Download - Corporate presentation december
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LLX Logística S.A.
December, 2009
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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 inv olve 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.
Inv estor Relations
Otávio Lazcano – CEO
Antonio Castello Branco – Manager
Camila F. Mation Anker - Coordinator
Tel. 55 21 2555-5661
Disclaimer
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1. Overview
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31.110 3.572
1.945 2.177
EBX´s publicly held companies
Core Business:
Logistics
Core Business:
Power Generation
Core Business:
Oil & Gas
Core Business:
Mining
Market Cap*
Market Cap* Market Cap*
Market Cap*
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:
� Strategic locations and large back-areas;
� 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
Total: US$ 38.8 bn
* As of 04th December 2009
Market Cap EBX Group – (USD M)
* R$/USD – R$ 1,71
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BNDESPAR joins LLX´s Shareholder structureas part of a R$ 600 M Capital Increase
51%
LLX Minas-Rio
LLX Açu
70%
30%
Centennial
54%
LLX Sudeste
ControllingShareholder + Other Minority Shareholders
70%
30%
49%
MMX
Minas-Rio
100%
BNDESPAR has performed an extensive due diligence, which attested the quality of LLX projects
18% 3% 25%
% Shareholding
Post Capital Increase
Centennial
Açu Super Port
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Experienced Management Team
OfficerOfficer ExperienceExperience
Otávio Lazcano
CEO
– Economist and MBA from Fundação Dom Cabral.
– 11 years of experience at CSN (Companhia Siderúrgica Nacional)
– Former CFO and IRO of CSN
– 4 years at Aracruz
Leonardo Pimenta Gadelha
Chief Financial Officer
– Civil Engineer from from Pontifícia Universidade Católica of Rio de Janeiro and is a CharteredFinancial Analyst (CFA) since 2003.
– Former CFO of Log-In Logística Intermodal (spin-off and IPO).
– 5 years at Vale: corporate governance department and M&A area (Caemi and INCO deals).
José Salomão
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 Tubarão, Porto de Praia Mole, TVV, Pasha Terminal – Los Angeles, Docenave and Brasil Ferrovias.
Luis Alfredo Osório 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.
Eike Fuhrken Batista
Chairman and Founder
– Founder and CEO of EBX, entrepreneurial conglomerate founded in 1983
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.
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LLX´s Projects
Açu SuperPort
Sudeste Port
Fully integrated in Brazil s main logistic network and to 72% of the country´s GDP
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LLX: Innovating Port´s Infrastructure
LLX´s Port-Industry Complex : world-class logistic solutions
A Typical Brazilian Port
� Açu Industrial Zone : 90 Km2
� 66 MOUs
� No area for port growth
� Logistic bootlenecks
Industrial District concept under develpoment
Industrial Area
9Source : (*) CEL/COPPEAD 2008 – v ol 1 and Port Sites
LLX : Unclogging Brazil s Logistics
LLX´s Ports: reinforcing Brazil s capesize capacity and beyond
Manaus
Itaquí
Fortaleza
Suapé
Salvador
Vitória
Rio de Janeiro
Santos
Paranaguá
São Francisco do Sul
Rio Grande
Amazon River
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*.
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Company Services rendered Revenue Model
LLX Minas Rio Iron Ore handlingFirm contract with Anglo that guarantees 15% py IRR to firm in US$ unleveraged
LLX Açu
Multi product handling(Steel,Coal,Liquid & DryBulk,General Cargo) ; Land
Lease and Services & Utilities
Tariffs negotiated to ensure a
minimum 15% py IRR to
Firm in US$ (under Long Termcontracts) unleveraged
LLX Sudeste Iron ore handling
Long term contracts with
fixed tariffs competitivewith comparable market
rates. Not linked to commodity prices.
LLX´s Business Model
LLX is signing long term agreements with setorial industry leaders guaranteing
a steady cashflow and dividends to shareholders
1111
‘
Port AçuPort AçuPort Açu
Açu Superport
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Açu Superport - Highlights
� The largest investment in port infrastructure in Brazil, with state-of-the-art facilities
� Under construction, to be completed by 1H2012
� Brings the concept of Port – Industry integration in a very large scale : 90 Km2
� Anchored on a long-term contract to ship Anglo American’s Minas Rio iron ore
with a guaranteed 15% IRR to firm
� Already 66 contracts and MoUs signed with companies from sectors such as:
� steelmaking,
� power generation,
� cement,
� metal mechanic
� Oil and Gas
� Total investments in Açu Industrial District would reach more than USD 36 billion
�automotive,
�dry & liquid bulk handling,
�general cargo
�services
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Açu Industrial ComplexA new cluster for heavy industry
90 Km2 Industrial Complex (larger than Manhattan Island)
Industrial Complex concept under development
ManhattanIsland
AÇU
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Açu SuperportLocation and Logistic Integration to main Railway and Highway network
� BR 101 to be duplicated
� A 45 km new railway track will connect AçuSuperPort to the FCA railway within
a multimodal Logistic Corridor
A Complete Logistic Corridor
Highway
Gas Pipelines
Telecom
W ater
Railway
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Açu SuperportOil Handling and Onshore Storage for Campos Basin
OIL COMPANIES
Consolidation and
Onshore Storage :
21 M m3 py
For Export &
