Institutional august 2009
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Institutional august 2009 Institutional august 2009 Presentation Transcript

  • Q2 2009 Financial Results 1
  • WHO WE ARE 2
  • Wilson Sons Limited Corporate Structure Controlling Group Free Float 50.1% 49.9% Ocean Wilsons Ocean Wilsons Holdings Limited 58.3% 41.7% Wilson Sons Wilson Sons Free Float Listing on the Bovespa LimitedBermudaBrazil 3
  • One of the Largest Providers of Integrated Port & Maritime Logistics and Supply Chain Solutions in Brazil… Client, Operational and Management Synergies Define Our Business Model 4
  • Why should you invest in Wilson, Sons? 6
  • 1) A Clear Focus: Unique Synergy in Port, Maritime and Inland Logistics with Strong and Diversified Client Relationship SYNERGIES BETWEEN BUSINESS SEGMENTSInland Operations Port Operations Offshore Operations Support for  Support for Support for  Support for Support for Vessel Operations Cargo Owner Oil Platform Operators Port  Port  Offshore  Logistics Towage Ship Agency Terminals  Terminals  (PSVs)¹ (Container) (Offshore) Shipyard (1) Platform Supply Vessels Back‐ Back‐office (HR, IT, ADM) Service provided for our 100 major clients No Single Customer Representing 100 (In %) Over 10% of Total Over 7,000 Revenues 66 Customers & Relationship R l ti hi Unparalleled with Our Top Track 28Ten Customers Record: 170Averaging Over Years of Ten Years Experience At least 2 At least 3 At least 4 Segments Segments Segments 7
  • 2) Solid Track Record in Cash Flow Generation – 170 years RR AP GROWTH IN NET REVENUES & EBITDA (USD million) Belém Fortaleza AM PA MA CE RN PI PP Recife PEAC RO TO AL Maceió SE BA MT Salvador DF GO MG 498,3 Belo horizonte MS ES SP RJ São Paulo PR Rio de Janeiro 404,0 23.0% SC 334,1 RS 285,2 217,7 26.5% Head Offices 91,4 122,7 47,9 49,1 76,2 76 2 Port Terminals 2004 2005 2006 2007 2008 Towage Logistics Net Revenues EBITDA Shipping Agency Shipping Agency Offshore Shipyard 8
  • 3) Business Drivers: A Positive Outlook Going Forward – Trade Flow, Oil & Gas, and Brazil’S Domestic Economy  Oil & Gas Trade Flow Domestic Economy Positive Business Drivers 9
  • PORT TERMINALS: One of the Largest Container Operators in Brazil 1H09 Net Revenues US$78.0 million  36% of Total Net RevenuesTECON RIO GRANDE EBITDA Margin 32.4% OPERATIONAL INDICATORS – Number of TEUS (‘000) OPERATIONAL INDICATORS –TECON SALVADOR 399 416 284 306 57 53 57 57BRASCO TERMINAL 1H08 8 1H09 Deep Sea Containers Cabotage Others* * Include shifting, transhipment, and inland navigation 11
  • Profile of Tecon Rio Grande Start‐up in 1997 A 25‐year Renewable  Concession Period The First Privatized Container  Terminal in Brazil One of the Largest Areas for  g Container Terminal Expansion Berth size: 850m Area: 670k m² / Draft: 12m / 1H09 MAIN LOADED CARGOES TRADES Frozen Meat Apple Furniture Machinery 4% Footwear 6% 5% 3% 3% Rice Spare Parts 13% 3% Wood 2%Tobacco 3 services 4 services 17% Rubber 3 services 3 services 2% 3 services 2services Leather 2% 1 service 2services Tires 2% Frozen Chicken 1 service Resin 20% 18% 12
  • Profile of Tecon Salvador Start‐up in 2000 A 25 year Renewable  A 25‐year Renewable Concession Period Largest Container Operator in  the Northeast Region Berth size: 240m and 214m Area: 74k m² / Draft: 12m MAIN LOADED CARGOES TRADES 1H09 SISAL FRUITS & JUICE  METAL 6% FRUITS FOODS & FROZEN  4% PARTS & PIECES 6% FOODS 6% 3% DRINK 3%RUBBER & DERIVEDRUBBER & DERIVED 10% COCOA & DERIVED 2% 3 services 4 services CONSTRUCTION  SUPPLIES WOOD PULP &  2% 4 services DERIVED LEATHER 18% OTHER 1% 5% CHEMICAL PRODUCT 34% 2 services 13
