 30


Individual Financial Statements - Statement of Changes in Equity - 1/1/2012 to 3/31/2012 (In thousands of Reais)

Account Code Account Description Paid-in share capital

Capital Reserves, Options Awarded and Treasury Stock

Profit Reserves



Equity

5.01 Opening Balances 2,042,014 274,625 0 -927,169 -71,670 1,317,800 5.03 Adjusted Opening Balances 2,042,014 274,625 0 -927,169 -71,670 1,317,800 5.04 Capital Transactions with Partners 660 10,119 0 0 0 10,779 5.04.01 Capital Increases 660 0 0 0 0 660 5.04.03 Awarded Options Recognized 0 10,119 0 0 0 10,119 5.05 Total Comprehensive Income (Loss) 0 0 0 -77,481 -9,805 -87,286 5.05.02 Other Comprehensive Income (Loss) 0 0 0 -77,481 -9,805 -87,286 5.05.02.01

Financial Instrument Adjustments 0 0 0 0 -8,176 -8,176 5.05.02.04

Translation Adjustments in the Period 0 0 0 0 -1,629 -1,629 5.05.02.07

Loss for the Period 0 0 0 -77,481 0 -77,481 5.07 Closing Balances 2,042,674 284,744 0 -1,004,650 -81,475 1,241,293

PAGE: 8 of 30


PAGE: 9 of 30

Individual Financial Statements – Statement of Added Value


Account Code Account Description Accrued Value of the Current Year 1/1/2013 to 3/31/2013

Accrued Value of the Prior Year 1/1/2012 to 3/31/2012

7.02 Consumables acquired from third parties -10,918 -13,571

7.02.02 Materials, Energy, Outsourced Services and Other -10,918 -13,571

7.03 Gross Added Value -10,918 -13,571

7.04 Retentions -453 -392

7.04.01 Depreciation, Amortization and Depletion -453 -392

7.05 Net Added Value Produced -11,371 -13,963

7.06 Transferred Added Value -185,107 -8,934

7.06.01 Equity pick-up -195,656 -32,082


7.06.03 Other -2,480 -11,067


7.06.03.02 Provision for capital deficiency -1,040 -1,555

7.06.03.03 Provision for devaluation of investments 3 0

7.07 Total Added Value to be Distributed -196,478 -22,897

7.08 Distribution of Added Value -196,478 -22,897

7.08.01 Personnel 11,122 17,573

7.08.01.01 Direct compensation 8,536 14,334

7.08.01.02 Benefits 948 1,160

7.08.01.03 F.G.T.S. 1,638 2,079

7.08.02 Taxes, Charges and Contributions 12 -10,600

7.08.02.01 Federal 12 -10,600

7.08.03 Remuneration of Third Parties’ Capital 43,289 47,611

7.08.03.01 Interest 213 31,866

7.08.03.02 Rent 1,080 1,979

7.08.03.03 Other 41,996 13,766

7.08.03.03.01 Losses on Derivative Transactions 2,831 1,078

7.08.03.03.03 Insurance

127 64

7.08.03.03.04 Exchange rate fluctuation

-1,426 6

7.08.03.03.06 Financial Expenses

40,464 12,618

7.08.04 Equity remuneration -250,901 -77,481

7.08.04.03 Retained Earnings/Loss for the Period -250,901 -77,481


Consolidated Financial Statements / Balance Sheet - Assets - ( In thousands of Reais)


1 Total Assets 8,530,091 8,039,596

1.01 Current Assets 817,973 765,908

1.01.01 Cash and Cash Equivalents 359,121 519,277

1.01.01.01 Cash and Banks 7,902 5,922

1.01.01.02 Fundo Multimercado MPX 63 336,215 513,355

1.01.01.04 CDB 15,004 0

1.01.02 Short-term Investments 5,600 3,441

1.01.02.01 Short-term investments at Fair Value 5,600 3,441

1.01.02.01.03 Marketable Securities 5,600 3,441

1.01.03 Accounts Receivable 228,964 21,345

1.01.03.01 Trade accounts receivable 228,964 21,345

1.01.04 Inventories 130,811 142,687

1.01.06 Taxes Recoverable 61,397 37,410

1.01.06.01 Current Taxes Recoverable 61,397 37,410

1.01.07 Prepaid Expenses 19,325 19,351

1.01.08 Other Current Assets 12,755 22,397

1.01.08.03 Other 12,755 22,397

1.01.08.03.01 Other Advances 2,668 1,783

1.01.08.03.03 Gain on Derivatives 0 3,018

1.01.08.03.04 Escrow Deposits 36 35

1.01.08.03.05 CCC subsidies receivable 10,051 17,561

1.02 Noncurrent Assets 7,712,118 7,273,688

1.02.01 Long-Term Assets 743,447 654,098

1.02.01.06 Deferred Taxes 366,355 305,548

1.02.01.06.01 Deferred Income and Social Contribution Taxes 366,355 305,548

1.02.01.07 Prepaid Expenses 4,167 8,494

1.02.01.09 Other Noncurrent Assets 372,925 340,056

1.02.01.09.04 Escrow Deposits 137,546 135,648

1.02.01.09.05 CCC Subsidies Receivable 24,617 24,617

1.02.01.09.07 Taxes Recoverable 23,538 24,034

1.02.01.09.08 Accounts receivable from other related parties 1,134 1,134

1.02.01.09.09 AFAC at joint ventures 19,080 12,425

1.02.01.09.11 Loan with joint ventures 157,766 134,926

1.02.01.09.12 Accounts receivable from joint ventures 9,017 6,793

1.02.01.09.13 Embedded derivatives 227 479

1.02.02 Investments 819,435 833,955

1.02.02.01 Equity Interests 819,435 833,955

1.02.02.01.01 Interests in Affiliated Companies 26,043 31,861

1.02.02.01.04 Other Equity Interests 793,392 802,094

1.02.03 Property, plant and equipment 5,933,978 5,570,399

1.02.04 Intangible assets 215,258 215,236

PAGE: 10 of 30


Consolidated Financial Statements / Balance Sheet - Liabilities (In thousands of Reais)

Account Code Account Description Current Quarter 3/31/2013 Prior Year

12/31/2012

2 Total Liabilities 8,530,091 8,039,596

2.01 Current Liabilities 2,829,447 2,109,465 2.01.01 Social and labor obligations 11,365 9,863 2.01.01.02 Labor Obligations 11,365 9,863 2.01.02 Trade accounts payable 302,729 115,261 2.01.02.01 Trade accounts payables - Domestic 302,729 115,261

2.01.03 Tax Obligations 39,664 7,241 2.01.03.01 Federal Tax Liabilities 39,664 7,241 2.01.03.01.01 Income taxes and contributions payable 39,664 7,241 2.01.04 Loans and Financing 2,342,132 1,820,085 2.01.04.01 Loans and Financing 2,341,969 1,819,974 2.01.04.01.01 local currency 2,341,969 1,819,974 2.01.04.02 Debentures 163 111 2.01.04.02.02 Interest 163 111

2.01.05 Other Obligations 133,557 157,015 2.01.05.01 Related-Party Transactions 51,541 30,772 2.01.05.01.03 Debits with Parent Companies 4,284 26,783 2.01.05.01.04 Debts with Other Related Parties 47,257 3,989 2.01.05.02 Other 82,016 126,243 2.01.05.02.04 Losses on Derivative Transactions 24,822 22,951 2.01.05.02.05 Contractual Retentions 31,767 77,374

2.01.05.02.07 Profit Sharing 20,633 20,633 2.01.05.02.08 Dividends Payable 0 1,960 2.01.05.02.09 Other Obligations 4,794 3,325 2.02 Noncurrent Liabilities 3,248,297 3,228,993 2.02.01 Loans and Financing 3,122,924 3,109,760 2.02.01.01 Loans and Financing 3,117,856 3,104,806 2.02.01.01.01 Local currency 3,117,856 3,104,806 2.02.01.02 Debentures 5,068 4,954

2.02.01.02.01 Principal 4,605 4,605 2.02.01.02.02 Interest 463 349 2.02.02 Other Obligations 101,960 95,227 2.02.02.01 Related-Party Transactions 8,400 430 2.02.02.01.01 Debits with Associated Companies 8,400 0 2.02.02.01.04 Debts with Other Related Parties 0 430 2.02.02.02 Other 93,560 94,797 2.02.02.02.03 Losses on Derivative Transactions 93,560 94,797 2.02.03 Deferred Taxes 2,048 2,048

2.02.03.01 Deferred Income and Social Contribution Taxes 2,048 2,048 2.02.04 Provisions 21,365 21,958 2.02.04.02 Other Provisions 21,365 21,958 2.02.04.02.04 Provision for Disassembly 2,126 2,118 2.02.04.02.05 Unsecured Liability 19,239 19,840 2.03 Consolidated Equity 2,452,347 2,701,138 2.03.01 Realized Capital 3,731,975 3,731,734 2.03.02 Capital Reserves 327,618 321,904

PAGE: 11 of 30


PAGE: 12 of 30

Consolidated Statements / Balance Sheet - Liabilities - (reais thousand)


2.03.02.04 Options Awarded 327,618 321,904

2.03.05 Retained Earnings/Accumulated Losses -1,635,500 -1,384,971

2.03.06 Equity valuation Adjustments -116,962 -119,067

2.03.09 Noncontrolling Interests 145,216 151,538


Consolidated Statements / Income Statement (Loss) - (In thousands Reais)



3.01 Revenue from goods sold and services rendered 196,098 75,669

3.02 Cost of goods and/or services sold -312,608 -81,797

3.03 Gross Profit -116,510 -6,128

3.04 Operating Income/Expenses -123,531 -81,219

3.04.02 General and Administrative Expenses -39,029 -61,873

3.04.02.01 Personnel and Management -20,298 -26,799

3.04.02.02 Outsourced Services -14,062 -25,616

3.04.02.03 Depreciation and Amortization -638 -1,094

3.04.02.04 Leasing and Rentals -1,677 -4,194

3.04.02.05 Other Expenses -2,354 -4,170

3.04.04 Other Operating Income 511 546

3.04.05 Other Operating Expenses -1,522 -466

3.04.05.01 Unsecured Liability -973 0

3.04.05.02 Provision for investment losses 3 0

3.04.05.03 Losses on the sale of assets -552 -466

3.04.06 Equity pick-up -83,491 -19,426

3.05 Income before financial income/loss and taxes -240,041 -87,347

3.06 Financial Income/Loss -77,827 -6,202


3.06.01.01 Exchange gains 3,888 18,686

3.06.01.02 Short-term investments 9,876 28,100


3.06.01.04 Fair value of debentures -251 13,000

3.06.01.05 Other Financial Revenue 631 2,074

3.06.02 Financial Expenses -90,528 -46,900

3.06.02.01 Exchange Losses -2,263 -5,361

3.06.02.02 Derivative Financial Instruments -2,250 13,407

3.06.02.03 Debenture Interest/Cost -213 -29,035

3.06.02.05 Other Financial Expenses -85,802 -25,911

3.07 Income before taxes -317,868 -93,549

3.08 Income and social contribution taxes 60,807 15,789

3.08.01 Current 0 -838

3.08.02 Deferred charges 60,807 16,627

3.09 Net Earnings from Continued Operations -257,061 -77,760

3.11 Consolidated Net Income/Loss for the Period -257,061 -77,760

3.11.01 Attributed to Partners of the Parent Company -250,901 -77,481

3.11.02 Attributed to Noncontrolling Partners -6,160 -279

3.99 Earnings per Share - (Reais / Share)

3.99.01 Basic Earnings per Share

3.99.01.01 Common -0.44442 -0.56870

PAGE: 13 of 30


Consolidated Statements - Comprehensive Income Statement (Loss) - (In Thousand of Reais)

Account Code

Account Description Accrued Value of the Current Year

1/1/2011 to 3/31/2013

Accrued Value of the Prior Year 1/1/2011 to

3/31/2012

4.01 Consolidated Net Income for the Period -257,061 -77,760

4.02 Other Comprehensive Income (Loss) -1,763 -9,251 4.02.01 Cumulative Translation Adjustments -1,100 -8,176 4.02.02 Effective portion of the changes in fair value of cash flow hedges - hedge

accounting -1,005 -1,629

4.02.03 Deferred income and social contribution taxes - hedge accounting 342 554

4.03 Consolidated Comprehensive Income for the Period -258,824 -87,011 4.03.01 Attributed to Partners of the Parent Company -252,664 -86,732 4.03.02 Attributed to Noncontrolling Partners -6,160 -279

PAGE: 14 of 30


Consolidated Financial Statements / Statement of Cash Flow – Indirect Method




6.01 Net Cash from Operating Activities -98,573 -63,030

6.01.01 Cash Generated from Operating Activities -147,065 -35,561

6.01.01.01 Net income/loss before IR and CSLL -317,868 -93,549

6.01.01.02 Depreciation and Amortization 17,895 2,687

6.01.01.03 Equity in Net Income of Subsidiaries 83,491 19,426

6.01.01.04 Operations with derivative financial instruments 3,693 7,755

6.01.01.05 Stock Options Awarded 5,714 10,119

6.01.01.07 Investment devaluation -3 0

6.01.01.08 Provision for Unsecured Liabilities 973 0

6.01.01.09 Provision for Disassembly 8 43

6.01.01.12 Current income and social contribution taxes 0 838

6.01.01.13 Debenture Interest/Cost 213 29,035

6.01.01.14 Fair value of debentures 251 -13,000

6.01.01.15 Interest on loans and related parties 56,463 10,890

6.01.01.17 Equity Valuation 2,105 -9,805

6.01.02 Changes in Assets and Liabilities 48,492 -27,469

6.01.02.01 Other Advances -879 -2,148

6.01.02.02 Prepaid Expenses 4,354 115

6.01.02.03 Accounts Receivable -207,619 -21,218

6.01.02.05 Taxes Recoverable -23,491 -18,320

6.01.02.06 Inventories 11,876 -17,900

6.01.02.09 Taxes, Duties and Contributions 32,423 -3,109

6.01.02.10 Trade accounts payable 187,469 24,720

6.01.02.11 Provisions and payroll charges 1,502 1,298

6.01.02.12 Accounts Payable 1,470 137

6.01.02.13 CCC Subsidies Receivable 7,509 -4,395

6.01.02.14 Debts / Credits with related parties 34,484 1,997

6.01.02.17 Other Assets and Liabilities -606 11,354

6.02 Net Cash from Investing Activities -533,997 -706,990

6.02.01 Acquisition of PPE and intangible assets -381,505 -518,011

6.02.03 Marketable Securities -2,159 -7,419

6.02.04 Change in Investments -69,941 -101,535

6.02.06 AFAC to associated companies -6,655 0

6.02.07 Debt to related parties -22,841 0

6.02.08 Dividends -1,960 0

6.02.09 Contractual Retentions -45,608 -42,810

6.02.10 Escrow Deposits -3,328 -37,215

6.03 Net Cash from Financing Activities 472,414 616,942

6.03.01 Financial Instruments -41 2,233

6.03.02 Capital Increase 241 659

6.03.07 Loans and Financing Obtained 478,581 608,122

6.03.08 Capital decrease deriving from noncontrolling interests -6,322 -6

6.03.10 Issue of debentures -45 5,934

6.05 Increase (Decrease) in Cash and Cash Equivalents -160,156 -153,078

PAGE: 15 of 30


PAGE: 16 of 30

Consolidated Financial Statements / Statement of Cash Flow – Indirect Method (In Thousands of Reais)

Account Code Account Description

Accrued Value of the Current Year 1/1/2011 to 3/31/2013


6.05.01 Opening Balance of Cash and Cash Equivalents

519,277 1,380,151

6.05.02 Closing Balance of Cash and Cash Equivalents

359,121 1,227,073


Consolidated Financial Statements - Statement of Changes in Equity - 1/1/2013 to 3/31/2013 (In Thousands of Reais)

Account Code Account Description Paid-in share

capital


Profit Reserves



Equity Noncontrolling interests

Consolidated Equity

5.01 Opening Balances 3,731,734 321,904 0 -1,384,971 -119,067 2,549,600 151,538 2,701,138

5.03 Adjusted Opening Balances 3,731,734 321,904 0 -1,384,971 -119,067 2,549,600 151,538 2,701,138

5.04 Capital Transactions with Partners 241 5,714 0 372 0 6,327 -5,568 759

5.04.01 Capital Increases 241 0 0 0 0 241 -5,568 -5,327

5.04.03 Awarded Options Recognized 0 5,714 0 0 0 5,714 0 5,714

5.04.09 Deferred Asset Adjustment 0 0 0 372 0 372 0 372

5.05 Total Comprehensive Income (Loss) 0 0 0 -250,901 2,105 -248,796 -754 -249,550

5.05.02 Other Comprehensive Income (Loss) 0 0 0 -250,901 2,105 -248,796 -754 -249,550

5.05.02.01 Financial Instrument Adjustments 0 0 0 0 1,005 1,005 0 1,005

5.05.02.04 Translation Adjustments in the Period 0 0 0 0 1,100 1,100 0 1,100

5.05.02.07 Loss for the Period 0 0 0 -250,901 0 -250,901 -754 -251,655 5.07 Closing Balances 3,731,975 327,618 0 -1,635,500 -116,962 2,307,131 145,216 2,452,347

PAGE: 17 of 30


Consolidated Financial Statements - Statement of Changes in Equity - 1/1/2012 to 3/31/2012 (In thousands of Reais)

Account code Account description Paid-in share

capital


Profit Reserves



Equity Noncontrolling interests

Consolidated Equity

5.01 Opening Balances 2,042,014 274,625 0 -982,323 -71,670 1,262,646 107,429 1,370,075

5.03 Adjusted Opening Balances 2,042,014 274,625 0 -982,323 -71,670 1,262,646 107,429 1,370,075

5.04 Capital Transactions with Partners 660 10,119 0 0 0 10,779 0 10,779

5.04.01 Capital Increases 660 0 0 0 0 660 0 660

5.04.03 Awarded Options Recognized 0 10,119 0 0 0 10,119 0 10,119

5.05 Total Comprehensive Income (Loss) 0 0 0 -77,481 -9,805 -87,286 364 -86,922

5.05.02 Other Comprehensive Income (Loss) 0 0 0 -77,481 -9,805 -87,286 364 -86,922

5.05.02.01 Financial Instrument Adjustments 0 0 0 0 -8,176 -8,176 0 -8,176

5.05.02.04 Translation Adjustments in the Period 0 0 0 0 -1,629 -1,629 0 -1,629

5.05.02.06 Interest of Noncontrolling Shareholder 0 0 0 0 0 0 643 643

5.05.02.07 Loss for the Period 0 0 0 -77,481 0 -77,481 -279 -77,760 5.07 Closing Balances 2,042,674 284,744 0 -1,059,804 -81,475 1,186,139 107,793 1,293,932

PAGE: 18 of 30


PAGE: 19 of 30

Consolidated Financial Statements - Statements of Added Value - (In thousand of Reais)

Account Code Account Description Accrued Value of the Current Year 1/1/2013 to 3/31/2013


7.01 Revenue 559,700 335,634

7.01.01 Goods and Products Sold and Services Rendered 196,098 75,669

7.01.03 Revenue relating to construction of company assets 363,602 259,965

7.02 Consumables acquired from third parties -289,979 -105,703

7.02.02 Materials, Energy, Outsourced Services and Other -289,979 -105,703

7.03 Gross Added Value 269,721 229,931

7.04 Retentions -17,895 -2,687

7.04.01 Depreciation, Amortization and Depletion -17,895 -2,687

7.05 Net Added Value Produced 251,826 227,244

7.06 Transferred Added Value -75,648 -1,983

7.06.01 Equity pick-up -83,491 -19,426


7.06.03 Other -2,412 -25,732


7.06.03.02 Provision for Unsecured Liabilities -973 0

7.06.03.03 Provision for devaluation of investments 3 -4,570

7.07 Total Added Value to be Distributed 176,178 225,261

7.08 Distribution of Added Value 176,178 225,261

7.08.01 Personnel 25,611 27,820

7.08.01.01 Direct compensation 17,977 20,794

7.08.01.02 Benefits 2,604 2,942

7.08.01.03 F.G.T.S. 5,030 4,084

7.08.02 Taxes, Charges and Contributions -60,614 -15,312

7.08.02.01 Federal -60,614 -15,312

7.08.03 Remuneration of Third-Parties’ Capital 468,242 290,513

7.08.03.01 Interest 167 29,035

7.08.03.02 Rent 17,117 5,737

7.08.03.03 Other 450,958 255,741

7.08.03.03.01 Losses on Derivative Transactions 2,250 -13,407

7.08.03.03.02 Advances to suppliers

363,688 255,316

7.08.03.03.03 Insurance

843 1,246

7.08.03.03.04 Exchange rate fluctuation

-1,625 -13,325

7.08.03.03.06 Financial Expenses 85,802 25,911

7.08.04 Equity remuneration -257,061 -77,760

7.08.04.03 Retained Earnings/Loss for the Period -250,901 -77,481

7.08.04.04 Noncontrolling interests in retained earnings -6,160 -279


FEDERAL PUBLIC SERVICE CVM – BRAZILIAN SECURITIES COMMISSION ITR – Quarterly Information Corporate Legislation COMMERCIAL AND INDUSTRIAL COMPANIES AND OTHER - as of 3/31/2013

02123-7 MPX ENERGIA S/A 04.423.567/0001-21

20.1 OTHER INFORMATION CONSIDERED SIGNIFICANT TO THE COMPANY

The Company, its shareholders and managers undertake to settle through arbitration any and all disputes between them arising from, or in connection with, the application, validity, effectiveness, interpretation, violation or effects of the rules contained in Brazilian Corporation Law, the Company's Articles of Incorporation, regulations issued by the Brazilian Monetary Council, the Brazilian Central Bank and the Brazilian Securities and Exchange Commission (CVM), and any other regulations applicable to the capital market in general, as well as those contained in the New Market Regulations, the Regulations of the Market Chamber of Arbitration and New Market Agreement.

At March 31, 2013 the Company’s share capital was divided into578,416,212 common shares distributed as follows: _____________________________________________________________

CONSOLIDATED POSITION OF CONTROLLING SHAREHOLDERS, MANAGERS AND FREE

FLOAT Position at 3/31/2013

Number of Total Amount

Shareholder Common Shares % of shares %

(In Units) (In Units)

Controlling Shareholder 309,280,530 53.47 309,280,530 53.47

Executives

Board of Directors 2,935,816 0.51 2,935,816 0.51 Executive Board 4,198,060 0.73 4,198,060 0.73

Audit Committee* - - - -

Treasury Stock - - - -

Other Shareholders 262,001,806 45.29 262,001,806 45.29

Total** 578,416,212 100 578,416,212 100

Free Float 262,001,806 45.29 262,001,806 45.29

*The Company does not currently have an Audit Committee.

The Company's capital was increased on 5/26/2011 by the Board of Directors' meeting held on 3/24/2011, which raised the number of shares from 136,692,680 to 136,720,840, as a result of subscription options being exercised.

