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Page 1: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos
Page 2: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

Contents

About Santos Brasil

Port of Santos

Tecon Santos

Tecon Imbituba

Tecon Vila do Conde

TEV – Vehicle Terminal

Logistics

Investments & Financial Highlights

Corporate Governance

Sustainability

2

Page 3: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

12

Libra

BTP

Rodrimar

Ecoporto

Embraport

About Santos Brasil Privileged location

3

Page 4: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

1997

Santos Brasil was founded to participate in

the privatization of the Port of Santos. The

company acquired Tecon Santos for a 25-

year concession period, renewable for

another 25 years.

2006

A successful IPO took place,

strengthening the company’s

Corporate Governance and

preparing it for further expansion.

2007

Acquisition of the logistics arm

(Santos Brasil Logística) enabling the

company to provide large-scale

logistic services to customers.

2008

Acquisition of Imbituba and Vila do

Conde container terminals, aiming to

attend the Brazilian Coast and to

become a nationwide leader in Logistics

and Container Terminal Operations.

2009

Acquisition of the Santos Vehicle Terminal

for a 25-year concession period, renewable

for another 25 years.

2010

Corporate restructuring, merger of

the business units into the holding

company, and rebranding.

2012

Tecon Santos sets a new record in

the Brazilian port sector, handling

105,530 containers in one month.

2013

Tecon Santos received the biggest

vessel of the port’s history. Standard &

Poor's upgrades the Company’s rating to

“brAAA”, the highest grade for a

Brazilian company.

2014

Santos Brasil surpassed the 200

movements per hour (MPH) mark on a

single vessel, maintaining an average of

100 MPH in Tecon Santos.

2015

Tecon Santos concession is early

renewed for an additional 25-year

period.

2016

Santos Brasil’ shares migrate to

“Novo Mercado”, B3’s (ex-

BM&FBovespa) segment with the

highest corporate governance level.

All preferred shares are converted to

voting shares.

2017

Tecon Vila do Conde concession is

renewed for an additional 15-year

period. An amendment to the Port Law

increases the maximum concession

period for public port terminals to 70

years, from 50 years prior.

History

About Santos Brasil

4

Page 5: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

About Santos Brasil

Publicly-traded company, listed in B3 (ex-BM&FBovespa)

Five terminals on the Brazilian coast

- Three Container Terminals

- One Vehicle Terminal

- One General Cargo Terminal

Container throughput: 1.53 million TEU (twenty-foot

equivalent unit) in 2016 and 1.48 million TEU in 2017

Port-to-Door full logistic solution (Santos Brasil

Logística)

19% of the Brazilian throughput*

* Source : ANTAQ 2016

TECON

IMBITUBA

DISTRIBUTION

CENTER (SÃO BERNARDO

DO CAMPO)

TECON

SANTOS

TECON VILA

DO CONDE

TEV

BONDED LOGISTICS

CENTERS (SANTOS AND GUARUJÁ)

TCG IMBITUBA (GENERAL CARGO TERMINAL)

Highlights

5

Page 6: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

Port of Santos

Largest Port in South America

Accounts for more than 25% of Brazilian trade

balance

Port hinterland covering 55% of Brazil’s GDP

Privileged rail and road connections

~90% of São Paulo’s industrial base is located less

than 200 kilometers from the Port of Santos

Source: ANTAQ

39%

3% 2% 2% 13%

8%

8%

6%

4%

5%

3% 2% 1%

2%

Santos Other Southeast South North /Northeast Others

Rio de Janeiro Itaguaí / Sepetiba Vitória Itajaí/Navegantes

Paranaguá Rio Grande Itapoá/S. F. do Sul Suape

Manaus Salvador Pecém Fortaleza

59%

‘Must-call port’ in South America

Brazilian Ports (volume market share – 2016)

6

Page 7: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

7 (1) The long-haul ESA service, with route to Asia, operated at Tecon Santos until the end of April 2017;

Source: CODESP and Santos Brasil

Port of Santos Tecon Santos’ market-share in 2017: 33.9%

19-year CAGR (1998 – 2017)

- Port of Santos: 8.6%

- Tecon Santos: 9.2%

Container throughput in 2017 x 2016

- Port of Santos: +5.8% (+8.1% in TEU)

- Tecon Santos: -9.7% (-7.7% in TEU)

