APRESENTAO Log-In Logstica Intermodal S.A. December 2018 SUMMARY - - PowerPoint PPT Presentation
TTULO DA Institutional Presentation APRESENTAO Log-In Logstica Intermodal S.A. December 2018 SUMMARY HISTORICAL BACKGROUND (CHART 3) SHIPPING EFFICIENCY AND VOCATION OF BRAZIL (CHART 5) OPERATIONS: COASTAL SHIPPING, TVV
Log-In Logística Intermodal S.A.
December 2018
▪ HISTORICAL BACKGROUND (CHART 3) ▪ SHIPPING – EFFICIENCY AND VOCATION OF BRAZIL (CHART 5) ▪ OPERATIONS: COASTAL SHIPPING, TVV AND INTERMODAL TERMINALS (CHART 8) ▪ RESTRUCTURING (CHART 17) ▪ 3Q18 AND 9M18 RESULTS (CHART 27)
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HISTORICAL BACKGROUND
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Historical Background
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▪ IPO in 2007 as a spin off from Vale ▪ Order of 7 vessels (2 bulks and 5 containers) from EISA – Brazillian shipyard ▪ Cabotage volume increased from 32 thousand TEU (2007) to 143 thousand (2014), presenting a CAGR of 24%
IPO & Growth (2007-2015) Restructuring (2016-2017) Growth (2017-2018 onwards)
▪ EISA requested judicial settlement (“RJ”) in JAN/16 without delivering3 vessels (*EI-506, EI-507 e EI-508) ▪ Start process of renewing TVV concession agreement ▪ Major management turnaround measures implemented: ✓ Sale of bulk business for R$680 MM in 2016 ✓ Operational fleet restructuring (selling of Amazonia vessel and acquisition of Resiliente vessel – increase
✓ Restructuring debt with major lenders (BNDES/G4) ✓ Record AFRMM release in 2017 (>R$110M) ✓ Improvementof operation and organization structure ▪ Improvementin Brazillianeconomic outlook. ▪ Adjusted EBITDA (ex non-recurrent events) increased from R$38.6 MM (9M17) to R$102.8 MM (9M18) driven mostly by: ✓ 11% volume increase in container operations volume ✓ 18% increase in Log-In’s revenue ✓ Dilution of fixed costs and expenses. ▪ TVV concession agreement ends in 2023 and is expected to be renewed for an additional 25 years (up to 2048).
SHIPPING – EFFICIENCY AND VOCATION OF BRAZIL
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Coastal Shipping efficiency
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GEOGRAPHICAL ECONOMIC EFFICIENCY There are more than 8,500 km of navigable coastlines in Brazil. including the Amazon River, where there are 10,500 km. ENVIRONMENTAL EFFICIENCY Modal that has less affect on the environment Emissions reduction of CO2 in the atmosphere. Using natural ways, a low environmental impact in its implementation. ENERGY EFFICIENCY Low fuel consumption per useful ton transported compared to other modals. SOCIAL EFFICIENCY It contributes to a more efficient and rational economic growth Reduced number of trucks on the roads, accidents, deaths and related costs. LOWER INDEX OF DAMAGE TO CARGO
Redução significativa nos custos de serviços de logística com a utilização da cabotagem para longas distâncias Redução nos investimentos em CDs ou fábricas localizadas próximas aos pontos de consumo (otimização/escala da produção)
Brazil - A country ready for cabotage and its benefits
8.500 km
coast
✓ Brazil is the 5th largest country in the world in territorial dimension ✓ 8,500 km of ocean coast, reaching approx. 10,500 km navigable if we consider the extension of the Amazon River ✓ 80% of the population and 70% of industrial production are located up to 200 km from the coast ✓ Opportunity for significant reduction in logistics costs with the use
✓ Opportunity to reduce investments in distribution centers or factories near points of consumption
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OPERATIONS: COASTAL SHIPPING, TVV AND INTERMODAL TERMINALS
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Coastal Shipping: fleet and services
Vessels and allocation to services:
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Cabotage, Mercosur and Feeder
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SAM - Amazonas Service Operations
Cabotage, Mercosur and Feeder
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Cabotage, Mercosur and Feeder
Operations
Cabotage, Mercosur and Feeder
SAS - Atlântico Sul Service
Shuttle Service – Shuttle Rio
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Cabotage, Mercosur and Feeder
Operations
Cabotage, Mercosur and Feeder
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Cabotage, Mercosur and Feeder
Operations
Cabotage, Mercosur and Feeder
Amazonas Service Atlântico Sul Service Shuttle Rio Service Manaus Service
Door to door operation illustration
14 Road Section Road Section Maritime Section DESTINATION Recipient’s Plant
Loading Port
Unloading Port
ORIGIN Shipper’s Plant
➢ Specialized in the handling of containers and general cargo, located in the State of Espírito Santo ➢ Alternative for cargo import and export operations, with a wide offer of shipowners and routes to the main national and international ports ➢ Concession agreement of 25 years (until 2023), with automatic renewal for another 25 years. The renewal process has started ➢ Area of 108 thousand m2, capacity of 350 thousand TEU per year and its berth has a length of 450 meters
TVV – Vila Velha Terminal