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Other Information Considered Significant to the Company


02123-7 MPX ENERGIA S/A 04.423.567/0001-21


The Company's capital was increased in February 2012 by the Board of Directors' meeting held on 2/29/2012, via the issuance of 9,633 new shares resulting from the conversion of 6,383 of the 21,735,744 debentures issued by the Company on June 15, 2011. The number of Company shares accordingly rose from 136,720,840 to 136,730,473.

The Company's capital was increased in March 2012 by the Board of Directors' meeting held on 3/21/2012, via the issuance of 984 new shares resulting from the conversion of 649 debentures and the issuance of 7,040 new common shares, with no par value, resulting from the exercising of stock options awarded under the Company's stock options program. The number of Company shares accordingly increased from 136,730,473 to 136,738,497.

The Company's capital was increased in May 2012 by the Board of Directors' meeting held on 5/9/2012 as a result of the (i) issue of 4,112 new shares resulting from the conversion of 2,701 debentures and (ii) the issue of 125,620 new common shares, with no par value, resulting from the exercising of stock options awarded under the Company's stock options program. The number of Company shares accordingly increased from 136,738,497 to 136,868,229.

The capital was increased again the same month by the Board of Directors' meeting held on 5/24/2012, which ratified the issue of 33,254,705 new common shares with no par value, resulting from the conversion of 21,652,966 debentures. The number of Company shares accordingly increased from 136,868,229 to 170,122,934.

On May 24, 2012 the MPX Board of Directors approved a capital increase of R$ 1,000,000,063.00 via the issue of 22,623,796 new shares. However, the subscribed shares will only exist after the capital increase has been concluded and subsequently ratified, which was concluded in July 2012 and ratified by the Board of Directors' meeting held on July 25, 2012.

The Company's capital was increased in June 2012 by the Board of Directors' meeting held on 6/15/2012, which ratified the issue of 514 new common shares with no par value, resulting from the conversion of 334 debentures. The number of Company shares accordingly increased from 170,122,934 to 170,123,448.

On June 25, 2012 the Board of Directors' meeting ratified the capital increase, approved by the Board of Directors' meeting on May 24, 2012 at 11 AM, of R$ 1,000,000,063.00 (one billion and sixty-three reais), within the authorized capital limit, as a result of the subscription and full payment of the 22,623,796 new common registered shares with no par value by E.ON AG (“E.ON”). The number of Company shares accordingly increased from 170,123,448 to 192,747,244.

Pursuant to the minutes of the Special Shareholders’ Meeting held on by the Company on August 15, 2012, the shareholders in attendance unanimously approved the split of common shares issued by the Company, whereby each existing common share was split into 3 (three) shares of the same class. MPX's shareholders are entitled to receive the split shares according to their shareholding at August 15, 2012. The number of Company shares accordingly increased from 192,747,244 to 578,241,732

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02123-7 MPX ENERGIA S/A 04.423.567/0001-21

20.1 OTHER INFORMATION CONSIDERED SIGNIFICANT TO THE COMPANY _____________________

The Company's capital was increased in January 2013 by the Board of Directors' meeting held on 1/10/2013, ratifying the issuance of 147,480 new common shares, with no par value, resulting from the exercising of stock options awarded under the Company's stock options program. The number of Company shares accordingly changed to 578,389,212.

The Company's capital was increased in February 2013 by the Board of Directors' meeting held on 2/6/2013, ratifying the issue of 27,000 new common shares, with no par value, resulting from the exercising of stock options awarded under the Company's stock options program. The number of Company shares accordingly changed to 578,416,212.

However, there was a partial subscription of the capital increase, whereby the share capital as of March 31, 2013 stood at R$ 3,736,269,091.89, less than the figure presented in the minutes to the Board of Directors' meeting held on February 06, 2013. The remainder of the share capital was paid in after the end of the first quarter, resulting in a share capital of R$ 3,736,354,722.02.

Shareholdings of over 5% of the shares of each type and class in the Company, including those of individuals Position at 3/31/2013

_______________________ Company: MPX Energia S.A._____________________________________ (in shares) _________

Common shares* Total

Shareholder Number of shares % Number of shares %

Eike Fuhrken Batista 287,249,625 49.7 287,249,625 49.7

Centennial Asset Mining Fund LLC 20,208,840 3.5 20,208,840 3.5 Centennial Asset Brazilian Equity Fund LLC 1,822,065 0.3 1,822,065 0.3 E.ON 67,869,516 11.7 67,869,516 11.7 BNDESPAR 59,823,537 10.3 59,823,537 10.3 Other 141,442,629 24.5 141,442,629 24.5 Total 578,416,212 100 578,416,212 100

*MPX's share capital consists solely of common shares.

Distribution of share capital in our corporate shareholder (Company shareholder), including the shareholdings of individuals

Position at 3/31/2013 _____________ Company: Centennial Asset Mining Fund LLC ____________________ __________ (in shares___________

Stocks Total

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02123-7 MPX ENERGIA S/A 04.423.567/0001-21


At March 31, 2012 the Company’s share capital consisted of 136,720,840 common shares distributed as follows:

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PAGE: 23 of 30

Shareholder Number of shares % Number of shares %

Eike Fuhrken Batista 1,000 100.0 1,000 100.0

Total 1,000 100.0 1,000 100.0

Company: Centennial Asset Brazilian Equity Fund LLC Position at 3/31/2013 (shares)

Stocks Total

Shareholder Number of shares % Amount %

Centennial Asset Mining Fund LLC 1,000 100.0 1,000 100.0

Total 1,000 100.0 1,000 100.0

To facilitate your comprehension a summary follows of the corporate changes MPX has undergone in the period of 1 year:

• On September 24, 2010 EBX Investimentos Ltda. returned 86,436,560 common shares of the Company to Mr. Eike Batista, its controlling shareholder, accounting for 63.2% of MPX’s share capital.

• On December 10, 2010 the Company's controlling shareholder Mr. Eike Batista announced he had sold 2,254,300 of the Company's shares in order for the free float to comply with the minimum percentage required by the regulations of the BM&FBovespa's New Market, equal to 25% of the share capital.




02123-7 MPX ENERGIA S/A 04.423.567/0001-21

20.01 - OTHER INFORMATION CONSIDERED SIGNIFICANT TO THE COMPANY

CONSOLIDATED POSITION OF CONTROLLING SHAREHOLDERS, MANAGERS AND FREE

FLOAT Position at 3/31/2012

Number of Total Amount

Shareholder Common Shares % of shares % (In Units) (In Units)

Controlling Shareholder 98,785,400 72.25 98,785,400 72.25

Executives

Board of Directors 772,498 0.56 772,498 0.56 Executive Board 1,652,020 1.21 1,652,020 1.21

Audit Committee*** - -

Treasury Stock - - - -

Other Shareholders 35,525,651 25.98 35,525,651 25.98

Total 136,735,569 100 136,735,569 100

Free Float 35,525,651 25.98 35,525,651 25.98

Shareholdings of over 5% of the shares of each type and class in the Company, including those of individuals

Position at 3/31/2012 Company: MPX Energia S.A. ________________________________ (in shares) ______

Common shares Total

Shareholder Number of shares % Number of shares

%

Eike Fuhrken Batista 91,585,820 67.0 91,585,820 67.0

Centennial Asset Mining Fund LLC 6,736,280 4.9 6,736,280 4.9

Centennial Asset Brazilian Equity Fund LLC 463,300 0.3 463,300 0.3

Other** 37,950,169 27.8 37,950,169 27.8

Total 136,735,569 100 136,735,569 100

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FEDERAL PUBLIC SERVICE CVM – BRAZILIAN SECURITIES COMMISSION ITR - Quarterly Information COMMERCIAL AND INDUSTRIAL COMPANIES AND OTHER

Corporation Law As of 3/31/2013

02123-7 MPX ENERGIA S/A 04.423.567/0001-21

20.1 OTHER INFORMATION CONSIDERED SIGNIFICANT TO THE COMPANY ______________________

Distribution of share capital in our corporate shareholder (Company shareholder), including the shareholdings of individuals

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Company: Centennial Asset MiningFund LLC Position at 3/31/2012 (shares)

Stocks Total


Eike Fuhrken Batista 1,000 100.0 1,000 100.0

Total 1,000 100.0 1,000 100.0

Company: Centennial Asset Brazilian Equity Fund LLC Position at 3/31/2012 (shares)

Stocks Total


Centennial Asset MiningFund LLC 1,000 100.0 1,000 100.0

Total 1,000 100.0 1,000 100.0


Opinions and Representations / Report of the Audit Committee or Equivalent Body

Not applicable.

PAGE: 26 of 28


Opinions and Representations / Representation of the Officers about the Financial Statements

In due accordance with the provisions stated in article 25 of Instruction 480/09 issued December 07, 2009, the Executive Board represents it has reviewed, discussed and accepted the Quarterly Information (Company and Consolidated) for the three-month period ended March 31, 2013.

Rio de Janeiro, May 08, 2013.

Eduardo Karrer - CEO and Investor Relations Officer Rudolph Ihns – CFO Xisto Vieira Filho – Energy Trading and Relations Officer Marcus Bernd Temke – Implementations and Operations Officer Bruno de Rossi Chevalier – Legal Officer

PAGE: 27 of 28


Opinions and Representations / Representation of the Officers about the Independent Auditors' Report In due accordance with the provisions stated in article 25 of Instruction 480/09 issued December 07, 2009, the Executive Board represents it has reviewed, discussed and accepted the opinion expressed in the independent auditors report dated May 08, 2013 on the quarterly information (Company and Consolidated) for the three-month period ended March 31, 2013.

Rio de Janeiro, May 08, 2013.

Eduardo Karrer - CEO and Investor Relations Officer Rudolph Ihns – CFO Xisto Vieira Filho – Energy Trading and Relations Officer Marcus Bernd Temke – Implementations and Operations Officer Bruno de Rossi Chevalier – Legal Officer

PAGE: 28 of 28

1

Energia S.A. (Publicly-held company) Notes to quarterly information March 31, 2013 (In thousands of reais, unless stated otherwise) 1. Operations

MPX Energia S.A. (Company) was founded on April 25, 2001 and is headquartered in Rio de Janeiro. The Company’s core activity is the generation of electric energy through the development of a diversified portfolio of sources, including mineral coal, natural gas and renewable sources. The Company has a diversified portfolio of projects, including thermal power plants in Brazil and Chile, in addition to renewable energy projects, such as solar energy. In order to integrate its operations it is also implementing natural-gas production and exploration projects in Brazil to supply its power stations and for selling. The company participates as a member or shareholder of the companies that implement these projects and certain projects will be implemented in partnership with other players in the energy sector. Funding for these projects was basically obtained under the Company's public share offering made on December 14, 2007 and January 11, 2008 (supplementary batch), amounting to R$ 2,035,410, in addition to financing and the recent issuance of 21,735,744 convertible debentures on June 15, 2011 amounting to R$ 1,376,527. 21,653,300 debentures were converted on May 24, 2012, triggering the issue of 33,255,219 new shares, as a result of the corporate reorganisation implemented by the Company. Creation of MPX EON Participações and partnership with E.ON AG MPX Energia S.A. and E.ON AG. entered into a partnership in May 2012 to develop conventional and renewable energy generation products and to carry out energy supply and sales activities in Brazil and Chile. On December 12, 2012 MPX Energia contributed R$ 19,349 to the capital of MPX EON Participações via the transfer of 50% its investment portfolio in the subsidiary Seival Participações. The amount transferred was ratified by an appraisal issued by an independent company. This transaction is part of the corporate restructuring process that took place on May 24, 2012 of the partnership between MPX Energia S.A and E.ON.AG.

MPX Energia S.A. (Publicly held company) Notes to the quarterly information--Continued Quarter ended March 31, 2013 (In thousands of reais, unless stated otherwise)

2

1. Operations--Continued Creation of MPX EON Participações and partnership with E.ON AG--Continued As a result of this partnership a new company created by MPX and E.ON, called MPX E.ON Participações S.A., received a) 50% of the portfolio of thermal ventures without an energy purchase and sale

agreement; in the case of the Acu project E.ON will have a call option via MPX E.ON Participações for an additional interest of 38.9%;

b) 100% of the supply and sale activities c) all of the renewable energy projects, as described below:

Name Location Activity Capacity % interest transferred Equity

UTE Porto do Açu Rio de Janeiro Electricity generation 2,100 MW 50% 22,934 MPX Chile (*) Chile Electricity generation 2,100 MW 50% (7,290) MPX Sul Rio Grande do Sul Electricity generation 727 MW 50% 6,536 Porto do Açu II Rio de Janeiro Electricity generation 3,300 MW 50% 2,083 Parnaíba Participações Maranhão Electricity generation 1,521 MW 50% 1 MPX Solar Ceará Electricity generation 1 MW 100% 8,554 MPX Comercializadora

de Energia

Rio de Janeiro Energy trading

- 100%

23,561 MPX Comercializadora

de combustível

Rio de Janeiro Fuel trading

- 100%

9,040 Nova Sistema Rio de Janeiro Electricity generation 113 MW 100% 2,525 Seival Participações Rio Grande do Sul Electricity generation 600 MW 50% 19,365

(*) In August 2012, Chile's Supreme Court revoked the environmental licence for the construction of the Central Castilla thermal power plant. This

court also ruled that the licence should take into account a new joint environmental impact assessment of the Plant and the port, Puerto Castilla, where the coal used to supply the plant will be delivered. Management overhauled its business strategy in Chile, which will continue to include the development of the thermal generation plant. This decision is based on the high demand for energy and the ongoing dialogue with the Chilean government.


3

1. Operations--Continued Creation of MPX EON Participações and partnership with E.ON AG--Continued On March 28, 2013 the controlling shareholder of MPX Energia S.A., Mr. Eike Fuhrken Batista, entered into an investment agreement with E.ON AG entailing the following events:

(a) E.ON will acquire Company shares held by Eike Batista accounting for

approximately 24.5% of MPX's share capital. (b) on the date the MPX shares are acquired, E.ON and Eike Batista will enter into a

new shareholders' agreement, which will regulate the exercising of voting rights and restrictions on the transfer of shares held by them.

(c) after the aforesaid acquisition, the borrowing of funds will begin via an IPO, to be

registered at the Brazilian Securities Commission (“CVM”), at an amount of at least R$ 1.2 billion, subject to a firm guarantee for the total amount at R$ 10.00 per share, which is expected to come into force in the second quarter of 2013; and

(d) once the public offering is complete, the shareholders will be asked to approve the

acquisition by the Company at equity value of MPX E.ON Participações S.A., a joint-venture between the Company and E.ON (“JV”).

As shown in the table below, on March 31, 2013 the economic group includes the Company and its equity interests in associated companies, direct and indirect subsidiaries, joint ventures and the Multimercado MPX 63 investment fund. The companies are preoperational except for Amapari Energia S.A., MPX Comercializadora de Energia Ltda., MPX Comercializadora de Combustíveis Ltda., MPX Tauá Energia Solar Ltda. and OGMP Transporte Aéreo Ltda., which is operational, in addition to Porto do Pecém Geração de Energia S.A., da UTE Parnaíba Geração de Energia S.A. and UTE Porto do Itaqui Geração de Energia S.A., which initiated commercial operations in December 2012 and February 2013 respectively. For further details about the subsidiaries see Note 12.


4

1. Operations--Continued Creation of MPX EON Participações and partnership with E.ON AG--Continued

* Joint subsidiary. ** Associated company.


5

1. Operations--Continued Creation of MPX EON Participações and partnership with E.ON AG--Continued Directly or by way of its subsidiaries, joint subsidiaries and associated companies, the Company has been making the investment required to finalise the ventures in its portfolio and subsequently begin the commercial operation thereof. Management understands that the Company has full capacity to honour all financial commitments, as it has structured its major ventures using Project Finance, investing capital of approximately 25% of the total, which takes place on a pari passu basis after funds arrive from the financiers. These ventures also have electric energy Purchase Contracts in a Regulated Environment - CCEAR, generating guaranteed revenue for 20 years. MPX Energia S.A. took out short-term loans in 2012 approximately R$ 800 million to finance part of the investments made in the projects the same year. The Company is working to partially settle and roll forward this short-term financing to long term in 2013 and to capitalise the company so it can pay for the required investment in potential new projects.

MPX Energia S.A. (Publicly-held company) Notes to the quarterly information (Continued) March 31, 2013 (In thousands of reais, unless stated otherwise)

6

2. Licenses and permits The MPX Group is committed to obtaining all the licenses and permits required by law for each of its facilities and activities. The Company and its investees have the following licenses and permits as of March 31, 2013:

Held by Ventures Licenses Expiry

UTE PORTO DO ITAQUI GERAÇÃO DE ENERGIA S.A UTE PORTO DO ITAQUI LO 1,101/2012 10/26/2017 TRANSMISSION LINE LO 1,061/2011 12/16/2017

PORTO DO PECÉM GERAÇÃO DE ENERGIA S.A. UTE PORTO DO PECEM I LO 1,062/2012 12/28/2015 PECEM I TRANSMISSION LINE LO 889/2012 9/26/2015

MPX PECÉM II GERAÇÃO DE ENERGIA S.A. UTE PORTO DO PECÉM II LO 09/2013 2/8/2016 PECEM II TRANSMISSION LINE LI 09/2013 2/15/2015

AMAPARI ENERGIA S.A. UTE SERRA DO NAVIO (including TL) LO 172/2013 3 years

MPX TAUÁ ENERGIA SOLAR LTDA. USINA SOLAR TAUÁ 1MW - (including TL) LO 133/2012 2/28/2014 USINA SOLAR TAUÁ 4MW LI 15/2012 3/5/2014 USINA SOLAR TAUÁ (45MW) LP 253/2012 8/15/2015

UTE PARNAÍBA GERAÇÃO DE ENERGIA S.A. MARANHÃO IV AND V LO 559/2012 12/20/2016

UTE PARNAÍBA II GERAÇÃO DE ENERGIA S.A. MARANHÃO III LI 274/2011* 12/5/2012

UTE PARNAÍBA GERAÇÃO DE ENERGIA S.A. MARANHÃO IV AND V LI 273/2011 12/5/2013

MPX ENERGIA S.A. UTE PARNAIBA I LI 111/2012* 5/9/2012

MPX ENERGIA S.A. UTE PARNAÍBA II LI 003/12 11/11/2013

UTE PARNAÍBA IV GERAÇÃO DE ENERGIA S.A. PARNAÍBA IV (56.4 MW) LI 033/2013 3/22/2015

UTE PORTO DO AÇU ENERGIA S.A. UTE PORTO DO AÇU I LI IN 00882* 10/14/2012 UTE PORTO DO AÇU II LP IN 15964* 3/1/2013 TRANSMISSION LINE LI IN 019365 4/24/2015

NOVA SISTEMAS DE ENERGIA LTDA. EÓLICA MARAVILHA LI IN 000208* 5/22/2012 EÓLICA MUNDÉUS LI IN 000207* 5/22/2012

MPX ENERGIA S.A. MPX SUL TPP LP 332/2009* 12/22/2012 UTE MPX SUL ENERGIA LTDA. BARRAGEM MPX SUL LP 601/2010* 5/21/2012 USINA TERMELÉTRICA SEIVAL LTDA. UTE SEIVAL LI 589/2009 2/17/2014 SEIVAL SUL MINERAÇÃO LTDA. SEIVAL MINE LO No. 9221/2009 10/20/2013 CENTRAL EÓLICA MORADA NOVA LTDA. CGE MORADA NOVA LP 0010/2012

8/10/2014

CENTRAL EÓLICA SÃO FRANCISCO LTDA. CGE SÃO FRANCISCO LP 0083/2012 CENTRAL EÓLICA MILAGRES LTDA. CGE MILAGRES LP 0084/2012 CENTRAL EÓLICA SANTA LUZIA LTDA. CGE SANTA LUZIA LP 0085/2012 CENTRAL EÓLICA PEDRA VERMELHA I LTDA. CGE PEDRA VERMELHA I LP 0090/2012 CENTRAL EÓLICA ASA BRANCA LTDA. CGE ASA BRANCA LP 0091/2012 CENTRAL EÓLICA SANTO EXPEDITO LTDA. CGE SANTO EXPEDITO LP 0092/2012 CENTRAL EÓLICA PEDRA VERMELHA II LTDA. CGE PEDRA VERMELHA II LP 0093/2012

(*) The renewal application was submitted 120 days before expiry. For this reason the company will be legally regular until the new licence has been issued determining the new term in

accordance with Law 70 enacted on January 09, 2012.


7

3. Presentation of quarterly information a) Declaration of conformity in relation to international (IFRS) and Brazilian (CPC)

financial reporting standards The company only and consolidated quarterly information for the period ended March 31, 2013 is as follows: Consolidated quarterly information The consolidated quarterly information is being presented in accordance with CPC 21 (R1) and IAS 34 that applies to Quarterly Information - ITR, presented in accordance with the standards issued by the Brazilian Securities Commission - CVM.

Individual quarterly information The individual quarterly information is being presented in accordance with CPC 21 (R1) that applies to Quarterly Information - ITR, in accordance with the standards issued by the Brazilian Securities Commission - CVM. For the purpose of BR GAAP, Law No. 11941/09 abolished deferred assets, permitting the maintenance of the balance accumulated up to December 31, 2008, which may be amortised in up to 10 years, subject to impairment tests. Following first time adoption of IFRS, the Company recorded the amount of R$ 55,154 in the consolidated accumulated losses, net of tax effects as of January 01, 2009, corresponding to its and its subsidiaries' deferred charges at that date. The difference between the individual and consolidated equity is therefore related to the deferred asset which was recognized in accumulated losses in consolidated equity.


8

3. Presentation of the financial statements--Continued a) Declaration of conformity in relation to international (IFRS) and Brazilian (CPC)

financial reporting standards (Continued) Individual quarterly information (Continued) The table below shows the reconciliation between the individual and consolidated shareholders' equities as of March 31, 2013:

3/31/2013 Equity - Company 2,326,751 Deferred charges - Law 11941/09 (19,621) Minority interests 145,216 Equity - Consolidated 2,452,346 The quarterly information as of March 31, 2013 was approved by the Board of Directors on May 08, 2013.

b) Measurement basis

The individual and consolidated quarterly information has been prepared based on the historic cost basis, adjusted to realisation value when applicable, except for financial instruments held at fair value, including derivative instruments.

c) Functional and reporting currency The individual and consolidated quarterly information is being presented in Brazilian reais, which is the Company's functional currency. All financial information presented in reais has been rounded off to the nearest thousand, unless, specified otherwise stated.


