Apresentação do PowerPoint€¦ · Ltda. (e-commerce) 2011 and 2012 - Direct sale to 8M/B2W. - Discontinuation of Trans Commerce operations 2014 - Sale of Tegma Venezuela S.A, 2017

Institutional presentation

INDEX

1. Tegma history and overview

2. Market overview

3. Business segments

4. Consolidated financial and

governance review

INSTITUTIONAL PRESENTATION

One of the largest logistics companies of

Brazil

Founded in 1969

Located in São Bernardo do Campo – SP

Annual revenues of R$1.5 billion

1.8k employees in 31 bases in 11 states

Asset light business model

Listed on B3 since 2007/ Novo Mercado |

Ticker: TGMA3.bz

High level of governance: Fiscal Council,

Audit Committee, 2 independent members

(1 independent chairman) in the board of

directors



1969

Vehicle logistics

operation start up as

Transportadora Sinimbu

Ltda. (“Sinimbu”)

1998

Unification of Sinimbu, Transportadora Schlatter Ltda.

and Transfer Transportadora Ferroviária de Veículos

Automotores Ltda., with the entry of Axis Holding Ltda.;

constituted Axis Sinimbu Logística Automotiva Ltda.

2001

Acquisition of Translor

Veículos Ltda.

2002

- Incorporation of Autotrans partner;

- Change the company name of Axis to Tegma Gestão

Logística Ltda., as a result of the acquisition of the part

held by Allied Holdings (Coimex Group and the Itavema-

Sinimbu Group) - Axis do Brasil unlinked the group

2004

Acquisition of 49% of

Catlog Logística de

Transportes S.A..

2006

Constitution of Tegmax Comércio

e Serviços Ltda. (automobile

auction)

- Acquisition of 100% of Tegma Cargas Especiais Ltda.;

- Acquisition of 100% of Tegma Logística Integrada S.A. and

PDI Comércio Indústria e Serviço Ltda.;

- Creation of Tegma Venezuela S.A,;

- Tegma´s IPO – TGMA3

2007

Acquisition of 100% of

Nortev Transportes de

Veículos Ltda.

2008

Acquisition of Direct Express

Logística Integrada S.A. and Trans

Commerce Transporte de Cargas

Ltda. (e-commerce)

2011 and 2012

- Direct sale to 8M/B2W.

- Discontinuation of Trans

Commerce operations

2014

- Sale of Tegma Venezuela

S.A,

2017

Creation of a JV for bonded

warehouse GDL Gestão de

Desenvolvimento em

Logística S.A.

2018

Logistic operator for chemical, glasses and

household appliances industry

Integrated inbound transport management,

optimizing and planning routes according

demand

Solid raw material storage/shipping and in-

house liquid management

Reduced inventory levels in the client supply

chain

AUTOMOTIVE

LOGISTICS

INDUSTRIAL

LOGISTICS

WAREHOUSE

Leader in the logistics of brand new vehicles in

Brazil (~26% market share) serving all

automakers in the country

Asset light model with outsourced fleet and high

resilience of results

Low requirement of investments

26 thousand square meters of warehouses in

São Paulo and Rio de Janeiro providing

Inventory, labeling and assembly of kits

The country's largest bonded area for the

management of imported vehicles in the CLIA

Cariacica-ES

INT

EG

RA

TE

D L

OG

IST

ICS

% 2018 Revenues % 2018 EBITDA

85%

12%

3%

86%

14%


Major

competitors

3 lst yrs

revenue

change

Growth drivers

+4%

N/A

Sales of brand new

vehicles in

Brazil/Mercosul and

average distance of

trips

Inbound

outsourcing among

industries in Brazil

Increase of

inventories

management

outsourcing of

consumption goods

retailers

Major clients

AUTOMOTIVE

LOGISTICS

INDUSTRIAL

LOGISTICS

WAREHOUSE

INT

EG

RA

TE

D L

OG

IST

ICS

+44%


Most of all

automakers in

Brasil

Home appliances,

Personal care

and glass

industries.

Consumer

goods

companies,

food, eletronics

and cosmetic

companies

Fleet KPI´s / SLA´s

1.0k

0.2k

1.5 thousand

(93%

outsourced)

65 carriers

owned

82 trucks

outsourced

-

- Transit time of

deliveries;

- Level of vehicle

damage.

