llx presentation aug2010 vers 10082010
Post on 29-May-2018
220 Views
Preview:
TRANSCRIPT
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
1/34
August, 2010
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
2/34
This presentation relating to LLX Logstica S.A. (LLX) includes forward-looking statements, as that term is defined in the Private SecuritiesLitigation 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. Allstatements other than statements of historical facts are statements that could be deemed forward-looking statements and are oftencharacterized by the use of words such as projects, expects, anticipates, intends, plans, believes, estimates, may, will, orintends, or by discussions or comments about our objectives, strategy, plans or intentions and results of operations. Forward-lookingstatements 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 statementsmay not be indicative of results or developments in future periods. We caution participants of this presentation not to place undue reliance onthese 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 andlicenses on a timely basis or at all, and changes in economic, political and regulatory conditions. We caution that the foregoing list is notexhaustive. When relying on forward-looking statements to make decisions, investors should carefully consider these factors as well as other
Disclaimer
2
.
LLX does not undertake to update our forward-looking statements unless required by law. This presentation is neither an offer to sell (whichcan only be made pursuant to definitive offering documents) nor a solicitation of an offer to buy any securities in the United States, or any otherjurisdiction. 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 absentregistration 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 partwithout LLXs prior written consent.
Investor Relations
Otvio Lazcano CEO
Antonio Castello Branco Manager
Tel. 55 21 2555-5661
ri@llx.com.br
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
3/34
1. Overview
3
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
4/34
EBXs publicly held companies
LLX was created in March 2007, to provide logistic
services through the development of two major port
systems in the Southeast region of Brazil.
Its main strengths are:
Mkt CapUS$ 3.5 bn
Mkt CapUS$ 3.5 bn
Mkt CapUS$ 34.2 bn
4
-
Integration with existing rail and road
infrastructure;
Low cost operational model (private terminals);
Long term contracts and synergies generated
within the EBX Group;
Experienced management team;
Secured Debt Financing Sources;
Social and Environmental Responsibility*As of July 30th 2010
*R$/USD 1,76
Mkt Cap EBX Group*US$ 45.7 bn
Mkt CapUS$ 3.0 bn
Mkt CapUS$ 1.6 bn
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
5/34
BNDESPAR joins LLXs Shareholder structureas part of a R$ 600 M Capital Increase
54%
Controlling
Shareholder + Other Minority Shareholders
18% 3% 25%
% Shareholding
Post CapitalIncrease
5
51%
LLX
Minas-Rio
LLX
Au
70%
30%
Centennial
LLX
Sudeste
70%
30%
49%
MMX
Minas-Rio
100%
BNDESPAR has performed an extensive due diligence, which attested the quality of LLX projects
Centennial
Au Superport
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
6/34
Experienced Management Team
OfficerOfficer ExperienceExperience
Otvio Lazcano
CEO
Economist and MBA from Fundao Dom Cabral.
11 years of experience at CSN (Companhia Siderrgica Nacional)
Former CFO and IRO of CSN 4 years at Aracruz
Leonardo Pimenta Gadelha
Chief Financial Officer
Civil Engineer from from Pontifcia Universidade Catlica of Rio de Janeiro and is a CharteredFinancial Analyst (CFA) since 2003.
Former CFO of Log-In Logstica Intermodal (spin-off and IPO).
5 years at Vale: corporate governance department and M&A area (Caemi and INCO deals).
Eike Fuhrken Batista
Chairman and Founder
Founder and CEO of EBX, entrepreneurial conglomerate founded in 1983
6
Jos Salomo
Chief Development Officer
Mechanical Engineer (UFES) and MBA in COPPEAD/UFRJ
23 years of experience in the design, implementation and operation of port terminals (iron ore,coal, pig iron, fertilizers, agricultural baul, containers and general cargo).
Held executive positions in Porto de Tubaro, Porto de Praia Mole, TVV, Pasha Terminal LosAngeles, Docenave and Brasil Ferrovias.
Luis Alfredo Osrio de Castro
Chief Implementation Director
Civil Engineer (UGF/RJ) and MBA from FGV/RJ. Project Management (PMI) certificate from
FIA/USP.
30 years experience in implementing infrastructure projects (urban projects and port terminals);power plants and industrial facilities at Pronil, OAS and Brascan.
Claudio Lampert
Chief Legal Officer
Law Degree from UERJ and LLM from University of Miami.
15 years experience in structuring and development of several mining, power and other infra-structure related projects in Brazil as a partner of Veirano Advogados.
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
7/34
LLXs Projects
Au Superport
Fully integrated in Brazils main logistic network and to 72% of the countrys GDP
7
Sudeste Superport
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
8/34
LLX: Innovating Ports Infrastructure
LLXs Port-Industry Complex : world-class logistic solutions
A Typical Brazilian Port
Industrial Area
LLX: Au Superport
8
Au Industrial Complex: 90 Km2
61 MOUs
No area for port growth
Logistic bottlenecks
Industrial District concept under develpoment
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
9/34
LLX : Unclogging Brazils Logistics
LLXs Ports: reinforcing Brazils capesize capacity and beyond
Manaus
Itaqu
Fortaleza
Suap
Salvador
AmazonRiver
9Source : (*) CEL/COPPEAD 2008 vol 1 and Port Sites
Vitria
Rio de Janeiro
Santos
Paranagu
So Francisco do Sul
Rio Grande
80% of the Brazilian population liveswithin 200 km (124 miles) of the coast
Only 7% of Brazilian Ports are able toreceive capesize vessels*.