  • Profile of Brasco Start‐up in 1999 Integrated logistics solutions for the O&G industry in all regions of Brazil Procedures in place are ISO 9001‐certified Working with the world’s main O&G operators W ki ith th ld’ i O&G t Improvement Programme – at the Rio de Janeiro Base Reserved for New Mud  New  Diesel  Pipe  p New Mud Plants Plant Warehouse Plant Yard Berth #3 Berth #3 Berth #4 + Berth #4 +  Area New Cement Plant Open Area New Adm Office New Waste Center Monitoring  g Material Mngmt  Material Mngmt Berth Planning  Berth Planning Ready R d System System System Completion in 2009 Install and operate support bases along Brazillian coast Support bases in Rio de Janeiro, Salvador and Sao Luis Developing new bases in Espirito Santo, Rio de Janeiro and Sao Paulo 14
  • TOWAGE:  An Unrivalled Market LeaderTOWAGE 1H09 Net Revenues US$67.5 million  31% of Total Net Revenues Portfolio of Services EBITDA Margin 45.0% – Harbour Towage: Ship Maneuvering, Berthing and Unberthing Harbour Towage: Ship Maneuvering, Berthing and Unberthing – Special Operations: Oceanic Towage, Support to Salvage and Offloading Main assets: – Tugboats Highlights:  – Largest Tugboat Fleet in South America, with 69 Vessels b l i S h i i h 69 l – 51% Market Share in Brazil – 33 State‐of‐the‐Art Tugboats with Azimuth Propulsion – Regulatory Protection Ensures Exclusivity to Brazilian Flag Vessels – Friendly funding available from FMM (Fundo da Marinha Mercante) 69 POSITIONING* 24 24 21 15 11 11 WS Sulnorte Camorim Tugbrasil Smit Docenave Tranship (*) Measured in number of tugboats in Brazil. Source: Wilson Sons; as of May 2009 15
  • Harbour Towage & Special Operations NEW PORTS IN BRAZIL: HARBOUR TOWAGE OPPORTUNITIES Port Location Navegantes Santa Catarina Itapoá Santa Catarina Imbituba Santa Catarina Açu Rio de Janeiro GROWTH IN SPECIAL OPERATIONSSource: Wilson Sons Limited. As of September 30, 2007 Scale as a Barrier to Entry: Flexibility to offer towage services  nationwide: – Ability to attend unscheduled  demand (spot rates) – Demand for tugboats is spread  g p alongside the Brazilian coast,  benefiting towage companies with  nationwide coverage 16
  • Harbour Towage & Special Services Harbour Towage Support to Offloading Operations Oil FieldsOcean Towage Salvage Operations Support to LNG Operations 17
  • LOGISTICS: Unique Strategic Fit Between Segments 1H09LOGISTICS Net Revenues US$36.3 million  17% of Total Net Revenues Main Services EBITDA Margin 11.6% – Transport, Handling, Storage, and Distribution Transport Handling Storage and Distribution Main Assets – Asset light Business Unit, Providing Integrated  Logistics Solutions Logistics Solutions Highlights – A Fast Growing Industry: Growing by More Than Six  Fold from 2000 to 2007, as seen below: INDUSTRY GROWTH* INDUSTRY GROWTH* NET REVENUES (USD million) NET REVENUES (USD illi ) CAGR(1) = 42.8% Chg. = ‐18.7% CAGR(1) = 33.3%(*) Measured in terms of Industry Revenues, in R$ billion. / Source: Center for Logistics Studies at COPPEAD/UFRJ, March 2009) (1)CAGR = Compound Annual Growth Rate 18
  • SHIPPING AGENCY: Unique Strategic Fit Between SegmentsSHIPPING AGENCY 1H09 Net Revenues US$6.7 million  3% of Total Net Revenues EBITDA Margin 15.2% Main Services – Agent and Attorney‐In‐Fact to Shipowners – Documentation Services – Control of Containers Control of Containers – Equipment and Demurrage Control – Services to Vessels while in the Ports (Vessel Calls) – Sales Offices l ff Main Assets – Asset Light Business Unit – Intelligence center Highlights g g – Largest Independent Shipping Agency in Brazil – Over 5,500 vessel calls in 2008 – Affiliated to GAC – The Gulf Agency Company Affili t d t GAC Th G lf A C – 1st Agency to Provide a Shared Services Center 19