9

3. Presentation of the financial statements--Continued

c) Functional and reporting currency--Continued In accordance with CPC 02 – Effects of the Changes in Financial Statement Exchange and Translation Rates, approved by CVM Resolution No. 534 issued January 29, 2008, Company management decided that its functional currency is the Brazilian real and the functional currency of its overseas joint venture is the Chilean peso (MPX Chile Holding Ltda.), Colombian peso (MPX Colombia S.A.) and the euro (MPX Austria GmbH). These currencies are determined by business plans, the economic environment and especially operating costs. Monetary assets and liabilities denominated in foreign currencies were translated into reais at the foreign exchange rate ruling at the balance sheet date.

d) Use of judgments and estimates Preparation of the individual and consolidated quarterly information in accordance with IFRS and CPC standards requires Management make judgements, and estimates and adopt assumptions that affect the application of accounting policies and the reported values of assets, liabilities, revenue and expenses. Actual results may differ from these estimates. Estimates and assumptions are continually reviewed. Reviews of accounting estimates are recognized in the period in which the estimates are reviewed and in any future years affected. Information about assumptions and estimates that could result in adjustments in the next financial year has been included in the following notes: ► Note 11 - Deferred and recoverable taxes

► Notes 13 and 14 – Property, Plant and Equipment and Intangible Assets

respectively, primarily in respect of analysing the recoverable value of assets and determining the economic useful lives thereof.

► Note 18 - Financial instruments and risk management ► Note 19 - Provision for contingencies, and ► Note 22 - Stock option plan.


10

4. Summary of significant accounting practices Except for the adoption of IFRS 10 and 11, whose accounting policy is described below, the quarterly information has been prepared in accordance with the same accounting practices used to prepare the financial statements as of December 31, 2012, published in the Official Press on February 19, 2013. This quarterly information should therefore be read in conjunction with the aforesaid Financial Statements as of December 31, 2012. IFRS 10 establishes a single control method model that applies to all entities, including specific purpose entities. The changes introduced by IFRS 10 required Management to exercise significant judgment to determine which entities are subsidiaries and therefore have to be consolidated by a company, in comparison with the requisites formally established by IAS 27. IFRS 11 eliminates the option of recording joint subsidiaries (ECC) by using proportional consolidation. Instead, the ECCs classified as joint ventures should be recorded by using the equity income method. The interests in the joint subsidiaries Porto do Pecém Geração de Energia S.A., Porto do Pecém Transportadora de Minérios S.A., OGMP Transporte Aéreo Ltda., Pecém Operação e Manutenção de Unidades de Geração S.A., MABE Construção e Administração de Projetos Ltda., MPX Chile Holding Ltda., Seival Participações S.A., UTE MPX Sul Energia Ltda., Parnaíba Participações S.A., UTE Porto do Açú Energia S.A.,Porto do Açú II Energia S.A. and MPX E.ON Participações S.A. are valued by the equity method in the individual and consolidated quarterly information, pursuant to IFRS 11.


11

4. Summary of significant accounting practices (Continued) The table below shows the changes made to the comparative balances represented in this quarterly information:

Consolidated 12/31/2012 Originally reported Adjustments Re-presented

Assets Current

Cash and cash equivalents 590,469 (71,192) 519,277 Securities 3,441 - 3,441 Accounts receivable 152,114 (130,769) 21,345 Subsidies receivable - Fuel consumption account 17,561 - 17,561 Inventory 211,718 (69,031) 142,687 Prepaid expenses 40,462 (21,111) 19,351 Recoverable taxes 57,438 (20,028) 37,410 Gain on derivatives 3,018 - 3,018 Other advances 20,267 (18,484) 1,783 Secured deposits 4,237 (4,202) 35 Dividends receivable - - - Other accounts receivable 3 (3) -

1,100,728 (334,820) 765,908 Noncurrent Long-term

Prepaid expenses 8,705 (211) 8,494 Secured deposits 137,717 (2,069) 135,648 Subsidies receivable - Fuel consumption account 24,617 - 24,617 Recoverable tax 34,709 (10,675) 24,034 Deferred income and social contribution taxes 456,123 (150,575) 305,548 Loan with subsidiaries 359 134,567 134,926 Accounts receivable from other related parties 8,575 (7,441) 1,134 Accounts receivable from associated companies 3,732 3,061 6,793 Advance for future capital increase – with associated

companies - 12,425 12,425 Embedded derivatives 479 - 479 Other accounts receivable - - -

675,016 (20,918) 654,098 Investments 62,956 770,999 833,955 Property, plant and equipment 7,362,815 (1,792,416) 5,570,399 Intangible assets 249,665 (34,429) 215,236

9,451,180 (1,411,584) 8,039,596


12

4. Summary of significant accounting practices (Continued)

Consolidated 12/31/2012 Originally reported Adjustments Re-presented

Liabilities Current

Trade payables 228,638 (113,377) 115,261 Loans and financing 1,915,402 (95,428) 1,819,974 Debits with associated companies - 26,783 26,783 Debts with subsidiaries 3,407 (3,407) - Debts with other related parties 19,057 (15,068) 3,989 Debentures 111 - 111 Taxes and contributions payable 11,375 (4,134) 7,241 Social and labor obligations 12,980 (3,117) 9,863 Losses on derivative transactions 39,506 (16,555) 22,951 Contractual retention 133,935 (56,561) 77,374 Profit sharing 23,900 (3,267) 20,633 Dividends payable 1,960 - 1,960 Other liabilities 16,888 (13,563) 3,325

2,407,159 (297,694) 2,109,465 Noncurrent

Loans and financing 4,151,947 (1,047,141) 3,104,806 Debts to other related parties 215 215 430 Debentures 4,954 - 4,954 Embedded derivatives - - - Losses on derivative transactions 166,992 (72,195) 94,797 Provision for unsecured liabilities - 19,840 19,840 Deferred income and social contribution taxes 10,431 (8,383) 2,048 Provision for disassembly 4,197 (2,079) 2,118 Other provisions 710 (710) -

4,339,446 (1,110,453) 3,228,993 Equity

Capital 3,731,734 - 3,731,734 Capital reserve 321,904 - 321,904 Equity appraisal adjustments (119,067) - (119,067) Accumulated losses (1,384,971) - (1,384,971)

Equity attributable to controlling shareholders 2,549,600 - 2,549,600 Minority interests 154,975 (3,437) 151,538 Total equity 2,704,575 (3,437) 2,701,138

9,451,180 (1,411,584) 8,039,596


13

4. Summary of significant accounting practices (Continued) Income statement for the year

Consolidated 3/31/2012

Originally reported

Adjustments

Re-presented

Revenue from goods sold and services rendered

75,669 - 75,669

Cost of goods and/or services sold

(81,809) 12 (81,797) Gross profit

(6,140) 12 (6,128)

Operating income/expenses (76,636) (4,583) (81,219) General and administrative (64,332) 2,459 (61,873)

Personnel and management (27,440) 641 (26,799) Other expenses (5,024) 854 (4,170) Outsourced services (26,301) 685 (25,616) Depreciation and amortization (1,304) 210 (1,094) Leasing and rent (4,263) 69 (4,194)

Other operating revenue 575 (29) 546 Other operating expenses

(482) 16 (466)

Unsecured liability - - - Losses on the sale of assets (482) 16 (466) Provision for investment losses - - -

Equity in income of subsidiaries (12,397) (7,029) (19,426) - Earnings before financial income/loss and tax

(82,776) (4,571) (87,347)

- Financial income (11,373) 5,171 (6,202)

Financial revenue 180,337 (139,639) 40,698 Exchange variance gain 47,738 (29,052) 18,686 Fair value of debentures 13,000 - 13,000 Interest-earning bank deposits 28,137 (37) 28,100 Derivative financial instruments 89,219 (110,381) (21,162) Other financial revenue 2,243 (169) 2,074

Financial expenses (191,710) 144,810 (46,900) Exchange variance loss (25,948) 20,587 (5,361) Derivative financial instruments (110,598) 124,005 13,407 Debenture interest/cost (29,035) - (29,035) Fair value of debentures - - - Other financial expenses (26,129) 218 (25,911)

Earnings before tax on net income (94,149) 600 (93,549) Income and social contribution taxes on profit 16,389 (600) 15,789

Current (838) - (838) Deferred charges 17,227 (600) 16,627

Consolidated net income for the period (77,760) - (77,760) Net income/Loss for the year (77,760) - (77,760) Attributed to partners of the company (77,481) - (77,481) Attributed to minority partners (279) - (279) Income/loss per share - - - Basic and diluted loss per share (R$) (0.56870) - (0.56870)


14

4. Summary of significant accounting practices (Continued) Statement of cash flows – indirect method Consolidated 3/31/2012 Originally

reported

Adjustments

Re-presented Cash flows from operating activities Net income/loss before IR and CSLL (77,760) (15,789) (93,549) Adjustments to reconcile loss to cash flow from operating activities

Depreciation and amortization 1,304 1,383 2,687 Equity in income of subsidiaries 12,397 7,029 19,426 Operations with derivative financial instruments 21,379 (13,624) 7,755 Stock options awarded 10,119 - 10,119 Amortization of deferred charges - - - Investment devaluation - - - Provision for unsecured liabilities - - - Provision for disassembly (941) 984 43 Minority interests - - - Deferred income and social contribution liabilities, net (16,227) 16,227 - Current income and social contribution taxes 838 (838) - Debenture interest/cost 29,035 - 29,035 Fair value of debentures (12,400) (1,199) (13,599) Interest on loans and related parties 802 10,088 10,890 Adjustment for exchange loss - - - Equity appraisal (9,805) - (9,805)

(41,259) 4,261 (36,998) Changes in assets and liabilities

Other advances (3,033) 885 (2,148) Prepaid expenses (224) 339 115 Accounts receivable (20,860) (358) (21,218) Secured deposits - - - Recoverable taxes (21,341) 3,021 (18,320) Inventory (42,133) 24,233 (17,900) Deferred taxes - 160 160 Taxes, charges and contributions (3,193) 84 (3,109) Trade payables 37,465 (12,745) 24,720 Provisions and payroll charges 712 586 1,298 Accounts payable 8,190 (8,053) 137 CCC subsidies receivable (4,395) - (4,395) Debts/credits with related parties 1,953 44 1,997 AFAC to subsidiaries - - - Other changes in investments - - - Other assets and liabilities 10,111 1,244 11,355 Cash effect spin-off CCX Carvão da Colômbia - - - Cash effect spin-off of E.On - - -

(36,748) 9,440 (27,308) Net cash provided by operating activities (78,007) 13,701 (64,306)


15

4. Summary of significant accounting practices (Continued) Statement of cash flows – indirect method--Continued Consolidated 3/31/2012 Originally

reported

Adjustments

Re-presented Cash flows from investment activities Acquisition of PPE and intangible assets (616,059) 98,048 (518,011) Write-off of PPE and intangible assets - - - Securities 9,437 (16,856) (7,419) Change in Investments (11,563) (89,972) (101,535) Cash resulting from sale of property, plant and equipment and intangible assets

- - -

Net cash provided by investing activities (618,185) (8,780) (626,965) Cash flows from financing activities Financial instruments (281) 2,514 2,233 Capital increase 660 (1) 659 Debt to related parties (802) 802 - Contractual retentions (36,175) (6,635) (42,810) Loans obtained 628,616 (20,494) 608,122 Capital increase deriving from minority interests (279) 273 (6) Secured deposits (29,162) (8,053) (37,215) Debenture issuance (613) 7,823 7,210 AFAC to subsidiaries - - - Dividends (1) 1 - Adjustment spin-off CCX Carvão - Colombia - - - Net cash provided by financing activities 561,963 (23,770) 538,193 Exchange variance on cash and cash equivalents - - - Increase (decrease) in cash and cash equivalents (134,229) (18,849) (153,078) Opening balance of cash and cash equivalents 1,442,415 (62,264) 1,380,151 Closing balance of cash and cash equivalents 1,308,186 (81,113) 1,227,073


16

4. Summary of significant accounting practices (Continued) Statement of added value Consolidated 3/31/2012 Originally

reported

Adjustments

Re-presented Revenue 376,742 (41,108) 335,634

Sales of goods, products and services 75,669 - 75,669 Revenue relating to construction of company assets 301,073 (41,108) 259,965

Consumables acquired from third parties (including ICMS and IPI) (106,799) 1,096 (105,703) Material, electricity, outsourced services and other (106,799) 1,096 (105,703) Gross added value 269,943 (40,012) 229,931 (2,920) 233 (2,687) Depreciation, amortization and depletion (2,920) 233 (2,687) Net added value produced 267,023 (39,779) 227,244 Transferred added value 115,631 (117,614) (1,983)

Equity in income of subsidiaries (12,397) (7,029) (19,426) Financial revenue 43,379 (204) 43,175 Other 84,649 (110,381) (25,732) Derivative financial instruments 89,219 (110,381) (21,162) Provision for investment devaluation (4,570) - (4,570) Provision for unsecured liabilities - - - Losses on the sale of assets

Total added value to be distributed 382,654 (157,393) 225,261 Distribution of added value 382,654 (157,393) 225,261

Personnel 28,461 (641) 27,820 Direct remuneration 21,273 (479) 20,794 Benefits 3,010 (68) 2,942 FGTS and contributions 4,178 (94) 4,084 Other - - -

Taxes and contributions (15,902) 590 (15,312)

Federal (15,902) 590 (15,312) State - - -

Interest expenses 447,855 (157,342) 290,513 Interest 30,437 (1,402) 29,035 Rent 5,921 (184) 5,737 Other 411,497 (155,756) 255,741 Losses on derivative transactions 110,598 (124,005) (13,407) Advances to suppliers 296,409 (41,093) 255,316 Insurance 1,553 (307) 1,246 Exchange variance (21,790) 8,465 (13,325) Financial expenses 24,727 1,184 25,911

Interest earnings (77,760) - (77,760)

Retained earnings/loss for the period (77,481) - (77,481) Minority interests in retained earnings (279) - (279)


17

5. Consolidated quarterly information The consolidated quarterly information was prepared in conformity with the IFRSs issued by the IASB and BR GAAP, and includes the quarterly information of the Company, of directly or indirectly controlled jointly-controlled entities and Exclusive Funds, as under:

Interest held - Company 3/31/2013 12/31/2012

Direct subsidiaries

MPX Pecém II Geração de Energia S.A. 99.70% 99.70% UTE Porto do Itaqui Geração de Energia S.A. 100.00% 100.00% Amapari Energia S.A. 51.00% 51.00% Seival Sul Mineração Ltda. 70.00% 70.00% Termopantanal Participações Ltda. 66.67% 66.67% UTE Parnaíba Geração de Energia S.A. 70.00% 70.00% UTE Parnaíba II Geração de Energia S.A. 100.00% 100.00% UTE Parnaíba V Geração de Energia S.A. 99.99% 99.99% Parnaíba Geração e Comercialização de Energia S.A. - 70.00% MPX Investimentos S.A. 99.99% 99.99% MPX Desenvolvimento S.A. 99.99% 99.99% MPX Tauá II Energia Solar Ltda. 100.00% 100.00% Exclusive funds Fundo de Investimento em Cotas de Fundos de Investimento

Multimercado Crédito Privado MPX 63 100.00% 100.00% Fundo de Investimento Multimercado Crédito Privado MPX 100.00% 100.00%

Affiliated companies (equity income)

OGX Maranhão Petróleo e Gás S.A. 33.33% 33.33% UTE Porto do Açu Energia S.A. 50.00% 50.00% UTE MPX Sul Energia Ltda. 50.00% 50.00% MPX Chile Holding Ltda. 50.00% 50.00% Porto do Pecém Transportadora de Minérios S.A. 50.00% 50.00% OGMP Transporte Aéreo Ltda. 50.00% 50.00% Pecém Operação e Manutenção de Unidades de Geração S.A. 50.00% 50.00% Seival Participações S.A. 50.00% 50.00% MPX E.ON Participações S.A. 50.00% 50.00% UTE Porto do Açu II Energia S.A. 50.00% 50.00% MABE Construção e Administração de Projetos 50.00% -

Parnaíba Participações S.A. 50.00% 50.00%


18

5. Consolidated quarterly information (Continued) The accounting practices have been consistently applied to all subsidiaries and associated companies. Description of main consolidation procedures ► Elimination of asset and liability account balances between the Company and its

subsidiaries and between the latter ► Elimination of the balances of investments and corresponding interests in the

capital and accumulated profits/(losses) of subsidiaries ► Noncontrolling interests, which represent part of income for the year and equity

not held by the Company, are presented separately from the consolidated income statement in equity in the consolidated balance sheet, separately from the equity attributable to the controlling shareholders, and

► Elimination of revenue and expense balances between the Company and its

subsidiaries and between the two types of entities. These balances are eliminated against the respective investments according to the Company's interest in the subsidiaries.


19

6. Cash and cash equivalents

Company Consolidated 3/31/2013 12/31/2012 3/31/2013 12/31/2012

Cash and bank deposits 1,928 260 7,902 5,922 Fundo de Investimento MM MPX 63 (a) 244,825 206,003 336,215 513,355 CDB/Purchase and Sale Agreements (b) - 15,004 -

246,753 206,263 359,121 519,277 a) These substantially refer to quotas in highly liquid investment funds, of high liquidity, readily convertible into a known amount of

cash, regardless of asset maturity, and are subject to a low risk of a change in value. This is a share investment fund FI Multimercado Crédito Privado MPX 63 managed by Banco Itaú and primarily backed by Bank Deposit Certificates (CDBs) and securities subject to repurchase agreements issued by first-tier financial institutions and companies, all linked to floating rates and with an average yield of 103.9% (mark to market) and 101.6% (nominal rate on the curve) of the DI CETIP rate (Interbank Deposit Certificate – (CDI)). The debentures represent repurchase agreements, registered at CETIP or SELIC, when applicable, and with guarantee of repurchase by the financial institutions at a previously established rate. As required by CVM Instruction No. 408/05, the consolidated quarterly information includes the balances and transactions of exclusive investment funds, whose only shareholders are the Company and its subsidiaries, as follow:

Company Consolidated

3/31/2013 12/31/2012 3/31/2013 12/31/2012

Consolidated Multi-Market Fund

MPX Energia S.A. 244,825 206,003 244,825 206,003 Amapari Energia S.A. - - 7,048 10,482 Seival Sul Mineração Ltda. - - 346 516 UTE Parnaíba Geração de Energia S.A. - - 14,712 83,017 UTE Parnaíba II Geração de Energia S.A. - - 69,284 213,337

244,825 206,003 336,215 513,355 (b) Amounts invested in CDBs or debentures subject to repurchase agreements are issued by first-tier financial institutions. The

company that holds these amounts is the subsidiary MPX Pecém II Geração de Energia S.A..

The exclusive funds are regularly reviewed/audited by independent auditors and subject to obligations referring to the payment of services rendered by the asset management, attributed to operating the investments, such as custody and audits fees and other expenses. There are no material financial obligations or company assets to guarantee these obligations.


20

7. Marketable Securities

Company Consolidated 3/31/2013 12/31/2012 3/31/2013 12/31/2012 LFT - Financial Treasury Bills - - 5,600 3,441 Marketable securities include operations related to the acquisition of federal government bonds (LFTs) maturing in over 90 days and recorded in current assets due to the fact they are expected to be realised in the short term. The amounts refer to subsidiaries UTE Porto do Itaqui and MPX Pecém II.

8. Secured deposits

Company Consolidated 3/31/2013 12/31/2012 3/31/2013 12/31/2012 BNDES - Porto do Pecém (a) 36 35 36 35 BNDES - UTE Porto do Itaqui (b) - - 10,828 10,671 BNDES - Pecém II (c) - - 22,510 22,145 MPX S.A. (d) 104,025 102,649 104,025 102,649 Other - - 183 183 104,061 102,684 137,582 135,683 Current 36 35 36 35 Noncurrent 104,025 102,649 137,546 135,648

(a) Deposit linked to the obligations undertaken in the financing agreement between BNDES and joint subsidiary Porto de Pecém

Geração de Energia S.A. referring to the portion of the intervening party MPX S.A to maintain the own capital/debt ratio preestablished in the agreement. This relates to the part of MPX Energia S.A. in Fundo Bradesco Corporate FIC FI Referenciado DI Federal.

(b) This refers to the debt service reserve account linked to the financing agreement between BNB-Banco do Nordeste do Brasil S.A

(BNB) and subsidiary UTE Porto do Itaqui Geração de Energia S.A. The deposit amount in question refers to three amortization payments of the financing awarded and shall be maintained as a guarantee of the debt for the entire term of this agreement.

(c) Debt service linked to the obligations undertaken in the financing agreement between BNB-Banco do Nordeste do Brasil S.A.(BNB)

and the subsidiary MPX Pecem II Geração de Energia S.A. (d) Financial Bills issued by Banco Citibank S.A., yielding the CDI rate, ceded as collateral for the loans taken out by MPX S.A. from

the financial institution.


21

9. Trade accounts receivable and subsidies receivable - Fuel Consumption Account (CCC) Trade accounts receivable refer to energy sold by subsidiaries Amapari Energia S.A. to Anglo Ferrous Amapá Ltda. in the amount of R$ 9,150 (R$ 9,109 as of December 31, 2012), Porto do Itaqui Geração de Energia S.A. under the electric energy purchase contract in a regulated environment (CCEAR), signed with ANEEL, of R$ 135,256 (R$ 12,235 as of December 31, 2012) and UTE Parnaíba Geração de Energia S.A. of R$ 84,558, also under the CCEAR with ANEEL. The outstanding balance of accounts receivable as of March 31, 2013 is R$ 228,964 (R$ 21,345 as of December 31, 2012). On May 19, 2009 the subsidiary Amapari Energia S.A. obtained a court order obliging ANEEL to qualify UTE Serra do Navio for reimbursement of part of its costs incurred on fuels used as consumables in the generation and sale of electrical energy through the Fuel Consumption Account (CCC). The CCC subsidy receivable of R$ 24,617 recorded in the non-current assets for the period November 11, 2008, the date commercial operations commenced, to May 19, 2009, the date ANEEL's administrative decision qualified UTE Serra do Navio for reimbursement of part of its costs incurred on fuels used as consumables in the generation and sale of electric energy. The Company is taking all the necessary measures, including judicially, to achieve the reimbursement for this period. However, under the energy offtake agreement between the Amapari Energia S.A. and Anglo Ferrous Amapá Ltda., if the subsidiary Amapari does not receive the CCC subsidy mentioned above, or the difference in the unit prices value between the amount billed by BR Distribuidora and the ANP reference table for reasons beyond its control, the parties shall adjust the contractual terms to restore the economic and financial equilibrium of the agreement. The outstanding balance of the CCC subsidy receivable as of March 31, 2013 is R$ 34,668, with R$ 10,051 current and R$ 24,617 noncurrent (R$ 42,178 as of December 31, 2012, with R$ 17,561 current and R$ 24,617 noncurrent).


22

10. Inventories Consolidated 3/31/2013

12/31/2012

Diesel oil/lubricant (a) 12,143 13,967 Coal (b) 113,720 128,720 Electronic and mechanical parts (c) 4,948 - Total 130,811 142,687 (a) This balance consists of the reservoirs of diesel oil and lubricating oil used as consumables in

electric energy generation by the subsidiaries Amapari Energia S.A.(R$ 9,822), MPX Pecém II Geração de Energia S.A. (R$ 2,319) and UTE Porto do Itaqui Geração de Energia S.A. (R$ 2). The subsidiary Amapari Energia S.A. has a contractual acquisition obligation (“take or pay”) towards BR Distribuidora S.A., to aquire a minimum 3,600 m³ of diesel oil a month, for a fixed price or to pay for this even if such quantity is not taken. which, in case the obligation is exercised, will result in the acquisition of the diesel oil used as a consumable by the Company. The Company recorded a provision under trade payables for the difference between the amount required and the minimum mandatory amount under the contract, charged to inventory. As of March 31, 2013 this provision stands at R$ 7,521. This provision is restated semi-annually as specified in the diesel oil supply contract.

