View
2
Download
0
Category
Preview:
Citation preview
Credit Suisse – Latin America Investment Conference January 30-31, 2018
Contents
About Santos Brasil
Port of Santos
Tecon Santos
Tecon Imbituba
Tecon Vila do Conde
TEV – Vehicle Terminal
Logistics
Investments & Financial Highlights
Corporate Governance
Sustainability
2
12
Libra
BTP
Rodrimar
Ecoporto
Embraport
About Santos Brasil Privileged location
3
1997
Santos Brasil was founded to participate in
the privatization of the Port of Santos. The
company acquired Tecon Santos for a 25-
year concession period, renewable for
another 25 years.
2006
A successful IPO took place,
strengthening the company’s
Corporate Governance and
preparing it for further expansion.
2007
Acquisition of the logistics arm
(Santos Brasil Logística) enabling the
company to provide large-scale
logistic services to customers.
2008
Acquisition of Imbituba and Vila do
Conde container terminals, aiming to
attend the Brazilian Coast and to
become a nationwide leader in Logistics
and Container Terminal Operations.
2009
Acquisition of the Santos Vehicle Terminal
for a 25-year concession period, renewable
for another 25 years.
2010
Corporate restructuring, merger of
the business units into the holding
company, and rebranding.
2012
Tecon Santos sets a new record in
the Brazilian port sector, handling
105,530 containers in one month.
2013
Tecon Santos received the biggest
vessel of the port’s history. Standard &
Poor's upgrades the Company’s rating to
“brAAA”, the highest grade for a
Brazilian company.
2014
Santos Brasil surpassed the 200
movements per hour (MPH) mark on a
single vessel, maintaining an average of
100 MPH in Tecon Santos.
2015
Tecon Santos concession is early
renewed for an additional 25-year
period.
2016
Santos Brasil’ shares migrate to
“Novo Mercado”, B3’s (ex-
BM&FBovespa) segment with the
highest corporate governance level.
All preferred shares are converted to
voting shares.
2017
Tecon Vila do Conde concession is
renewed for an additional 15-year
period. An amendment to the Port Law
increases the maximum concession
period for public port terminals to 70
years, from 50 years prior.
History
About Santos Brasil
4
About Santos Brasil
Publicly-traded company, listed in B3 (ex-BM&FBovespa)
Five terminals on the Brazilian coast
- Three Container Terminals
- One Vehicle Terminal
- One General Cargo Terminal
Container throughput: 1.53 million TEU (twenty-foot
equivalent unit) in 2016 and 1.48 million TEU in 2017
Port-to-Door full logistic solution (Santos Brasil
Logística)
19% of the Brazilian throughput*
* Source : ANTAQ 2016
TECON
IMBITUBA
DISTRIBUTION
CENTER (SÃO BERNARDO
DO CAMPO)
TECON
SANTOS
TECON VILA
DO CONDE
TEV
BONDED LOGISTICS
CENTERS (SANTOS AND GUARUJÁ)
TCG IMBITUBA (GENERAL CARGO TERMINAL)
Highlights
5
Port of Santos
Largest Port in South America
Accounts for more than 25% of Brazilian trade
balance
Port hinterland covering 55% of Brazil’s GDP
Privileged rail and road connections
~90% of São Paulo’s industrial base is located less
than 200 kilometers from the Port of Santos
Source: ANTAQ
39%
3% 2% 2% 13%
8%
8%
6%
4%
5%
3% 2% 1%
2%
Santos Other Southeast South North /Northeast Others
Rio de Janeiro Itaguaí / Sepetiba Vitória Itajaí/Navegantes
Paranaguá Rio Grande Itapoá/S. F. do Sul Suape
Manaus Salvador Pecém Fortaleza
59%
‘Must-call port’ in South America
Brazilian Ports (volume market share – 2016)
6
7 (1) The long-haul ESA service, with route to Asia, operated at Tecon Santos until the end of April 2017;
Source: CODESP and Santos Brasil
Port of Santos Tecon Santos’ market-share in 2017: 33.9%
19-year CAGR (1998 – 2017)
- Port of Santos: 8.6%
- Tecon Santos: 9.2%
Container throughput in 2017 x 2016
- Port of Santos: +5.8% (+8.1% in TEU)
- Tecon Santos: -9.7% (-7.7% in TEU)
- Tecon Santos ex-ESA (1): +4.2%
799 775 801 1,048
1,224
1,560
1,883
