llx corporate presentation september 2011

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Corporate Presentation September 2011

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Page 1: LLX Corporate Presentation September 2011

Corporate PresentationSeptember 2011

Page 2: LLX Corporate Presentation September 2011

Disclaimer

This presentation relating to LLX Logística S.A. (“LLX”) includes “forward-looking statements”, as that term is defined in the Private Securities Litigation Reform Act of 1995, in Section 27A of the Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All statements other than statements of historical facts are statements that could be deemed forward-looking statements and are often characterized by the use of words such as “projects”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “may”, “will”, or “intends”, or by discussions or comments about our objectives, strategy, plans or intentions and results of operations. Forward-looking statements include projections regarding our operating capacity, operating expenditures, capital expenditures and start-up dates.

By their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both general and specific. The risk exists that these statements may not be fulfilled or, even if they are fulfilled, the results or developments described in such statements may not be indicative of results or developments in future periods. We caution participants of this presentation not to place undue reliance on these forward-looking statements as a number of factors could cause future results to differ materially from these statements.

Forward-looking statements may be influenced in particular by factors such as the ability to obtain all required regulatory approvals and licenses on a timely basis or at all, and changes in economic, political and regulatory conditions. We caution that the foregoing list is not exhaustive. When relying on forward-looking statements to make decisions, investors should carefully consider these factors as well as other uncertainties and events.

LLX does not undertake to update our forward-looking statements unless required by law. This presentation is neither an offer to sell (which can only be made pursuant to definitive offering documents) nor a solicitation of an offer to buy any securities in the United States, or any other jurisdiction. The securities referred to herein have not been registered in any jurisdiction, and in particular, will not be registered under the U.S. Securities Act of 1933, as amended, or any applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without LLX’s prior written consent.

Investor RelationsOtávio Lazcano – CEO

Luiz Felipe Jansen de Mello – IR Manager Tel. 55 21 2555-5661

[email protected]

Page 3: LLX Corporate Presentation September 2011

EBX’s publicly held companies

Mkt Cap EBX Group**US$ 35.7 bn

Mkt CapUS$ 1.8 bn

Mkt CapUS$ 2.4 bn

Mkt CapUS$ 3.0 bn

Mkt CapUS$ 3.2 bn

* As of August 31st 2011

R$/USD – 1,5896

** Includes PortX (Mkt Cap US$ 1.9 bn)

LLX was created in March 2007, to

provide logistic services through the

development of major port systems in

Brazil.

Its main strengths are:

Strategic locations and large back-areas;

Integration with existing rail and road

infrastructure;

Low cost operational model (private

terminals);

Long term take-or-pay contracts and

synergies generated within the EBX Group;

Experienced management team;

Secured Debt Financing Sources;

Social and Environmental Responsibility

Mkt CapUS$ 23.4 bn

Page 4: LLX Corporate Presentation September 2011

LLX Ownership and Corporate Structure

54%

Other Minority

Shareholders

18% 28%

51% 70%

LLX Minas-Rio

LLX Açu

Centennial

30%49%

Açu Superport

Controlling

Shareholder

Page 5: LLX Corporate Presentation September 2011

LLX: Location, location, location

Integrated with rail, highway –

leapfrog from truck to coastal

barging; 150 km from Campos oil basin (85%

of Brazil oil production); Natural workshop for the pre salt in

Brazil: one stop shop for the oil and

gas industry; Açu Superport : Brazil’s new route

to China (Source: FT; May 9th, 2011).

Hinterland of 75% of Brazilian GDP

Campos Oil Basin

Page 6: LLX Corporate Presentation September 2011

LLX: Innovating Port’s Infrastructure

LLX´s Port-Industry Complex: world-class logistic solutions

No area for port growth Logistic bottlenecks

A Typical Brazilian Port

Industrial District concept under develpoment Açu Industrial Complex: 90 Km2 Environmental Reserve: 40Km2

LLX: Açu Superport

Environmental Reserve

Page 7: LLX Corporate Presentation September 2011

LLX: Unclogging Brazil’s Logistics

LLX´s Ports: reinforcing Brazil´s capesize capacity and beyond

80% of the Brazilian population lives within 200 km (124 miles) of the coast

Only 7% of Brazilian Ports are able to receive capesize vessels*.

