LLX Presentation Aug2010 Vers 10082010

8/9/2019 LLX Presentation Aug2010 Vers 10082010

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August, 2010


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This presentation relating to LLX Logstica S.A. (LLX) includes forward-looking statements, as that term is defined in the Private SecuritiesLitigation 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. Allstatements other than statements of historical facts are statements that could be deemed forward-looking statements and are oftencharacterized by the use of words such as projects, expects, anticipates, intends, plans, believes, estimates, may, will, orintends, or by discussions or comments about our objectives, strategy, plans or intentions and results of operations. Forward-lookingstatements 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 statementsmay not be indicative of results or developments in future periods. We caution participants of this presentation not to place undue reliance onthese 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 andlicenses on a timely basis or at all, and changes in economic, political and regulatory conditions. We caution that the foregoing list is notexhaustive. When relying on forward-looking statements to make decisions, investors should carefully consider these factors as well as other

Disclaimer

2

.

LLX does not undertake to update our forward-looking statements unless required by law. This presentation is neither an offer to sell (whichcan only be made pursuant to definitive offering documents) nor a solicitation of an offer to buy any securities in the United States, or any otherjurisdiction. 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 absentregistration 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 partwithout LLXs prior written consent.

Investor Relations

Otvio Lazcano CEO

Antonio Castello Branco Manager

Tel. 55 21 2555-5661

[email protected]


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1. Overview

3


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EBXs publicly held companies

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:

Mkt CapUS$ 3.5 bn

Mkt CapUS$ 3.5 bn

Mkt CapUS$ 34.2 bn

4

-

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*As of July 30th 2010

*R$/USD 1,76

Mkt Cap EBX Group*US$ 45.7 bn

Mkt CapUS$ 3.0 bn

Mkt CapUS$ 1.6 bn


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BNDESPAR joins LLXs Shareholder structureas part of a R$ 600 M Capital Increase

54%

Controlling

Shareholder + Other Minority Shareholders

18% 3% 25%

% Shareholding

Post CapitalIncrease

5

51%

LLX

Minas-Rio

LLX

Au

70%

30%

Centennial

LLX

Sudeste

70%

30%

49%

MMX

Minas-Rio

100%

BNDESPAR has performed an extensive due diligence, which attested the quality of LLX projects

Centennial

Au Superport


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Experienced Management Team

OfficerOfficer ExperienceExperience

Otvio Lazcano

CEO

Economist and MBA from Fundao Dom Cabral.

11 years of experience at CSN (Companhia Siderrgica Nacional)

Former CFO and IRO of CSN 4 years at Aracruz

Leonardo Pimenta Gadelha

Chief Financial Officer

Civil Engineer from from Pontifcia Universidade Catlica of Rio de Janeiro and is a CharteredFinancial Analyst (CFA) since 2003.

Former CFO of Log-In Logstica Intermodal (spin-off and IPO).

5 years at Vale: corporate governance department and M&A area (Caemi and INCO deals).

Eike Fuhrken Batista

Chairman and Founder

Founder and CEO of EBX, entrepreneurial conglomerate founded in 1983

6

Jos Salomo

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 Tubaro, Porto de Praia Mole, TVV, Pasha Terminal LosAngeles, Docenave and Brasil Ferrovias.

Luis Alfredo Osrio 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.

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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LLXs Projects

Au Superport

Fully integrated in Brazils main logistic network and to 72% of the countrys GDP

7

Sudeste Superport


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LLX: Innovating Ports Infrastructure

LLXs Port-Industry Complex : world-class logistic solutions

A Typical Brazilian Port

Industrial Area

LLX: Au Superport

8

Au Industrial Complex: 90 Km2

61 MOUs

No area for port growth

Logistic bottlenecks

Industrial District concept under develpoment


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LLX : Unclogging Brazils Logistics

LLXs Ports: reinforcing Brazils capesize capacity and beyond

Manaus

Itaqu

Fortaleza

Suap

Salvador

AmazonRiver

9Source : (*) CEL/COPPEAD 2008 vol 1 and Port Sites

Vitria

Rio de Janeiro

Santos

Paranagu

So Francisco do Sul

Rio Grande

80% of the Brazilian population liveswithin 200 km (124 miles) of the coast

Only 7% of Brazilian Ports are able toreceive capesize vessels*.