- Inventory

level;

- Manufacturing

plant interruption

- Processing NF's

on the same

issuing day;

- Stock accuracy -

99.98%

#

employees

0.5k

Asset

intensity

Low

Medium

Low

AUTOMOTIVE

LOGISTICS

INDUSTRIAL

LOGISTICS

WAREHOUSE

INT

EG

RA

TE

D L

OG

IST

ICS


INDEX


2. Market overview



governance review


North/Northeast/Centerwest

Production: 14%

Consump.: 29%

-15%

Source: ANFAVEA and FENABRAVE* Considering FY 2018

Source: ANFAVEA

Brazilian automotive market:

65 industrial units / 11 states

31 assemblers / 616 autoparts

8th largest domestic market

4.0% national GDP

5.592 dealerships

5.2 inhabitants per vehicle

22% of production is exported (2018)

14% of national sales is imported (2018)

Installed capacity: 5 million vehicles

High concentration of production in

South/Southeast – demanding logistics

Southeast/South

Production: 86%

Consump : 71%

+16%


0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

1957 1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009 2013 2017

Domestic vehicle sales

-35% vs

peak

2016:

-45% vs

peak

-43% vs peak

Mill

ion

2019E: +11% vs 2018

Source: ANFAVEA

2019E:

+39% vs

2016

Vehicles Sales


47%

50%

53%

56%

2014 2015 2016 2017 2018

Southeast Ex-Southeast

Vehicles fleet

and average age

Used vehicle sales (and ratio vs

new vehicle sales)

Vehicles exportsVehicles production

Domestic sales

per region

Domestic sales

per category

Source: ANFAVEA, SINDIPEÇAS, ABLA and FENABRAVE

38

39

4041

41

42

8.58.6

8.9

9.1

9.39.4

8,0

8,2

8,4

8,6

8,8

9,0

9,2

9,4

9,6

2013 2014 2015 2016 2017 2018

9.410.1 10.0 10.0

10.7 10.7

2.63.0

4.0

5.0 4.94.3

2013 2014 2015 2016 2017 2018

3.53

2.3

2.12.6

2.72,7

2012 2013 2014 2015 2016 2017 2018

0.5

0.3

0.4

0.5

0.7

0.6

2013 2014 2015 2016 2017 2018

0%

20%

40%

60%

80%

100%

2014 2015 2016 2017 2018

Rent a car Sales ex-rentacar


INDEX


2. Market overview



governance review


Services rendered:

Transfer and distribution of brand new vehicles;For all automakers installed in Brazil

Yard management and storage of vehicles;

PDI (Pre-Delivery-Inspection);For rent-a-car and corporate fleet


A logistics optimization program that integrates the

demands of automakers and resellers across multiple regions to

streamline and avoid empty journeys using real-time truck tracking

and load composition software, focused on vehicle visibility, damage

control and environmental management of the entire operation

Local or

central hub (storage)

Local or

central hub (storage)

Port

*Pre-delivery-inspection

PDI*

Dom

estic

deliv

eries

Export

de

live

rie

s

Attending 16 OEM´s and importers

781 thousand vehicles hauled per year

754 thousand trips per year

791 million km per year per vehicle

21 hubs in Brazil

Deliveries in more than 2.9 thousand

autodealers in Brazil

Port

OEM

OEM

Autodealer

RAC/ fleet


Monitoring 100% of trucks;

Electronic control of speed and

work journey

GPS delivery confirmation

Tegma’s entire fleet location

GPS mapping of a delivery


Services rendered:

Yard management

Control the vehicle’s input / output

from yards;

Integrate vehicle’s information with

the transport system;

Vehicle handling in the yard;

Yard in São José dos Pinhais – Parana State

Operational control center

Vehicle storage


Inspection process

Inspection process

Inspection process

Services rendered:

Inspection, preparation, installation

of components for rent-a-car and

companies fleet;

Nationalization of imported vehicles;


DC Toyota

Suape

Cariacica

Caju

Resende

Juiz de Fora

Igarapé

Camaçari

BelémManaus

SJPParanaguá

Araquari

Itajaí

Gravataí

Guaíba

Rio Grande

Chuí

Sumaré

SorocabaPiracicaba

Indaiatuba

SBCSJ

C

São José dos Campos

Area: 81 thou sqm

São José dos Pinhais

Area: 160 thou sqm

Camaçari

Area: 64 thou sqm

São Bernardo do

Campo

Area: 260 thou sqm

With Yard

Total yard area:

1.8 million sqm

• Southeast region:

• Cariacica – ES

• Resende – RJ

• Rio de Janeiro -

RJ

• Piracicaba - SP

• North region:

• Manaus – AM

• Belém – PA

• Northeast region:

• Camaçari – BA

• Suape – PE

• South region:

