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CEO Conference 2011
This presentation relating to LLX Logística 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”, or“intends”, 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 otheruncertainties and events.
Disclaimer
2
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 (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 LLX’s prior written consent.
Investor Relations
Otávio Lazcano – CEO
Antonio Castello Branco – Manager
Tel. 55 21 2555-5661
OverviewOverview
EBX´s publicly held companies
LLX was created in March 2007, to
provide logistic services through the
development of major port systems in
the Southeast region of Brazil.
Its main strengths are:
Mkt Cap
US$ 1,7 bn
Mkt CapUS$ 3.0 bn
Mkt CapUS$ 35.2 bn
4
� 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* As of February 18th 2010
R$/USD – 1,66
** Includes PortX (Mkt Cap US$ 2,0 bn)
Mkt Cap EBX Group**
US$ 48.5 bn
US$ 3.0 bnUS$ 35.2 bn
Mkt CapUS$ 3.6 bn
Mkt CapUS$ 2.7 bn
LLX post spin off: focus on Açu Superport
54% /
Controlling
Shareholder + Other Minority Shareholders
18% / 3% / 25% /
PORT X
18%2%13%67%
5
Açu Superport
51%
LLX
Minas-Rio
LLX
Açu
70%
Centennial
30%
49%
MMX
Minas-Rio
100%
LLX
Sudeste
100%
PORT X
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– Civil Engineer from from Pontifícia Universidade Católica of Rio de Janeiro and is a Chartered
Financial Analyst (CFA) since 2003.
Eike Fuhrken Batista
Chairman and Founder
– Founder and CEO of EBX, entrepreneurial conglomerate founded in 1983
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Leonardo Pimenta Gadelha
Chief Financial Officer
Financial 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).
Luis Alfredo Osório de Castro
Chief Implementation Officer
– 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.
Superportodo Açu
Fully integrated in Brazil´s main logistic network and to 72% of the country´s GDP
Strategic Location
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Industrial Area
LLX: Innovating Port´s Infrastructure
LLX´s Port-Industry Complex: world-class logistic solutions
A Typical Brazilian Port
Industrial Area
LLX: Açu Superport
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Industrial District concept under develpoment
� Açu Industrial Complex: 90 Km2
� Environmental Reserve: 50Km2
� No area for port growth
� Logistic bottlenecks
Industrial District concept under develpoment
LLX : Unclogging Brazil´s Logistics
LLX´s Ports: reinforcing Brazil´s capesize capacity and beyond
Manaus
Itaquí
Fortaleza
Suapé
Salvador
Amazon River
9Source : (*) CEL/COPPEAD 2008 – vol 1 and Port Sites
Vitória
Rio de Janeiro
Santos
Paranaguá
São Francisco do Sul
Rio Grande
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*.
LLX´s Business Model
LLX is signing long term agreements with industry leaders guaranteing
a steady cashflow and dividends to shareholders
Company Services Rendered Revende Model
LLX Minas Rio
Iron Ore handling
Take or Pay long-term contract (25 years) with Anglo.
Initial ore shipment July 2013.
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Initial ore shipment July 2013. Expected revenues of US$ 190 million.
LLX Açu Multi product handling (Steel,Coal,Liquid & Dry Bulk,General Cargo) ; Land Lease and Services & Utilities
Tariffs negotiated to ensure a minimum 15% py IRR to firm in US$ (under Long Term contracts) unleveraged.
‘
Port AçuPort AçuPort Açu
1111
Port AçuPort AçuPort Açu
Açu Superport
Açu Superport – Highlights
� The largest investment in port development in Latin America, with state-of-the-artfacilities: more than R$ 3.4 billion investment in port infrastructure;
� Brings the concept of Port – Industry integration in a very large scale : 90 Km2
� Anchored on a long-term Take or Pay contract to ship Anglo American’s Minas Rio iron ore, generating in it’s first phase US$ 190 million per year;
� More than 60 contracts and MoUs signed with companies from sectors such as:
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� Steelmaking ( Ternium, Wuhan);
� Power generation ( MPX);
� Cement (Votorantim , Camargo Correa);
� Offshore Industries ( Acergy, Technip);
� Total Investments in Açu Industrial District: USD 36 billion
�Oil and Gas;
�Metal Mechanic;
�Dry & Liquid Bulk Handling;
�Automotive;
�General Cargo & Services.