(b) This balance refers to the coal used as consumables in electric energy generation by the

subsidiaries Porto do Itaqui Geração de Energia S.A. (R$ 73,224) and MPX Pecém II Geração de Energia S.A. (R$ 40,497). The coal was acquired for the commissioning phase of the operation, and to establish a security inventory at the plant, with a view to the future commerical operations. Note that Porto do Itaqui initiated its commercial operations, consuming coal inventories.

(c) This balance refers to electronic and mechanical parts for use and replacement in the maintenance

operations carried out by the subsidiaries: Porto do Itaqui Geração de Energia S.A. (R$ 2,841), MPX Pecém II Geração de Energia S.A. (R$ 2,000) and UTE Parnaíba Geração de Energia S.A. (R$ 107).


23

11. Recoverable and deferred taxes The balance of recoverable taxes is as follows: Company Consolidated 3/31/2013 12/31/2012 3/31/2013 12/31/2012 Income tax withheld at source (b) 12,336 11,391 24,500 23,539 Prepaid income tax - - 1 1 Prepaid social contributions - - 1 1 Prepaid social contributions – prior year (a) 441 441 443 443 Income tax withheld at source - prior year (b) 14,265 15,301 15,713 16,835 Income tax withheld at source - loan (b) 5,220 3,689 5,220 3,689 State VAT (ICMS) - - 2,283 2,306 State VAT (PIS) - - 5,799 2,390 State VAT (COFINS) - - 26,731 11,002 Other 891 844 4,244 1,238 33,153 31,666 84,935 61,444 Current 24,590 22,068 61,397 37,410 Noncurrent 8,563 9,598 23,538 24,034 (a) This refers to income and social contribution taxes prepaid in the course of the year and previous years which will be offset against

the income and social contribution taxes determined on taxable profit computed on accounting records of the Company.. (b) The balance of withholding income tax refers to amounts withheld on interest-earning bank deposits and related-party loans. These

balances will be offset against the income and social contribution taxes payable. Deferred taxes Deferred income and social contribution taxes reflect future tax effects attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts. Based on its expectations of generating future taxable income, determined by a technical valuation approved by Management, the Company and its subsidiaries recognized tax credits on income tax loss carryforwards and the negative bases of social contribution tax. There is no statute of limitation period and they can be offset against a maximum of 30% of annual taxable income. The carrying value of the deferred tax asset is reviewed periodically and the projections are reviewed annually. If there are significant factors that change the projections, they are also reviewed by the Company during the year.


24

11. Recoverable and deferred taxes--Continued Deferred taxes--Continued The Company and its subsidiaries adopted the Transitional Tax Regime (RTT) so that the amendments introduced by Law No. 11638 of December 28, 2007 and articles 37 and 38 of Law No. 11941 of 2009, which changed the procedure for recognizing revenue, costs and expenses used to calculate the net income for the year defined in art. 191 of Law No. 6404 of December 15, 1976, do not affect the calculation of taxable income on accounting records of the Company and social contribution tax base of companies that elect the Transition Tax Regime (RTT). For tax purposes the accounting methods and criteria in force at December 31, 2007 should be used. The origin of the deferred income and social contribution taxes is presented below: Company Consolidated 3/31/2013 12/31/2012 3/31/2013 12/31/2012 Deferred charges - noncurrent

Tax loss carryforwards and negative tax base

161,039 161,039 412,994 346,699

Temporary differences - RTT - - 5,488 Write-off of deferred charges - spin-off effect (25,395) (25,395) (25,395) (25,395) Fair value - derivatives (21,244) (21,244) (21,244) (21,244) Unrealised exchange rate fluctuation on

derivative operations - NDF

-

-

-

114,400 114,400 366,355 305,548 Noncurrent deferred liabilities

Temporary differences - RTT - - 2,048 2,048 - - 2,048 2,048


25

11. Recoverable and deferred taxes--Continued Deferred taxes--Continued As of March 31, 2013 the taxes calculated on the adjusted net income consisted of IRPJ (rate of 15% and surcharge of 10%) and CSLL (rate of 9%). The reconciliation between the tax expense as calculated by the combined statutory rates and the income and social contribution tax expense charged to net income is presented below: 3/31/2013 Company Consolidated Loss for the period before IRPJ/CSLL (250,901) (317,868) Statutory rate 34% 34% IRPJ/CSLL at the nominal rate (85,306) (108,075) Adjustments to determine effective rate:

Temporary differences - 47,147 RTT Adjustment - Deferred income tax - 121

Income tax and social contribution expense, current - - Deferred income and social contribution taxes - 60,807 Total effect of tax on net income - 60,807 Effective rate - 19.13% Deferred tax asset not recognised 85,306 -


26

11. Recoverable and deferred taxes--Continued Deferred taxes--Continued 3/31/2012 Company Consolidated Loss for the year before IRPJ/CSLL (88,081) (93,549) Statutory rate 34% 34% IRPJ/CSLL at the nominal rate 29,948 31,807 Adjustments to determine effective rate:

Equity in income of subsidiaries (11,895) - Provision for unsecured liabilities 458 (6,084) Nondeductible donations - - Provision for hedge settlements (4,470) (4,470) Adjustment - Share options awarded (3,441) (3,441) RTT Adjustment - Deferred income tax - (2,023) Fair value of embedded derivatives - 15,789

Income tax and social contribution expense, current - (838) Deferred income and social contribution taxes 10,600 16,627 Total effect of tax on net income 10,600 16,627 Effective rate 12.03% 17.77% These figures are presented net of the balance of deferred tax assets and liabilities. The Company and its subsidiaries expect to recover deferred tax in a period of approximately 8 (eight) years.


27

12. Investments

a) Breakdown of balances Company Consolidated 3/31/2013 12/31/2012 31/03/2013 12/31/2012 Equity interests 2,026,252 2,153,012 757,340 771,860 Advance for future acquisition of investment - - - - Premium on share subscription (*) 62,000 62,000 62,000 62,000 Future acquisition of investment 95 95 95 95 2,088,347 2,215,107 819,435 833,955

(*) Premium paid as goodwill under the subscription of new shares. b) Equity interests

The consolidated quarterly information includes the quarterly information of the Company and of companies which the Company has the control of and Exclusive Funds. The balances of the main consolidated account groups as of March 31, 2013 and December 31, 2012 are as follows:

3/31/2013

Equity interests Equity

interest in % Current assets

Noncurrent assets

Current liabilities

Noncurrent liabilities Equity Net income

Porto do Pecém Geração de Energia S.A. 50.00% 430,572 3,734,510 473,548 2,480,593 1,210,942 (124,185) MPX Pecém II Geração de Energia S.A. 99.70% 71,738 1,792,065 86,761 1,073,224 703,818 (8,847) UTE Porto do Itaqui Geração de Energia S.A. 100.00% 255,556 2,758,069 422,774 1,732,582 858,270 (87,769) Amapari Energia S.A. 51.00% 36,284 98,930 32,607 - 102,607 (661) UTE Porto do Açu Energia S.A. 50.00% 381 51,298 5,049 - 46,630 (1,267) Seival Sul Mineração Ltda. 70.00% 386 4,602 25 - 4,963 (175) UTE MPX Sul Energia Ltda. 50.00% 62 13,467 530 - 13,000 (198) MPX Chile Holding Ltda. 50.00% 4,892 19,438 25,958 30,308 (31,936) (1,853) Termopantanal Participações Ltda. 66.67% 11 400 (4) 2,725 (2,311) 1 UTE Parnaíba Geração de Energia S.A. 70.00% 106,290 1,160,676 245,920 682,094 338,953 (19,191) Porto do Pecém Transportadora de Minérios S.A. 50.00% 809 76 398 - 486 (190) OGMP Transporte Aéreo Ltda. 50.00% 344 12,648 5 - 12,987 (958) PO&M - Pecém Operação e Manutenção de

Geração Elétrica S.A.

50.00% 2,932 - 109 2,187 637 (102) Seival Participações S.A. 50.00% 100 50,192 375 11,178 38,739 (76) UTE Parnaíba II Geração de Energia S.A. 100.00% 75,002 633,811 625,196 - 83,618 (1,636) MPX E.ON Participações S.A. 50.00% 276,417 114,272 174,995 33,168 180,649 (11,614) UTE Porto do Açú II Energia S.A. 50.00% 101 4,469 205 - 4,365 (1) Parnaíba Participações S.A. 50.00% 48,183 30,646 3,998 225 70,852 (1,835) UTE Parnaíba V Geração de Energia S.A. 99.90% 1 - - - 1 - MPX Investimentos S.A. 99.90% 2 - - - 2 - MPX Desenvolvimentos S.A. 99.90% 435 163 354 620 (375) (68) MPX Tauá II Energia Solar Ltda. 100.00% 16 - 21 - (6) (47) MABE Construção e Administração de Projetos Ltda. 50.00% 102,839 893,686 996,496 - 29 (57,278)


28

12. Investments--Continued

b) Equity interests (Continued)

12/31/2012

Equity interests Equity

interest in % Current assets

Noncurrent assets

Current liabilities

Noncurrent liabilities Equity Net income

Porto do Pecém Geração de Energia S.A. 50.00% 442,065 3,716,461 471,408 2,464,001 1,223,117 (206,999) MPX Pecém II Geração de Energia S.A. 99.70% 46,335 1,709,494 94,118 1,045,646 616,065 (22,753) UTE Porto do Itaqui Geração de Energia S.A. 100.00% 136,865 2,633,492 246,786 1,746,493 777,078 (41,236) Amapari Energia S.A. 51.00% 47,197 98,923 42,449 103,671 9,018 UTE Porto do Açu Energia S.A. 50.00% 420 57,712 3,632 - 54,500 (1,825) Seival Sul Mineração Ltda. 70.00% 558 4,482 24 - 5,016 (675) UTE MPX Sul Energia Ltda. 50.00% 251 13,157 211 - 13,197 (873) MPX Chile Holding Ltda. 50.00% 6,117 19,030 27,484 30,801 (33,138) (24,732) Termopantanal Participações Ltda. 66.67% 10 400 (4) 2,725 (2,311) - UTE Parnaíba Geração de Energia S.A. 70.00% 85,228 1,084,889 162,380 677,593 330,144 (11,314) Porto do Pecém Transportadora de Minérios S.A. 50.00% 1,017 81 421 - 677 (376) OGMP Transporte Aéreo Ltda. 50.00% 668 13,038 61 - 13,645 (5,209) PO&M - Pecém Operação e Manutenção de

Geração Elétrica S.A.

50.00% 2,984 - 91 2,155 738 (272) Seival Participações S.A. 50.00% 117 49,896 105 11,178 38,730 (66) UTE Parnaíba II Geração de Energia S.A. 100.00% 217,134 495,887 627,767 - 85,254 (746) MPX E.ON Participações S.A. 50.00% 227,579 114,926 123,373 22,015 197,117 (30,389) UTE Porto do Açú II Energia S.A. 50.00% 101 4,176 11 - 4,266 - Parnaíba Participações S.A. 50.00% 15,717 29,213 1,681 - 43,249 (368) UTE Parnaíba V Geração de Energia S.A. 100.00% 1 - - - 1 - Parnaíba Geração e Comerc. de Energia S.A. 70.00% 1 - - - 1 - MPX Investimentos S.A. 100.00% 1 - - - 1 - MPX Desenvolvimentos S.A. 100.00% 363 151 214 608 (308) (309) MPX Tauá II Energia Solar Ltda. 100.00% 1 - - - 1 -


29

12. Investments (Continued) b) Equity interests (Continued)

Breakdown of investments breaks is as follows: Company Consolidated 3/31/2013 12/31/2012 3/31/2013 12/31/2012 Equity interests

Porto do Pecém Geração de Energia S.A. 605,471 611,561 605,346 611,433 MPX Pecém II Geração de Energia S.A. 440,284 449,104 - - UTE Porto do Itaqui Geração de Energia S.A. 448,308 536,077 - - Goodwill based on future profits 15,470 15,470 - - Amapari Energia S.A. 52,329 52,872 - - UTE Porto do Açu Energia S.A. 21,364 27,251 14,049 19,936 Seival Sul Mineração Ltda. 3,474 3,511 - - UTE MPX Sul Energia Ltda. 6,501 6,597 6,181 6,280 MPX Chile Holding Ltda. (a) - Termopantanal Participações Ltda. (a) - Porto do Pecém Transportadora de Minérios

S.A. 243 338 243 338 OGX Maranhão 26,044 31,861 26,044 31,861 UTE Parnaíba Geração de Energia S.A. 217,668 231,101 - - OGMP Transporte Aéreo Ltda. 6,344 6,823 6,344 6,823 PO&M- Pecém Operação e Manutenção de

Geração Elétrica S.A. 318 369 318 369 Seival Participações S.A. 19,326 19,364 19,326 19,364 UTE Parnaíba II Geração de Energia S.A. 83,617 85,254 - - MPX E.ON Participações S.A. 59,325 66,406 59,325 66,406 UTE Porto do Açu II Energia S.A. 2,133 2,133 2,133 2,133 UTE Parnaíba V Geração de Energia S.A. 1 1 - - Parnaíba Geração e Comercialização de

Energia S.A. (b) - 1 - - MPX Investimentos S.A. - - - - MPX Desenvolvimentos S.A. (a) - - - - Parnaíba Participações S.A. 18,017 6,917 18,017 6,917 MPX Tauá II Energia Solar Ltda. 1 1 - - Premium on share subscription 62,000 62,000 62,000 62,000 MABE Construção e Administração de

Projetos (c) 14 - 14 - Future acquisition of investment 95 95 95 95 2,088,347 2,215,107 819,435 833,955


30

12. Investments (Continued) b) Equity interests (Continued)

(a) As of March 31, 2013 the balance of the investment with joint ventures and

subsidiaries MPX Chile Holding Ltda., MPX Desenvolvimento S.A. and Termopantanal Participações Ltda. was classified in noncurrent liabilities under capital deficiency due to the fact these companies’ deficit.

(b) On January 02, 2013 MPX Energia S.A. transferred all of its shares in

Parnaíba Geração e Comercialização de Energia S.A. to its indirect subsidiary Parnaíba Participações S.A..

(c) On March 26, 2013 MPX Energia S.A. and EDP Energias do Brasil S.A. completed the acquisition of the entire share capital of MABE Construção e Administração de Projetos Ltda.

c) Changes in investments

Equity interests Balance at 12/31/2012

Paid in Capital

Equity pick-up

Spin-off CCX Carvão da Colômbia

Transfer to MPX E.ON

Participações Dividends

Exchange rate

fluctuation

Equity valuation

adjustment

Balance at 3/31/2013

Porto do Pecém Geração de

Energia S.A.

611,561

55,000 (62,095) - - - - 1,005 605,471 MPX Pecém II Geração de Energia

S.A.

449,104

- (8,820) - - -

- - 440,284 UTE Porto do Itaqui Geração de

Energia S.A.

536,077

- (87,768) - - -

- - 448,309 Goodwill based on future profits 15,470

- - - - - - - 15,470

Amapari Energia S.A. 52,872

- (543) - - - - 52,329 UTE Porto do Açu Energia S.A. 27,251

- (5,887) - - - - - 21,364

Seival Sul Mineração Ltda. 3,511

85 (122) - - - - - 3,474 UTE MPX Sul Energia Ltda. 6,599

- (98) - - - - - 6,501

Porto do Pecém Transportadora de Minérios S.A.

338

- (95) - -

- - - 243

OGX Maranhão Petróleo e Gás Ltda.

31,861

- (5,817) - -

- - - 26,044

UTE Parnaíba Geração de Energia S.A.

231,101

- (13,433) - -

- - - 217,668

OGMP Transporte Aereo Ltda. 6,823

- (479) - - - - - 6,344 Pecém Operação Manutenção e

Operação S.A.

367

- (49) - - -

- - 318 Seival Participações S.A. 19,364

- (38) - - - - - 19,326

UTE Porto do Açu II Energia S.A. 2,133 - - - - - - 2,133 MPX E.ON Participações S.A. 66,406 - (7,448) - - - 367 - 59,325 Subscription premium 62,000 - - - - - - - 62,000 Parnaíba ParticipaçõesS.A. 6,917 12,425 (1,325) - - - - - 18,017 UTE Parnaíba V Geração de

Energia S.A.

1 - - - - -

- - 1 Parnaíba Geração

Comercialização de Energia S.A.

1

- (1) - - - - - - MPX Investimentos S.A. - - - - - - - - - UTE Parnaíba II Geração de

Energia S.A.

85,254 - (1,637) - - - - - 83,617 MPX Tauá II Energia Solar Ltda. 1 - (1) - - - - MABE Construção e Administração

de Projetos

- - 14 - - - - - 14 Future acquisition of investment 95 - - - 95

2,215,107

67,510 (195,642) - - - 367 1,005 2,088,347


31

13. Property, plant and equipment

a) Composition of balances Consolidated In service

Land

Buildings, Civil Works and

Improvements

Machinery and

equipment

IT Equipment

Vehicles

Furniture and fixtures

Gas pipeline

Provision for impairment

Cost of disassembly

Property, plant and

equipment in progress

Total

Depreciation rate % p.a. 4 7 17 20 10

Cost Balance at 12/31/2012 3,113 18,472 75,847 3,902 1,294 6,269 12,169 (12,169) 2,116 5,479,921 5,590,934

Balance at 1/1/2013 3,113 18,472 75,847 3,902 1,294 6,269 12,169 (12,169) 2,116

5,479,921 5,590,934

Additions - 11,359 29,643 212 136 655 - - 8

338,114 380,127 Write-offs - - - - - (5) - - -

- (5)

Transfers 4,532 1,520,366 1,272,715 3 - 245 - - -

(2,797,146) 715 Balance at 3/31/2013 7,645 1,550,197 1,378,205 4,117 1,430 7,164 12,169 (12,169) 2,124

3,020,889 5,971,771

Depreciation Balance at 12/31/2012 - (1,495) (15,644) (1,460) (435) (1,501) - - - - (20,535) Balance at 1/1/2013 - (1,495) (15,644) (1,460) (435) (1,501) - - -

- (20,535)

Additions - (7,744) (9,195) (85) (68) (168) - - -

- (17,260) Write-offs - - - - - 2 - - -

- 2

Transfers - - - - - - - - -

- - Balance at 3/31/2013 - (9,239) (24,839) (1,545) (503) (1,667) - - -

- (37,793)

Book value Balance at 12/31/2012 3,113 16,977 60,203 2,442 859 4,768 12,169 (12,169) 2,116 5,479,921 5,570,399 Balance at 3/31/2013 7,645 1,540,958 1,353,366 2,572 927 5,497 12,169 (12,169) 2,124

3,020,889 5,933,978

MPX Energia S.A. (Publicly held company) Notes to the quarterly information (Continued) March 31, 2013 (In thousands of reais, unless stated otherwise)

32

13. Property, plant and equipment (Continued) a) Composition of balances (Continued)

Consolidated (Continued)

Machinery and equipment Basically relates to the UTEs Amapari Energia S.A., Itaqui and Parnaíba , which come into operation in November 2008, February 2013 and March 2013 respectively. The machinery and equipment of UTE Parnaíba consists of the first 2 turbines that have come into operation. Asset depreciation is based on the concession term and calculated under the straight line method at the rates determined by Normative Resolution 474 issued February 07, 2012 by the National Electric Energy Agency (ANEEL). For the estimated portion of the investments made and not amortised or depreciated by the end of the concession, a new depreciation or amortisation rate will be calculated and recorded in income monthly, so that a value equal to zero is obtained at the end of the concession. Buildings, Civil Works and Improvements Basically relates to the operational start-up in February 2013 of UTE Itaqui and the start-up in March 2013 of the first two turbines. Depreciation follows the same procedure and criteria described in the item Machinery and equipment. Land On June 30, 2010 UTE Parnaíba Geração de Energia S.A. acquired land to build the venture for R$ 3,113, which it recorded under "Plots of land". The amounts are recorded in accordance with Technical Pronouncement CPC 27 - Property, Plant and Equipment.


33

13. Property, plant and equipment--Continued a) Composition of balances--Continued

Consolidated--Continued Property, plant and equipment in progress Mainly refers to expenses incurred on advances made for reserves and equipment acquisitions to build the thermal power plants of the companies MPX Pecém II Geração de Energia S.A. and UTE Porto do Itaqui Geração de Energia S.A. The balances have been recorded under "property, plant and equipment in progress" and will be transferred to "property, plant and equipment in service" when operations start. These subsidiaries and MABE Construção e Administração de Projetos Ltda. signed EPC agreements (“Engineering, Procurement and Construction”) in the form lump sum turn key to build the power stations. As established in the respective agreements, 15% of each advance made should be withheld as a guarantee for delivery of the power station, to be disbursed in the course of FY 2013, if MABE presents bank guarantees. It should be noted that it is not known when this withheld portion of the advance will be applied in the construction of the plant. As of March 31, 2013 the total guarantees retained by the subsidiaries amount to R$ 31,767 (R$ 77,374 as of December 31, 2012) and have been recorded under the current liabilities of the subsidiary and MPX Pecém II and presented in the consolidated quarterly information under “Contractual retentions”. The labor costs of workers directly allocated to the construction of plants MPX Pecém II Geração de Energia S.A. and UTE Parnaíba Geração de Energia S.A., which amount to R$ 34,883 as of March 31, 2013 (R$ 29,019 as of December 31, 2012), are capitalized.

MPX Energia S.A. (Publicly held company) Notes to the quarterly information (Continued) March 31, 2013 (In thousands of reais, unless stated otherwise)

34

14. Intangible assets a) Breakdown of balances

Consolidated Intangible assets in service

Computer programs and

licenses

Coal mining rights

Mining rights option

Mining studies

Goodwill on Acquisition of Investments

Concessions and

CCEARs

Usage rights

Intangible assets in progress

Total

Amortization rate % p.a. 20 Cost Balance at 12/31/2012 5,215 - - - 15,470 183,448 11,031 2,037 217,201 Balance at 1/1/2013 5,215

- - -

15,470 183,448

11,031

2,037

217,201

Additions 805

- - -

- -

136

55

996 Write-offs -

- - -

- -

-

-

-

Transfers 9,821

- - -

- - (10,484)

(51)

(714)

Balance at 3/31/2013 15,841

- - -

15,470 183,448

683

2,041 217,483

Amortization Balance at 12/31/2012 (1,965) - - - - - - - (1,965) Balance at 1/1/2013 (1,965)

- - -

- -

-

-

(1,965)

Additions (260)

- - -

- -

-

-

(260) Write-offs -

- - -

- -

-

-

-

Transfers -

- - -

- -

-

-

- Balance at 3/31/2013 (2,225)

- - -

- -

-

-

(2,225)

Book value Balance at 12/31/2012 3,250 - - - 15,470 183,448 11,031 2,037 215,236 Balance at 3/31/2013 13,616

- - -

15,470 183,448

683

2,041

215,258

b) Concessions and CCEARs

UTE Parnaíba Geração de Energia S.A. Following ANEEL approval, in September 2011 MPX Energia S.A entered into a 15-year concession acquisition agreement with Grupo Bertin Energia e Participações S.A. to acquire the concessions awarded by ANEEL for the thermal power plants (UTEs) MC2 João Neiva and MC2 Joinville (subsidiaries of Bertin Energia e Participações S.A), to be set up as independent energy producers. This document also determines the assignment of the energy sale agreements (CCEARs) of the UTEs to MPX Energia S.A. The MC2 João Neiva and MC2 Joinville UTEs were procured at the A-5 03/2008- ANEEL auction held on September 30, 2008, which ratified the supply of an average 225 MW to each distribution company, with an authorisation term of 35 years.