• São José dos Pinhais – PR

• Gravataí – RS

• Chuí – RS

• Araquari - SC

• SBC – SP

• SJC – SP

• Itirapina - SP

• Indaiatuba – SP

• Sorocaba - SP

• Itajaí – PR

• Paranaguá – PR

• Guaíba - RS

• Rio Grande – RS


Tegma’s main yards

Highlights vehicle logistics:

Revenue depends on the # of

vehicles transported and on the distance

for delivering them upon a fee (R$/total

distance)

Freight costs and other variable

costs (81% of COGS) depend as well on

the # of vehicles transported and on the

distance for delivering them

Tegma manages vehicles for all

automakers in Brazil

SLA´s (Services Level Agreements)

include the transit time and damage on %

of vehicles handled

Prices (with OEM´s and truckers)

are annually readjusted (april-may)

Average distance

of trips

from SP DC


Gross Sales

1,186

1,026

766681

754 781

28% 29% 28% 29%27%

25%

2013 2014 2015 2016 2017 2018

Vehicles transported (Thou)

Market Share

1,699

1,557

1,149

940

1,129

1,348

2013 2014 2015 2016 2017 2018

206

175

9578

118

172

15%14%

10% 10%

13%

16%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0

50

100

150

200

250

300

2013 2014 2015 2016 2017 2018

Adj EBITDA Adj EBITDA Mg.

Average of 50 days of receivables / 15 days of payment;

Average of 81% of variable costs (% of total COGS);

High resiliency of margins and FCF;

Low demand for expantion investments.


Inventory management, transportation and

storage;

Gross sales: BRL 143 mm py;

Assets employed: chemical carriers, general

carriers (the trucks are all outsourced);

Warehouses in Cubatao and Indaiatuba (all

rented) Tegma warehouses


Home

appliances,

Personal care

and glass

industries.

Main clients:

6 SHIPS/ MONTHS 45 TRUCKS / SHIP110,000 TONS/

MONTH

52,000 TONS /

MONTHS

78,000 TONS /

MONTHS

PORT OPERATION

UNLOADING

TRANSPORT

RETROPORT

WAREHOUSE

STORAGE

ROAD

TRANSPORT

IN HOUSE

OPERATION

PLANNING

TEGMA

Supplier of the largest powder

detergent factory in the world,

operating 24 x 7

Other Home´n care and glass

industries clients

Inventories covering 24-48 hrs of

production

Inventories 100 miles from plant

Resulting in client inventory

reduction


Supplier C

Supplier B

Supplier AEmpty

packages

Parts

Milk-run

OEM

ETOS

System

Material planning

MRP PSFT

Order:

Demand

Driven

Follow Up

After Tegma

Curitiba

São Carlos

Inbound process advantages

Tegma web portal with visibility of the control of the

packaging;

Investment and management carried out by

Tegma;

Supplier collection information available 1 day in

advance;

KPIs online in the web portal.40% increase

in vehicle

ocupation


Bonded and general warehouses, inventories

management, labeling and assembly of kits;

Gross sales: BRL 47 mm py;

Assets employed: internal warehouse structures (the

warehouses are rented);

27 thousand sqm of warehouses in Rio de Janeiro,

São Paulo and Espirito Santo. Tegma warehouses

Castello Branco warehouse


Consumer goods

companies, food,

eletronics and cosmetic

companies

Main clients

Gross Sales

288

238 230243

200 201191

2012 2013 2014 2015 2016 2017 2018

-6

13

4

11

17

28

-3%

7%

2%

7%10%

18%

2013 2014 2015 2016 2017 2018

Adj EBITDA Adj EBITDA Mg.

Recent developments provide more previsibility;

Industrial logistics with high resiliency of sales and results;

Warehouses have more fixed costs;

Constant cost control and active pipeline of new clients.


INDEX


2. Market overview



governance review


Dividends per share Payout %

Shareholder return

ROE%ROIC%

200189

9989

135

200

13% 13%

9%10%

12%

16%

0%

5%

10%

15%

20%

25%

20

13

20

14

20

15

20

16

20

17

20

18

0

50

100

150

200

250

Adjusted EBITDA (BRL million)1.86

1.63

1.23 1.181.33

1.54

20

13

20

14

20

15

20

16

20

17

20

18

Gross Revenue (BRL billion)

74

2935

51

61

72

20

13

20

14

20

15

20

16

20

17

20

18

Free cash flow (BRL million)

49

(23)

10 14

104 108

20

13

20

14

20

15

20

16

20

17

20

18

Net income (million)