2,268 2,446 2,533
2,685
2,252
2,722 2,984
3,104
3,448 3,656
3,780 3,564
3,854
248 302 346 350 436
612 746
1,008 1,159
1,253 1,270
1,044
1,355 1,487
1,733 1,811
1,380 1,314 1,426
1,316
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Container throughput (TEU x 1,000) Port of Santos
Tecon Santos
TECON
SANTOS
8
7
Tecon Santos Best solution for containers in South America
9
Largest container terminal in South America
Growth capacity: CAPEX plan of R$ 1,3 billion
Structure to receive Post-Panamax vessels
Operation with internet access
Equipment is 100% GPS controlled
Annual capacity: 2,000,000 TEU
- Average monthly productivity per crane: 37 MPH
- Average monthly productivity per vessel: 105 MPH
- Total area: 596,000 m²
- Quayline extension: 980m + 310m (vehicle terminal)
- 13 STS (ship-to-shore gantry cranes) and 1 MHC (mobile harbour crane)
- 46 RTG / 18 reach stackers
- 4 internal railway lines
11
47 53
80
94
106 105 100
1997 2005 2008 2013 2014 2015 2016 2017
MPH
R$ 2.9 billion(1) invested to upgrade and expand the terminal
High Productivity - movements per hour per vessel (MPH)
Tecon Santos
10 (1) IGP-M inflation adjusted
Monthly Average 100 MPH
Tecon Santos in 1997: 11 MPH
Tecon Santos in 2017: 100 MPH
Automation
Focus on efficiency
New Capacity
2,400,000 TEU
Estimated CAPEX
R$ 1.3 billion (US$ 400M)
NEW LAYOUT
Next investment cycle: cutting-edge technology, modern layout
Tecon Santos
Quay extension
11
Inserir imagem aqui,
preenchendo o espaço por
completo.
Tecon Imbituba
TECON
IMBITUBA
12
Port terminal ready to receive Post-Panamax vessels
Close to Santa Catarina and Rio Grande do Sul industrial zones
Competitive advantages: 24/7 operation, natural water draft, favorable
weather conditions
Benefit of adjacent infrastructure projects:
- The widening of BR-101 federal highway
- Construction of Coastal Railway
- Port of Santos’ draft increase to 15 meters
Annual capacity: 450,000 TEU
- Total area: 207,000 m²
- Quayline extension: 660m / Water draft: 14.5m
- 2 STS (ship-to-shore crane) and 2 MHC (mobile harbour crane)
- 8 reach stackers
7
Tecon Imbituba Premium location at the Southern Region
13
R$ 965 million(1) invested since 2008
Improving Productivity - movements per hour per vessel (MPH)
Tecon Imbituba
14
40
49
57 63
67
2013 2014 2015 2016 2017*
MPH
Monthly Average 67 MPH
(1) IGP-M inflation adjusted. Includes investments in Imbituba General Cargo terminal
(2) July 2017
Container Terminal
Imbituba Hinterland
Pork and Poultry Production
Rio Grande do Sul Industrial Zone
Tecon Imbituba
Paranaguá 725,041 TEU*
Itapoá / São Francisco do Sul 554,907 TEU*
Imbituba 27k TEU in 2016 (50k TEU in 2017)
Rio Grande 705,154 TEU*
Itajaí / Navegantes 1,104,143 TEU*
* Source: Volume in 2016 (ANTAQ)
PR
SC
RS
Potential for volume increase
Tecon Imbituba
Tecon Imbituba and its peer terminals
(Itajaí/Navegantes and Rio Grande)
are equidistant from the industrial
zones and the consumption centers
in the Southern region
15
TECON
VILA DO
CONDE
16
7
Tecon Vila do Conde
Access to all continents, directly or through the main Caribbean hub ports
Brazilian’s second largest cabotage port
No physical limitation to receive large vessels
Major competitor (port of Belém) is a river port with limited draft (~ 6 meters)
Best logistics to serve the North and Amazon regions: logistics with container
barges using different rivers’ basins
Main cargoes: high-value metals and minerals, kaolin, wood, frozen beef, frozen
fruits and pepper
Annual capacity: 140,000 TEU
- Total area: 86,615m²
- Quayline extension: 254m / Water draft: 13.0m
- 2 MHC
- 8 reach stackers
Located in the delta of Amazon River region
17
TECON VILA DO CONDE
Vila do Conde x BELÉM
Main Cargo: Wood
Vila do Conde x MACAPÁ-AP
Main Cargoes: Chemical Products
Vila do Conde x SANTARÉM X ITAITUBA
Main Cargo: Wood
Vila do Conde x MUNGUBA
Main Cargoes: Kaolin and Cellulose