  • OFFSHORE: Capturing Growth in the Oil Business 1H09 2002 2008 OFFSHORE Net Revenues US$18.5 million  8% of Total Net Revenues 30% EBITDA Margin 60.0% Main Services 49% – Support to Offshore Oil & Natural Gas Exploration and Production  Support to Offshore Oil & Natural Gas Exploration and Production 51% Platforms 70% # Brazilian Flag Vessels: 48 # Brazilian Flag Vessels: 79 Main Assets: Brazilian Flags Brazilian Flags International Flags International Flags – A Fleet of 6 PSVs*Source: Abeam as of January 2008. Highlights Competitive Advantage From Our Shipyard – Start‐up in 2003 St t i 2003 – Control of construction costs, maintenance costs, and delivery schedule C t l f t ti t i t t d d li h d l – Friendly funding available from FMM – Lack of Space Capacity in Brazilian Shipyards GROWTH OPPORTUNITIES GROWTH OPPORTUNITI S PSV CONSTRUCTION PLAN PSV CONSTRUCTION P AN 2 PSVs to be delivered until 2010 2 PSVs to be delivered to third parties until 2011 2 PSVs to be delivered to third parties until 2011 * PSV Petrel, owned by Magallanes, is chartered by Wilson, Sons. 20
  • SHIPYARD: Prospects for Growth 2008 2009 2010 2011 * Delivered in May * Delivered in March PSV FLEET P * Delivered in September * Delivered in August Spot Services Construction to third parties * Delivered in March * Delivered in June TUG FLEET * Delivered in May * Delivered in June T * Delivered in DecemberExpansion Plan: Goal is to Double the Capacity to Take Advantage of the New Cycle of Petrobras Tenders  From 18 to 24 Months 21
  • What is the impact of the crisis?It affects everybody, in different ways:  On the other hand… Concentration of vessels  with bigger deadweight The size of ships operating in the world and especially in the east coast of South America has been increasing fast Vessels with about 285 meters and 6,000 TEUs are already calling our Terminal in Rio Grande (Tecon RG) Vessels for 8,000 TEUs and 300 to 330 meters are expected soon Worsening global demand Source: ISEMAR – Institut Supérieur d’Économie Maritime Nantes – Saint Nazarire d Économie D df i Demand for superior    infra‐structure 23
  • Managing the CrisisWhat are we doing? 1 Expand our service base, focus on core business 2 Continued investments to improve infrastructure 3 Aggressive commercial approach, focus on cargo flow 4 Cost‐reduction programme 5 Focus on a more profitable mix of services 6 Priority on cash preservation and liquidity levels 24
  • FundingWho are the current lenders? Viable alternatives: Cash Position and Generation FMM / BNDES            Port TerminalsTugboats & PSVs & PSVs Cash to  guarantee long term goals clusion Wilson, Sons has a track record that is the basis for sustainable growth. We remain focused on protecting our financial standings, as well as the                   We remain focused on protecting our financial standings, as well as the Conc sustainable growth of the Company in the long term 25
  • Trade Flow ‐ Shipping Scenario Capacity in TEUs Demand for Superior Infrastructure: for Superior Infrastructure:      Port Terminals & TowageSource: Hamburg Sud (Aliança) Presentation – June 18, 2008  27
  • Domestic Economy BRAZILIAN CABOTAGE – BRAZILIAN CABOTAGE – TEUs (‘000) DOMESTIC ECONOMY – DOMESTIC ECONOMY – GDP (% growth)  1.106 949 5.7% 5.1% 791 640 656 602 626 3.8% 499 2.9% 363 142 621998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2005 2006 2007 2008Source: CNNT / Datamar Source: IBGE CABOTAGE VESSELS – CABOTAGE VESSELS – CAPACITY INCREASE TRANSPORTATION MATRIX Log‐In Aliança Maritime – Fleet of 7 containerships, 2 of  p, ‐ A fleet of 10 containerships A fleet of 10 containerships them started operations in 2008 Road Railroad – 5 additional containerships by  ‐ 4 new containerships to be  2013, to be delivered between  delivered in 4 years 2010 and 2013 d Russia India China Australia USA BrazilSource: Bank reports Source: ANTT, Transportation Ministry 28
