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LLX Corporate Presentation October 2011


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LLX Corporate Presentation October 2011

  1. 1. Corporate PresentationOctober 2011<br />
  2. 2. Disclaimer<br />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.<br />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.<br />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. <br />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. <br />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. <br />Investor Relations<br />Otávio Lazcano – CEO<br />Luiz Felipe Jansen de Mello – IR Manager<br />Tel. 55 21 2555-5661<br /><br />
  3. 3. EBX’spubliclyheldcompanies<br />LLX wascreated in March 2007, to providelogisticservicesthroughthedevelopmentof major port systems in Brazil.<br />Its mainstrengths are:<br /><ul><li>Strategiclocationsandlargeback-areas;
  4. 4. Integrationwithexistingrailandroad</li></ul>infrastructure; <br /><ul><li>Lowcostoperationalmodel (privateterminals);
  5. 5. Longtermtake-or-paycontractsandsynergiesgeneratedwithinthe EBX Group;
  6. 6. Experienced management team;
  7. 7. SecuredDebtFinancing Sources;
  8. 8. Social andEnvironmentalResponsibility</li></ul>MktCap<br />US$ 1.4 bn<br />MktCap<br />US$ 2.2 bn<br />MktCap<br />US$ 21.4 bn<br />MktCapEBX Group**<br />US$ 31.5 bn<br />MktCap<br />US$ 2.7 bn<br />MktCap<br />US$ 2.5 bn<br />* As of September 29th2011<br /> R$/USD – 1,83<br />** Includes PortX (Mkt Cap US$ 1.3 bn)<br />
  9. 9. LLX Ownershipand Corporate Structure<br />Controlling<br />Shareholder<br />OtherMinority<br />Shareholders<br />54% <br />28% <br /> 18% <br />51%<br />70%<br />LLX Açu<br />LLX Minas-Rio<br />49%<br />30%<br />Centennial<br />Açu Superport<br />
  10. 10. LLX: Location, location, location<br />Hinterlandof 75% ofBrazilian GDP<br /><ul><li>Integrated with rail, highway – leapfrog from truck to coastal barging;
  11. 11. 150 km from Campos oilbasin (85% of Brazil oil production);
  12. 12. Natural workshop for the pre salt in Brazil: one stop shop for the oil and gas industry;
  13. 13. AçuSuperport : Brazil’s new route to China (Source: FT; May 9th, 2011).</li></ul>Campos OilBasin<br />
  14. 14. LLX: InnovatingPort’sInfrastructure<br />LLX: Açu Superport<br />A TypicalBrazilianPort<br />LLX´s Port-Industry Complex: world-class logistic solutions<br />Environmental Reserve<br /><ul><li> No area for portgrowth
  15. 15. Logisticbottlenecks
  16. 16. Açu Industrial Complex: 90 Km2
  17. 17. Environmental Reserve: 40Km2</li></ul>Industrial District concept under develpoment<br />
  18. 18. LLX: UncloggingBrazil’sLogistics<br />LLX´s Ports: reinforcing Brazil´s capesize capacity and beyond<br />Amazon River<br />Itaquí<br />Fortaleza<br />Manaus<br />Suapé<br />Salvador<br />Vitória<br />Santos<br />Paranaguá<br />São Francisco do Sul<br />Rio de Janeiro<br />Rio Grande<br />80% of the Brazilian population lives within 200 km (124 miles) of the coast<br />Only7% ofBrazilianPorts are able to receivecapesizevessels*.<br />Source : (*) CEL/COPPEAD 2008 – vol 1 andPort Sites<br />
  19. 19. LLX’s Business Model<br />LLX is signing long term agreements with industry leaders guaranteeing a steady cash flow and dividends to shareholders <br />RevenueModel<br />Services Rendered<br />Company<br /><ul><li>Take or Pay long-term contract (25 years) with Anglo.
  20. 20. Initial ore shipment July 2013. Expected revenues of US$ 190 million.</li></ul>LLX Minas Rio<br /><ul><li>Iron Ore handling
  21. 21. Multi product handling (Steel,Coal,Liquid & Dry Bulk,General Cargo);
  22. 22. Land Lease and Services & Utilities
  23. 23. Tariffs negotiated to ensure a minimum 15% py IRR to firm in US$ (under Long Term contracts) unleveraged. </li></ul>LLX Açu<br />
  24. 24. Açu Industrial ComplexA new cluster for theoffshoreandheavyindustry<br />90 km² Industrial Complex (1,5x largerthan Manhattan Island)<br />
  25. 25. Açu Superport - Highlights<br />Up to 350 million tons port complex with 2 terminals (TX1 and TX2), to be ranked among the 3 largest ports in the world.<br />17 km of quay, up to 40 berths and able to receive very large carriers (including Chinamax) thanks to its 25 meters draft. <br />More than 60 contracts and MoUs signed with companies from sectors such as:<br />Steelmaking (Ternium, Wuhan);<br />Power generation (MPX);<br />Cement (Votorantim , Camargo Correa);<br />Offshore Industries (Acergy, Technip);<br />Resources and cheaper energy supply security, operating and logistic efficiencies, truly just in time practices and 2% VAT instead of 18%.<br /><ul><li>OilandGas;
  26. 26. Metal Mechanic;