Vila do Conde x CAMETÁ
Main Cargo: Palm Oil
Vila do Conde x TUCURUÍ
Main Cargo: Silicon
Vila do Conde x MANAUS-AM
Main Cargoes: Spare Parts and
Chemical Products
Vila do Conde x ALTAMIRA
Main Cargo: Machinery
Vila do Conde
Tecon Vila do Conde North Region: Inland waterway cargo transportation
18
Neighbor of Tecon Santos
Handling of different types of cargo: trains, dismantled industrial
plants, power transformers, dismantled machinery, large sculptures
etc
Annual capacity: 300,000 units
- Static capacity: 10,000 units
- 2016 throughput: 179,888 units (219,499 units in 9M17)
- Total area: 164,000 m²
- Quayline extension: 310 m
TEV - Vehicle Terminal Largest vehicle terminal in Brazil
19
Taylor-made logistics projects, integrating maritime transport to exporters and
importers needs
Potential to increase customers’ competitiveness: eg. the “K10” logistics
operation for BASF
Synergies between integrated logistics and port operations
Infrastructure:
- Distribution Center in São Bernardo do Campo (105,000m²)
- CLIA Guarujá (bonded warehouse - 52,900m²)
- CLIA Santos (bonded warehouse - 64,755m²)
- Own truck fleet with 135 GPS-tracked trucks
Logistics Vertical integration
20
Tecon
Santos
Bonded warehousing
- Tecon Santos (left bank)
- Clia Santos (right bank)
- Clia Guarujá (left bank)
Distribution
Center
Imports
Container
Transportation
Just-in-Time
delivery
to Industrial
Plants
Exports
Container
Transportation
Imports
Just-In-Time
Exports
Port terminals and Logistics
Main clients
21
22
Investments R$ 4.78 bilhões(1) in 20 years
M&A
1997 – Tecon Santos bidding
2006 – Santos Brasil IPO
2007 – Santos Brasil Logística acquisition
2008 – Tecon Imbituba bidding & Tecon Vila do Conde acquisition
2009 – Vehicles terminal bidding
CAPEX
2004/2006 – Tecon Santos first expansion
2008/2010 – Tecon Santos second expansion
2008/2011 – Tecon Imbituba expansion
274
95
190 220
86 5 12 10 48 28
61 91
112 97
127
297 197
124
184
98 85
28 27 15
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
M&A CAPEX
(1) IGP-M inflation adjusted
418 488
727 661
866
1,125
1,293 1,378
1,004 965 834
618
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 9M17
Net Revenues (R$M)
36
EBITDA and EBITDA Mg. Financial Highlights
23
(99)
93
46 65
112
247 270 255
92
(18) (20) (18)
-23.6%
19.0%
6.3% 9.8%
12.9%
22.0% 20.9% 18.5%
9.1%
-1.9% -2.4% -2.9%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 9M17
Net Income (R$M) and Net margin (%)
162
224 267
219
310
457
551 529
293
147
87 57
38.6%
45.9%
36.7% 33.1% 35.8%
40.6% 42.6% 38.4%
29.2%
15.2% 10.4% 9.2%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 9M17
EBITDA (R$M) and EBITDA margin (%)
Port terminals (quay)
41%
Port terminals (warehousing)
31%
Logistics 22%
Vehicles terminal 6%
Net Revenues Breakdown (1)
(1) Does not consider intracompany eliminations
36
EBITDA and EBITDA Mg. Debt Leverage and Cash Flow
24
84
323 359
410
297
199
140 108
40 2
0.31x
1.47x
1.16x
0.90x
0.54x 0.38x
0.48x
0.73x
0.46x 0.03x
2008 2009 2010 2011 2012 2013 2014 2015 2016 9M17
Net Debt (R$M) and Net Debt / EBITDA (1)
283
223 228
386
448 411
265
168
122
60
2008 2009 2010 2011 2012 2013 2014 2015 2016 9M17
Operating Cash Flow (R$M)
252
641
466
705
433 322 358 340
233 235
55% 53%
65%
51%
62%
54% 56% 59%
29%
48%
2008 2009 2010 2011 2012 2013 2014 2015 2016 9M17
Total Debt (R$) and Long-Term Debt (%)
S&P – Corporate rating in national scale: brAA-
(1) Last-twelve-month EBITDA
34% 37% 30%
79% 74% 73% 83% 82% 88%
97%
66% 63% 70%
21% 26% 27% 17% 18% 12%
3%
2008 2009 2010 2011 2012 2013 2014 2015 2016 9M17
Total Debt - Currency Local currency (BRL)
Foreign currency
“Novo Mercado” listing on B3 (ex-BM&FBovespa)
100% Tag Along for all minority shareholders
One Share, One Vote (no shareholders agreement)
Board of directors: 7 members formed by shareholders
Permanent Fiscal Board
Management:
