LLX Corporate Presentation - November 2011

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Corporate Presentation November 2011

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Transcript of LLX Corporate Presentation - November 2011

Page 1: LLX Corporate Presentation - November 2011

Corporate PresentationNovember 2011

Page 2: LLX Corporate Presentation - November 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

[email protected]

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EBX’s publicly held companies

Mkt Cap EBX GroupUS$ 38.1 bn

Mkt CapUS$ 1.6 bn

Mkt CapUS$ 2.4 bn

Mkt CapUS$ 2.8 bn

Mkt CapUS$ 3.0 bn

Mkt CapUS$ 27.2 bn

October 31st, 2011

R$/USD – 1,68

LLX is part of the EBX Group, an industrial conglomerate founded and led by Brazilian entrepreneur Eike F. Batista, who has a proven track record in developing new projects in the infrastructure and natural resources sectors.

EBX Group’s investments are concentrated in the companies LLX (logistics), MMX (mining), MPX (energy), OGX (oil and gas) and OSX (offshore industry), listed on the Novo Mercado of the BM&FBOVESPA, the segment with the highest standards of Corporate Governance.

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Brazilian Port Sector

The brazilian port facilities operate with current bottlenecks such as:— Land access restrictions— Small and low-skilled berths— Draft restrictions— Lack of automation in cargo handling

The private capital is essential to promote the development of brazilian port infrastructure

Rio Amazonas

Manaus

Itaquí

Fortaleza

Suapé

Salvador

Vitória

Santos

Paranaguá

São Francisco do Sul

Rio Grande

Typical Brazilian port: strangled by the growth of the city

80% of the population lives 200 km from the coast

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Page 5: LLX Corporate Presentation - November 2011

A LLX

LLX was created in March 2007, to provide logistic services through the

development of major port systems in Brazil:

Strategic location and large back-areas;

Capability to receive large vessels;

Contiguous industrial area;

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;

Social and Environmental Responsibility

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Timeline

LLX is created

Anglo American

acquires 49% of

LLX Minas-Rio

Mar/07

LLX shares begin trading

on the BOVESPA Stock

Exchange Jul/07

Jun/08

Dez/09

Installation License

for Logistics Yard

Out/09Installation License for

MPX’s Thermal

PowerPlant

Jul/10 ANTAQ’s Authorization

Set/10

Installation

License for OTF

Out/10LLX’s Partial Spin Off/Portx is created

Jul/11

Installation License

for Onshore Terminal ANP’s Authorization for OTF

Out/11

Environmental

License for Ternium

MoU with FCAAgo/11

Out-Nov/11

TX2 land lease contracts

signed: OSX, NKTF and

Technip

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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

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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

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Açu SuperportAuthorization to move 1.2 mbpd

Expo

rt

Storage & Treatment

VLCC/ Chinamax Tankers

Campos Basin

85% of Brazil Oil Production

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Açu SuperportUnique 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

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Açu SuperportUnique location and integrationwith the railway network

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LLX: capability to receive VLCCs/ChinamaxOnly 7% of Brazilian Ports are able to receive capesize vessels*

Source : (*) CEL/COPPEAD 2008 – vol 1 and Port Sites

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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.

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Açu Industrial Complex A new cluster for the offshore and heavy industry

TERNIUM STEEL PLANT

TERNIUM STEEL PLANT

LOGISTICS YARD/ OTF LOGISTICS YARD/ OTF

ENVIRONMENTAL RESERVE AREA

40KM2

ENVIRONMENTAL RESERVE AREA

40KM2

X CITYX CITYWUHAN STEEL

PLANTWUHAN STEEL

PLANT

SILICON VALLEYSILICON VALLEY

METAL-MECHANIC INDUSTRIES

METAL-MECHANIC INDUSTRIES

OFFSHORE INDUSTRIES

STEEL/SOLID BULKSTEEL/SOLID BULK

MPX THERMAL POWER PLANTS

MPX THERMAL POWER PLANTS

3.000 m

1.400 m

IRON ORE IRON ORE

CRUDE OIL

CRUDE OIL

OSX SHIPYARD

OSX SHIPYARD

15.000 m

IRON ORE TERMINALIRON ORE TERMINAL

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COALCOAL

CEMENT PLANTSCEMENT PLANTS

NKTF

3.721 m2.843

m

300 m

TECHNIP

LIQUID BULKLIQUID BULK

SUPPLY BOAT

SUPPLY BOAT

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Açu SuperportHighlights

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, up to 40 berths and able to receive very large carriers (including

Chinamax) thanks to its 26 meters draft.