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Company Services rendered Revenue Model

LLX Minas Rio Iron Ore handlingFirm contract with Anglothat guarantees 15% py IRRto firm in US$ unleveraged

LLXs Business Model

LLX is signing long term agreements with setorial industry leaders guaranteing

a steady cashflow and dividends to shareholders

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LLX Au

Multi product handling(Steel,Coal,Liquid & DryBulk,General Cargo) ; LandLease and Services &Utilities

Tariffs negotiated to ensure aminimum 15% py IRR to

Firm in US$ (under Long Termcontracts) unleveraged

LLX Sudeste Iron ore handling

Long term contracts withfixed tariffs competitivewith comparable marketrates. Not linked tocommodity prices.


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1111

or uor u

Au Superport


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Au Superport Highlights

The largest investment in port development in Latin America, with state-of-the-artfacilities: more than R$ 4.0 billion investment in port infrastructure;

Under construction, to be completed by 1H2012

Brings the concept of Port Industry integration in a very large scale : 90 Km

2

Anchored on a long-term contract to ship Anglo Americans Minas Rio iron orewith a guaranteed 15% IRR to firm

12

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

Steelmaking ( Wuhan);

Power generation ( MPX);

Cement (Votorantim , Camargo Correa);

Oil and Gas ( Shell, Devon, White Martins);

Total investments in Au Industrial District would reach more than USD 36 billion

Automotive;

metal mechanic;

dry & liquid bulk handling;

general cargo;

services.


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Au Industrial ComplexA new cluster for heavy industry

> 90 Km2 Industrial Complex (larger than Manhattan Island)

Industrial Complex concept under development


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Au SuperportLocation and Logistic Integration to main Railway and Highway network

A Complete Logistic Corridor

14

BR 101 to be duplicated

A 45 km new railway track will connectAu Superport to the FCA railway within

a multimodal Logistic Corridor

LOGISTICS CORRIDOR


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Au SuperportA One Stop Shop for the Oil & Gas Industry

Consolidation and

Onshore Storage :

21 M m

3

py

For Export &

Coastal Shipping

Storage &Treatment

VLCC ExportTankers

FPSO

Au Superport

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OIL COMPANIES

Small TankersShuttle

FPSO

Campos Basin

85% of Brazil OilProduction


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Au SuperportOil Treatment Facility

Desalting DewateringBlending

FPSOs

Oil Treatment

For 800,000 bpd

(+)

16

Facility

Oil Export VLCCs

Investment of

US$ 1.45 billion

Business opportunity witha leveraged IRR > 70% py

Source : Verax Feasibility Study as of March 2010


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Au SuperportConstruction Site

Threstle completed (2,900 m as of March 2010)

17


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Au SuperportConstruction Site

Rocks Stockyard : Breakwater construction underway

18

July /2010


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Au SuperportUnder construction and attracting key industrial players

Au Superport construction started in October/2007 and has already 61 MoUs in place

OIL

COAL

19

IRON ORE

OIL


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Au SuperportMain activities

Capex ( for projects @ 100% )

LLX Minas-Rio: R$ 1.9 billion

LLX Au (Non Ore): R$ 2.4 billion

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Up to 12.6 mtpy

Up to 10.2 mtpyIron Ore:

Coal:

Steel Products:Real Estate:

Industrial Areas RentalUp to 60 mtpy OilUp to 46.4 Mm3 py

Pig Iron:Up to 2.0 mtpy

Slag:Up to 2.0 mtpy

Granite:Up to 1.0 mtpy



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Au SuperportMilestones

Au Superport Construction on Track

1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H112H11 1H12

Projectdetailing

ConstructionLicense

Construction begins

Start up

Environmental

License

ANTAQ

Authorization

Under Construction

LLXMinas-R

io

21

Project

detailing

OffshoreConstruction

License

OnshoreEnvironmenta

l License

Start up

Offshore

Environmental

License

ANTAQ

authorization

Onshore

Construction

License

Construction

begins

Development

Construction

Operations

Under

ConstructionLLXAu


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1.200

Au SuperportVolume and Capex

Au Superport total CAPEX of R$ 4.3 billion

Minas Rio: R$ 1.9 billion

LLX Au: R$ 2.4 billion

1106

Volume Ramp up (mtpy)

78

357475

691

22060

29

15339

415

584

552

353254 27 10

-

200

400

600

800

1.000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

LLX Au LLX Minas-Rio

22

510

108

Actual

514

804

612

10

48

106

123 125 130132 134

-

20

40

60

80

100

120140

2012 2013 2014 2015 2016 2017 2018... ...2032



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2323

or uor uPadro Super Port Au

Sudeste Superport


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Sudeste SuperportLocation and Logistic Integration

MMX

Sudeste

MMX Sudeste

24

Private mixed-use port terminal

Licensed for 50 Mtpy capacity (first phase),potential expansion to 100 Mtpy

Direct railway link through MRS to MinasGerais iron ore deposits

Port Service Agreement with MMX Sudestealready in place

Will also service third parties located in theSerra Azul region.


