November 2010 1 Conference Call and Webcast Q3 2010 Earnings
November 2010
1
Conference Call and WebcastQ3 2010 Earnings
This presentation contains statements that may constitute “forward-looking statements”,
based on current opinions, expectations and projections about future events. Such
statements are also based on assumptions and analysis made by Wilson, Sons and are
subject to market conditions which are beyond the Company’s control.
Important factors which may lead to significant differences between real results and these
forward-looking statements are: national and international economic conditions;
technology; financial market conditions; uncertainties regarding results in the Company’s
future operations, its plans, objectives, expectations, intentions; and other factors
described in the section entitled "Risk Factors“, available in the Company’s Prospectus, filed
with the Brazilian Securities and Exchange Commission (CVM).
The Company’s operating and financial results, as presented on the following slides, were
prepared in conformity with International Financial Reporting Standards (IFRS), except as
otherwise expressly indicated. An independent auditors’ review report is an integral part of
the Company’s condensed consolidated financial statements.
2
LEGAL ADVICE
CONSOLIDATED RESULTS – 3Q10 & 9M10
Highlights Net Revenues (USD million)
EBITDA (USD million) Net Income (USD million)
• Net revenues of USD 153.5M, up 18% comparedto 3Q10 (YTD up 19%) with volumes increasing inTowage, Logistics, Shipping Agency, and impressiverevenue growth at Brasco;
• EBITDA of USD 25.2M for 3Q10 and USD 91.1MYTD, including a re-categorisation of USD 10.4Mrelated to Offshore JV formation;
• Net income of USD 24.6M for the quarter, down6%.
3
348.6
416.4
9M09 9M10
19%
129.6
153.5
3Q09 3Q10
18%
33.1
25.2
3Q09 3Q10
-24%
31,2% 29,7%25.5% 16.4%EBITDA Margin
(%)
100.3
91.1
9M09 9M10
-9%
28.8% 21.9% Net Margin
(%)
26.3
24.6
3Q09 3Q10
-6%
20.3% 16.0%
75.5
61.9
9M09 9M10
-18%
21.7% 14.9%
HIGHLIGHTS BY BUSINESS
Port Terminals• Revenue growth of 31.7% for the quarter (up 29.7% YTD)• Brasco: impressive revenue growth largely as a result of increased activity and auxiliary services• Tecon Salvador begins expansion that will increase by 50% the Terminal’s capacity
Towage• Revenues increased 2.0% for the quarter (up 6.0% YTD)• Growth in special operations, which now represents 14.8% of total Revenues
Offshore• Decrease of 47.6% in quarterly revenues is a direct result of the joint venture formation• PSV Talha-Mar was added to our fleet on October/2010
Logistics• New contracts were added and increased activity for existing clients.
Shipyard• Revenues were up 53.3% as a result of accounting recognition for vessels completing
Shipping Agency• Higher volumes drive Revenue growth compared to 3Q10
Port System
Maritime System
Logistics System
4
3Q09 3Q10
0%247.8
162.6
36.3
48.9
178.0
30.0
40.1
248.0
9M09 9M10
484.0
664.44%
83.4
97.1
690.0
447.2
97.1
145.6
PORT TERMINALS
Net Revenues (USD million) EBITDA (USD million) & EBITDA Margin (%)
Volumes (TEUs ‘000) Brasco Revenues
198.2
238.0
29.0 34.230.9 29.6
138.3174.2
2Q08 2Q09
399.1 416.4
57.5 57.0
57.2 53.4
284.3 306.0
1H08 1H09
Deep Sea
Cabotage
Others
198.2
238.0
29.0 34.230.9 29.6
138.3174.2
2Q08 2Q09
399.1 416.4
57.5 57.0
57.2 53.4
284.3 306.0
1H08 1H09
Deep Sea
Cabotage
Others
198.2
238.0
29.0 34.230.9 29.6
138.3174.2
2Q08 2Q09
399.1 416.4
57.5 57.0
57.2 53.4
284.3 306.0
1H08 1H09
Deep Sea
Cabotage
Others
* Includes shifting, transshipment, and inland navigation
5
*
3Q09 3Q10
32%
48.9
64.4
9M09 9M10
30%
126.9
164.6
16.7
22.9
3Q09 3Q10
34.1% 35.5%
37%
41.9
55.5
9M09 9M10
33.0% 33.7%
32%
8.2
15.2
3Q09 3Q10
85%
20.1
37.0
9M09 9M10
84%
TOWAGE
# Manoeuvres Special Operations (% Total Towage Revenues as of 9M10)
Net Revenues (USD million) EBITDA (USD million) & EBITDA Margin (%)
6
3Q09 3Q10
2%
40.1
40.9
9M09 9M10
6%
107.6
114.0
9M09 9M10
2%
3Q09 3Q10
4%
12,71513,180
37,51838,085
85.2
14.8
Harbour Manoeuvres
Special Operations
45.4
40.0
9M09 9M10