- Tecon Santos ex-ESA (1): +4.2%

799 775 801 1,048

1,224

1,560

1,883

2,268 2,446 2,533

2,685

2,252

2,722 2,984

3,104

3,448 3,656

3,780 3,564

3,854

248 302 346 350 436

612 746

1,008 1,159

1,253 1,270

1,044

1,355 1,487

1,733 1,811

1,380 1,314 1,426

1,316

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Container throughput (TEU x 1,000) Port of Santos

Tecon Santos

Page 8: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

TECON

SANTOS

8

Page 9: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

7

Tecon Santos Best solution for containers in South America

9

Largest container terminal in South America

Growth capacity: CAPEX plan of R$ 1,3 billion

Structure to receive Post-Panamax vessels

Operation with internet access

Equipment is 100% GPS controlled

Annual capacity: 2,000,000 TEU

- Average monthly productivity per crane: 37 MPH

- Average monthly productivity per vessel: 105 MPH

- Total area: 596,000 m²

- Quayline extension: 980m + 310m (vehicle terminal)

- 13 STS (ship-to-shore gantry cranes) and 1 MHC (mobile harbour crane)

- 46 RTG / 18 reach stackers

- 4 internal railway lines

Page 10: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

11

47 53

80

94

106 105 100

1997 2005 2008 2013 2014 2015 2016 2017

MPH

R$ 2.9 billion(1) invested to upgrade and expand the terminal

High Productivity - movements per hour per vessel (MPH)

Tecon Santos

10 (1) IGP-M inflation adjusted

Monthly Average 100 MPH

Tecon Santos in 1997: 11 MPH

Tecon Santos in 2017: 100 MPH

Page 11: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

Automation

Focus on efficiency

New Capacity

2,400,000 TEU

Estimated CAPEX

R$ 1.3 billion (US$ 400M)

NEW LAYOUT

Next investment cycle: cutting-edge technology, modern layout

Tecon Santos

Quay extension

11

Page 12: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

Inserir imagem aqui,

preenchendo o espaço por

completo.

Tecon Imbituba

TECON

IMBITUBA

12

Page 13: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

Port terminal ready to receive Post-Panamax vessels

Close to Santa Catarina and Rio Grande do Sul industrial zones

Competitive advantages: 24/7 operation, natural water draft, favorable

weather conditions

Benefit of adjacent infrastructure projects:

- The widening of BR-101 federal highway

- Construction of Coastal Railway

- Port of Santos’ draft increase to 15 meters

Annual capacity: 450,000 TEU

- Total area: 207,000 m²

- Quayline extension: 660m / Water draft: 14.5m

- 2 STS (ship-to-shore crane) and 2 MHC (mobile harbour crane)

- 8 reach stackers

7

Tecon Imbituba Premium location at the Southern Region

13

Page 14: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

R$ 965 million(1) invested since 2008

Improving Productivity - movements per hour per vessel (MPH)

Tecon Imbituba

14

40

49

57 63

67

2013 2014 2015 2016 2017*

MPH

Monthly Average 67 MPH

(1) IGP-M inflation adjusted. Includes investments in Imbituba General Cargo terminal

(2) July 2017

Page 15: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

Container Terminal

Imbituba Hinterland

Pork and Poultry Production

Rio Grande do Sul Industrial Zone

Tecon Imbituba

Paranaguá 725,041 TEU*

Itapoá / São Francisco do Sul 554,907 TEU*

Imbituba 27k TEU in 2016 (50k TEU in 2017)

Rio Grande 705,154 TEU*

Itajaí / Navegantes 1,104,143 TEU*

* Source: Volume in 2016 (ANTAQ)

PR

SC

RS

Potential for volume increase

Tecon Imbituba

Tecon Imbituba and its peer terminals

(Itajaí/Navegantes and Rio Grande)

are equidistant from the industrial

zones and the consumption centers

in the Southern region

15

Page 16: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

TECON

VILA DO

CONDE

16

Page 17: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

7

Tecon Vila do Conde

Access to all continents, directly or through the main Caribbean hub ports

Brazilian’s second largest cabotage port

No physical limitation to receive large vessels

Major competitor (port of Belém) is a river port with limited draft (~ 6 meters)