35

14. Intangible assets (Continued) b) Concessions and CCEARs (Continued)

UTE Parnaíba Geração de Energia S.A.--Continued

The transaction's closure document ("closure") dated September 02, 2011 assigns two additional assignment payment clauses, conditional on: (i) ANEEL authorization, without encumbrance or restrictions, to increase the physical energy guarantee by up to an average 72.7 MW for each venture. If MPX Energia S.A. obtains permission, it will owe an amount to the UTEs in proportion to the increase in the physical guarantee up to a maximum of R$ 83 million, with 50% going to each of them as an additional assignment price and (ii) When ANEEL has awarded permission, with no cost or restrictions, to change the “i” factor and the "Other Variable Costs" (defined in article 3 (II) of MME Ordinance 42 issued 3/1/2007) of the Ventures, MPX Energia S.A. shall pay each of the UTEs in the same proportion the value of the taxes declared and recognised in the UTEs' financial statements as due. This amount is limited to R$ 61.2 million or the value of the benefit obtained by MPX Energia S.A. as a result of changing the “i” factor and the "Other Variable Costs" of the Ventures.

Both covenants have a term of 18 months commencing September 02, 2011, which is the operation's closure date. MPX Energia S.A. and its subsidiary UTE Parnaíba Geração de Energia S.A. (“UTE Parnaíba”) signed a rights and obligations assignment agreement for the concessions acquired from Grupo Bertin Energia e Participações S.A. This agreement involves the free assignment to UTE Parnaíba of all the rights and obligations deriving from the concessions purchase agreement. This rights and obligations assignment between MPX Energia S.A. and UTE Parnaíba is also subject to two covenants, as follows: (i) ANEEL permission to implement the (UTEs MC2 João Neiva and MC2 Joinville) ventures in the Termelétrico Parnaíba complex and (ii) changing the “i” factor and the "Other Variable Costs", as mentioned above.


36

14. Intangible assets--Continued b) Concessions and CCEARs--Continued

UTE Parnaíba Geração de Energia S.A.--Continued The Company did not classify this transaction as a business combination, but rather an acquisition of assets as it is acquiring intangible assets that are awarded under concession and the sale contracts. This acquisition consolidates the implementation of the Termelétrico Parnaíba complex, with an initial installed capacity of 1.5 GW and running on natural gas. Goodwill on acquisition of investments On October 14, 2008 MPX Energia S.A. acquired the entire capital of UTE Porto do Itaqui Geração de Energia S.A. from EDP Energias do Brasil S.A. in an acquisition that involved the swap of a 50% interest in Porto do Pecém Geração de Energia S.A. for said capital. This transaction generated goodwill for MPX Energia S.A. of R$ 15,470, which is being presented under investments in the company's investment quarterly information and under intangible assets in the consolidated quarterly information. This goodwill is based on the expectation of future profitability and is not undergoing amortization.

15. Related-party transactions

The main balances of assets and liabilities as of March 31, 2013 and December 31, 2012 related to related-party transactions, as well as the transactions that influenced the income for the period, relate to transactions between the Company and its direct and indirect subsidiaries, affiliates and key management personnel, which were conducted at arm’s length.

a) Controlling Shareholder

The Company’s share control is held by Mr. Eike Fuhrken Batista, who directly and indirectly owns 53.47% of the common shares.


37

15. Related Parties (Continued)

b) Management The Company is managed by a Board of Directors and an Executive Board, pursuant to the duties and powers vested by Articles of Organization in accordance with corporate law.

c) Affiliated companies The Company’s main affiliated companies are: EBX Holding Ltda., OGX Petróleo e Gás Participações S.A., LLX Logística S.A., MMX Mineração e Metálicos S.A., OSX Brasil S.A., OMX Operações Marítimas Ltda., CCX Brasil Participações S.A., MMX Chile S.A., LLX Açú Operações Portuárias S.A. and AVX Táxi Aéreo Ltda, in addition to its subsidiaries and associated companies. As of March 31, 2013, the balances of assets, liabilities and effects on income of related-party transactions are as follows:

Assets Company Consolidated

3/31/2013

12/31/2012 3/31/2013

12/31/2012

MPX Pecém II Geração de Energia S.A. (c) 1,638 1,108 - - Termopantanal Ltda. (a) 7,683 7,683 - - Termopantanal Ltda. (a) (7,453) (7,453) - - Termopantanal Participações Ltda. (a) 457 457 - - MPX Comercializadora de Energia S.A. (e) 248 175 248 174 UTE Parnaíba Geração de Energia S.A. (f) 3,118 2,641 - - UTE Porto do Itaqui Geração de Energia S.A. (g) 381,188 374,965 - - UTE MPX Sul Energia S.A. (m) 140 95 140 95 UTE Porto do Açú Energia S.A. (m) 138 251 138 251 UTE Parnaíba II Geração de Energia S.A. (j) 986 302 32 - MPX Comercializadora de Combustível Ltda. (m) 123 95 123 95 Seival Participações S.A. (m) 52 66 52 66 EBX Holding Ltda. (b) 1,134 1,134 1,134 1,134 Pecém Operação e Manutenção Elétrica S.A. (j) 1,458 1,438 1,458 1,438 MPX E.ON Participações S.A. (n) 8,205 6,111 8,205 6,111 Porto do Pecém Geração de Energia S.A. (k) 155,940 133,489 155,940 133,489 MPX Desenvolvimento (l) 971 908 - - Seival Sul Mineração Ltda. (m) 13 9 1 - Parnaíba Participações S.A. (m) 6 - 66 - MABE Construção e Administração de Projetos Ltda. (m) 369 - 369 - MPX Investimentos S.A. (m) 11 - 11 - UTE Parnaíba V Geração de Energia S.A. (m) 60 - - - Advances for future capital increase for subsidiaries (h) 711,282 419,426 19,080 12,425

1,267,767 942,900 186,997 155,278 Current - - - - Noncurrent 1,267,767 942,900 186,997 155,278


38

15. Related Parties (Continued) c) Related companies (Continued)

Liabilities Company Consolidated 3/31/2013 12/31/2012 3/31/2013 12/31/2012 EBX Holding Ltda. (b) 5,262 2,664 6,351 3,975 MPX Comercializadora de Energia Ltda. (e) 81 1,116 145 23,904 Copelmi Mineração Ltda. (d) - - 7 14 Porto do Pecém Geração de Energia S.A. (k) - - 579 430 MPX Comercializadora de Combustíveis Ltda. (m) - - - 136 MPX E.ON Participações S.A. (n) 3,113 2,376 3,113 2,376 MPX Tauá Energia Solar Ltda. 400 367 400 367 Porto do Pecém Transportadora de Minérios S.A. - - 47 - Petra Energia S.A. - - 20,670 - OGX Petroleo e Gás S.A. - - 28,629 - 8,856 6,523 59,941 31,202 Current 8,856 6,523 51,541 30,772 Noncurrent - - 8,400 430 Net income Company Consolidated 3/31/2013 3/31/2012 3/31/2013 3/31/2012 EBX Holding Ltda. (b) (4,249) (6,608) (4,981) (7,834) MPX Pecem II Geração de Energia S.A. (c) 433 191 433 - MPX Comercializadora de Energia S.A. (e) 52 (2,585) 52 (2,585) UTE Parnaíba Geração de Energia S.A. (f) 403 948 (361) - UTE Porto do Itaqui Geração de Energia S.A. (g) 6,860 649 1,939 - MMX Mineração e Metálicos S.A. - 62 - 62 OGX Petróleo e Gás Ltda. - 71 - 71 OSX Brasil S.A. - 110 - 110 LLX Logística S.A. - 100 - 100 UTE MPX Sul Energia S.A. (m) 60 22 60 22 UTE Porto do Açú Energia S.A. (m) 64 79 64 79 MPX Solar Empreendimentos Ltda. - (12) - (12) MPX Comercializadora de Combustível Ltda. (m) 9 246 9 246 Seival Participações S.A. (m) (13) 5 (13) 5 Pecém Operação e Manutenção Elétrica S.A. (i) 26 18 (2,211) 18 UTE Parnaíba II Geração (j) 310 682 (341) - Parnaíba Participações (m) 6 - 6 - MPX E.ON Participações S.A. (n) 478 - 478 - Porto do Pecém Geração de Energia S.A. (k) 2,608 - 2,608 - MPX Desenvolvimento S.A.(l) 61 - - - Seival Sul Mineração(m) 3 - - - UTE Parnaíba V Geração de Energia S.A. (m) 64 - 64 - MABE Construção e Administração de Projetos Ltda. (m) 45 - 45 - MPX Investimentos S.A. (m) 11 - 11 - Copelmi Mineração Ltda. (d) - - (18) - Total 7,231 (6,022) (2,156) (9,718)


39

15. Related Parties (Continued) c) Related companies (Continued)

(a) Loan agreement executed with MPX Energia S.A. (lender) subject to monthly

interest (101% of CDI) and with indefinite maturity. MPX Energia S.A. has made a provision of R$ 7,453 for the devaluation of its 66.67% investment in Termopantanal Participações Ltda.

(b) The Company and its subsidiaries have operating and financing cost sharing

agreements with EBX Holding S.A. and MMX Chile S.A., involving monthly collections made through trade notes paid according to understandings between the parties (average DPO of 30 to 60 days). The effect on net income as of March 31, 2013 is R$ (4,981) (R$ (7,834) as of March 31, 2012).

(c) Revenue from reimbursement of project implementation costs. As of March

31, 2013 the effect on net income is R$ 433.

(d) Reimbursement of administrative costs related to the 30% interest held by Copelmi Mineração Ltda. in the share capital of Seival Sul Mineração, with an effect on net income of R$ (18).

(e) This balance refers to operational and financial cost sharing agreements with

MPX Energia S.A., involving monthly collections made through trade notes paid according to understandings between the parties (average DPO of 30 to 60 days). As of March 31, 2013 the effect on net income is R$ 52.

(f) This balance refers to: (i) Revenue from reimbursement of feasibility study

costs. As of March 31, 2013 the effect on net income is R$ (361).


40

15. Related Parties --Continued c) Related companies--Continued

(g) This balance consists of: (i) revenue from reimbursement of project

implementation costs; as of March 31, 2013 the effect on net income is R$ (337). and (ii) loan agreement made on July 31, 2012 with MPX Energia S.A. (lender) subject to monthly interest (104% of CDI) and with a term of maturity of 1 (one) day after full repayment of loan by lender. The effect on net income is R$ 2,276.

(h) The Company reclassified the advances for future capital increase (FCCs) in

its subsidiaries from investments to noncurrent assets, which are irrevocable and irreversible. However, no fixed value has been defined for the number of shares in the capital increase, which is not in conformity with CPC 38. The following FCCs are outstanding as of March 31, 2013 with the following companies:

Subsidiary 3/31/2012 12/31/2012 Porto do Açu Energia S.A. 1,950 - MPX Seival Participações S.A. 42 - UTE Parnaíba Geração de Energia S.A. 19,600 - UTE Porto do Itaqui Geração de Energia S.A. 409,960 241,000 Parnaíba Participações S.A. 16,888 12,426 MPX Pecém II Geração de Energia S.A. 262,600 166,000 MPX Investimentos S.A. 2 - Porto do Açú II Energia S.A. 50 - OGMP Transporte Aéreo Ltda. 150 - MPX Tauá II Energia Solar Ltda. 40 - 711,282 419,426

(i) Loan agreement executed in December 2011 with MPX Energia S.A. (lender)

subject to monthly interest (110% of CDI) and with a fixed term of maturity on December 31, 2013. As of March 31, 2013 the effect on net income is R$ (2,211).


41

15. Related Parties (Continued) c) Affiliated companies (Continued)

(j) Revenue from reimbursement of project implementation costs. As of March

31, 2013 the effect on net income is R$ (341). (k) Loan agreement made on September 24, 2012 with MPX Energia S.A.

(lender) subject to monthly interest (105% of CDI) and with a term of maturity of 1 (one) day after full repayment of loan by lender. The balance as of March 31, 2013 is R$ 2,608.

(l) The balance consists of: (i) revenue from reimbursement of project

management costs; as of March 31, 2013 the effect on net income is R$ 51. and (ii) loan agreement made on November 26, 2012 with MPX Energia S.A. (lender) subject to monthly interest (104% of CDI) and with a term of maturity of 1 (one) day after full repayment of loan by lender. as of March 31, 2013 the effect on net income is R$ 10.

(m) Revenue from reimbursement of project implementation costs.

(n) Revenue from reimbursement of project implementation costs. As of March

31, 2013 the effect on net income is R$ 478. d) Compensation of the Board of Directors and Executive Board members

In accordance with Law 6404/1976 and the Company's articles of incorporation,, the shareholders shall establish the managers' overall annual remuneration at the General Meeting. The Board of Directors shall distribute the amount among the directors. The annual compensation of officers and the Board of Directors is presented below: Company Consolidated 3/31/2013 3/31/2012 3/31/2013 3/31/2012 Immediate benefits

Salaries 1,371 1,011 2,303 1,900 Stock options granted 327,618 284,744 327,618 284,744

328,989 285,755 329,921 286,644


42

15. Related Parties (Continued)

d) Compensation of the Board of Directors and Executive Board members

(Continued) The minimum, average and maximum individual annual compensation of the Board of Directors and Officers, in R$ is as follows: Consolidated 3/31/2013 3/31/2012 Minimum Average Maximum Minimum Average Maximum Board of Directors 15,000 33,864 45,000 20,000 24,167 45,000 Officers 92,603 191,951 365,520 105,356 198,213 348,224

16. Loans and financing

As of March 31, 2013 and December 31, 2012, breakdown of the loans taken out from financial institutions is as follows:

Consolidated 3/31/2013 12/31/2012

Company Creditor Currenc

y Interest rates Maturity Effective

rate

Transaction

cost Unappropriated cost Principal

Interest Total Transaction

cost

Unappropriated cost Principal

Interest Total Itaqui BNDES (Direct) (a) R$ TJLP +2.78% 6/15/2026 2.89% 11,182 10,399 881,512 2,927 874,040 11,182 10,541 898,472 2,772 890,703Itaqui BNB (b) R$ 10.00% 12/15/2026 10.14% 2,892 2,797 202,236 858 200,297 2,892 2,816 202,322 859 200,365Itaqui BNDES (Indirect) (c) R$ IPCA + TR BNDES + 4.8% 6/15/2026 4.94% 1,474 1,474 113,806 36,186 148,518 1,475 1,475 111,299 31,378 141,202Itaqui BNDES (Indirect) (d) R$ TJLP +4.8% 6/15/2026 4.94% 2,023 1,991 171,775 715 170,499 2,023 2,000 175,016 669 173,685PecemII BNDES (Direct) (e) R$ TJLP +2.18% 6/15/2027 7.18% 7,803 6,692 716,128 2,209 711,645 7,803 6,854 695,027 2,002 690,175PecemII BNDES (Direct) (f) R$ IPCA + TR BNDES + 2.18% 6/15/2027 9.64% 1,740 1,441 127,242 29,851 155,652 1,740 1,482 124,439 25,814 148,771MPX S/A Banco Itaú BBA (g) R$ CDI+2.85% 6/17/2013 - - - 105,790 2,816 108,606 - - 105,790 368 106,158PecemII BNB (h) R$ 10.00% 1/31/2028 8.50% 4,164 3,708 250,000 3,735 250,027 4,164 3,773 235,000 3,826 235,053Parnaíba I BRADESCO (i) R$ CDI+3.00% 6/26/2013 4.49% 4,593 782 60,000 7,162 66,380 4,593 1,571 60,000 5,634 64,063Parnaíba I Banco Itaú BBA (j) R$ CDI+3.00% 6/26/2013 7.22% 11,516 4,293 65,000 9,366 70,073 8,917 4,646 65,000 7,675 68,029Parnaíba I BNDES (Direct) (k) R$ TJLP +1.88% 6/15/2027 1.94% 1,369 1,355 502,906 1,489 503,040 2,998 2,998 495,676 392 493,070Parnaíba I BNDES (Direct) (l) R$ IPCA + TR BNDES + 1.88% 7/15/2026 1.93% 3,321 3,321 208,826 2,452 207,957 1,236 1,237 204,388 38 203,189Parnaíba II Banco Itaú BBA (m) R$ CDI+3.00% 9/30/2013 - - - 100,000 10,708 110,708 - - 100,000 8,189 108,189Parnaíba II Banco HSBC (n) R$ CDI+3.00% 9/30/2013 - - - 125,000 13,386 138,386 - - 125,000 10,236 135,236Parnaíba II CEF (o) R$ CDI+3.00% 11/7/2013 - - - 325,000 29,603 354,603 - - 325,000 21,523 346,523

MPX S/A Promissory notes 1st

issuance (p) R$ CDI+1.50% 7/15/2013 -

- - 300,000 17,678 317,678 - - 300,000 11,595 311,595MPX S/A Banco Citibank (q) R$ CDI+1.15% 9/27/2013 - - - 101,250 3,996 105,246 - 101,250 2,042 103,292MPX S/A Banco Citibank (r) USD LIBOR 3M + 1.26% 9/27/2017 - - - 100,690 18 100,708 - - 102,175 18 102,193

MPX S/A Promissory notes 2nd

issuance (s)

R$ CDI+1.50% 12/9/2013 -

- - 300,000 6,915 306,915 - - 300,000 1,005 301,005MPX S/A Banco BTG Pactual (t) R$ CDI+1.50% 12/13/2013 - - - 101,912 2,383 104,295 - - 101,912 372 102,284MPX S/A Banco BTG Pactual (u) R$ CDI+2.95% 8/6/2013 - - - 350,000 4,451 354,451 - - - - -MPX S/A Banco HSBC (v) R$ CDI+1.75% 3/25/2014 - - - 100,000 101 100,101 - - - - -

52,077 38,253 5,309,073 189,005 5,459,825 49,023 39,393 4,827,766 136,407 4,924,780

Unappropriated cost Principal Interest Total


Current 5,885 2,191,151 156,703 2,341,969 6,984 1,716,403 110,555 1,819,974Noncurrent 32,368 3,117,922 32,302 3,117,856 32,409 3,111,363 25,852 3,104,806


43

16. Loans and financing (Continued) The table below shows the breakdown of the loans of the joint subsidiary Porto do Pecém Geração de Energia S.A. and the indirect subsidiary MPX Chile Holding Ltda. As a result of the new consolidation rules introduced by IFRS 11, from 2013 we are no longer obliged to present them in the quarterly information:

Consolidated 3/31/2013 12/31/2012

Company Creditor Currenc

y Interest rates Maturity Effective rate Transactio

n cost Unappropriated cost Principal Interest Total

Transaction cost


PecemI BNDES (Direct) (w) R$ TJLP +2.77% 6/15/2026 TJLP + 3.09% 16,921 5,438 784,876 2,615 782,053 8,461 5,644 799,685 2,475 796,516PecemI IDB (x) USD LIBOR+3.5% 5/15/2026 Libor + 4.52% 17,479 6,044 141,881 2,157 137,995 8,705 6,196 143,974 740 138,518PecemI IDB (y) USD LIBOR+3.0% 5/15/2022 Libor + 4.03% 17,710 5,776 171,192 2,279 167,695 8,814 6,001 173,716 782 168,498Chile Banco Credit Suisse (z) USD 8.13% 4/15/2015 - - - 15,103 610 15,713 - - 14,907 267 15,173Chile Banco Credit Suisse (aa) USD 8.00% 4/15/2015 - - - 10,070 406 10,476 - - 10,232 175 10,408

52,110 17,258 1,123,122 8,067 1,113,932 25,980 17,841 1,142,514 4,439 1,129,113



Current - 88,361 8,067 96,427 2,609 88,083 4,439 89,913Noncurrent 17,257 1,034,761 - 1,017,504 15,231 1,054,432 - 1,039,201

(a) The Brazilian Development Bank (BNDES) released the entire R$ 784 million of

the long-term loan to UTE Porto do Itaqui Geração de Energia S.A. relating to subcredits A, B and C, incurring an annual cost of TJLP + 2.78%. The financing facility has a term of 17 years, with 14 years repayment and a grace period on the principal of until July 2012. Subcredit D, intended for social investments (BNDES Social) of R$ 13.7 million, only incurs TJLP and R$ 11.7 million has been disbursed to date. The “BNDES Social” facility has a total term of 9 years, with 6 years repayment and a grace period of until July 2012. The interest on these loans is being capitalized during the construction phase.

(b) To top up the funding from the BNDES, UTE Porto do Itaqui Geração de Energia

S.A took out a loan from BNB-FNE, worth a total R$ 203 million under which the last payment was released on July 28, 2011, completing the loan. The BNB loan has a total term of 17 years, with 14 years repayment and a grace period on the principal of until July 2012. It is charged interest of 10% p.a. The funding has a performance bonus (15%), which consequently reduces the cost to 8.5% per annum.


44

16. Loans and financing (Continued) (c) R$ 99 million of this indirect BNDES line has been released to UTE Porto do

Itaqui Geração de Energia S.A, consisting of subcredits A, B, C, D and E, whose agents are the banks Bradesco and Votorantim This part of the loan has a total term of 17 years, including 14 years of amortization and a grace period for interest and the principal of until July 2012. The loan incurs IPCA + BNDES Reference rate + 4.8% p.a. during the construction stage and IPCA + BNDES Reference rate + 5.3% during the operational stage. The interest on these loans is being capitalized during the construction phase.

(d) The entire subcredit F, of the loan mentioned in the previous item equal to R$

141.8 million, has been passed through to UTE Porto do Itaqui Geração de Energia S.A. This part of the loan has a total term of 17 years, with 14 years repayment and a grace period on the principal and interest of until July 2012. The loan incurs TJLP + 4.80% p.a. during the construction stage and TJLP + 5.30% during the operational stage. The interest on these loans will be capitalized during the construction phase.

(e) By March 31, 2013 UTE MPX Pecém II had received R$ 607.9 million of the R$

627.3 million earmarked in subcredits A, B, C, D and L of the long-term financing contract with the BNDES (in nominal R$, excluding interest during the construction). These subcredits have a total term of 17 years, with 14 years repayment and a grace period on the principal and interest of until July 2013. The loan incurs LTIR + 2.18% p.a.