Coastal Shipping
( Considering only
5 active blocks and
excluding Petrobras )
Storage & Treatment
Small TankersShuttle
VLCC Export Tankers
FPSO
FPSO
Exp
ort
15
0 k
mAçu Superport
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Açu SuperportConstruction Site
Açu Superport General View
November/2009
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Açu SuperportConstruction Site
Threstle (2,500 m as of November 2009)
November/2009
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Steel Products
General Cargo
Iron Ore
Coal
Liquid Bulk
Açu SuperportUnder construction and attracting key industrial players
Açu Superport construction started in October/2007 and has already 66 MoUs in place
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Industrial areas rental
Up to 15.0 mtpyUp to 12.5 mtpy
Up to 7.5 mtpy
Iron Ore: Coal: Dry Bulk:Steel Products:
General Cargo: Supply Boats: Real Estate:
Up to 63.2 mtpy Up to 5.0 mtpy
1,000 berthings py
Açu SuperportMain activities
Capex ( for 100% of the project )
LLX Minas-Rio: US$ 900 M
LLX Açu (Non Ore): US$ 700 M
Liquid Bulk:
Up to 4.0 M m3 py
*According to Verax Feaseability Study as of June 08 and Company update
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Açu SuperportMilestones
Açu Superport Construction on Track
1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H112H11 1H12
Project
detailing
Construction
License
Construction
beginsStart up
Environmental
License
ANTAQ
Authorization
Project
detailing
Offshore
Construction
License
Onshore
Environmental
License
Start up
Offshore
Environmental
License
ANTAQ
authorization
Onshore
Construction
License
Construction
begins
Development
Construction
Operations
Under Construction
Under Construction
LLX M
inas Rio
LLX Açu
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Development CAPEX - USD M
40
193 197
283
184
3
16
8331
238
231
101
-
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012
LLX Minas-Rio LLX Açu
Volume Ramp Up (Mtpy)
52
3623
7870
87
105
0
20
40
60
80
100
120
2012 2013 2014 2015 2016 2017... ...2032
Açu SuperportVolume and Capex
Açu Superport total CAPEX of USD 1.6 Bn
56
522
415
103
276228
Minas Rio USD 900M
LLX Açu USD 700M
Total CAPEX USD 1.6 Bn
Actual
2222
Port AçuPort AçuPort AçuPort AçuPadrão Super Port Açu
Sudeste Port
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Sudeste PortLocation and Logistic Integration
Private mixed-use port terminal
Licensed for 50 Mtpy capacity
Direct railway link through MRS to Minas Gerais iron ore deposits
Port Service Agreement with MMX Sudeste already in place
Will also service third partieslocated in the Serra Azul region.
Highlights
MMX
Sudeste
MMX Sudeste
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Private Port Terminal dedicated to iron ore with operation start up in 2H11
Sudeste PortGeneral View
� Environmental and Construction License
Granted for 50 Mtpy
� 780,000 m² of back-area with a storage
capacity of 2,5 Mt of Iron Ore
LLX
CSN
VALE
VALE
CSN
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Sudeste PortGeneral View: Onshore Site
Last available location for a Bulk Terminal in Sepetiba region
Administrative Buildings
Rail Loop
Iron Ore Yard El. 32
Iron Ore Yard El. 06
RailcarDumper
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Sudeste PortIron Ore Operation
CONVEYOR BELT
STACKERRECLAIMER
UNLOADING
CAR DUMPER
RAILWAY SIDING
SHIP LOADERS
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Sudeste PortQuarry Operation
Quarry in operation recycled into an Iron Ore stockyard
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Sudeste PortMilestones
Sudeste Port will start its operation in 2011
1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11
Development
start#up
Environmental
Studies
Pedreira
Sepetiba
Acquisition
EIA
RIMA
EIA RIMA
Completed
Environmental
License
Construction
License Start up
Navy
Approval
ANTAQ
Authorization
Construction
begins
Development
Construction
Operations
Port Sudeste
Under Construction
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Development CAPEX - USD M
4421
44
514
117
-
100
200
300
400
500
600
2007 2008 2009 2010 2011
Volume (Mtpy)
12
31
4146
50 50 50
0
10
20
30
40
50
60
2011 2012 2013 2014 2015 2016... ...2020
Sudeste PortVolume and Capex
Development CAPEX: USD 740 Million
50 Mtpy of Iron Ore
Actual
30
900
2340700
603
227740
376
1737
261
0
500
1000
1500
2000
2500
3000
Minas Rio LLX Açu Port Sudeste
(Phase 1&2)
Total Capex Debt Total Equity
Needed
Equity
Partners
LLX S/A
Equity
Needed
LLX S/A
Equity
Existing and
New
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Sources & Uses
LLX’s Projects 100% (USD M)
Capital Increase:
R$ 600 M
Debt/ Equity assumption: 75/25 (except Minas Rio: 73/27)
R$/US$= 2,20
33% signed
67% eligible
Existing equity
280
280
553273
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Consolidated Financial Highlights
280
280
FUNDING REQUIREMENTS
Long Term (12 years) and attractively priced financing by BNDES for:
- LLX Minas-Rio : R$ 1,321 Billion signed
- LLX Açu - announced as elegible as of Nov, 2008.
- LLX Sudeste - announced as elegible as of April, 2009.
Financial Highlights @ September 30th, 2009
Cash Position (*) Debt
2007 2008 9M09 2007 + 2008 + 9M09 Actual 30/09/2009 3Q09
LLX Minas Rio (51%) R$ 40,0 R$ 182,0 R$ 158,6 R$ 380,7 R$ 36,1
LLX Açu (100%) R$ 29,4 R$ 153,0 R$ 24,4 R$ 206,8LLX Sudeste(100%) R$ 86,1 R$ 39,7 R$ 49,1 R$ 174,9
LLX Brasil(100%) R$ 3,6 R$ 49,1 R$ 52,7
TOTAL R$ 159,1 R$ 423,8 R$ 232,2 R$ 815,1 R$ 499,2 R$ 219,5
(*) Cash Position (includes LLX S/A)
R$ 463,0 R$ 219,5
R$ MillionCAPEX