Best logistics to serve the North and Amazon regions: logistics with container

barges using different rivers’ basins

Main cargoes: high-value metals and minerals, kaolin, wood, frozen beef, frozen

fruits and pepper

Annual capacity: 140,000 TEU

- Total area: 86,615m²

- Quayline extension: 254m / Water draft: 13.0m

- 2 MHC

- 8 reach stackers

Located in the delta of Amazon River region

17

Page 18: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

TECON VILA DO CONDE

Vila do Conde x BELÉM

Main Cargo: Wood

Vila do Conde x MACAPÁ-AP

Main Cargoes: Chemical Products

Vila do Conde x SANTARÉM X ITAITUBA

Main Cargo: Wood

Vila do Conde x MUNGUBA

Main Cargoes: Kaolin and Cellulose

Vila do Conde x CAMETÁ

Main Cargo: Palm Oil

Vila do Conde x TUCURUÍ

Main Cargo: Silicon

Vila do Conde x MANAUS-AM

Main Cargoes: Spare Parts and

Chemical Products

Vila do Conde x ALTAMIRA

Main Cargo: Machinery

Vila do Conde

Tecon Vila do Conde North Region: Inland waterway cargo transportation

18

Page 19: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

Neighbor of Tecon Santos

Handling of different types of cargo: trains, dismantled industrial

plants, power transformers, dismantled machinery, large sculptures

etc

Annual capacity: 300,000 units

- Static capacity: 10,000 units

- 2016 throughput: 179,888 units (219,499 units in 9M17)

- Total area: 164,000 m²

- Quayline extension: 310 m

TEV - Vehicle Terminal Largest vehicle terminal in Brazil

19

Page 20: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

Taylor-made logistics projects, integrating maritime transport to exporters and

importers needs

Potential to increase customers’ competitiveness: eg. the “K10” logistics

operation for BASF

Synergies between integrated logistics and port operations

Infrastructure:

- Distribution Center in São Bernardo do Campo (105,000m²)

- CLIA Guarujá (bonded warehouse - 52,900m²)

- CLIA Santos (bonded warehouse - 64,755m²)

- Own truck fleet with 135 GPS-tracked trucks

Logistics Vertical integration

20

Tecon

Santos

Bonded warehousing

- Tecon Santos (left bank)

- Clia Santos (right bank)

- Clia Guarujá (left bank)

Distribution

Center

Imports

Container

Transportation

Just-in-Time

delivery

to Industrial

Plants

Exports

Container

Transportation

Imports

Just-In-Time

Exports

Page 21: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

Port terminals and Logistics

Main clients

21

Page 22: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

22

Investments R$ 4.78 bilhões(1) in 20 years

M&A

1997 – Tecon Santos bidding

2006 – Santos Brasil IPO

2007 – Santos Brasil Logística acquisition

2008 – Tecon Imbituba bidding & Tecon Vila do Conde acquisition

2009 – Vehicles terminal bidding

CAPEX

2004/2006 – Tecon Santos first expansion

2008/2010 – Tecon Santos second expansion

2008/2011 – Tecon Imbituba expansion

274

95

190 220

86 5 12 10 48 28

61 91

112 97

127

297 197

124

184

98 85

28 27 15

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

M&A CAPEX

(1) IGP-M inflation adjusted

Page 23: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

418 488

727 661

866

1,125

1,293 1,378

1,004 965 834

618

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 9M17

Net Revenues (R$M)

36

EBITDA and EBITDA Mg. Financial Highlights

23

(99)

93

46 65

112

247 270 255

92

(18) (20) (18)

-23.6%

19.0%

6.3% 9.8%

12.9%

22.0% 20.9% 18.5%

9.1%

-1.9% -2.4% -2.9%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 9M17

Net Income (R$M) and Net margin (%)

162

224 267

219

310

457

551 529

293

147

87 57

38.6%

45.9%

36.7% 33.1% 35.8%

40.6% 42.6% 38.4%

29.2%

15.2% 10.4% 9.2%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 9M17

EBITDA (R$M) and EBITDA margin (%)

Port terminals (quay)

41%

Port terminals (warehousing)

31%

Logistics 22%

Vehicles terminal 6%

Net Revenues Breakdown (1)

(1) Does not consider intracompany eliminations

Page 24: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

36

EBITDA and EBITDA Mg. Debt Leverage and Cash Flow

24

84

323 359

410

297

199

140 108

40 2

0.31x

1.47x

1.16x

0.90x

0.54x 0.38x

0.48x

0.73x

0.46x 0.03x

2008 2009 2010 2011 2012 2013 2014 2015 2016 9M17

Net Debt (R$M) and Net Debt / EBITDA (1)

283

223 228

386

448 411

265

168

122

60

2008 2009 2010 2011 2012 2013 2014 2015 2016 9M17

Operating Cash Flow (R$M)

252

641

466

705

433 322 358 340

233 235

55% 53%

65%

51%

62%

54% 56% 59%

29%

48%

2008 2009 2010 2011 2012 2013 2014 2015 2016 9M17

Total Debt (R$) and Long-Term Debt (%)