  • Oil &Gas PETROBRAS CAPEX (09E‐ PETROBRAS CAPEX (09E‐13E) : US$ 174.4 BI PETROBRAS: A POSITIVE SCENARIO USD7.0 BI  64 + 64 + 18 146  146 CAPEX         (2009‐2013) ~ # of BIDS AHTS* PSV ORSV Support Vessels USD10.0 BI• AHTS – Anchor Handling Tug Supply; PSV – Platform Supply Vessel; ORSV ‐ Oil Recover Supply Vessel 2008 2009 2010 2011 2012 2013 2014 2015 2016 9 AHTS 2 TugboatsCURRENT BID 2 PSVs 9 ORSVs 45 AHTS 8 Tugboats FUTURE BID 54 PSVs 15 ORSVs Source:  Petrobras Presentation Petrobras Programme: Aimed at Promoting WS Offshore, Port Terminals and the Towage Businesses 29
  • Strategy • Well‐ Well‐ • Focus on  Positioned to  Positioned to high hi h‐ profit  high‐ fi Expand  services Capacity Wilson, Sons Wilson Sons’  Pillars •N New  •Liquidity  application for  Perservation traditional  services 30
  • Consolidated Financial Highlights NET REVENUES (USD million)  SEGMENTED REVENUES (USD million)CAGR = 20.4% Chg. = ‐11.9% 1H08 1H09 EBITDA (USD million) & EBITDA MARGIN  SEGMENTED EBITDA (USD million) CAGR = 35.7% Chg. = 27.9% 1H08 1H09 32
  • Consistent Investment & Low Leverage Ratios CAPEX (USD million) LEVERAGE (USD million) GROWTH IN TOTAL CAPEX CURRENCY BREAKDOWN CAGR = 37.2% Chg. = 113.4% As of June 30, 2009 6.0 182.0 USD Denominated R$ Denominated 1Q09 CAPEX BREAKDOWN LEVERAGE INDICATORS (USD million) Long Term Short Term Port Terminals (151.4) Towage Logistics 169.7 170.8 Shipping Agency Offshore Non Segmented Activities Non‐Segmented Activities 36.6 36 6 15.5 17.2 Dec 31, 2008 Jun 30, 2009 Cash & Net Debt Equivalents 33
  • Investor Relations Contacts Sandra Calcado Alexandre Beltrão Investor Relations Manager Investor Relations CoordinatorE‐mail: E‐mail: Telephone: + 55 (21) 2126 4263 Telephone: + 55 (21) 2126‐4263 Telephone: + 55 (21) 2126‐4107 Telephone: + 55 (21) 2126 4107 André Ferreira Investor Relations Analyst BOVESPA: WSON11 E‐mail: Bloomberg: WSON11 BZ Telephone: + 55 (21) 2126‐4105 Reuters: WSON11.SA IR website: IR e‐mail address: 34
  • Legal AdviceThis presentation contains statements that may constitute “forward‐looking statements”, forward looking statementsbased on current opinions, expectations and projections about future events. Suchstatements are also based on assumptions and analysis made by Wilson, Sons and are subjectto market conditions which are beyond the Company’s control.Important factors which may lead to significant differences between real results and theseforward‐looking statements are: national and international economic conditions; technology;financial market conditions; uncertainties regarding results in the Company’s future Company soperations, its plans, objectives, expectations, intentions; and other factors described in thesection entitled "Risk Factors“, available in the Company’s Prospectus, filed with the BrazilianSecurities and Exchange Commission (CVM).The Company’s operating and financial results, as presented on the following slides, wereprepared in conformity with International Financial Reporting Standards (IFRS), except asotherwise expressly i di t d A i d th i l indicated. An independent auditors’ review report i an i t d t dit ’ i t is integral part of l t fthe Company’s condensed consolidated financial statements. 35
  • Q2 2009 Financial Results 36