-12%
15.015.8
3Q09 3Q10
5%
37.5% 38.6% 42.2% 35.0%
OFFSHORE
# Days in Operation* # PSVs*
Net Revenues (USD million) EBITDA (USD million) & EBITDA Margin (%)
20082009
20105
7
10
7* Includes the total numbers for the joint venture, of which Wilson, Sons owns 50%
3Q09 3Q10
8.9
4.7
-48%
9M09 9M10
-12%
27.5
24.3 4.2
2.4
3Q09 3Q10
-43%
46.6% 50.5%
15.3
11.1
9M09 9M10
-27%
55.7% 45.7%
1,447
2,167
9M09 9M10
50%
512
819
3Q09 3Q10
60%
SHIPYARD
Net Revenues (USD million) EBITDA (USD million) & EBITDA Margin (%)
8
7.8
11.9
3Q09 3Q10
53%
19.7
31.6
9M09 9M10
61%4.5
-7.3
3Q09 3Q10
58.4% -60.9%
11.7
4.6
9M09 9M10
59.6%
-61%
14.6%
SHIPPING AGENCY
Operational Indicators
Net Revenues (USD million) EBITDA (USD million) & EBITDA Margin (%)
# Vessel Calls # BLs Issued # Cntrs Controlled
9
4.3
4.7
3Q09 3Q10
9%
10.9
12.7
9M09 9M10
16%
0.5
0.1
3Q09 3Q10
-87%
1.5%12.3%
1.5
1.1
9M09 9M10
-30%
8.5%14.1%
9M09 9M10
11%
4,8315,339
3Q09 3Q10
9%
1,7381,902
9M09 9M10
14%
40,844
46,748
3Q09 3Q10
23%
14,151
17,384
3Q09 3Q10
14%
28,441
32,400
9M09 9M10
10%
79,629
87,473
LOGISTICS
# Trips # of Operations
Net Revenues (USD million) EBITDA (USD million) & EBITDA Margin (%)
10
3Q09 3Q10
38%
19.5
26.8
9M09 9M10
24%
55.8
69.1
2.0
2.6
3Q09 3Q10
31%
10.2% 9.7%
6.2
7.1
9M09 9M10
15%
11.1% 10.3%
2125
3Q09 3Q10
19%
2125
9M09 9M10
19%
9M09 9M10
49%
40,718
60,843
3Q09 3Q10
9%
12,390
13,556
CORPORATE
9M09 vs. 9M10
3Q09 vs. 3Q10
11
(USD million)
(USD million)
EBITDA 3Q09 Exchange rate effect Personnel expenses Other expenses EBITDA 3Q10
(0.2)
(11.3)
(0.5)(0.7)
(9.9)
EBITDA 9M09 Exchange rate effect Settlement of legal proceeding
Personnel expenses Other expenses EBITDA 9M10
(0.7) (1.3)
(28.3)
(1.0)(3.7)
(21.7)
EBITDA
9M09 vs. 9M10
3Q09 vs. 3Q10
12
(USD million)
(USD million)
33.1
6.2 0.8
(1.8)
0.6
(11.8) (0.5) (1.4)
25.2
EBITDA 3Q09 Port Terminals Towage Offshore Logistics Shipyard Shipping Agency
Corporate EBITDA 3Q10
-24%
100.3
13.6
(5.4) (4.2)
0.9
(7.1) (0.5)(6.6)
91.1
EBITDA 9M09 Port Terminals Towage Offshore Logistics Shipyard Shipping Agency
Corporate EBITDA 9M10
-9%
NET INCOME
9M09 vs. 9M10
3Q09 vs. 3Q10
13
(USD million)
(USD million)
75.5 61.9
Ne
t In
com
e
9M
09
EBIT
DA
Dis
po
sal o
n
inve
stm
en
t
De
pre
ciat
ion
an
d
Am
ort
isat
ion
Fin
anci
al
Re
sult
s
Cu
rre
nt
Inco
me
Tax
De
ferr
ed
In
com
e T
ax
Ne
t In
com
e
9M
10
20.4
(7.5)
(21.1)
14.0
(10.2)
-18%
(9.3)
26.3 24.6
Ne
t In
com
e
3Q
09
EBIT
DA
Dis
po
sal o
n
inve
stm
en
t
De
pre
ciat
ion
an
d
Am
ort
isat
ion
Fin
anci
al
Re
sult
s
Cu
rre
nt
Inco
me
Tax
De
ferr
ed
In
com
e T
ax
Ne
t In
com
e
3Q
10
(2.5)
(7.0)
3.1 2.2
-6%
(7.9)
10.4
*
* Divestiture of 50% Offshore
*
21%
47%
23%
9%1%
29%
27%
20%
21%
1% 2%
CAPITAL EXPENDITURES
Capital Expenditures (USD million) Major expenditures
Capex Breakdown
9M09 9M10
• Port Terminals: civil works for Tecon RG (50m inflexion)and purchase of other equipment across the business(STS, RTGs and MHC);
• Towage: fleet renewal and expansion (2 tugboatsdelivered by 30 September 2010)
• Offshore: fleet expansion (3 vessels were delivered in2010)
• Logistics: equipment for new client in-house operations ,such as fork-lifts and tractors.
14
29%
27%
20%
21% 1% 2%
Port Terminals Towage Offshore Logistics Shipyard Shipping Agency Corporate
115.9
97.1
9M09 9M10
-16%
38.136.4
3Q09 3Q10
-4%
CASH POSITION & DEBT PROFILE
Leverage Indicators (USD million)
Debt Currency ProfileDebt Source Profile
15
Debt maturity profile
290.2
- 145.7
144.5
Total Debt Cash and Equivalents
Net Debt
78%
22%
FMM Others
91%
9%
Long Term
Short Term
85%
15%
USD BRL
INVESTOR RELATIONS CONTACTS
Felipe Gutterres
CFO of the Brazilian Subsidiary, Legal Representative and Investor [email protected]
Phone: + 55 (21) 2126-4122
Michael Connell
Investor [email protected]
Phone: + 55 (21) 2126-4107
IR website: www.wilsonsons.com.br/irTwitter: @WilsonSonsIR
BM&F Bovespa: WSON11
Bloomberg: WSON11 BZ
Reuters: WSON11.SA
Eduardo Valença
Investor [email protected]
Phone: + 55 (21) 2126-4105
Guilherme Nahuz
Investor [email protected]
Phone: + 55 (21) 2126-4263
16