  27. 27. Dry & LiquidBulkHandling;
  28. 28. Automotive;
  29. 29. General Cargo & Services.</li></ul>Largest and most efficient port-industry complex in Latin America : total investments of US$ 40 billion<br />
  30. 30. Açu Superport: Uniquelocationandintegration to main railway andhighway network<br />A Complete LogisticCorridor<br /><ul><li>BR 101 to be duplicated
  31. 31. A 43 km new railway track will connect Açu Superport to the railway and Campos withina multimodal Logistic Corridor</li></li></ul><li>Açu Superport: A OneStop Shop for theOil & GasIndustry<br />VLCC/ ChinamaxTankers<br />Export<br />Storage & Treatment<br />ConsolidationandOnshoreStorage:<br />Campos Basin<br />85% ofBrazilOilProduction<br />Small TankersShuttle<br />1.2 millionbpd<br />For Export & CoastalShipping<br />
  32. 32. Açu Superport : OilTreatmentFacility<br />FPSOs<br />For 800,000 bpd<br />(+)<br />Dewatering<br />Blending<br />Desalting<br />OilTreatmentFacility<br />Investmentof US$ 1.45 billion<br />Business opportunitywith a leveraged IRR > 70% py<br />OilExport<br />VLCCs<br />
  33. 33. TX1: oneofthelargestoffshore terminal in Latin America for Iron Ore andOil<br />OIL<br />IRON ORE<br />OIL<br />
  34. 34. TX1: Maincharacteristics<br /><ul><li>ThrestleCompleted : 3,000 m
  35. 35. QuayLength: up to 4,000 m
  36. 36. NumberofBerths: 9
  37. 37. 5 dedicated to Oil (up to 1.2 mbpd)
  38. 38. 4 dedicated to Iron Ore (up to 100 mtpy)
  39. 39. Initial Dredging: 21 m to bedradgedup to 25 m for VLCCsandCapesizes</li></ul>Iron Ore Pier: 100% completed<br />
  40. 40. TX1: Offshore TerminalTugboatPierand 100% ofIron Ore PierCompleted<br />3.000 m<br />27.5 m<br />444 m<br />
  41. 41. TX1: Dredging for executionofOilTreatmentFacility’slandfill<br />
  42. 42. TX1: Offshore TerminalRocksStockyard : Breakwaterconstructionunderway<br />
  43. 43. Açu BreakwaterTheworld’slargetsconcreteblockbuilder<br />
  44. 44. TX2: Thelongestandmostefficientquay for bulkcargoesandoffshore industries<br />STEEL PRODUCTS / VEHICLES<br />SLAG / PIG IRON / GRANITE<br />OFFSHORE IND. <br />OSX SHIPYARD<br />COAL<br />SUPPLY BOAT <br />
  45. 45. TX2: Maincharacteristics<br /><ul><li>Total QuayLength : 13,000 m
  46. 46. OnshoreChannelWidth: 300 m
  47. 47. Total Area: 8,000,000 m2
  48. 48. Extension: 6,500 m
  49. 49. Uniqueadvantages for Oil & GasE&Psegment
  50. 50. Able to handleCoal, SteelProducts, DryandLiquidBulks</li></ul>Offshore Industries/ <br />BulkCargoes<br />
  51. 51. TX2: DredgingoftheCannal<br />
  52. 52. TX2: DredgingoftheCannal<br />
  53. 53. TX2: DredgingoftheCannal<br />
  54. 54. TX2: OnshoreChannel – DredgingSequence<br />
  55. 55. Açu Superport: MainActivities<br /><ul><li> CAPEX (for projects @ 100%)
  56. 56. LLX Minas-Rio: R$ 1.0 billion
  57. 57. LLX Açu (Non Ore): R$ 2.4 billion</li></ul>Iron Ore:<br />SteelProducts<br />Real Estate<br />Industrial AreasRental<br />Oil<br />Up to 10.2 Mtpy<br />Up to 100 Mtpy<br />Up to 1.2 Mbpd<br />Coal<br />Up to 12.6 Mtpy<br />Granite<br />Up to 1.0 Mtpy<br />PigIron<br />Up to 2.0 Mtpy<br />Slag<br />Up to 2.0 Mtpy<br />
  58. 58. Açu Superport: Milestones<br />Açu Superport ConstructiononTrack<br />1H13<br />2008<br />2011<br />2H13<br />2H06<br />1H06<br />2H07<br />2009<br />1H12<br />1H07<br />2010<br />2H12<br />Under Construction<br />UnderConstruction<br />UnderConstruction<br />Under Construction<br />Under Construction<br />Constructionbegins<br />2H13<br />Projectdetailing<br />ConstructionLicense<br />Start Up<br />LLX Minas-Rio<br />EnvironmentalLicense<br />ANTAQAuthorization<br />UnderConstruction<br />OnshoreEnvironmentalLicense<br />OffshoreConstruction<br />License<br />ProjectDetailing<br />LLX AÇU<br />OffshoreEnvironmental<br />License<br />OnshoreConstruction License<br />ANTAQAuthorization<br />Under <br />Construction<br />Construction <br />begins<br />Start Up<br />Development<br />Construction<br />Operations<br />
  59. 59. CAPEX for Açu Superport<br />Açu Superporttotal CAPEX: R$ 3.4 billion<br />Minas Rio: R$ 1.0 billion*<br />LLX Açu: R$ 2.4 billion<br />Actual<br />Estimated<br />* Reimbursementof LLX Minas Rio CAPEX exceeding R$ 974 million<br />
  60. 60. Financial Highlights<br />4.000<br />3.500<br />600 <br />547<br />339<br />3.000<br />847<br />300 <br />2.500<br />2.415<br />2.000<br />3.389<br />1.500<br />2.542<br />1.000<br />500<br />974<br />-<br />LLX<br />LLX Açu<br />Total<br />Debt<br />Total<br />Equity<br />LLX<br />LLX<br />Minas Rio<br />CAPEX<br />Equity<br />Partners<br />Equity<br />Existing<br />Needed<br />Needed<br />Equity<br />Capital Increase as of March/2009 <br />Initial equity<br />
  61. 61.<br />Email: <br />Phone: +55 21 2555 5661<br />