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Page 1: Contentsri.santosbrasil.com.br/wp-content/uploads/sites/36/...logistic services to customers. 2008 Imbituba and Vila do Conde container terminals, aiming to attend the Brazilian Coast
Page 2: Contentsri.santosbrasil.com.br/wp-content/uploads/sites/36/...logistic services to customers. 2008 Imbituba and Vila do Conde container terminals, aiming to attend the Brazilian Coast

Contents

About Santos Brasil

Tecon Santos

Port of Santos

Tecon Imbituba

Tecon Vila do Conde

TEV – Vehicle Terminal

Logistics

Investments & Financial Highlights

Corporate Governance

Sustainability

2

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12

Libra

BTP

Rodrimar

Ecoporto

Embraport

About Santos Brasil Privileged location

3

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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

An amendment to the Port Law

increases the maximum concession

period for public port terminals from 50

years to 70 years.

History

About Santos Brasil

4

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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

Handling: over 1.5 million TEU (twenty-

foot equivalent unit) in 2016

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

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Main clients

About Santos Brasil

6

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TECON

SANTOS

7

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7

Tecon Santos Best solution for containers in South America

Country’s highest productivity*

Largest container terminal in South

America and leader in Brazil

Growth capacity

* According to ANTAQ (National Agency for Waterway Transportation) 8

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7

Tecon Santos

Structure to receive Super 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

Infrastructure

9

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7

Exports (FY16) – 279.3 thousand containers Imports (FY16) – 201.5 thousand containers

Main cargoes

Tecon Santos

Chemicals / Plastics

28%

Machinery 8%

Metals 8%

Electronics 2% Paper

5%

Auto-parts 4%

Textile 4%

Others 41%

Coffee 10%

Sugar 8%

Meat 6%

Metals 6%

Other commodities

4%

Others* 66%

* Others: 11.5% Chemicals / Plastics, 4.5% Auto-parts, 8.7% Paper, 8.0% Food, 2.6% Machinery, 3.9% Textile / Cotton and 26.4% Others. 10

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Tecon Santos in 1997: 11 MPH

R$ 2.5 billion invested to upgrade and expand the terminal

11

47

53

80

94 106

105

1997 2005 2008 2013 2014 2015 2016

MPH

High Productivity - movements per hour per vessel (MPH)

Tecon Santos in 2016: 105 MPH

Tecon Santos

11

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Focus on efficiency through

automation

New Capacity

2,400,000 TEU

Estimated CAPEX

R$ 1.3 billion (US$ 400M)

Detailed Engineering Project

October 2016

NEW LAYOUT

Up-to-date technology, modern layout, a new terminal

Tecon Santos

Quay extension

12

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Port of Santos

Largest Port in South America

Port hinterland covering 55% of

Brazil’s GDP

Privileged rail and road connections

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)

13

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Source: CODESP

40% market share

in 2016

Throughput (TEU x 1,000)

Port of Santos: 18-year CAGR of 8.7%

Tecon Santos: 18-year CAGR of 10.2%

- - 5 13 - 42 68 108 123 110 106 85 94 123 149 163 283 287 291 248 302 341 337 436 570 678

903 997 1.125 1.149 947

1.262 1.358 1.599 1.624

1.097 1.027 1.135

- - - - -

- 43

20 123

157 162

154

154 170

172 174

342 458 405

551 473 460 711

788

990

1.094

1.237 1.203

1.141 1.268

1.066

1.212 1.333

1.184 1.487 1.934

2.008 1.734

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Tecon Santos - Cabotage Tecon Santos - Long Haul Other Terminals - Cabotage Other Terminals - Long Haul

Port of Santos

14

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Inserir imagem aqui,

preenchendo o espaço por

completo.