S&P – Corporate rating in national scale: brAA-

(1) Last-twelve-month EBITDA

34% 37% 30%

79% 74% 73% 83% 82% 88%

97%

66% 63% 70%

21% 26% 27% 17% 18% 12%

3%

2008 2009 2010 2011 2012 2013 2014 2015 2016 9M17

Total Debt - Currency Local currency (BRL)

Foreign currency

Page 25: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

“Novo Mercado” listing on B3 (ex-BM&FBovespa)

100% Tag Along for all minority shareholders

One Share, One Vote (no shareholders agreement)

Board of directors: 7 members formed by shareholders

Permanent Fiscal Board

Management:

- Stock Options, Performance Shares and Matching for key executives;

- Compensation program for managers and employees: EBITDA and EVA oriented;

- Individual performance plans = clear and quantifiable targets;

- Progression, promotion and compensation based on meritocracy;

38

Corporate Governance All preferred shares converted to voting shares in 2016

25

International Market

Investments 29.0%

PW237 Participações

22.4%

Multi STS Participações

6.1%

Richard Klien 6.0%(1)

Dynamo 9.8%

Others 25.7%

Management

0.2%

Treasury 0.8%

Shareholding Structure

Total of 666,317,880 voting shares

(1) Includes the stake of the fund ‘RK Exclusivo FIA’

Page 26: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

CEO – Antonio Carlos Duarte Sepúlveda - Mr. Sepúlveda is the Chief Executive Officer of Santos Brasil. He has been working

in the port sector since 1992, and in Santos Brasil since 2000. He was Chief Operation Officer of the company from 2002 to 2010.

Mr. Sepúlveda holds a degree in Civil Engineering and an MBA from Saint Joseph’s University in Philadelphia.

CFO – Daniel Pedreira Dorea - Mr. Dorea is the Chief Financial Officer, Investor Relations Officer and a member of the Board of

Directors of Santos Brasil Participações S.A.. He was a partner at Opportunity Asset Management (USD 8bn of AUM), responsible

for managing its private equity portfolio from 2011 to 2016. Between 2014 and 2016 he was a member of the Board of Directors of

Petrorecôncavo S.A. Prior to that, he participated in the Commercial Policy Training Program promoted by the Embassy of Brazil

in Washington, D.C. in 2008. Mr. Dorea holds a double major in Business Administration and Law.

CCO – Marcos Magalhães Tourinho - Mr. Tourinho is the Chief Commercial Officer of Santos Brasil. Prior to that, he was the

Port Operations and Commercial Director of the company. He started his career in Santos Brasil as Investor Relations Officer in

2006. Mr. Tourinho holds a bachelor degree in Business Administration, a post-graduation degree in Finance from McGill

University and an MBA from HPU Universtity.

COO – Marlos Silva Tavares - Mr. Tavares is the Chief Operating Officer of Santos Brasil. He has a strong background in the

shipping industry, where worked for APM Maersk group. He also worked for the Brazilian logistics group Libra as Commercial

Director of Libra's container terminal in the port of Santos. Mr. Tavares holds a double major in Business Administration and

Accounting and is a 6-sigma greenbelt from PMI International.

38

Corporate Governance Management

26

Page 27: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

Member of the Global Pact, an international sustainability pact

Sustainability Report compliant with GRI Standard since 2012

Sustainability Academy, an ongoing training for leaders

42

Sustainability

27

Page 28: Contentsri.santosbrasil.com.br/.../Corporate-presentation_Jan18.pdfCorporate restructuring, merger of the business units into the holding company, and rebranding. 2012 Tecon Santos

We make forward-looking statements that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our Management and on the

information currently available to the company. Forward-looking statements include information on our current plans, beliefs or expectations and also those of the company’s

Board of Directors and its Officers.

Disclaimers involving forward-looking statements include information on potential or assumed operating results, as well as statements that are preceded, followed or include the

words “believe”, “may”, “will”, “continue”, “expect”, “project”, “seek”, “plan”, “estimate” or similar expressions.

Forward-looking statements and information provide no guarantee of performance. Because they refer to future events, and as such depend on circumstances that may or may not

occur, they involve risks, uncertainties and assumptions. Future results and the creation of value for shareholders may differ significantly from that expressed or suggested in the

forward-looking statements. Many factors that will determine these results and values are beyond our capacity to control or predict.

45

Disclaimer

[email protected]

+55 (11) 3279-3279