15 General view Warehouse
Loading yard + Quay (left)
Loading yard (left) Loading yard (right)
Intermodal Terminals
Guarujá Terminal ▪ Located in the Port of Santos, the warehouse has an area of 5.5 thousand m² and is a reference Log-In in logistics planning and sustainability ▪ Known as Green Warehouse, the facility has high technology and sustainable solutions for low environmental impact Itajaí Terminal ▪ Itajaí Terminal demonstrates Log-In's ability to provide customized logistics solutions tailored to customer needs ▪ Developed to meet the logistics chain of a specific customer, it integrates road, rail and maritime modals ▪ The logistics operation of the terminal is carried out by Log-In
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RESTRUCTURING
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Operational Efficiency Liquidity Debt Profile
▪ Capitalization
process
▪ AFRMM -
regularization of receipts
▪ Debt restructuring ▪ Capture results
from the
project
▪ Vessel under
construction in China and bareboat chartered vessel
Log-In delivered all goals proposed for restructuring process expected for 2017 and 2018 (until this moment)
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Capitalization through exercise of warrants and issuance of shares
February 2017:
▪ Capital increase of R$24.0 million – through the exercise of warrants using
▪ Issuance of warrants in the amount of 22.6 million shares generating a potential
capitalization of R$46.3 million (exercise option up to September 30, 2019) June 2018:
▪ Additional Capitalization of R$26.0 million carried out through the issuance of 12.7
million of shares.
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Record AFRMM releases in 2017: R$110.6 million
Historic of AFRMM Releases (R$ million)
✓ In 2017 several proceedings overdue were released in favor of the Company.
AFRMM - Additional Freight for the Renewing of the Merchant Marine
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(G4) were concluded: BB, Santander, Itaú and Bradesco, in the amount of
in 59 installments (monthly and successive) and the remaining 60% in a single installment in May/23
Santander through the sale of TERCAM (Camaçari Terminal)
Debt: adequacy of payments flow
Renegotiated Amortization schedule - Sep 30, 2018:
The amounts of the principal installments refer to bank loans, using the real-to-US dollar exchange rate of March 31, 2016 and September 30, 2018, respectively.
Medium-term challenge Turnaround process will provide additional cash in order to support Company’s long-term Debt Schedule
Original Amortization schedule - Mar 31, 2016:
...to balance the financial obligations with the expectation
(Apr - Dec)
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Gross Margin after Variable Costs (%) – Coastal Shipping
Efficiency – Development of Gross Margin after Variable Costs in Coastal Shipping
Gross Margin excludes AFRMM and vehicle transportation operations.
Tendência
Cancellation of the construction project with the shipyard under judicial recovery in Brazil
▪ Jul/17 - notice of termination of construction contract with shipyard (three ships) ▪ Resulting in impairment of R$503 MM (net balance of fixed assets under construction at
the yard)
▪ Nov/17 - Hired Guangzhou Wenchong Shipyard (China) to construct container ship ▪ Expectation of completion in 3Q19
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Strike Steel General view Keel Laying Mangkut Typhoon effect 2 months ago Current Status 1 month ago Current Status
New vessel being constructed at Guangzhou Wenchong Shipyard
Medium-term fleet planning
TODAY UNTIL 3Q19 AS OF 4Q19
Own Brazilian ships (built in Brazil + under construction in China to be nationalized) Own vessels operated via tonnage right Bareboat chartered vessels via tonnage right Time chartered vessels via public interest
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3Q18 / 9M18 RESULTS
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✓ Costal Shipping EBITDA reached R$37.9 MM in 3T18 (a historic record) and R$91.7 MM in 9M18
Costal Shipping EBITDA and EBITDA Margin 3Q18 R$37.9 MM (17.0%) vs. 2Q17 R$20.0 MM (11.3%)
✓ EBITDA reached R$60 MM in 3T18 and R$152.7 MM in 9M18
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✓ Adjusted EBITDA of R$48.6 MM in 3Q18 (a historic record) and R$102.8 MM in 9M18
EBITDA and EBITDA Margin (adjusted by non-recurring events) 3Q18 R$48.6 MM (17.7%)
✓ Proceeds from the sale of TERCAM (Camaçari Terminal - Bahia) for R$48 MM were used to reduce
debt (47% with Santander, from R$102 MM to R$54.1 MM)
Economic and financial data
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Income Statement
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EBITDA increased 166% in 9M18
(R$ MM)
166% 31
Developments of EBITDA and Margin (Adjusted) over quarters
(R$ MM)
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In addition to the debt profile improvement, Log-In has begun to capture gains from the restructuring process
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Trend
Truck drivers strike
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