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
10/34
Company Services rendered Revenue Model
LLX Minas Rio Iron Ore handlingFirm contract with Anglothat guarantees 15% py IRRto firm in US$ unleveraged
LLXs Business Model
LLX is signing long term agreements with setorial industry leaders guaranteing
a steady cashflow and dividends to shareholders
10
LLX Au
Multi product handling(Steel,Coal,Liquid & DryBulk,General Cargo) ; LandLease and Services &Utilities
Tariffs negotiated to ensure aminimum 15% py IRR to
Firm in US$ (under Long Termcontracts) unleveraged
LLX Sudeste Iron ore handling
Long term contracts withfixed tariffs competitivewith comparable marketrates. Not linked tocommodity prices.
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
11/34
1111
or uor u
Au Superport
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
12/34
Au Superport Highlights
The largest investment in port development in Latin America, with state-of-the-artfacilities: more than R$ 4.0 billion investment in port infrastructure;
Under construction, to be completed by 1H2012
Brings the concept of Port Industry integration in a very large scale : 90 Km
2
Anchored on a long-term contract to ship Anglo Americans Minas Rio iron orewith a guaranteed 15% IRR to firm
12
More than 60 contracts and MoUs signed with companies from sectors such as:
Steelmaking ( Wuhan);
Power generation ( MPX);
Cement (Votorantim , Camargo Correa);
Oil and Gas ( Shell, Devon, White Martins);
Total investments in Au Industrial District would reach more than USD 36 billion
Automotive;
metal mechanic;
dry & liquid bulk handling;
general cargo;
services.
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
13/34
Au Industrial ComplexA new cluster for heavy industry
> 90 Km2 Industrial Complex (larger than Manhattan Island)
Industrial Complex concept under development
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
14/34
Au SuperportLocation and Logistic Integration to main Railway and Highway network
A Complete Logistic Corridor
14
BR 101 to be duplicated
A 45 km new railway track will connectAu Superport to the FCA railway within
a multimodal Logistic Corridor
LOGISTICS CORRIDOR
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
15/34
Au SuperportA One Stop Shop for the Oil & Gas Industry
Consolidation and
Onshore Storage :
21 M m
3
py
For Export &
Coastal Shipping
Storage &Treatment
VLCC ExportTankers
FPSO
Au Superport
15
OIL COMPANIES
Small TankersShuttle
FPSO
Campos Basin
85% of Brazil OilProduction
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
16/34
Au SuperportOil Treatment Facility
Desalting DewateringBlending
FPSOs
Oil Treatment
For 800,000 bpd
(+)
16
Facility
Oil Export VLCCs
Investment of
US$ 1.45 billion
Business opportunity witha leveraged IRR > 70% py
Source : Verax Feasibility Study as of March 2010
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
17/34
Au SuperportConstruction Site
Threstle completed (2,900 m as of March 2010)
17
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
18/34
Au SuperportConstruction Site
Rocks Stockyard : Breakwater construction underway
18
July /2010
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
19/34
Au SuperportUnder construction and attracting key industrial players
Au Superport construction started in October/2007 and has already 61 MoUs in place
OIL
COAL
19
IRON ORE
OIL
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
20/34
Au SuperportMain activities
Capex ( for projects @ 100% )
LLX Minas-Rio: R$ 1.9 billion
LLX Au (Non Ore): R$ 2.4 billion
20
Up to 12.6 mtpy
Up to 10.2 mtpyIron Ore:
Coal:
Steel Products:Real Estate:
Industrial Areas RentalUp to 60 mtpy OilUp to 46.4 Mm3 py
Pig Iron:Up to 2.0 mtpy
Slag:Up to 2.0 mtpy
Granite:Up to 1.0 mtpy
Source : Verax Feasibility Study as of March 2010
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
21/34
Au SuperportMilestones
Au Superport Construction on Track
1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H112H11 1H12
Projectdetailing
ConstructionLicense
Construction begins
Start up
Environmental
License
ANTAQ
Authorization
Under Construction
LLXMinas-R
io
21
Project
detailing
OffshoreConstruction
License
OnshoreEnvironmenta
l License
Start up
Offshore
Environmental
License
ANTAQ
authorization
Onshore
Construction
License
Construction
begins
Development
Construction
Operations
Under
ConstructionLLXAu
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
22/34
1.200
Au SuperportVolume and Capex
Au Superport total CAPEX of R$ 4.3 billion
Minas Rio: R$ 1.9 billion
LLX Au: R$ 2.4 billion
1106
Volume Ramp up (mtpy)
78
357475
691
22060
29
15339
415
584
552
353254 27 10
-
200
400
600
800
1.000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
LLX Au LLX Minas-Rio
22
510
108
Actual
514
804
612
10
48
106
123 125 130132 134
-
20
40
60
80
100
120140
2012 2013 2014 2015 2016 2017 2018... ...2032
Source : Verax Feasibility Study as of March 2010
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
23/34
2323
or uor uPadro Super Port Au
Sudeste Superport
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
24/34
Sudeste SuperportLocation and Logistic Integration
MMX
Sudeste
MMX Sudeste
24
Private mixed-use port terminal
Licensed for 50 Mtpy capacity (first phase),potential expansion to 100 Mtpy
Direct railway link through MRS to MinasGerais iron ore deposits
Port Service Agreement with MMX Sudestealready in place
Will also service third parties located in theSerra Azul region.
