TÍTULO DA APRESENTAÇÃO. Institutional Presentation. Log-In Logística Intermodal S.A. December 2018

Transcription

1 TÍTULO DA Institutional Presentation APRESENTAÇÃO Log-In Logística Intermodal S.A. December 2018

2 SUMMARY 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) 2

3 HISTORICAL BACKGROUND 3

4 Historical Background IPO & Growth ( ) Restructuring ( ) Growth ( onwards) 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% EISA requested judicial settlement ( RJ ) in JAN/16 without delivering 3 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 of capacity) Restructuring debt with major lenders (BNDES/G4) Record AFRMM release in 2017 (>R$110M) Improvement of operation and organization structure Improvement in Brazillian economic 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). 4

5 SHIPPING EFFICIENCY AND VOCATION OF BRAZIL 5

6 Coastal Shipping efficiency 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 CO 2 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 6

7 Brazil - A country ready for cabotage and its benefits km of ocean coast Brazil is the 5 Redução th largest country in the world in territorial dimension significativa nos custos de serviços de logística com a utilização 8,500 km of ocean coast, reaching approx. 10,500 km navigable da cabotagem para longas distâncias 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 of cabotage for long distances Redução nos investimentos em CDs ou Opportunity to fábricas reduce localizadas investments próximas in distribution aos pontos centers or factories near de points consumo of consumption (otimização/escala da produção) 7

8 OPERATIONS: COASTAL SHIPPING, TVV AND INTERMODAL TERMINALS 8

9 Coastal Shipping: fleet and services Vessels and allocation to services: 9

10 Cabotage, Mercosur and Feeder Operations Cabotage, Mercosur and Feeder SAM - Amazonas Service 10

11 Cabotage, Mercosur and Feeder Operations Cabotage, Mercosur and Feeder SAS - Atlântico Sul Service 11

12 Cabotage, Mercosur and Feeder Operations Cabotage, Mercosur and Feeder Shuttle Service Shuttle Rio 12

13 Cabotage, Mercosur and Feeder Operations Cabotage, Mercosur and Feeder Manaus Service Amazonas Service Atlântico Sul Service Shuttle Rio Service 13

14 Door to door operation illustration Road Section Maritime Section Road Section ORIGIN Shipper s Plant Loading Port Unloading Port DESTINATION Recipient s Plant 14

15 TVV Vila Velha Terminal Loading yard (left) 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 Loading yard (right) Concession agreement of 25 years (until 2023), with automatic renewal for another 25 years. The renewal process has started Area of 108 thousand m 2, capacity of 350 thousand TEU per year and its berth has a length of 450 meters General view Warehouse Loading yard + Quay (left) 15

16 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 16

17 RESTRUCTURING 17

18 Log-In delivered all goals proposed for restructuring process expected for 2017 and 2018 (until this moment) Capitalization process Debt Profile Debt restructuring AFRMM - regularization of receipts Liquidity Operational Efficiency Capture results from the optimization project Vessel under construction in China and bareboat chartered vessel 18

19 Capitalization through exercise of warrants and issuance of shares February 2017: Capital increase of R$24.0 million through the exercise of warrants using outstanding debentures. 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. 19

20 Record AFRMM releases in 2017: R$110.6 million In 2017 several proceedings overdue were released in favor of the Company. Historic of AFRMM Releases (R$ million) AFRMM - Additional Freight for the Renewing of the Merchant Marine 20

21 Debt: adequacy of payments flow On June 1, the definitive instruments of the loans restructuring with the banks (G4) were concluded: BB, Santander, Itaú and Bradesco, in the amount of approx. of R$500 MM The final maturity date became May/23 - amortization of 40% of the debt service in 59 installments (monthly and successive) and the remaining 60% in a single installment in May/23 On August 7, 2018, Log-In amortized R$47.7 million of its debt to Banco Santander through the sale of TERCAM (Camaçari Terminal) 21

22 ...to balance the financial obligations with the expectation of cash generation Original Amortization schedule - Mar 31, 2016: Medium-term challenge (Apr - Dec) Renegotiated Amortization schedule - Sep 30, 2018: Turnaround process will provide additional cash in order to support Company s long-term Debt Schedule 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. 22

23 Efficiency Development of Gross Margin after Variable Costs in Coastal Shipping Gross Margin after Variable Costs (%) Coastal Shipping Tendência Gross Margin excludes AFRMM and vehicle transportation operations. 23

24 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 24

25 New vessel being constructed at Guangzhou Wenchong Shipyard Strike Steel Keel Laying General view Mangkut Typhoon effect Current Status 1 month ago 2 months ago Current Status 25

26 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 Time chartered vessels via public interest Bareboat chartered vessels via tonnage right 26

27 3Q18 / 9M18 RESULTS 27

28 Highlights EBITDA reached R$60 MM in 3T18 and R$152.7 MM in 9M18 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%) vs. 3Q17 R$18.6 MM (8.4%) 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%) 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) 28

29 Economic and financial data 29

30 Income Statement 30

31 EBITDA increased 166% in 9M18 (R$ MM) 166% 31

32 Developments of EBITDA and Margin (Adjusted) over quarters (R$ MM) 32

33 In addition to the debt profile improvement, Log-In has begun to capture gains from the restructuring process Trend Truck drivers strike 33

34 OBRIGADO! THANK YOU!