Amazon River

Manaus

Itaquí

Fortaleza

Suapé

Salvador

Vitória

Santos

Paranaguá

São Francisco do Sul

Rio Grande

Rio de Janeiro

Source : (*) CEL/COPPEAD 2008 – vol 1 and Port Sites

Page 8: LLX Corporate Presentation September 2011

LLX’s Business Model

LLX is signing long term agreements with industry leaders guaranteeing a steady cash flow and dividends to shareholders

Company

LLX Minas Rio

LLX Açu

Services Rendered

Iron Ore handling

Multi product handling (Steel,Coal,Liquid & Dry Bulk,General Cargo);

Land Lease and Services & Utilities

Revenue Model

Take or Pay long-term contract (25 years) with Anglo.

Initial ore shipment July 2013. Expected revenues of US$ 190 million.

Tariffs negotiated to ensure a minimum 15% py IRR to firm in US$ (under Long Term contracts) unleveraged.

Page 9: LLX Corporate Presentation September 2011

Açu Industrial ComplexA new cluster for the offshore and heavy industry

90 km² Industrial Complex (1,5x larger than Manhattan Island)

Page 10: LLX Corporate Presentation September 2011

Açu Superport - Highlights

Up to 350 million tons port complex with 2 terminals (TX1 and TX2), to be ranked among the 3 largest ports in the world.— 17 km of quay, able to receive 40 very large carriers (including Chinamax) thanks

to its 25m draft.

More than 60 contracts and MoUs signed with companies from sectors such as:— Steelmaking (Ternium, Wuhan);— Power generation (MPX);— Cement (Votorantim , Camargo Correa);— Offshore Industries (Acergy, Technip);

Resources and cheaper energy supply security, operating and logistic efficiencies, truly just in time practices and 2% VAT instead of 18%.

Largest and most efficient port-industry complex in Latin America : total investments of US$ 40 billion

— Oil and Gas;— Metal Mechanic;— Dry & Liquid Bulk Handling;— Automotive;— General Cargo & Services.

Page 11: LLX Corporate Presentation September 2011

Açu Superport: Unique location and integration to main railway and highway network

BR 101 to be duplicated A 43 km new railway track will connect Açu

Superport to the railway and Campos withina multimodal Logistic Corridor

A Complete Logistic Corridor

Page 12: LLX Corporate Presentation September 2011

Açu Superport: A One Stop Shop for the Oil & Gas Industry

1.2 million bpd

Consolidation

and Onshore

Storage :

For Export & Coastal Shipping

Expo

rt

Small Tankers Shuttle

Storage & Treatment

VLCC/ Chinamax Tankers

Campos Basin

85% of Brazil Oil Production

Page 13: LLX Corporate Presentation September 2011

Açu Superport : Oil Treatment Facility

Desalting DewateringBlending

Oil Treatment Facility

Investment of US$ 1.45

billion

Oil Export VLCCs Business opportunity with a leveraged IRR >

70% py

FPSOs For 800,000 bpd

(+)

Page 14: LLX Corporate Presentation September 2011

TX1: one of the largest offshore terminal in Latin America for Iron Ore and Oil

IRON ORE IRON ORE

OIL OIL

OIL OIL

Page 15: LLX Corporate Presentation September 2011

TX1: Main characteristics

Iron Ore Pier: 100% completed

Threstle Completed : 3,000 m

Quay Length: up to 4,000 m

Number of Berths: 9

5 dedicated to Oil (up to 1.2

mbpd)

4 dedicated to Iron Ore (up to

100 mtpy)

Initial Dredging: 21 m to be

dradged up to 25 m for VLCCs and

Capesizes

Page 16: LLX Corporate Presentation September 2011

TX1: Offshore TerminalTug boat Pier and 100% of Iron Ore Pier Completed

3.000 m

444 m

27.5 m

Page 17: LLX Corporate Presentation September 2011

TX1: Dredging for execution of Oil Treatment Facility’s landfill

Page 18: LLX Corporate Presentation September 2011

TX1: Offshore TerminalRocks Stockyard : Breakwater construction underway

Page 19: LLX Corporate Presentation September 2011

Açu BreakwaterThe world’s largets concrete block builder

Page 20: LLX Corporate Presentation September 2011

TX2: The longest and most efficient quay for bulk cargoes and offshore industries

OFFSHORE IND. OFFSHORE IND.