- Stock Options, Performance Shares and Matching for key executives;
- Compensation program for managers and employees: EBITDA and EVA oriented;
- Individual performance plans = clear and quantifiable targets;
- Progression, promotion and compensation based on meritocracy;
38
Corporate Governance All preferred shares converted to voting shares in 2016
25
International Market
Investments 29.0%
PW237 Participações
22.4%
Multi STS Participações
6.1%
Richard Klien 6.0%(1)
Dynamo 9.8%
Others 25.7%
Management
0.2%
Treasury 0.8%
Shareholding Structure
Total of 666,317,880 voting shares
(1) Includes the stake of the fund ‘RK Exclusivo FIA’
CEO – Antonio Carlos Duarte Sepúlveda - Mr. Sepúlveda is the Chief Executive Officer of Santos Brasil. He has been working
in the port sector since 1992, and in Santos Brasil since 2000. He was Chief Operation Officer of the company from 2002 to 2010.
Mr. Sepúlveda holds a degree in Civil Engineering and an MBA from Saint Joseph’s University in Philadelphia.
CFO – Daniel Pedreira Dorea - Mr. Dorea is the Chief Financial Officer, Investor Relations Officer and a member of the Board of
Directors of Santos Brasil Participações S.A.. He was a partner at Opportunity Asset Management (USD 8bn of AUM), responsible
for managing its private equity portfolio from 2011 to 2016. Between 2014 and 2016 he was a member of the Board of Directors of
Petrorecôncavo S.A. Prior to that, he participated in the Commercial Policy Training Program promoted by the Embassy of Brazil
in Washington, D.C. in 2008. Mr. Dorea holds a double major in Business Administration and Law.
CCO – Marcos Magalhães Tourinho - Mr. Tourinho is the Chief Commercial Officer of Santos Brasil. Prior to that, he was the
Port Operations and Commercial Director of the company. He started his career in Santos Brasil as Investor Relations Officer in
2006. Mr. Tourinho holds a bachelor degree in Business Administration, a post-graduation degree in Finance from McGill
University and an MBA from HPU Universtity.
COO – Marlos Silva Tavares - Mr. Tavares is the Chief Operating Officer of Santos Brasil. He has a strong background in the
shipping industry, where worked for APM Maersk group. He also worked for the Brazilian logistics group Libra as Commercial
Director of Libra's container terminal in the port of Santos. Mr. Tavares holds a double major in Business Administration and
Accounting and is a 6-sigma greenbelt from PMI International.
38
Corporate Governance Management
26
Member of the Global Pact, an international sustainability pact
Sustainability Report compliant with GRI Standard since 2012
Sustainability Academy, an ongoing training for leaders
42
Sustainability
27
We make forward-looking statements that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our Management and on the
information currently available to the company. Forward-looking statements include information on our current plans, beliefs or expectations and also those of the company’s
Board of Directors and its Officers.
Disclaimers involving forward-looking statements include information on potential or assumed operating results, as well as statements that are preceded, followed or include the
words “believe”, “may”, “will”, “continue”, “expect”, “project”, “seek”, “plan”, “estimate” or similar expressions.
Forward-looking statements and information provide no guarantee of performance. Because they refer to future events, and as such depend on circumstances that may or may not
occur, they involve risks, uncertainties and assumptions. Future results and the creation of value for shareholders may differ significantly from that expressed or suggested in the
forward-looking statements. Many factors that will determine these results and values are beyond our capacity to control or predict.
45
Disclaimer
dri@santosbrasil.com.br
+55 (11) 3279-3279
Recommended