21%

16%

3% 4%

28%

24%

15%

17%

6%

11%

23%

28%

20

13

20

14

20

15

20

16

20

17

20

18

ROE and ROIC

0.990.93

0.120.08

0.71

60%60%61%53%

100%

20

18

20

17

20

16

20

15

20

14

20

13


Outlook: Stable

Tegma’s Rating

Sep

2013

Sep

2014

B1 Nov

2015

May

2016

Dec

2017

B2

B1

Ba2

Ba3

Net debt Net debt / Adjusted

EBITDA

107

78

3

78

25

10 10 10

Cash

Ju

n/1

9

TT

M 1

2M

FC

F*

201

9

202

0

202

1

202

2

202

3

202

4

Debt ScheduleAmortization

150

99

74 75

35 32

0.4

1,1

0,60,4

0,2 0,1

-0,3

0,7

1,7

2,7

3,7

4,7

201

5

201

6

201

7

201

8

1Q

19

2Q

19

-10

10

30

50

70

90

110

130

150

170

Indebtness (BRL million)


Board of Directors

2Mopia/Cabana

representants

2Coimex

representants

2Independents

1 chairman

Fiscal Council

2Indicated by

controlling

shareholders

1Indicated by

minorities

Management

Gennaro Oddone

CEO/DRI

Ramón Pérez - CFO

Auditing Comitee

2Indicated by

controlling

shareholders

1Independent

Management, People and

Governance Committee

2Indicated by

controlling

shareholders

1Independent


Projects that also

aim at socio-environmental benefits

Tegma’s own

Vehicular

inspection;

Trucks not

attending legal

limit are forbidden

to transport;

Environmental

compliance in 2018

Environmental Legal

Requirements

97.6%

Environmental

licenses

93.1%

Vaporization system in washers

85% reduction in effluent

generation in Cubatão

90% reduction in water

consumption in Cubatão and 96%

in Araquari / SC;

90% lower

than the legal

limit

Main certifications:

Wanderléia Carrier

-11% in CO2 emissions;

-10% in accident occurrence;

Water reuse system SBC site

0.31

0.48

0.39

0.32

0.43

0.27

0.36

0.26

0.160.20

Opacity(black smoke emission) (m-¹)

70.5

87.4 88.2 91.4 92.5 93.1

2013 2014 2015 2016 2017 2018

Legal compliance (General)



-105,0

-70,0

-35,0

0,0

35,0

70,0

105,0

140,0

Jul-07 Jul-09 Jul-11 Jul-13 Jul-15 Jul-17 Jul-19

TGMA3 IBOV

Direct Express

acquisition and

E-commerce

business expansion

Brazilian auto market strong growth

E-commerce

Business losses

and Direct

Express SaleBrazilian Fiscal Crisis,

unemployment spike

Impeachment Dilma

Rousseff

Brazilian auto market strong decline Brazilian auto market growth

Int´n Financial Crisis

4

6

8

10

12

14

16

18

20

1Q17 3Q17 1Q18 3Q18 1Q19 3Q18

EV/EBITDA PE

Historical TGMA3 EV/EBITDA and PE

Michel Temer Presidency

Cabana

7%

Free Float

48%

Coimex

20%

MOPIA

25%

Shareholder agreement

Ownership structure

2MUSD ADTV

2018

1.8MUSD ADTV

2019

Truckers Strike

Social security

reform approval

Jair Bolsonaro

ahead in pools

& election

IR websiteDetailed Statement of changes in beneficial

ownership of securities history

Financial historical in .xls with indicators, sell

side and industry estimatives, dividends and

explanatory notes

Tegma awarded by two renowed magazines

as one of the best IR professional and CEO of

Brasil and Latam in 2018


Corporate startup accelerator (Corporate Venture)

Tegma open innovation arm

First accelerator specialized in logistics in Brazil

Focus on solutions

for the following

areas:

Cargo transport;

Yards and warehouses;

Customer Service

Automation;

Fleet management;

E-commerce (B2B

platforms);

Technology for Logistics

(Blockchain, IoT, BigData,

I.A.).

First round:

64 companies applied

4 winners

1 investment

What we are looking

for:

Companies that introduce

innovative solutions in digital

logistics, transportation and

mobility;

Near of economic

equilibrium, with customers and

recurring revenue;

Companies that aggregate

value to our services, forming

longstanding partnerships.

TegUp coworking

Second round:

14 approved


Investor relationshttps://ri.tegma.com.br/en/

RI Contacts:

Ian Nunes – [email protected] - + 55 11 4397 9423

https://ri.tegma.com.br/en/

mailto:[email protected]

Documents

Apresentação do PowerPoint€¦ · Ltda. (e-commerce) 2011 and 2012 - Direct sale to 8M/B2W. - Discontinuation of Trans Commerce operations 2014 - Sale of Tegma Venezuela S.A, 2017