STEEL PRODUCTS / VEHICLES STEEL PRODUCTS / VEHICLESSLAG / PIG IRON /

GRANITESLAG / PIG IRON / GRANITE

OSX SHIPYARDOSX SHIPYARD

SUPPLY BOAT SUPPLY BOAT

COAL COAL

Page 21: LLX Corporate Presentation September 2011

TX2: Main characteristics

Offshore Industries/

Bulk Cargoes

Total Quay Length : 13,000 m

Onshore Channel Width: 300 m

Total Area: 8,000,000 m2

Extension: 6,500 m

Unique advantages for Oil & Gas

E&P segment

Able to handle Coal, Steel

Products, Dry and Liquid Bulks

Page 22: LLX Corporate Presentation September 2011

TX2: Dredging of the Cannal

Page 23: LLX Corporate Presentation September 2011

TX2: Dredging of the Cannal

Page 24: LLX Corporate Presentation September 2011

TX2: Onshore Channel – Dredging Sequence

Page 25: LLX Corporate Presentation September 2011

Açu Superport: Main Activities

CoalUp to 12.6 Mtpy

Up to 10.2 Mtpy Iron Ore: Steel ProductsReal Estate

Industrial Areas RentalUp to 100 Mtpy Oil

Up to 1.2 Mbpd

Pig IronUp to 2.0 Mtpy

SlagUp to 2.0 Mtpy

GraniteUp to 1.0 Mtpy

CAPEX (for projects @ 100%)

LLX Minas-Rio: R$ 1.0 billion

LLX Açu (Non Ore): R$ 2.4 billion

Page 26: LLX Corporate Presentation September 2011

Açu Superport: Milestones

2H13Açu Superport Construction on Track

1H06 2H06

Projectdetailing

Under Construction

1H07 2H07

Constructionbegins

EnvironmentalLicense

ANTAQAuthorization

ConstructionLicense

ProjectDetailing

OffshoreConstruction

License

ANTAQAuthorization

OffshoreEnvironmental

LicenseConstruction

beginsUnder

Construction

Start Up

Start Up

Development

Construction

Operations

LL

X A

ÇU

LLX

Min

as-R

io

2008 2009 2010 2011 1H131H12 2H12

Under Construction

Under Construction

Under Construction

Under Construction

2H13

OnshoreEnvironmental

License

OnshoreConstruction

License

Under Construction

Page 27: LLX Corporate Presentation September 2011

CAPEX for Açu Superport

78

357475

33619729

15339

174

123

454

792

353

254

2710

0

100

200

300

400

500

600

700

800

900

1000

2007 2008 2009 2010 1H11 2H11 2012 2013 2014 2015 2016

LLX Açu

LLX Minas-Rio

Actual Estimated

* Reimbursement of LLX Minas Rio CAPEX exceeding R$ 974 million

Açu Superport total CAPEX: R$ 3.4 billion

Minas Rio: R$ 1.0 billion*

LLX Açu: R$ 2.4 billion

Page 28: LLX Corporate Presentation September 2011

Financial Highlights

Initial equity

Capital Increase as of March/2009

974

3.389

2.542

2.415

847547

339

300

600

-

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

LLX

Minas Rio

LLX Açu Total

CAPEX

Debt Total

Equity

Needed

Equity

Partners

LLX

Equity

Needed

LLX

Existing

Equity

2007 2008 2009 2010 1H11 2007 - 1H11 ActualLLX Minas Rio 78 357 475 336 197 1,443LLX Açu 29 153 39 174 123 519TOTAL 108 510 514 510 320 1,962

R$ MillionCAPEX

Financial Highlights @ June 30th, 2011

Page 29: LLX Corporate Presentation September 2011

w w w.llx.com .br

Em ail: ir@ llx.com .br

Phone: + 55 21 2555 5661

www.llx.com.brEmail: [email protected]

Phone: +55 21 2555 5661