(f) UTE MPX Pecém II received R$ 110.1 million referring to subcredits E, F, G, H

and I of the long-term financing contract with the BNDES mentioned in the item above. These subcredits have a total term of 17 years, with 14 years repayment and a grace period on the principal and interest of until June 2014. The loan incurs IPCA + BNDES Reference rate + 2.18% p.a. Subcredit J, of R$ 22 million, which comprised this financing line, was transferred in April 2012 to subcredit A of the previous item.

(g) On December 17, 2012 the company MPX Energia S.A. renegotiated the R$

105.8 million of CCBs (Bank Credit Notes) from Banco Itaú BBA S.A., paying all the interest due up to that date with the new maturity date changing to June 17, 2013 and the interest held at the CDI rate plus of 2.85% per annum.


45

16. Loans and financing (Continued) (h) To top up the funding from the BNDES, MPX Pecém II Geração de Energia S.A.

took out a loan from BNB with FNE funding, worth a total R$ 250 million, which has been disbursed in its entirety. The BNB loan has a total term of 17 years, with quarterly interest and 14 years' repayment and a grace period on the principal of until February 2014. It is charged interest of 10% p.a. The funding has a performance bonus (15%), which consequently reduces the cost to 8.5% per annum.

(i) On December 27, 2011 UTE Parnaíba Geração de Energia S.A. borrowed R$ 75

million under a CCB loan (Bank Credit Note) with BRADESCO, which was endorsed by the company. Taken out to finance the construction of thermoelectric power plants Maranhão IV and V, this bridge loan incurs annual interest of the CDI rate + 3% and matures on June 26, 2013, whereupon the principal and interest is due. A further R$ 75 million was disbursed on February 28, 2012 by the bank on the same terms as the previous disbursement. R$ 90 million of the principal plus the interest due was settled on December 28, 2012, when the long-term BNDES loan described in items (k) and (l) was released.

(j) On December 27, 2011 UTE Parnaíba Geração de Energia S.A. borrowed R$

125 million under a CCB loan (Bank Credit Note) with Banco Itaú BBA, which was endorsed by the company. Taken out to finance the construction of thermoelectric power plants Maranhão IV and V, this bridge loan incurs annual interest of the CDI rate + 3% and matures on June 26, 2013, whereupon the principal and interest is due. R$ 60 million of the principal plus the interest due was settled in December 2012, when the long-term BNDES loan described in items (k) and (l) was released.

(k) In December 2012 UTE Parnaíba Geração de Energia S.A. received R$ 495.6

million as subcredits B and C of the bridge loan from BNDES, out of a total of R$ 671 million. These subcredits will be amortised over 168 monthly instalments commencing July 15, 2013, along with the interest. The loan incurs LTIR + 1.88% p.a.


46

16. Loans and financing (Continued)

(l) In December 2012 UTE Parnaíba Geração de Energia S.A. received R$ 204.3 million referring to the entire subcredit C of the long-term financing contract with the BNDES mentioned in the item above. This subcredit will be amortised over 13 annual instalments commencing July 15, 2014, along with the interest. The loan incurs IPCA + BNDES Reference rate + 1.88% p.a.

(m) On March 30, 2012 UTE Parnaíba II Geração de Energia S.A. borrowed R$ 100 million under a CCB loan (Bank Credit Note) with Banco Itaú BBA, which was endorsed by the company. Taken out to finance the construction of thermoelectric power plant Maranhão III, this bridge loan incurs annual interest of the CDI rate + 3% and matures on September 30, 2013, whereupon the principal and interest is due.

(n) On March 30, 2012 UTE Parnaíba II Geração de Energia S.A. borrowed R$ 125

million under a CCB loan (Bank Credit Note) with Banco HSBC, which was endorsed by the company. Taken out to finance the construction of thermoelectric power plant Maranhão III, this bridge loan incurs annual interest of the CDI rate + 3% and matures on September 30, 2013, whereupon the principal and interest is due.

(o) On May 07, 2012 UTE Parnaíba II Geração de Energia S.A. borrowed R$ 325

million under a CCB loan (Bank Credit Note) with Caixa Econômica Federal, which was endorsed by the company. Taken out to finance the construction of thermoelectric power plant Maranhão III, this bridge loan incurs annual interest of the CDI rate + 3% and matures on November 07, 2013, whereupon the principal and interest is due. A portion of R$ 125 million has been released, in addition to two portions of R$ 100 million, on May 08, 2012, May 15, 2012 and May 30, 2012.

(p) On July 18, 2012 MPX Energia S/A publicly distributed 300 commercial

promissory notes in a single series, with a nominal unit value of R$ 1 million, amounting to a total of R$ 300 million, maturing 360 days after issuance, yielding the CDI rate plus 1.5% p.a.


47

16. Loans and financing (Continued)

(q) On September 27, 2012 the subsidiary MPX Energia S.A issued a CCB (Bank Credit Note) via Banco Citibank S.A. for R$ 101,250,000.00 maturing on September 27, 2013. The interest agreed was 100% of the CDI rate +1.15% per annum and is due upon maturity.

(r) On September 27, 2012 the subsidiary MPX Energia S.A took out a loan equal to

USD 50,000 (or R$ 100,708) from Banco Citibank S.A. under a Credit Agreement, in due accordance with BACEN Resolution 4131. This loan is subject to interest of Libor + 1.26% p.a. and will be paid quarterly. The principal will be paid semi-annually, with a grace period of September 26, 2014 and the contract expiring on September 27, 2017. MPX Energia S.A. took out a swap from Citibank in order to hedge this loan against exchange variance. See Note 18.

(s) On December 14, 2012 MPX Energia S/A publicly distributed 300 commercial

promissory notes in a single series, with a nominal unit value of R$ 1 million, amounting to a total of R$ 300 million, maturing 360 days after issuance, yielding the CDI rate plus 1.5% p.a.

(t) On December 13, 2012 the subsidiary MPX Energia S.A issued a CCB (Bank

Credit Note) via Banco BTG Pactual for R$ 101.9 million maturing on December 13, 2013. The interest agreed was 100% of the CDI rate 1.50% per annum and is due upon maturity.

(u) On February 07, 2013 the subsidiary MPX Energia S.A issued a CCB (Bank

Credit Note) via Banco BTG Pactual for R$ 350 million maturing on August 06, 2013. The interest agreed was 100% of the CDI rate 2.95% per annum and is due upon maturity.

(v) On March 25, 2013 the subsidiary MPX Energia S.A issued a CCB (Bank Credit

Note) via Banco HSBC for R$ 100 million maturing on March 25, 2014. The interest agreed was 100% of the CDI rate 1.75% per annum and is due upon maturity.


48

16. Loans and financing--Continued

(w) Until the end of 2012 the BNDES had released R$ 1.40 billion of a long-term loan to Porto do Pecém Geração de Energia S.A. The BNDES financing agreement involves a total amount of R$ 1.41 billion (in nominal R$, excluding interest during the construction), with a total term of 17 years, including 14 years for amortization and a grace period for payment of interest and principal of until July 2012. The loan incurs LTIR + 2.77% p.a. and the interest is being be capitalized during the construction phase. The balances of the principal and interest stated in the table above refer to 50% of the original balances, and take into account the 50% interest of EDP Energias do Brasil S.A. in the company.

(x) To top up the direct loan from the BNDES, Porto do Pecém Geração de Energia

S.A has a direct loan from the Interamerican Development Bank – BID ("A loan"), worth a total USD 147 million, of which USD 143.78 million has been released thus far (equal to R$ 289,544 as of March 31, 2013). The A Loan has an annual cost of Libor + 3.5% and a total term of 17 years, with 14 years repayment and a grace period on the principal of until July 2012. The balances of the principal and interest stated in the table above refer to 50% of the original balances, and take into account the 50% interest of EDP Energias do Brasil S.A.

(y) To top up the direct loan from the BNDES, Porto do Pecém Geração de Energia

S.A has an indirect loan from the Interamerican Development Bank – BID ("B loan"), worth a total USD 180 million, of which USD 176 million has been released thus far (equal to R$ 354,429 as of March 31, 2013). The onlending banks are Grupo Banco Comercial Português, Calyon and Caixa Geral de Depósito. The B Loan has a total term of 13 years and a cost of 3.0%, with 10 years repayment and a grace period on the principal of until July 2012. The balances of the principal and interest stated in the table above refer to 50% of the original balances, and take into account the 50% interest of EDP Energias do Brasil S.A.


49

16. Loans and financing--Continued

(z) On April 13, 2011 MPX Chile Holding Ltda. took out an offshore loan from Banco Credit Suisse, endorsed by the company. The loan is denominated in US dollars amounting to USD 15 million (equal to R$ 30,207 as of March 31, 2013), charged fixed annual interest of Libor + 8.13%. The principal and interest will be paid semi-annually, with a grace period for the principal of until April 15, 2013 and the contract expiring on April 15, 2015. The balances of the principal and interest stated in the table above refer to 75% of the original balances, and take into account the 50% interest of JV MPX-E.ON ( MPX Participações S.A) in the company.

(aa) On June 29, 2011 MPX Chile Holding Ltda. took out an offshore loan from Banco

Credit Suisse, endorsed by the company. The loan is denominated in US dollars amounting to USD 10 million (equal to R$ 20,138 as of March 31, 2013), charged fixed annual interest of Libor + 8%. The principal and interest will be paid semi-annually, with a grace period for the principal of until April 15, 2013 and the contract expires on April 15, 2015. The balances of principal and interest shown in the table above account for 50% of the original balances.

Financial covenants Creditors involved in financial contracts use financial covenants in a number of debt contracts to monitor the Company and its investees' financial situation. The financing contracts relating to the ventures Porto do Pecém Geração de Energia S.A., MPX Pecém II Geração de Energia S.A. and UTE Porto do Itaqui Geração de Energia S.A. have minimum debt service coverage indexes that measure the payment capacity of the financial expense in relation to EBITDA. All the financial covenants had been performed as of March 31, 2013.


50

16. Loans and financing (Continued) Nonfinancial covenants A number of financing contracts also have nonfinancial covenants, which are usual for the market and have been summarized below. As of March 31, 2013 all these covenants were performed. ► Obligation to periodically submit financial statements to creditors ► Creditor rights to inspect and visit facilities ► Obligation to keep up with tax, social security and payroll obligations ► Obligation to maintain materially important contracts for its operations in force ► Comply with environmental legislation and keep any operating licences necessary

in force ► Contractual restrictions on related-party transactions and sales of assets outside

the normal course of business ► Restrictions on the change of share control, corporate restructuring and material

changes to the core activities and articles of association of the borrowers, and ► Restrictions on debt ratios and the procurement of new debt The portions of the loans and financing classified in noncurrent liabilities as of March 31, 2013 have the following aging list: Consolidated Maturity

2014 208,794 2015 234,172 2016 239,056 2017 to final maturity 2,435,834

3,117,856 We did not detect any nonperformance of financial and non-financial covenants as of March 31, 2013.


51

17. Taxes and contributions payable Company Consolidated 3/31/2013 12/31/2012 3/31/2013 12/31/2012 Corporate Income Tax (IRPJ) - - 50 344 Social Contribution on Net Profit (CSLL) - - 103 537 Withholding Income Tax –(IRRF) 67 56 757 1,667 ICMS 5 37 124 115 PIS, COFINS, IRRF and CSL 138 40 24,591 1,559 Tax on Financial Transactions (IOF) 347 14 350 15 IVA (Chile/Austria) - - - - Other 185 255 13,689 3,004 Current 742 402 39,664 7,241

On March 31, 2013, the tax base for calculating income and social contribution taxes payable was deducted from the pre-operating expenses pursuant to Restated Private Letter Ruling No. 32 of July 21, 2008 issued by the Brazilian IRS,, generating tax losses; as such, the subsidiaries did not record a provision for these taxes.

18. Financial instruments and risk management These financial instruments are managed through operating strategies and internal controls, aimed at liquidity, profitability and security. Our control policy consists of permanently monitoring contract rates versus market rates. The Company and its subsidiaries do not invest in derivative financial instruments or any other risk assets on a speculative basis, in accordance with This is a determination of the risk management policy reviewed and approved by the Board of Directors.

The estimated realizable value of the financial assets and liabilities of the Company and its subsidiaries was determined through information available in the market and appropriate valuation methodologies. However, considerable judgment was required in order to interpret market data and estimate the most adequate realizable value. Consequently, the estimates below do not necessarily indicate the values that could be realized in the current exchange market. The use of different market methodologies may have a material effect on the estimated realizable values.


52

18. Financial instruments and risk management (Continued) The consolidated book balances of the main financial instruments included in the balance sheets as of March 31, 2013 and December 31, 2012 are shown below:

Company

3/31/2013 12/31/2012

Financial instruments Amount Cost

Total Amount Cost

Total fair amort. Fair amort. Assets Cash and cash equivalents 246,753 - 246,753 206,263 - 206,263

Gains on derivative transactions - - - 3,018 - 3,018 Escrow deposits - 104,061 104,061 - 102,684 102,684 Loans to subsidiaries - 534,121 534,121 - 505,976 505,976 Accounts receivable from other related parties

- 1,134 1,134 - 1,134 1,134

Accounts receivable from subsidiaries - 21,230 21,230 - 16,364 16,364 AFAC-with subsidiaries - 711,282 711,282 - 419,426 419,426 Embedded derivatives 227 - 227 479 - 479

Liabilities Trade payables - 6,594 6,594 - 3,849 3,849

Loans and financing - 1,498,000 1,498,000 - 1,026,527 1,026,527 Debentures - 5,231 5,231 - 5,065 5,065 Debts with subsidiaries - 3,595 3,595 - 3,859 3,859 Debts with other related parties - 5,261 5,261 - 2,664 2,664

Consolidated

3/31/2013 12/31/2012

Amount Cost

Amount Cost

Financial instruments fair amort. Total

Fair amort. Total Assets

Cash and cash equivalents 359,121

359,121 519,277 - 519,277 Securities 5,600

5,600 3,441 - 3,441

Accounts receivable

228,964 228,964 - 21,345 21,345 Gains on derivative transactions - - - 3,018 - 3,018 CCC subsidy receivable - 34,668 34,668 - 42,178 42,178 Escrow deposits - 137,582 137,582 - 135,683 135,683 Loan with subsidiaries

157,766 157,766 - 134,926 134,926

Accounts receivable from other related parties

- 1,134 1,134 - 1,134 1,134

Accounts receivable from associated companies

9,017 9,017 - 6,793 6,793

Embedded derivatives 227 - 227 479 - 479

Liabilities Trade payables - 302,729 302,729 - 115,261 115,261

Loans and financing - 5,459,825 5,459,825 - 4,924,780 4,924,780 Debentures - 5,231 5,231 - 5,065 5,065 Debits with associated companies - 12,684 12,684 - 27,213 27,213 Debits with related parties

47,257 47,257 - 3,989 3,989

Losses on derivative transactions 118,382 - 118,382 117,748 - 117,748 Contractual retentions 31,767 - 31,767 - 77,374 77,374


53

18. Financial instruments and risk management (Continued) The financial instruments measured at amortised cost and presented above are close to their market values (fair value). 18.1. Fair value of financial instruments

The concept of fair value states that assets and liabilities should be valued at market prices, in the case of liquid assets, or by using mathematical pricing methods. The hierarchy level of the fair value gives priority to unadjusted prices quoted on an active market. A part of the company's accounts has the fair value equal to book value, these accounts include cash equivalents, payables and receivables, bullet debts and short-term. The accounts whose fair value differs from book value can be seen below. short-term investments are stated at fair value, due to their classification at fair value through profit and loss.

Fair value hierarchy of financial instruments

Prices observable in an active

market Pricing with

observable prices Pricing without observable prices

(Level I) (Level II) (Level III) Short-term investments - 351,260 - Derivatives - (118,382) - Securities - 5,600 - Balance at 3/31/2013 - (238,478) -

18.2. Derivatives, hedges and risk management 18.2.1. Risk management objectives and strategies

The Company has a formal policy for financial risk management. The use of financial instruments for hedging purposes is done through an analysis of the risk exposure that (exchange and interest rates, amongst others) and follows the strategy approved by the Board of Directors.


54

18. Financial instruments and risk management--Continued 18.2. Derivatives, hedges and risk management--Continued

18.2.1. Risk management objectives and strategies--Continued

The protection guidelines are applied according to exposure type. The risk factors posed by foreign currencies should be neutralised in the short term (within 01 year), and the protection may be extended for longer. Decision taking regarding the risk posed by interest rates and inflation on liabilities acquired will be assessed in terms of the economic and operational context and when Management deems the risk to be material.

18.2.2. Market risk

Risk of change in commodities prices, exchange rates and interest rates. 18.2.2.1. Notional and fair value of derivative instruments Forward currency contracts - acquisition of US dollars Consolidated

3/31/2013 12/31/2012

Average term

Reference Value MtM Reference

Value MtM (dc 365) (USD) Assets Liabilities Net (USD) Net MPX Energia Long position USD Goldman Sachs - - - - - $ 10,963 735 Morgan Stanley - - - - - $ 8,524 1,443

Total USD - - - - $ 19,487 2,178


55


18.2.2. Market risk--Continued

18.2.2.1. Notional and fair value of derivative instruments

--Continued Interest rate swap contracts Consolidated

3/31/2013 12/31/2012

Average term

Reference Value MtM Reference

Value MtM (dc 365) Assets Liabilities Net Assets Porto do Itaqui Swap Libor x Fixed Citibank 1,867 $ 220,776 446,319 563,130 (116,811) $ 220,776 (117,748)

Total swap $ 220,776 446,319 563,130 (116,811) $ 220,776 (117,748) MPX Energia Swap Libor x DI Citibank 864 101,250 100,474 102,045 (1,571) 101,250 840

Total swap 101,250 100,474 102,045 (1,571) 101,250 840 546,793 665,175 (118,382) (116,908)

18.2.2.2. Exchange risk Risk of change in exchange rates which could be associated to the Company's assets and liabilities. a) Risk management

The Company manages the exchange risk on a consolidated basis for its companies to detect and mitigate risks posed by changes in exchange rates underlying global assets and liabilities. The aim is to detect or create natural hedges, taking advantage of the synergy between the operations of MPX S.A.'s subsidiaries. The idea is to minimise the use of hedge derivatives, managing the exchange risk of net exposure. Derivative instruments are used in cases where natural hedges cannot be taken advantage of.


56



18.2.2.2. Exchange risk-Continued

b) Operations hedged by derivative instruments

Investment in fixed assets (capex) As the MPX companies' revenue is obtained in Brazilian reais and most of their investments in fixed assets (Capex) are denominated in US dollars and Euros, a portion of their foreign-currency investments will be funded in US dollars at international interest rates (Libor). Furthermore, the prices of the raw material for the thermal power plants (coal fuel) are determined in the international market, in US dollars. The level of the assets and liabilities' exposure is therefore permanently assessed in terms of possible hedge requirements. The Company and its subsidiaries used NDFs (Non Deliverable Forwards) in the course of the first half, which consists of forward trading without physical delivery of currency to minimize the impact of exchange mismatching. The hedge volume taken out reflects the flows of payments under the original contract. No security margin is required in this kind of transaction. UTE Parnaíba IV has capex hedges denominated in euros and the initial referential value is 26.8 million euros.


57




b) Operations hedged by derivative instruments--Continued

US dollar loan of UTE Porto do Pecém ► Hedge accounting

The investment in Capex of Energia Pecem (construction of the thermal power plant) will consist of 75% long-term financing, partly in US dollars, and 25% of company capital. The long-term financing agreements were signed with the Inter-American Development Bank (“BID”) and the National Social and Economic Development Bank (“BNDES”) on July 10, 2009. To finance its Capex requirements in the period prior to July 10, 2009 it was necessary to take out a bridge loan from Citibank, which will be repaid using funds provided under said financing agreements. As most of the investment is denominated in US dollars and Euros and its future revenue will be generated in Brazilian reais, derivative instruments have been taken out for hedge purposes. On April 01, 2009 the Company used hedge accounting in order to hedge against the exchange variance on the long-term US dollar financing loans taken out from IDB. The derivative instrument used is an NDF maturing in October 2012 with a notional value of USD 327 million.


58





US dollar loan of UTE Porto do Pecém--Continued ► Hedge accounting--Continued As this is hedge accounting classified as cash flow, changes in the fair value of derivative instruments designated as cash flow hedges are recognized directly in shareholders’ equity for the amount of the hedge that is considered effective. The difference between the fair value and the exchange variance is the ineffective portion which is therefore recognized in the income statement. This bridge loan was settled on October 30, 2009. USD 260 million was released on this date consisting of the first part of the long-term funding from BID and the adjustment to present value (AVP) was calculated based on the USD 67 million yet to be disbursed by the BID (before this release, the AVP was calculated based on the exposure of USD 169 million relating to the difference in the contracted derivative of USD 327 million and the bridge loan of USD 158 million). USD 50 million was released on August 31, 2010 referring to the second portion of the IDB long-term financing, and the AVP accordingly began to be calculated based on the outstanding USD 17 million, not yet disbursed by IDB. USD 9 million was released on February 04, 2011 referring to the third portion of the IDB long-term financing, and the AVP accordingly began to be calculated based on the outstanding USD 7 million, not yet disbursed by IDB.


59





US dollar loan of UTE Porto do Pecém--Continued ► Hedge accounting--Continued The item covered by this financial instrument for the purpose of hedge accounting also has the following features:

► The venture is forecast for conclusion in the second quarter of

2013 ► The covered item is associated with said investment (made

public by the company) ► The public investment is of material value to Brazil and ► USD 158 million was originally contracted (98% of the total

item covered), and the amount now stands at USD 319.7 million.


60





US dollar loan of UTE Porto do Pecém--Continued ► Hedge accounting--Continued The impacts of the gains and losses of this hedge accounting transaction in the period were as follows:

2013 Net income Equity Hedge derivatives

Derivative gains (losses) (1,708) 1,127

On April 01, 2011 the Company used hedge accounting in order to hedge against the libor interest for the amortization period on the long-term US dollar financing loans taken out from IDB. The derivative instrument designated for this relation is a interest-rate cash-flow float/fixed maturing between October 2012 and October 2024, whose notional amounts refer to the expected accumulated disbursement tranches of the long-term interest owed to IDB.


61





US dollar loan of UTE Porto do Pecém--Continued ► Hedge accounting--Continued As this is hedge accounting classified as cash flow, changes generated by the MTM (mark-to-market) variance, net of the interest provisioned for up to the base date, are recognized directly in shareholders’ equity in an equity valuation adjustment account. The difference between the fair value and the libor rate is the ineffective portion which is therefore recognized in the income statement. The impacts of the gains and losses of this hedge accounting transaction in the period were as follows:

2013 Net income Equity Hedge derivatives

Gain on derivatives (1,338) 883


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18.2.2.2. Exchange risk-Continued c) Correlation breach scenarios (sensitivity analysis - stress tests)

See below the summary of the sensitivity analysis of exchange variance (increase in Dollar versus Real forex rate) in derivative instruments related to the original operations. The probable scenario is the fair value at the reference date. The result in the scenarios denotes the market value of the book (with the source operation and related hedges), if the risk factor had the scenario value.