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Sudeste SuperportGeneral View

Environmental and Construction License

Granted for 50 Mtpy and Brazilian Navy

Authorization for a 2nd pier to 100 Mtpy;

780,000 m of back-area with a storage

VALE CSN

25Private Port Terminal dedicated to iron ore with operation start up in 1H12

LLXCSN

VALE


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Sudeste SuperportGeneral View: Onshore Site

AdministrativeBuildings

Iron Ore Yard El. 32

Iron Ore Yard El. 06

26Last available location for a Bulk Terminal in Sepetiba region

Rail Loop

RailcarDumper


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Sudeste SuperportConstruction at full speed

27Quarry in operation recycled into an Iron Ore stockyard


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Sudeste SuperportMilestones

Sudeste Superport will start its operation in 1H 2012

2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12

Development

start-up

Environmental

Studies

Pedreira

Sepetiba

Acquisition

EIA

RIMA

EIA RIMA

Completed

Environmental

License

Construction

LicenseStart up

Navy ANTAQte

Superport

28

Constructionbegins

Development

Construction

Operations

Under ConstructionSu

de


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600

700

800

Sudeste SuperportVolume and Capex

40,0

50,0 50,0 50,0 50,0 50,0 50

40,0

50,0

Volume Ramp up (mtpy)CAPEX (R$ Million)

Sudeste Superport Total CAPEX: R$ 1.8 billion

86 40 63

741 712

1150

100

200

300

400

2007 2008 2009 2010 2011 2012

29

14,5

-

10,0

20,0

30,0

2012 2013 2014 2015 2016 2017 2018... ...2032


Actual


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Ebitda Breakdown

Ebitda at Steady State (Projects @ 100%) :

Cumulative Ebitda curve

30

R$ 3.5 billion

Leas

ingofAreas



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2.000

2.500

3.000

3.500

4.000

Financial Summary( projects @ 100%)

Ebitda Ramp up (R$ M)

31

-

500

1.000

1.500

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

CAPEX :

R$ 6.1 billion

IRR ( to equity) :

37% py

Ebitda Margin at Steady State :

78%



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Sources & Uses

LLXs Projects @ 100% (R$ M)

R$ 6,1 Bi 75% debt25% equity

1.757 1513543

970499600

4.000

5.000

6.000

7.000

Existing equity

Capital Increase

32

Debt/ Equity assumption: 75/25 (except Minas Rio: 73/27)

1.881

6.053

4540

2.415

-

1.000

2.000

3.000

LLX MinasRio

LLX Au LLXSudeste

TotalCAPEX

Debt Total EquityNeeded

EquityParters

LLX EquityNeeded

LLXExistingEquity

56% signed


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Consolidated Financial Highlights

Cash Position (*) Debt

2007 - 2008 2009 1Q10 2Q10 2007 - 2Q10 Actual 06/30/2010 2Q10

LLX Minas Rio (51%) 222 242 49 102 615

LLX Au (100%) 182 39 10 18 249

LLX Sudeste(100%) 126 63 10 14 213

LLX Brasil(100%) 53 - - - 53

TOTAL 583 344 69 134 1.129 346 238

(*) Cash Position (includes LLX S/A)

CAPEX

Financial Highlights @ June 30th, 2010

R$ Million

346 238

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Financing agreements signed with BNDES:

LLX Minas Rio: R$ 1.321 Billion, 12 years loan (30 months grace period) at TJLP+ 2.5%py

LLX Sudeste: total financing of R$ 1.213 Billion under two agreements:

1. R$ 408 Millions, 10 years loan (2 yrs grace period) at 4.5%py, fixed rate for local equipmentacquisition;

2. R$ 805 Millions, 12 years loan ( 2 yrs grace period) at TJLP + 2.18% py structured as a projectfinance.


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Thank you!www.llx.com.br

Email: [email protected]

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Phone: +55 21 2555 5661

LLX Presentation Aug2010 Vers 10082010

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