Açu Industrial Complex A new cluster for the offshore and heavy industry
Industrial Complex concept under development
90 km² Industrial Complex (larger than Manhattan Island)
13
Açu SuperportUnique location and logistic integration to main railway and highway network
A Complete Logistic Corridor
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� BR 101 to be duplicated
� A 45 km new railway track will connect Açu
Superport to the railway and Campos within
a multimodal Logistic Corridor
LOGISTICS CORRIDOR
Açu SuperportA One Stop Shop for the Oil & Gas Industry
Consolidation and
Onshore Storage :
1.2 million bpd
For Export &
Coastal Shipping
VLCC/ Chinamax Tankers
FPSO
Storage & Treatment
Ubu
15
Campos Basin
85% of Brazil Oil Production
FPSO
Small Tankers Shuttle
Macaé
Açu SuperportOil Treatment Facility
Desalting DewateringBlending
FPSOs
Oil Treatment
For 800,000 bpd
Investment of
(+)
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Oil Treatment Facility
Oil Export VLCCs
Investment of US$ 1.45 billion
Business opportunity with a leveraged IRR > 70% py
Source : Verax Feasibility Study as of March 2010
TX 1: one of the largest offshore terminal in Latin America for Iron Ore and Oil
Oil transhipment to start in 2H 2012
17
OIL
IRON ORE
OIL
TX 1: principal characteristics
Threstle Completed : 3,000 m
Quay Length: 3,000 m
Number of Berths: 9
18
Number of Berths: 9
Initial Dredging: 21 m
For VLCCs and Capesizes
Açu SuperportTX1: Offshore Terminal
Tug boat Pier and 50% of Iron Ore Pier completed
19
Rocks Stockyard : Breakwater construction underway
Açu Superport TX1: Offshore Terminal
20
TX 2 : The longest and most efficient quay for bulk cargoesand offshore industries
OIL
OFFSHORE SUPPORT
INDUSTRIES
STEEL PRODUCTSSLAG/PIG IRON/
GRANITE
21
IRON ORE
OIL
OSX COALSUPPLY
BOAT
-14,50m
-10,00m
TX 2 : principal characteristics
Total Quay Length : 8,000 m
Channel Width: 300 m
Total Area: 8,000,000 m2
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-11,00m
-14,50m -18,00m
TX2: Onshore Channel – Dredging Sequence
Sandy material excavation
Sandy material transportation to landfill 2 km away
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Dredging of sandy material from - 4,00 to -11,00 metersdeep, with suction and pressure dredging
Açu SuperportMain activities
CAPEX ( for projects @ 100% )
LLX Minas-Rio: R$ 1.0 billion
LLX Açu (Non Ore): R$ 2.4 billion
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Up to 12.6 mtpy
Up to 10.2 mtpy
Iron Ore:
Coal
Steel ProductsReal EstateIndustrial Areas RentalUp to 60 mtpy
Oil
Up to 46.4 Mm3 py
Pig IronUp to 2.0 mtpy
SlagUp to 2.0 mtpy
GraniteUp to 1.0 mtpy
Source : Verax Feasibility Study as of March 2010
1H06 2H06
Projectdetailing
Under Construction
1H07 2H07
2H13
Constructionbegins
EnvironmentalLicense
ANTAQAuthorization
ConstructionLicense
Start Up
LL
X M
ina
s-R
io
Açu Superport Construction on Track
Açu Superport Milestones
2008 2009 2010 2011 1H131H12 2H12
Under Construction
Under Construction
Under Construction
Under Construction
2H13
ProjectDetailing
OffshoreConstruction
License
ANTAQAuthorization
OffshoreEnvironmental
License
OnshoreEnvironmental
License
OnshoreConstruction
License
Construction begins
Under Construction Start Up
Development
Construction
Operations
LL
X A
ÇU
25
600
700
800
Açu SuperportVolume and CAPEX
Açu Superport total CAPEX of R$ 3.4 billion
Minas Rio: R$ 1.0 billion
LLX Açu: R$ 2.4 billion
123 125 130 132 134 140
160
Volume Ramp Up (mtpy)
78
357
475
350
- -
29
153
39
150
700 670
353
254
27 10
-
100
200
300
400
500
2007 2008 2009 2010 2011(*) 2012 2013 2014 2015 2016
26
10
48
106
123 125
-
20
40
60
80
100
120
2012 2013 2014 2015 2016 2017 2018... ...2032
Actual Estimated
* Reimbursement of LLX Minas Rio CAPEX exceeding R$ 974 million
974
3.389
2.542
2.415
847547
339
300
600
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
Sources & Uses and Consolidated Financial Highlights
LLX’s Projects @ 100% (R$ M)
Initial equity
Capital Increaseas of March/2009
-
LLX
Minas Rio
LLX Açu Total
CAPEX
Debt Total
Equity
Needed
Equity
Partners
LLX
Equity
Needed
LLX
Existing
Equity
Debt/ Equity assumption: 75/25
Cash Position (*) Debt
2007 - 2008 2009 1Q10 2Q10 3Q10 2007 - 3Q10 Actual 09/30/2010 3Q10
LLX Minas Rio (51%) 222 242 49 52 49 614
LLX Açu (100%) 182 39 10 18 85 335
LLX Sudeste(100%) 126 63 10 14 143 356
LLX Brasil(100%) 53 - - - - 53
TOTAL 583 344 69 84 278 1,358 277 436
(*) Cash Position (includes LLX S/A)
Financial Highlights @ September 30th, 2010
R$ Million
277 436
CAPEX
27