Sensitivity analysis – exchange

exposure

Risk

Probable scenario (fair

value) Scenario I | USD25%+

Scenario II | USD50%+

UTE Porto do Itaqui Ger. Electricity

Swap Libor x Fixed Dollar valuation (116,811) (145,859) (174,908) Transaction earnings (116,811) (145,859) (174,908) (*) The valuation does not denote the total exposure in the currency

or the overall loss posed by this exposure

18.2.2.3. Interest rate risk Risk of shifting of the interest structure that could be associated with the payment flows of the debt principal and interest. a) Risk management

MPX group has financing loans denominated in US dollars and indexed to the Libor rate at its subsidiary in Chile and the energy production plant Porto do Pecém. For this debt structure the Company took out a swap to hedge against changes in this Libor rate, assuming a fixed interest structure as the liability.


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18.2.2.3. Interest rate risk--Continued a) Risk management--Continued

Part of MPX Group's debt denominated in reais is subject to restatement indexes that follow market trends and have a low risk of shifting, such as TJLP, IPCA and CDI. In the current context, the Company does not therefore consider the interest risk posed by the liabilities to be material.

18.2.3. Credit risk This arises from the possibility of the Company and its subsidiaries suffering losses due to the default of their counterparties or of financial institutions where they have funds or financial investments. This risk factor could derive from commercial operations and cash management. To mitigate these risks, the Company and its subsidiaries have a policy of analyzing the financial position of their counterparties, as well constantly monitoring outstanding accounts. To evaluate the financial institutions with which they conduct operations, the reference used is the RiskBank Index compiled by consultancy firm Lopes Filho e Associados. The Company has a Financial Investment Policy, which establishes investment limits for each institution and considers the credit rating as a reference for limiting the investment amount. The average terms are continually assessed, as are the indexes underlying the investments, in order to diversify the portfolio. The maximum exposure to credit risk is denoted by the balance of short-term investments.


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18.2.3. Credit risk--Continued

Consolidated 3/31/2013 12/31/2012 Positions denoting credit risk

Cash and cash equivalents 359,121 519,277 Securities 5,600 3,441 Trade accounts receivable 228,964 21,345 Gains on derivative transactions - 3,018 CCC subsidy receivable 34,668 42,178 Escrow deposits 137,582 135,683

Consolidated credit accounts 765,935 724,942

18.2.4. Liquidity risk The Company and its subsidiaries monitor their liquidity levels, based on expected cash flows versus the amount of cash and cash equivalents at hand. Managing the liquidity risk means maintaining cash, sufficient securities and capacity to settle market positions. The amounts recognized as of March 31, 2013 approach the operations' settlement values, including estimated future interest payments.

Consolidated

Up to 6 months

6 to 12 months

1 to 2 years 2 to 5 years

Over 5 years

Total by account

Financial liabilities Trade payables 302,729 - - - - 302,729 Related-party transactions 51,541 - 8,400 - - 59,941 Loans and financing 1,509,182 1,383,096 645,471 1,374,684 3,194,761 8,107,194 Contractual retention - 31,767 - - - 31,767 Debentures - 163 5,068 - - 5,231 Derivative financial instruments 15,172 15,723 29,263 59,419 26,797 146,374

Total by time range 1,878,624 1,430,749 688,202 1,434,103 3,221,558 8,653,236


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18.2.4. Liquidity risk--Continued

Consolidated - 12/31/2012

Up to 6 months

6 to 12 months

1 to 2 years

2 to 5 years

Over 5 years Total

Liabilities

Trade payables 115,261 - - - - 115,261 Related-party transactions 30,772 - 430 - - 31,202 Loans and financing 598,139 1,883,891 648,171 1,361,339 3,113,213 7,604,753 Debentures - 111 4,954 - - 5,065 Contractual retention - 77,374 - - - 77,374 Derivative financial instruments 14,793 14,322 29,570 59,920 26,749 145,354

Total 758,965 1,975,698 683,125 1,421,259 3,139,962 7,979,009

19. Provision for contingencies

The Company and its subsidiaries are not party to judicial proceedings, involving labor and tax issues rated as a probable loss, and no provision was therefore made for them. The Company and its subsidiaries are party to judicial proceedings, involving labor and civil issues to the estimated amount of R$ 27,380 (R$ 25,143 as of December 31, 2012). Their legal advisors rate the proceedings as a possible loss, and management does not believe it is necessary to record a provision for them.


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20. Equity As of March 31, 2013 and December 31, 2012 respectively, the Company's share capital consists of 578,416,212 (five hundred and seventy-eight million four hundred and sixteen thousand two hundred and twelve) registered common shares, with no par value and the authorized capital is 1.2 billion book-entered common shares with no par value. As of March 31, 2013 the Company's share capital was R$ 3,731,975 (R$ 3,731,734 as of December 31, 2012), consisting of common shares distributed as follows: 3/31/2013 % 12/31/2012 % Shareholder

Eike Fuhrken Batista 287,249,625 49.7 289,705,431 50.1 Centennial Asset Mining Fund LLC (*) 20,208,840 3.5 20,208,840 3.5 Centennial Asset Brazilian Equity Fund LLC (*) 1,822,065 0.3 1,822,065 0.3 E.ON 67,869,516 11.7 67,869,516 11.7 BNDESPAR 59,823,537 10.3 59,823,537 10.4 Other 141,442,629 24.5 138,812,343 24.0

Total 578,416,212 100 578,241,732 100 (*) Controlled by Eike Fuhrken Batista. The changes in the share capital in the first quarter of 2013 have been summarised below:

Date Quantity of shares

Capital (R$ thousand)

Description

12/31/2012 578,241,732 3,731,734 Opening balance 1/10/2013 147,480 232 Capital increase – company plan 2/6/2013 27,000 9 Capital increase – company plan 3/31/2013 578,416,212 3,731,975 Closing balance

On February 06, 2013 the capital increase made at the Board of Directors' meeting, with the issue of 27,000 new shares, was partially paid-in in the first quarter of 2013. The remaining amount will be paid in after the end of this quarter.


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20. Equity--Continued The Company's capital was increased in January 2013 at the Board of Directors' meeting held on 1/10/2013, ratifying the issuance of 147,480 new common shares, with no par value, resulting from the exercising of stock options awarded under the Company's stock options program. The number of Company shares accordingly changed to 578,389,212. The Company's capital was increased in February 2013 by the Board of Directors' meeting held on 2/6/2013, ratifying the issuance of 27,000 new common shares, with no par value, resulting from the exercising of stock options awarded under the Company's stock options program. The number of Company shares accordingly changed to 578,416,212.

21. Income (loss) per share

Basic and diluted earnings per share The basic and diluted earnings per share were calculated by dividing the earnings of the year attributable to the controlling and noncontrolling shareholders of the Company as of March 31, 2013 and March 31, 2012 and the respective average number of common shares in circulation, as per the table below: 3/31/2013 3/31/2012 Common Total Common Total Basic and diluted numerator

Loss attributable to controlling shareholders (250,901) (250,901) (77,481) (77,481)

Basic and diluted denominator

Weighted share average 578,416,212 578,416,212 136,735,569 136,735,569 Loss per share (R$) - basic and diluted (0.4338) (0.4338) (0.5708) (0.5708)

As of March 31, 2013 there is no difference between the loss per basic and diluted share.


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22. Share-based remuneration plan The Company's stock options break down as follows: Company and consolidated 3/31/2013 3/31/2012 Stock options granted - Equity

Awarded by the Company (Table 1 and Table 2) 25,700 12,198 Granted by Company (Table 3) 301,918 272,546

Total 327,618 284,744 Company and consolidated 3/31/2013 3/31/2012 Expenses incurred on share options awarded 5,714 10,120

a) Stock options granted by the Company

The Special Shareholders’ Meeting held by MPX Energia S.A. on November 26, 2007 approved the Stock Purchase Option Program, which was recorded in the minutes as an appendix. The same date share options were awarded to the Company's executives. The plan entailed the right to acquire 175,900 shares, following the share split on July 17, 2009, awarded to 5 participants in equal amounts, subject to the individuals remaining at the Company for 5 years in order to exercise all of their rights. The Options Program consists of the right to acquire a certain amount of Company shares, awarded to the program's beneficiary, at a given strike price per share - or purchase price per share - which has to be exercised in a period or by a deadline.


69

22. Share-based remuneration plan--Continued

a) Stock option granted by the Company--Continued The plan's regulations state that the Company's Board of Directors should determine the amount of shares to be awarded, the strike prices, maturity terms and expiry dates of the rights. On the date the right is exercised, the shares sold to the plan beneficiary should be subscribed again or placed in the treasury. The company's other shareholders do not have subscription rights to the shares allocated to the option plans. The Special Shareholders’ Meeting held on December 07, 2007 approved the grouping of the Company shares, by which 22 shares were grouped into 1 common share. The Extraordinary General Meeting held on July 17, 2009 subsequently approved the splitting of the Company shares, by which each common share on that date was split into 20 common shares. A further split was approved on August 15, 2012, whereby each common share was split into 3 common shares. These events led to an adjustment in the quantity and strike price of the options under the plans awarded. The minutes from the Special Shareholders’ Meeting held on September 28, 2010 documented the extension to the Company's stock options program to December 31, 2015. Options were again awarded to executives on December 01, 2010, subject to the individuals remaining at the company for 7 years. The Extraordinary General Meeting held on April 26, 2011 approved the increase to the maximum percentage of shares that can be allocated to the Stock Options Program, to 2% of the Company's total stock.


70


a) Stock option granted by the Company--Continued The Special Shareholders’ Meeting (AGE) held on January 26, 2012 updated the Plan's contract and new beneficiaries were included, although for a vesting date of November 24, 2011. On May 24, 2012 the split-off was approved of MPX to CCX Carvão da Colômbia S.A., which accounted for 20.69% of MPX's assets. Following the split-off the share value was reduced by the same proportion. To maintain the value of the options awarded, a discount was awarded in the strike price of options not exercised by the date the two companies were split off. A further 75,000 options were awarded on May 31, 2012. Three more batches were awarded in the 3rd quarter of 2012, totalling 165,000 options. Ten blocks of options had therefore been awarded by March 31, 2013, segregated as follows (*): Plan 1: 528,000 options awarded on November 26, 2007 Plan 2: 3,300,000 options on December 01, 2010 Plan 2.1: 30,000 options on April 27, 2012 - the second block of Plan 2. Plan 2.2: 60,000 options on June 02, 2012 - the third block of Plan 2. Plan 3: 2,098,500 options on November 24, 2011 Plan 3.1: 225,000 options on May 31, 2012 - the second block of Plan 3. Plan 3.2: 52,500 options on July 10, 2012 - the third block of Plan 3. Plan 3.3: 22,500 options on July 20, 2012 - the fourth block of Plan 3. Plan 3.4: 90,000 options on August 01, 2012 - fifth block of Plan 3. Plan 3.5: 3,000,000 options on December 13, 2012 - the sixth block of Plan 3.

(*) Amounts and strike prices after the split on August 15, 2012 and split-off of CCX.


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a) Stock option granted by the Company--Continued Plan 1

Stock options granted

Date granted Vesting conditions Maturity Expiry

Number of options granted

11/26/2007 5 years of service at the Company 11/26/2008 11/26/2009 105,600

11/26/2009 11/26/2010 105,600 11/26/2010 11/26/2011 105,600 11/26/2011 11/26/2012 105,600 11/26/2012 11/26/2013 105,600 Total 528,000

2013 Strike year Quantity R$ /share (a) of options Balance at November 27, 2007 0.76 528,000

Exercised in 2008 - - Balance at December 31, 2008 0.82 528,000

Exercised in 2009 - (211,200) Balance at December 31, 2009 0.85 316,800

Exercised in 2010 - - Balance at December 31, 2010 0.90 316,800

Exercised in 2011 (105,600)

Balance at December 31, 2011 0.96 211,200

Exercised in 2012 - - Cancelled in 2012 - (126,720)

Balance at December 31, 2012 1.01 84,480 Balance at March 31, 2013 1.04 84,480

(a) Strike prices of the options restated by the IPCA price index.


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a) Stock option granted by the Company--Continued Plan 1--Continued 2013 Balance of remaining options 84,480 Number of exercisable options as of March 31, 2013 84,480 Average outstanding term (years) 0.67 Fair value of options awarded in R$ (b) 8.43 Price of the share in R$ (c) 9.50 Strike price of the options in R$ (a) 1.04 Expected volatility (per annum) (d) 39.19% Risk-free interest rate (average) (per annum) (e) 2.50% Effects on income for the period

Share option Plan R$ thousand - Intrinsic value of Plan in R$ thousand 715

(b) Calculation of the options' fair value based on the Merton model (1973), which is a variant of the Black &

Scholes (1973) model which considers dividend payments (variable not included in the Black & Scholes model) - MERTON, R. Theory of Rational Option Pricing. Bell Journal of Economics and Management Science, 4 (Spring 1973), 141-83.

(c) The price at the close of trading on March 31, 2013, when the share MPXE3 was quoted at R$ 9.50. (d) To calculate the volatility of the share the continuous returns from the price history of the share MPXE3 were

used. (e) Reference rate to adjust the SWAP contracts for the IPCA coupon disclosed by BM&FBOVESPA.


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12/14/2012 12/14/2013 330,000 12/14/2013 12/14/2014 330,000 12/14/2014 12/14/2015 330,000

12/14/2015 12/14/2016 660,000 12/14/2016 12/14/2017 660,000 12/14/2017 12/14/2018 660,000 Total 3,300,000

2013 Strike Year Quantity R$ /share (a) of options Balance at December 01, 2010 5.94 3,300,000

Exercised in 2010 - - Balance at December 31, 2010 6.33 3,300,000

Exercised in 2011 - - Balance at December 31, 2011 6.75 3,300,000

Exercised in 2012 - (310,500) Cancelled in 2012 - (100,500)

Balance at December 31, 2012 (f) 3.57 2,889,000

Exercised in 2013 (52,500) Balance at March 31, 2013 3.64 2,836,500 (a) Strike prices of the options restated by the IPCA price index. Amounts and strike prices after the split on

August 15, 2012 and split-off of CCX. (f) Reduction in the strike price to 40% of the initial price restated by the IPCA price index.


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a) Stock option granted by the Company--Continued Plan 2--Continued

2013 Total number of options remaining 2,836,500 Number of exercisable options as of March 31, 2013 268,500 Average outstanding term (years) 3.82 Fair value of options awarded in R$ (b) 6.19 Price of the share in R$ (c) 9.50 Strike price of the options in R$ (a) 3.64 Expected volatility (per annum) (d) 36.46% to 45.56% Risk-free interest rate (per annum) (average)(e) 3.33% Effects on income for the period

Share option Plan R$ thousand 811 Intrinsic value of Plan in R$ thousand 16,611

(b) Calculation of the options' fair value based on the Merton model (1973) (c) The price at the close of trading on March 31, 2013, when the share MPXE3 was quoted at R$ 9.50. (d) To calculate the volatility of the share the continuous returns from the price history of the share MPXE3 were



75



Plan 2.1 - second block awarded under Plan 2




4/27/2012

7 years of service at the Company

4/27/2013 4/27/2014 3,000 4/27/2014 4/27/2015 3,000 4/27/2015 4/27/2016 3,000 4/27/2016 4/27/2017 3,000 4/27/2017 4/27/2018 6,000 4/27/2018 4/27/2019 6,000 4/27/2019 4/27/2020 6,000 Total 30,000

2013 Strike price Quantity R$ /share (a) of options Balance at April 30, 2012 4.13 30,000

Exercised in 2012 - (3,000) Balance at December 31, 2012 (f) 4.29 27,000 Balance at March 31, 2013 4.38 27,000

(f) Increase in the strike price discount of 20% to 60%


76



Plan 2.1 - second block awarded under Plan 2--Continued

2013 Total number of options remaining 27,000 Number of exercisable options as of March 31, 2013 - Average outstanding term (years) 3.73 Fair value of options awarded in R$ (b) 5.73 Price of the share in R$ (c) 9.50 Strike price of the options in R$ (a) 4.38 Expected volatility (d) 36.77% to 45.20% Risk-free interest rate (average)(e) 3.42% Effects on income for the period

Share option Plan R$ thousand 13 Intrinsic value of Plan in R$ thousand 138

(a) Strike prices of the options restated by the IPCA price index. Amounts and strike prices after the split on

August 15, 2012 and split-off of CCX. (b) Calculation of the options' fair value based on the Merton model (1973) (c) The price at the close of trading on March 31, 2013, when the share MPXE3 was quoted at R$ 9.50. (d) To calculate the volatility of the share the continuous returns from the price history of the share MPXE3 were



77



Plan 2.2 - third block awarded under Plan 2


Date granted

Vesting conditions

Maturity

Expiry Number of

options granted

6/2/2012


6/2/2013 6/2/2014 6,000 6/2/2014 6/2/2015 6,000 6/2/2015 6/2/2016 6,000 6/2/2016 6/2/2017 6,000 6/2/2017 6/2/2018 12,000 6/2/2018 6/2/2019 12,000 6/2/2019 6/2/2020 12,000 Total 60,000

2013 Strike price Quantity R$ /share (a) of options Balance at June 02, 2012 2.97 60,000

Exercised in 2012 - - Balance at December 31, 2012 (f) 3.06 60,000 Balance at March 31, 2013 3.13 60,000

(f) Increase in the strike price discount of 20% to 60%


78



Plan 2.2 - third block awarded under Plan 2--Continued

2013 Total number of options remaining 60,000 Number of exercisable options as of March 31, 2013 6,000 Average outstanding term (years) 3.83 Fair value of options awarded in R$ (b) 6.61 Price of the share in R$ (c) 9.50 Strike price of the options in R$ (a) 3.13 Expected volatility (per annum) (d) 36.50% to 45.79% Risk-free interest rate (per annum) (average)(e) 3.42% Effects on income for the period

Share option Plan R$ thousand 34 Intrinsic value of Plan in R$ thousand 382 (a) Strike prices of the options restated by the IPCA price index. Amounts and strike prices after the split on

August 15, 2012 and split-off of CCX. (b) Calculation of the options' fair value based on the Merton model (1973) (c) The price at the close of trading on March 31, 2013, when the share MPXE3 was quoted at R$ 9.50. (d) To calculate the volatility of the share the continuous returns from the price history of the share MPXE3 were



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11/24/2011 7 years of service at the

Company 11/24/2012 11/24/2013 209,850 11/24/2013 11/24/2014 209,850 11/24/2014 11/24/2015 209,850 11/24/2015 11/24/2016 209,850

11/24/2016 11/24/2017 419,700 11/24/2017 11/24/2018 419,700 11/24/2018 11/24/2019 419,700 Total 2,098,500

2013 Strike year Quantity R$ /share (a) of options Balance at December 31, 2011 5.17 2,098,500

Exercised in 2012 - Cancelled in 2012 (15,000)

Balance at December 31, 2012 5.46 2,083,500

Exercised in 2013 (37,500) Cancelled in 2013 (15,000)

Balance at March 31, 2013 5.58 2,031,000


80



2013 Total number of options remaining 2,031,000 Number of exercisable options as of March 31, 2013 169,350 Average outstanding term (years) 4.38 Fair value of options awarded in R$ (b) 5.08 Price of the share in R$ (c) 9.50 Strike price of the options in R$ (a) 5.58 Expected volatility (per annum) (d) 36.36% to 45.20% Risk-free interest rate (per annum) (average)(e) 3.45% Effects on income for the period

Share option Plan R$ thousand 928 Intrinsic value of Plan in R$ thousand 7,962 (a) Strike prices of the options restated by the IPCA price index. (b) Calculation of the options' fair value based on the Merton model (1973) (c) The price at the close of trading on March 31, 2013, when the share MPXE3 was quoted at R$ 9.50. (d) To calculate the volatility of the share the continuous returns from the price history of the share MPXE3 were

used. (e) Reference rate to adjust the swap contracts for the IPCA coupon disclosed by BM&FBOVESPA.

