LLX Corporate Presentation September 2011
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Transcript of LLX Corporate Presentation September 2011
Corporate PresentationSeptember 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
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
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
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
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
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
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.
Açu Industrial ComplexA new cluster for the offshore and heavy industry
90 km² Industrial Complex (1,5x larger than Manhattan Island)
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.
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
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
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
(+)
TX1: one of the largest offshore terminal in Latin America for Iron Ore and Oil
IRON ORE IRON ORE
OIL OIL
OIL OIL
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
TX1: Offshore TerminalTug boat Pier and 100% of Iron Ore Pier Completed
3.000 m
444 m
27.5 m
TX1: Dredging for execution of Oil Treatment Facility’s landfill
TX1: Offshore TerminalRocks Stockyard : Breakwater construction underway
Açu BreakwaterThe world’s largets concrete block builder
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
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
TX2: Dredging of the Cannal
TX2: Dredging of the Cannal
TX2: Onshore Channel – Dredging Sequence
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
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
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
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
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