More than 60 contracts and MoUs signed with companies from sectors such as:

Resources and 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

Steelmaking (Ternium, Wuhan);

Power generation (MPX);

Cement (Votorantim , Camargo

Correa);

Offshore Industries (Acergy, Technip);

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TX1One of the largest offshore terminal in Latin America for Iron Ore and Oil

IRON ORE IRON ORE

CRUDE OIL CRUDE OIL

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TX1: Main characteristicsIron 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 26 m for VLCCs and

Capesizes

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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

(+)

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TX1: Offshore TerminalTug boat Pier and 100% of Iron Ore Pier Completed

3.000 m

444 m

27.5 m

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TX1: Dredging for execution of Oil Treatment Facility’s landfill

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Açu BreakwaterThe world’s largets concrete block builder

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Kugira Docked at Porto do Forno, in Arraial do Cabo

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Concrete Block for the Breakwater construction

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TX2The longest and most efficient quay for bulk cargoes and offshore industries

OFFSHORE INDUSTRIES

OSX SHIPYARD

OSX SHIPYARD

COALCOAL

NKTF

STEEL/SOLID BULKSTEEL/SOLID BULK

TECHNIP

SUPPLY BOAT

SUPPLY BOAT

LIQUID BULKLIQUID BULK

MPX THERMAL POWER PLANTSMPX THERMAL POWER PLANTS

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TX2Main 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

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TX2Onshore Channel – Dredging Sequence

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TX2Dredging of the Cannal

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TX2 Dredging Evolution

August/2011

Cyrus II began the process of dredging the channel and is progressing at a rate of 25 meters per day, extracting a daily volume of 34,000 m3 of sand.

November/2011

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Açu SuperportMain 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

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Açu SuperportMilestones

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

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Açu SuperportCapex: R$ 3.8 bilion

Iron Ore ProjectLLX Açu

Capex 3T11: R$ 272 million

Total Capex (Project) : R$ 2.8 billion

Total Capex (Project) : R$ 2.273 billion

Capex (2007 -2011) : R$ 1.5 billion

Capex LLX Minas-Rio: R$ 974 million

Capex AFMR : R$ 1.3 billion

Cash Position: R$ 530.6 million

Total Debt: R$ 888.1 million

Net Debt: R$ 357.5 million

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Contracts SignedAnnual Revenues: R$ 67 million

MPX

Term: 35 years, renewable for a further 35 years

Area:2,243,800m2

Rvenue : R$9.17 million per year

Start Date: November 24th, 2010NKTF

Term: 20 years, renewable for a further 20 years

Area:121,905m2 – with 210m of quay

Revenue: R$8 million per year

Start Date: October 20th , 2011OSX

Term: 40 years, renewable for a further 40 years

Area: 3,200,000m2

Revenue: R$28 million per year

Start Date: October 31st , 2011Technip

Term : 25 anos, renewable for a further 25 years

Area:289,800m2 – with 500m of quay

Revenue: R$22 million per year

Start Date: November 18th, 2011

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LLX: Social & Environmental Responsibility

Professional Qualification Program Turtle Release - partnership with the Tamar Project Actions to strengthen the fishing activity

$ 70 million already invested in more than 50 social and environmental projects

Assistance programs to fishing activities, society and environment

Professional Qualification Program in partnership with Senai trained nearly 800

people and will provide 3,300 positions for professional development courses and

technical support in 2012

40 km ² area dedicated to create an Environmental Reserve

Health and safety programs

The Acu Superport at full capacity will generate 50,000 jobs

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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