Plan 3.1 - second block awarded under Plan 3





5/31/2014 5/31/2015 22,500 5/31/2015 5/31/2016 22,500 5/31/2016 5/31/2017 22,500

5/31/2017 5/31/2018 45,000 5/31/2018 5/31/2019 45,000 5/31/2019 5/31/2020 45,000 Total 225,000


81


a) Stock option granted by the Company--Continued Plan 3--Continued Plan 3.1 - second block awarded under Plan 3--Continued 2013 Strike year Quantity R$ /share (a) of options Balance at May 31, 2012 5.14 225,000

Exercised in 2012 - - Balance at December 31, 2012 5.31 225,000 Balance at March 31, 2013 5.43 225,000 2013 Total number of options remaining 225,000 Number of exercisable options as of March 31, 2013 - Average outstanding term (years) 4.84 Fair value of options awarded in R$ (b) 5.25 Price of the share in R$ (c) 9.50 Strike price of the options in R$ (a) 5.43 Expected volatility (per annum) (d) 36.54% to 45.31% Risk-free interest rate (per annum) (average)(e) 3.52% Effects on income for the period


August 15, 2012. (b) Calculation of the options' fair value based on the Merton model (1973) (c) The price at the close of trading on March 31, 2013, when the share MPXE3 was quoted at R$ 9.50. (d) To calculate the volatility of the share the continuous returns from the price history of the share MPXE3 were



82


a) Stock option granted by the Company--Continued Plan 3--Continued Plan 3.2 - third block awarded under plan 3


Date granted Vesting conditions Maturity Expiry Number of

options granted 7/10/2012


7/10/2013 7/10/2014 5,250 7/10/2014 7/10/2015 5,250 7/10/2015 7/10/2016 5,250 7/10/2016 7/10/2017 5,250 7/10/2017 7/10/2018 10,500 7/10/2018 7/10/2019 10,500 7/10/2019 7/10/2020 10,500 Total 52,500

2013 Strike year Quantity R$ /share (a) of options Balance at July 10, 2012 3.91 52,500

Exercised in 2012 - Balance at December 31, 2012 4.04 52,500 Balance at March 31, 2013 4.13 52,500


83


a) Stock option granted by the Company--Continued Plan 3--Continued Plan 3.2 - third block awarded under plan 3--Continued

2013 Total number of options remaining 52,500 Number of exercisable options as of March 31, 2013 - Average outstanding term (years) 4.95 Fair value of options awarded in R$ (b) 6.02 Price of the share in R$ (c) 9.50 Strike price of the options in R$ (a) 4.13 Expected volatility (per annum) (d) 36.34% to 45.25% Risk-free interest rate (per annum) (average)(e) 3.52% Effects on income for the period: Share option Plan R$ thousand 25 Intrinsic value of Plan in R$ thousand 282





84


a) Stock option granted by the Company--Continued Plan 3--Continued Plan 3.3 - fourth block awarded under Plan 3





7/20/2013 7/20/2014 2,250 7/20/2014 7/20/2015 2,250 7/20/2015 7/20/2016 2,250 7/20/2016 7/20/2017 2,250 7/20/2017 7/20/2018 4,500 7/20/2018 7/20/2019 4,500 7/20/2019 7/20/2020 4,500 Total 22,500

2013 Strike year Quantity R$ /share (a) of options Balance at July 20, 2012 4.13 22,500

Exercised in 2012 - - Balance at December 31, 2012 4.27 22,500 Balance at March 31, 2013 4.36 22,500


85


a) Stock option granted by the Company--Continued Plan 3--Continued Plan 3.3 - fourth block awarded under Plan 3--Continued

2013 Total number of options remaining 22,500 Number of exercisable options as of March 31, 2013 - Average outstanding term (years) 4.98 Fair value of options awarded in R$ (b) 5.88 Price of the share in R$ (c) 9.50 Strike price of the options in R$ (a) 4.36 Expected volatility (per annum) (d) 36.42% to 45.20% Risk-free interest rate (per annum) (average)(e) 3.52% Effects on income for the period

Share option Plan R$ thousand 11 Intrinsic value of Plan in R$ thousand 116





86


a) Stock option granted by the Company--Continued Plan 3--Continued Plan 3.4 - fifth block awarded under Plan 3





8/1/2013 8/1/2014 9,000 8/1/2014 8/1/2015 9,000 8/1/2015 8/1/2016 9,000 8/1/2016 8/1/2017 9,000 8/1/2017 8/1/2018 18,000 8/1/2018 8/1/2019 18,000 8/1/2019 8/1/2020 18,000 Total 90,000

2013 Strike year Quantity R$ /share (a) of options Balance at August 01, 2012 4.23 90,000

Exercised in 2012 - - Balance at December 31, 2012 4.35 90,000 Balance at March 31, 2013 4.45 90,000


87


a) Stock option granted by the Company--Continued Plan 3--Continued Plan 3.4 - fifth block awarded under Plan 3--Continued 2013 Total number of options remaining 90,000 Number of exercisable options as of March 31, 2013 - Average outstanding term (years) 5.01 Fair value of options awarded in R$ (b) 5.84 Price of the share in R$ (c) 9.50 Strike price of the options in R$ (a) 4.45 Expected volatility (per annum) (d) 36.67% to 45.20% Risk-free interest rate (per annum) (average)(e) 3.53% Effects on income for the period





88


a) Stock option granted by the Company--Continued Plan 3--Continued Plan 3.5 - sixth block awarded under Plan 3





12/13/2013 12/13/2014 300,000 12/13/2014 12/13/2015 300,000 12/13/2015 12/13/2016 300,000 12/13/2016 12/13/2017 300,000 12/13/2017 12/13/2018 600,000 12/13/2018 12/13/2019 600,000 12/13/2019 12/13/2020 600,000 Total 3,000,000

2013 Strike year Quantity R$ /share (a) of options Balance at December 13, 2012 4.53 3,000,000

Exercised in 2012 - - Balance at December 31, 2012 4.53 3,000,000 Balance at March 31, 2013 4.62 3,000,000


89


a) Stock option granted by the Company--Continued Plan 3--Continued Plan 3.5 - sixth block awarded under Plan 3--Continued

2013 Total number of options remaining 3,000,000 Number of exercisable options as of March 31, 2013 - Average outstanding term (years) 5.38 Fair value of options awarded in R$ (b) Price of the share in R$ (c) 9.50 Strike price of the options in R$ (a) 4.62 Expected volatility (per annum) (d) 36.46% to 45.55% Risk-free interest rate (per annum) (average)(e) 3.57% Effects on income for the period

Share option Plan R$ thousand 1,755 Intrinsic value of Plan in R$ thousand 14,627





90

23. Operating revenue The reconciliation between the gross revenue and the net revenue recorded in the income statement for the year is as follows: Consolidated 3/31/2013 3/31/2012 Gross revenue 217,569 83,097 Minus

Sales taxes (21,471) (7,428) Total net revenue 196,098 75,669

24. Costs and expenses by nature

Company Consolidated 3/31/2013 3/31/2012 3/31/2013 3/31/2012 Depreciation and amortization (453) (393) (17,895) (2,687) Personnel expenses (5,407) (6,217) (19,889) (16,450) Outsourced services (9,796) (12,902) (17,768) (30,866) Rental expenses (1,081) (1,978) (17,117) (5,737) Expenses incurred on share options awarded (5,714) (11,356) (5,714) (11,371) Provision for investment devaluation 3 - 3 - Provision for unsecured liabilities (1,040) (1,555) (973) - Other expenses (1,248) (733) (29,529) (5,773) Consumables - - (90,207) (17,237) CCC Incentive - - 19,207 14,032 Electricity for resale - - (172,766) (67,501) (24,736) (35,134) (352,648) (143,590) Classified as

Cost - - (312,608) (81,797) Administrative and general expenses, Other

revenue/expenses and stock options granted

(24,736) (35,134) (40,040) (61,793)


91

25. Financial income/(loss) Breakdown of the Company's financial income/(loss) is as follows: Company Consolidated 3/31/2013 3/31/2012 3/31/2013 3/31/2012 Financial expenses

Bank expenses (23,348) (12,934) (58,088) (10,890) Monetary variation (1,981) (6) (2,263) (5,361) Loss on derivative transactions (2,831) (1,078) (2,250) 13,407 Debenture interest/cost (213) (29,035) (213) (29,035) Other (17,118) (2,515) (27,714) (15,021)

(45,491) (45,568) (90,528) (46,900) Financial revenue

Interest-earning bank deposits 13,268 20,116 9,876 28,100 Monetary variation 3,407 (1) 3,888 18,686 Gains from (losses on) derivative

transactions (1,443) (9,512) (1,443) (21,162) Fair value of debentures (251) 13,000 (251) 13,000 Other 1 1,100 631 2,074

14,982 24,703 12,701 40,698 Net financial income/(loss) (30,509) (20,865) (77,827) (6,202)


92

26. Commitments The main commitments undertaken with suppliers of goods and services are the following:

Company Supplier Subject matter of contract Signature Term

Total contracted

on 3/31/2013

Balance of contract at 3/31/2013

Contract balance

12/31/2012 Itaqui MABE Construction of UTE-EPC 1/27/2008 Indefinite - - 144,144Itaqui Tecnometal Supply of coal conveyor transportation

system 7/24/2009 Indefinite - - 29,227Itaqui Guimar Project Management Services 9/21/2009 11/29/2013 12,615 288 491Itaqui Cargotec Supply of ship unloading equipment 10/7/2009 12/31/2012 15,845 15,845 15,845Itaqui CEMEC Installation and assembly of the water

intake system **** 5/11/2010 8/21/2012 - - 29,461Itaqui Carbomil Supply of Burnt Lime 5/7/2010 5/7/2015 30,000 29,257 29,257Itaqui Other Electrical Building Services Other Other 14,604 2,853 2,853Itaqui MCE Engenharia Mechanical and

Electrical/Instrumentation Service**** 5/1/2012 11/12/2012 26,655 335 335Itaqui Other Constructing Administrative Building Other Other 52,943 28,523 28,751Itaqui Other Other services Other Other 59,231 27,467 16,777Parnaíba GE International GE Turbina**** 5/30/2011 10/30/2012 143,746 60,594 60,594Parnaíba DURO Felguera Other 5/30/2011 10/31/2013 643,099 118,017 118,017Parnaíba Other Constructing Administrative Building 6/1/2011 5/31/2013 8,335 4,145 892Parnaíba Other Misc. Services Other Other 19,317 15,306 8,043Amapari BT Latam Brasil Installation of Internet at the plant 7/7/2009 5/4/2014 861 162 208Amapari Petrobras Debt acknowledgment of Diesel

invoices 8/28/2012 1/31/2013 13,452 - 5,702Amapari Petrobras Debt acknowledgment of Diesel

invoices 8/28/2012 Indefinite 13,928 13,928 13,928Amapari Romaga Maintenance 6/6/2012 5/4/2014 650 147 395Tauá MPX Comerc. de

Energia Purchase of energy

Other Other - - 21,895Porto do Pecem I Enerconsult Owner’s engineering* 12/20/2007 2/20/2013 13,981 458 834Porto do Pecem I Mabe Construction of UTE-EPC* 1/27/2008 Indefinite 1,315,512 52,264 81,257Porto do Pecem I Mabe/Semace Environmental compensation* 05/09/2008 Indefinite 5,948 1,792 419Porto do Pecem I Other Owner’s engineering* Other Other 11,895 - 1,274Porto do Pecem I Other Services Other Indefinite 145,906 - 84,914Porto do Pecem I CMC Coal 12/3/2010 Indefinite 58,679 9,014 9,014Porto do Pecem I Other Lime Other Other 16,975 - 16,811Porto do Pecem I Cogerh Raw Water 10/28/2010 4/30/2019 40,909 37,512 38,410Porto do Pecem I Ipiranga Diesel Oil 8/1/2011 2/1/2013 - - 4,398Porto do Pecem I Estre Ambiental Solid Waste 6/21/2011 5/21/2026 33,281 33,281 33,281Porto do Pecem I CAGECE Effluent 11/10/2011 10/10/2031 26,828 24,854 25,277Porto do Pecem I Petrobras Energy for sale 7/19/2012 10/11/2012 - - 43,233UTE PARNAÍBA II INITEC Energia S.A. EPC 8/15/2011 2/2/2014 326,571 326,571 326,571UTE PARNAÍBA II Other 2 Turbo generators 8/20/2012 12/19/2013 129,285 71,344 71,344UTE PARNAÍBA II Other Water disposal 8/1/2012 5/31/2013 90,759 55,354 84,975UTE PARNAÍBA II Other Misc. Services Other Other 28,432 9,976 6,021AÇÚ LLX Açú Rental/Lease 1/13/2010 1/13/2045 114,650 57,325 115,539PECÉM II Other Transmission Line and Turbines Other Other 58,066 10,988 12,359PECÉM II Other Serv. Labor Other Other 42,129 11,777 17,754PECÉM II SEMACE Environmental compensation** 9/5/2008 Indefinite 4,850 1,959 1,859PECÉM II REX Operating Leasing 1/1/2009 10/1/2042 45,283 40,686 41,072PECÉM II Other Coal**** 5/25/2012 12/31/2012 42,161 34,070 34,070PECÉM II Other Services Other Other 51,439 29,887 14,403MPX Other Serv. Other administrative Other Other 22,275 12,191 13,110MPX Other Serv. Legal Other indefinite 5,739 1,156 1,205Comercializadora Other Sale of energy - Novelis*** 9/8/2009 12/31/2013 412,557 179,662 142,378Comercializadora Other Acquisition of energy - CPFL *** 9/1/2009 12/31/2013 401,212 171,771 182,854Parnaiba IV Wärtisilä EPC agreement 11/6/2012 Indefinite 55,415 47,676 97,893Parnaiba IV Alston/Sucesso EPC agreement 1/28/2013 Indefinite 8,199 7,962 -Parnaiba Part Bertin Call Option on Nova Venecia project 5/9/2012 11/12/2012 15,350 6,250 12,500Wind CSRX Acquisition of wind farm 7/30/2012 indefinite 11,100 8,505 8,100

4,590,665 1,561,153 2,049,945


93

26. Commitments--Continued (*) The figures presented include commitments undertaken by the subsidiary in

conjunction with Pecém Geração de Energia S.A, to an amount equal to the Company's percentage interest (50%).

(**) The environmental compensation amounts are being included as and when the

construction costs are incurred. (***) Refers to a purchase (CPFL) and sale (Novelis) of energy in the period 2011 to

2013 subject to fixed volumes and prices. These purchase and sale prices are not therefore subject to changes in the energy sector.

(****) These contracts are in the process of being renewed.

27. Insurance coverage

The Company and its direct and indirect subsidiaries adopt the policy of taking out insurance coverage for the assets subject to risk at amounts considered by management sufficient to cover any losses, considering the nature of their activity. The policies are in force and the premiums have been paid. The company considers its insurance coverage is consistent with other companies of similar sizes operating in the sector. As of March 31, 2013 and December 31, 2012, major risks covered are as follows: Consolidated 3/31/2013 12/31/2012 Material damages 8,048,324 7,289,587 Civil liability 516,896 567,253


94

28. Segment reporting Segment information should be prepared in accordance with CPC 22 (Segment reporting), equivalent of IFRS 8, and should be presented with respect to the Company and its subsidiaries' businesses that was identified based on their management structure and on internal managerial reporting, provided to the key decision-maker. Company Management makes decisions based on four business segments: energy generation, energy sales, supplies and corporate, which are subject to risks and remuneration managed according to centralised decisions. The Company’s current activity is managed by a key professional, who allocates and evaluates the operational segment's performance. In the case of the Company, the key decision-maker is the CEO. As the ventures move forward, Management aims to re-evaluate business segments to provide the market with real and quantitative information.

3/31/2013

Electricity generation Supplies Corporate Other

Spin-off / transfers

Eliminations and

adjustments Total

consolidated Balance sheet – assets 6,996,925 4,991 3,878,444 - - (2,350,269) 8,530,091

Current 545,346 389 272,238 - - - 817,973

Cash and cash equivalents 112,000 368 246,753 - - - 359,121 Trade accounts receivable 228,964 - - - - - 228,964 Securities 5,600 - - - - - 5,600 Inventory 130,811 - - - - - 130,811 CCC subsidies receivable 10,051 - - - - - 10,051 Gains on derivative transactions - - - - - - - Secured deposits - - 36 - - - 36 Other current assets 57,920 21 25,449 - - - 83,390

Noncurrent 6,451,579 4,602 3,606,206 - - (2,350,269) 7,712,118

Long-term Related-party transactions 7,464 - 556,485 - - (396,032) 167,917

CCC subsidy receivable 24,617 - - - - - 24,617 Deferred taxes 251,955 - 114,400 - - - 366,355 Gains on derivative transactions - - - - - - - Secured deposits 33,521 - 104,025 - - - 137,546 Other noncurrent assets 18,282 20 720,913 - - (692,203) 47,012

Investments - - 2,088,347 - - (1,268,912) 819,435

Property, plant and equipment 5,914,240 536 19,202 - - - 5,933,978

Intangible assets 196,954 - 2,834 - - 15,470 215,258

Deferred charges 4,546 4,046 - - - (8,592) -


95

28. Segment reporting--Continued

3/31/2013

Electricity Generation Supplies Corporate Other


Eliminations and

adjustments Total

consolidated Balance Sheet - liabilities 6,996,926 4,988 3,878,444 - - (2,350,267) 8,530,091

Current 1,413,630 25 1,428,004 - - (12,212) 2,829,447

Loans and financing 944,660 - 1,397,310 - - - 2,341,969 Trade payables 296,132 3 6,594 - - - 302,729 Losses on derivative transactions 23,250 - 1,572 - - - 24,822 Related-party transactions 54,880 17 8,856 - - (12,212) 51,541 Debentures - - 163 - - - 163 Other current liabilities 94,708 6 13,509 - - - 108,223

Noncurrent 3,500,976 - 123,687 - - (376,366) 3,248,297

Noncurrent liabilities Loans and financing 3,017,166 - 100,690 - - - 3,117,856

Deferred taxes 2,048 - - - - - 2,048 Related-party transactions 383,819 - - - - (375,419) 8,400 Debentures - - 5,068 - - - 5,068 Losses on derivative transactions 93,560 - - - - - 93,560 Other noncurrent liabilities 4,384 - 17,929 - - (948) 21,365

Noncontrolling shareholders - - - - - 145,216 145,216

Equity 2,082,320 4,963 2,326,753 - - (2,106,905) 2,307,131

3/31/2013



Eliminations and

adjustments Total

consolidated Statement of income Net operating revenue 176,994 - - - - - 176,994

Cost of goods and/or services sold (295,581) (181) - - - 2,258 (293,504)

Operating expenses (13,059) (2) (23,710) - - (2,258) (39,029)

Other operating income (52) - (1,026) - - 67 (1,011)

Equity in net income of subsidiaries - - (195,656) - - 112,165 (83,491)

Financial income (47,327) 9 (30,509) - - - (77,827)

Provision for current and deferred taxes 60,807 - - - - - 60,807

Noncontrolling interest (6,108) (52) - - - - (6,160)

Net income/loss for the period (112,110) (122) (250,901) - - 112,232 (250,901)


96

28. Segment reporting--Continued

12/31/2012



Eliminations and

adjustments Total

consolidated Balance sheet – assets 6,563,847 5,040 3,642,481 - - (2,171,772) 8,039,596

Current 533,146 558 234,244 - - (2,040) 765,908

Cash and cash equivalents 312,467 546 206,263 - - - 519,277 Trade accounts receivable 21,345 - - - - - 21,345 Securities 3,441 - - - - - 3,441 Inventory 142,686 - - - - - 142,687 CCC subsidies receivable 17,561 - - - - - 17,561 Gains on derivative transactions - - 3,018 - - - 3,018 Secured deposits - - 35 - - - 35 Other current assets 35,646 12 24,928 - - (2,040) 58,544

Noncurrent 6,030,700 4,482 3,408,237 - - (2,169,731) 7,273,688

Long-term Related-party transactions 7,463 - 523,474 - - (388,084) 142,853

CCC subsidy receivable 24,617 - - - - - 24,617 Deferred taxes 191,148 - 114,400 - - - 305,548 Gains on derivative transactions - - - - - - - Secured deposits 32,998 - 102,649 - - - 135,648 Other noncurrent assets 22,070 20 430,344 - - (407,001) 45,432

Investments - - 2,215,107 - - (1,381,152) 833,955

Property, plant and equipment 5,550,640 416 19,343 - - - 5,570,399

Intangible assets 196,846 - 2,920 - - 15,470 215,236

Deferred charges 4,918 4,046 - - - (8,964) -

12/31/2012

Electricity Generation Supplies Corporate Other


Eliminations and

adjustments Total

consolidated Balance Sheet - liabilities 6,563,847 5,040 3,642,481 - - (2,171,772) 8,039,596

Current 1,173,710 24 947,342 - - (11,611) 2,109,465

Loans and financing 895,622 - 924,353 - - - 1,819,974 Trade payables 111,411 1 3,849 - - - 115,261 Losses on derivative transactions 22,951 - - - - - 22,951 Related-party transactions 33,797 24 6,522 - - (9,571) 30,772 Debentures - - 111 - - - 111 Other current liabilities 109,929 - 12,507 - - (2,040) 120,396

Noncurrent 3,482,796 - 125,547 - - (379,350) 3,228,993

Noncurrent liabilities Loans and financing 3,002,631 - 102,175 - - - 3,104,806

Deferred taxes 2,048 - - - - - 2,048 Related-party transactions 383,945 - - - - (378,514) 430 Debentures - - 4,954 - - - 4,954 Losses on derivative transactions 94,797 - - - - - 94,797 Other noncurrent liabilities 4,375 - 18,418 - - (836) 21,958

Noncontrolling shareholders - - - - - 151,538 151,538

Equity 1,907,342 5,016 2,569,592 - - (1,932,350) 2,549,600


97

28. Segment reporting--Continued 3/31/2012



Eliminations and

adjustments Total

consolidated Statement of income Net operating revenue 9,492 - - - 65,965 212 75,669

Cost of goods and/or services sold (9,690) (164) - - (71,731) (212) (81,397)

Operating expenses (14,515) (2) (33,578) - (13,778) - (61,873)

Other operating income 81 - (1,556) - - 1,555 80

Equity in net income of subsidiaries - - (32,081) - (57) 12,712 (19,426)

Financial income (5,005) 5 (20,886) - 19,468 196 (6,202)

Provision for current and deferred taxes 5,386 - 10,600 - (197) - 15,789

Noncontrolling interest (231) (48) - - - - (279)

Net income/loss for the period (14,020) (113) (77,481) - (330) 14,463 (77,481)

Geographic data The four segments described above are located in three different geographical areas, as summarised below: ► North and North-east System

The Northern-North-eastern System consists of the plants of Porto do Itaqui Geração de Energia S.A., MPX Porto do Pecém II Geração de Energia S.A., UTE Parnaíba Geração de Energia Ltda. and Amapari Energia S.A. The coal-fired Porto do Itaqui thermal power plant is located in the proximity of Porto de Itaqui, in Maranhão state. Energy generation capacity of 360 MW and has energy sale orders from 2012. The pulverized coal-fired power plant MPX Pecém II Geração de Energia S.A. is located in the region of Porto do Pecém, Ceará state, with an installed capacity of 360 MW.


98

28. Segment reporting--Continued Geographic data--Continued

► Sistema Norte-Nordeste--Continued

Amapari, an Independent Energy Producer (PIE) in the insulated system, is a diesel fuel thermal power plant located in the municipality of Serra do Navio, Amapá state, with an installed capacity of 23 MW. MPX Parnaíba, a natural gas thermal power plant, is strategically located in block PN-T-68 of the Parnaíba Basin, in Maranhão state. The venture has been licensed by the Maranhão State environment Department (SEMA) and has a forecast total capacity of 3,722 MW.

► South - Southeast System

The Seival Sul mine, located in the municipality of Candiota, Rio Grande do Sul state, has proven reserves of 152 million tons of coal. The thermoelectric ventures of MPX Sul and UTE Seival are going to be built in this area. These power plants will have an installed capacity of 727 MW and 600 MW respectively, and will guarantee the supply of fuel for 30 years by integrating with the Seival Sul mine.

30. Subsequent events

In April 2013 Usina Termelétrica Parnaíba I in Maranhão state was licensed by the National Electricity Regulatory Agency (Aneel) to commence commercial operations of the third and fourth turbines with an installed capacity of 169 MW each. Parnaíba I accordingly achieved its total installed capacity of 676 MW and has now started its commercial operations. That month the acquisition of the entire share capital of UTE MC2 Nova Venécia was completed. The venture, which is licensed to build a 176 MW thermal power plant, will be transferred to Bacia do Parnaíba in Maranhão.


99

30. Subsequent events--Continued

In April 2013 MPX also announced that, in conjunction with MPX-E.ON Participações S.A. and Petra Energia S.A., it had signed a contract with Kinross Brasil Mineração S.A. to build a natural gas thermal power plant with an installed capacity of 56 MW, to be built in Bacia do Parnaíba, Maranhão state, whose commercial operations are scheduled to commence in December 2013. The contract is worth approximately R$ 54 million a year.


100

Board of Directors

Eike Fuhrken Batista (Chairman) Eliezer Batista da Silva (Deputy Chairman)

Aziz Ben Ammar Christopher David Meyn

Flavio Godinho Luiz Eduardo Guimarães Carneiro Luiz do Amaral de França Pereira

Paulo Monteiro Barbosa Filho Ricardo Luiz de Souza Ramos

Rodolpho Tourinho Neto Samir Zraick Stein Dale

Executive Board

Eduardo Karrer (CEO and Investor Relations Officer) Rudolph Ihns

Xisto Vieira Filho Marcus Bernd Temke

Bruno de Rossi Chevalier

Accountant

Ana Paula Vergetti Diniz CRC 087040/O-9

1q13 quarterly information (itr)

Documents

consolidated net income

1q13 1q12

mpx power trading unit

itaqui power plants

1q12 statements

new standards

equity method

financial statements