Tecon Imbituba

TECON

IMBITUBA

15

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7

Tecon Imbituba Premium location at the Southern Region

R$ 565 million invested in expansion and upgrade since 2008

Ready to receive Super-Post-

Panamax vessels

Potential to become a hub in the

South of Brazil

16

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7

Tecon Imbituba

Close to Santa Catarina and Rio Grande do Sul industrial

zones

Competitive advantages: 24/7 operation, water draft,

weather conditions

Benefit from 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 and 2 MHC / 8 reach stackers

Highlights

17

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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 27,209 TEU*

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

18

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TECON

VILA DO

CONDE

19

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7

Tecon Vila do Conde

Access to all continents, directly or through the main

Caribbean hub ports

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 minerals, 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

20

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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 Inland waterway transport

21

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Neighbor of Tecon Santos

Handling of different types of cargo such as 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 (211,150 units in 2015)

- Total area: 164,000 m²

- Quayline extension: 310m

TEV - Vehicle Terminal Largest vehicle terminal in Brazil

22

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Bonded

warehousing

Distribution

center

Transportation Industrial

Logistics

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 95 GPS-tracked vehicles

Taylor-made logistics projects, meeting every

customers’ need

Logistics Vertical integration

23

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Port-to-Door: complete logistics solution

Potential to increase customers’ competitiveness: E.g. “K-10” logistic operation to BASF

Synergies between logistics and port operations

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 Industrial Plants

Exports

Logistics Port-to-door

24

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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 487

417

222 210

INVESTMENTS Investments R$ million

R$ 4.4 billion invested in 20 years

Source: Santos Brasil 25

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162 39%

224 46%

267 37%

219 33%

310 36%

457 41%

551 43%

529 38%

293 29%

147 15%

87 11%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Port Terminals Logistics TEV Corporate

468 549

819 744

983

1,279 1,472

1,601

1,152 1,109 957

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

6 93

46 65

112

247 270 255

92

(18) (20) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Gross Revenue

Source: Company’s financial statements

Operating Cash Flow

36

EBITDA and EBITDA Mg.

Financial Highlights

34% 46% 43% 46% 47% 39%

46% 49% 51% 22%

1% 6% 10%

19%

13% 22% 21% 18%

9%

Net Income and Net Mg.

283

223 228

386

448 411

265

168 122

2008 2009 2010 2011 2012 2013 2014 2015 2016

74% 58%

10%

56%

24%

13%

22%

24% 19%

50%

63%

14% 15%

45%

31%

19%

R$ million

9%

26

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84

323 359

410

297

199

140 108

40

2008 2009 2010 2011 2012 2013 2014 2015 2016

Net Debt / EBITDA Total Debt

Net Debt Net Debt / EBITDA

Financial Highlights

S&P national scale

rating: brAA-

0.3x

1.5x 1.2x

0.9x 0.5x 0.4x 0.5x 0.7x

0.5x

2008 2009 2010 2011 2012 2013 2014 2015 2016

Long term Short term

45%

47%

53%

35%

65% 51%

49%

38%

62% 54%

46% 55%

252

641

466

705

433

322

55%

45%

358

59%

41%

340

29%

71%

233

Indebtedness (R$ million)

Source: Company’s financial statements 27

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“NOVO MERCADO” listing on B3 (ex-BM&FBovespa)

100% TAG ALONG for all minority shareholders

One Share, One Vote

Board of directors: 7 members (40% independent)

Permanent Fiscal Board (“Conselho Fiscal”)

Management:

- Stock Options for top management

- Compensation program for managers and employees - EBITDA and EVA oriented

- Individual performance plans = clear goals and meritocracy

38

Corporate Governance All preferred shares converted to voting shares in 2016

28

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Corporate Governance Management

Chief Executive Officer Antônio Carlos Duarte Sepúlveda

Chief Financial Officer and Investor Relations Officer Daniel Pedreira Dorea

Chief Commercial Officer Marcos Magalhães Tourinho

Chief Operating Officer Marlos Silva Tavares

Antônio 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.

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.

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.

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.

29

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Corporate Governance Shareholding structure

* Total of 666,086,554 voting shares

International Market

Investments 26.6%

PW237 Participações

22.4%

Multi STS Participações

8.4%

Richard Klien 8.2%

Dynamo 10.1% Others

(free-float) 23.2%

Management 0.2%

Treasury 0.9%

30

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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

MANAGEMENT FOR SUSTAINABILITY

Sustainability

31

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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.

E-mail: [email protected]

Phone: +55 (11) 3279-3279

45

Disclaimer

32