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
25/34
Sudeste SuperportGeneral View
Environmental and Construction License
Granted for 50 Mtpy and Brazilian Navy
Authorization for a 2nd pier to 100 Mtpy;
780,000 m of back-area with a storage
VALE CSN
25Private Port Terminal dedicated to iron ore with operation start up in 1H12
LLXCSN
VALE
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
26/34
Sudeste SuperportGeneral View: Onshore Site
AdministrativeBuildings
Iron Ore Yard El. 32
Iron Ore Yard El. 06
26Last available location for a Bulk Terminal in Sepetiba region
Rail Loop
RailcarDumper
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
27/34
Sudeste SuperportConstruction at full speed
27Quarry in operation recycled into an Iron Ore stockyard
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
28/34
Sudeste SuperportMilestones
Sudeste Superport will start its operation in 1H 2012
2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12
Development
start-up
Environmental
Studies
Pedreira
Sepetiba
Acquisition
EIA
RIMA
EIA RIMA
Completed
Environmental
License
Construction
LicenseStart up
Navy ANTAQte
Superport
28
Constructionbegins
Development
Construction
Operations
Under ConstructionSu
de
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
29/34
600
700
800
Sudeste SuperportVolume and Capex
40,0
50,0 50,0 50,0 50,0 50,0 50
40,0
50,0
Volume Ramp up (mtpy)CAPEX (R$ Million)
Sudeste Superport Total CAPEX: R$ 1.8 billion
86 40 63
741 712
1150
100
200
300
400
2007 2008 2009 2010 2011 2012
29
14,5
-
10,0
20,0
30,0
2012 2013 2014 2015 2016 2017 2018... ...2032
Source : Verax Feasibility Study as of March 2010
Actual
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
30/34
Ebitda Breakdown
Ebitda at Steady State (Projects @ 100%) :
Cumulative Ebitda curve
30
R$ 3.5 billion
Leas
ingofAreas
Source : Verax Feasibility Study as of March 2010
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
31/34
2.000
2.500
3.000
3.500
4.000
Financial Summary( projects @ 100%)
Ebitda Ramp up (R$ M)
31
-
500
1.000
1.500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
CAPEX :
R$ 6.1 billion
IRR ( to equity) :
37% py
Ebitda Margin at Steady State :
78%
Source : Verax Feasibility Study as of March 2010
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
32/34
Sources & Uses
LLXs Projects @ 100% (R$ M)
R$ 6,1 Bi 75% debt25% equity
1.757 1513543
970499600
4.000
5.000
6.000
7.000
Existing equity
Capital Increase
32
Debt/ Equity assumption: 75/25 (except Minas Rio: 73/27)
1.881
6.053
4540
2.415
-
1.000
2.000
3.000
LLX MinasRio
LLX Au LLXSudeste
TotalCAPEX
Debt Total EquityNeeded
EquityParters
LLX EquityNeeded
LLXExistingEquity
56% signed
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
33/34
Consolidated Financial Highlights
Cash Position (*) Debt
2007 - 2008 2009 1Q10 2Q10 2007 - 2Q10 Actual 06/30/2010 2Q10
LLX Minas Rio (51%) 222 242 49 102 615
LLX Au (100%) 182 39 10 18 249
LLX Sudeste(100%) 126 63 10 14 213
LLX Brasil(100%) 53 - - - 53
TOTAL 583 344 69 134 1.129 346 238
(*) Cash Position (includes LLX S/A)
CAPEX
Financial Highlights @ June 30th, 2010
R$ Million
346 238
33
Financing agreements signed with BNDES:
LLX Minas Rio: R$ 1.321 Billion, 12 years loan (30 months grace period) at TJLP+ 2.5%py
LLX Sudeste: total financing of R$ 1.213 Billion under two agreements:
1. R$ 408 Millions, 10 years loan (2 yrs grace period) at 4.5%py, fixed rate for local equipmentacquisition;
2. R$ 805 Millions, 12 years loan ( 2 yrs grace period) at TJLP + 2.18% py structured as a projectfinance.
-
8/9/2019 LLX Presentation Aug2010 Vers 10082010
34/34
Thank you!www.llx.com.br
Email: ir@llx.com.br
34
Phone: +55 21 2555 5661
top related