CORPORATE PRESENTATION Rio de Janeiro | February 2012
CORPORATE PRESENTATIONRio de Janeiro | February 2012
This presentation relating to LLX Logística S.A. (“LLX”) includes “forward-looking statements”, as that term is defined in the Private Securities LitigationReform Act of 1995, in Section 27A of the Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All statements other thanstatements of historical facts are statements that could be deemed forward-looking statements and are often characterized by the use of words such as“projects”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “may”, “will”, or by discussions or comments about our objectives, strategy,plans or intentions and results of operations. Forward-looking statements 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 riskexists that these statements may not be fulfilled or, even if they are fulfilled, the results or developments described in such statements may not beindicative of results or developments in future periods. We caution participants of this presentation not to place undue reliance on these forward-lookingstatements 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 and licenses on atimely basis or at all, and changes in economic, political and regulatory conditions. We caution that the foregoing list is not exhaustive. When relying onforward-looking statements to make decisions, investors should carefully consider these factors as well as other 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 (which can only bemade pursuant to definitive offering documents) nor a solicitation of an offer to buy any securities in the United States, or any other jurisdiction. Thesecurities 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, asamended, or any applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption fromsuch registration requirements.
This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without LLX’s priorwritten consent.
Disclaimer
Investor Relations
Otávio Lazcano – CEO
Luiz Felipe Jansen de Mello – IR Manager
Tel. 55 21 2555-5661
EBX’s publicly held companies
Mkt Cap EBX GroupUS$ 41.8 bn*
Mkt CapUS$ 1.4 bn
Mkt CapUS$ 2.1 bn
Mkt CapUS$ 2.9 bn
Mkt CapUS$ 3.6 bn
Mkt CapUS$ 30.6 bn
January 31st, 2012 - R$/USD – 1,7468
*Includes PortX
LLX is part of the EBX Group, an industrial
conglomerate founded and led by Brazilian
entrepreneur Eike F. Batista, who has a proven
track record in developing new projects in the
infrastructure and natural resources sectors.
EBX Group’s investments are concentrated in the
companies LLX (logistics), MMX (mining), MPX
(energy), OGX (oil and gas) and OSX (offshore
industry), listed on the Novo Mercado of the
BM&FBOVESPA, the segment with the highest
standards of Corporate Governance.
Brazilian Port Sector
Typical Brazilian port:
strangled by the growth of the city
The brazilian port facilities operate with current bottlenecks such as:
� Land access restrictions
� Small and low-skilled berths
� Draft restrictions
� Lack of automation in cargo handling
80% of the population lives 200 km
from the coast
Rio Amazonas
Manaus
Itaquí
Fortaleza
Suapé
Salvador
Vitória
Santos
Paranaguá
São Francisco do Sul
Rio Grande
The private capital is essential to promote the development of brazilian port infrastructure
LLX
LLX was created in March 2007, to provide logistic services through the development of major port systems in Brazil:
■ Strategic location and large back-areas;
■ Capability to receive large vessels;
■ Contiguous industrial area;
■ Integration with existing rail and road infrastructure;
■ Low cost operational model (private terminals);
■ Long term take-or-pay contracts and synergies generated within the EBX Group;
■ Social and Environmental Responsibility
Timeline
2007
Mar/07
LLX is created
Jun/07
Construction License for LLX Minas-Rio
ANTAQ’s Authorization forLLX Minas-Rio
Jul/07
Anglo American acquires49% of LLX Minas-Rio
2008
Jun/08
LLX shares begin trading on the BMF&BOVESPA Stock Exchange
2009
Mar/09
Capital Increase –BNDESPAR: R$ 600 million
Oct/09
Installation License for MPX’s ThermalPowerPlant
Dec/09
Installation License for Logistics Yard –LLX Açu
Anglo obtains the Construction Permit for Minas-Rio system
2011
Jun/11
TX1- Iron Ore Pier concluded
Installation License for Onshore Terminal
ANP’s Authorization for OTF
Jul/11
TX2 – Construction Begins
Aug/11
MoU with FCA
Oct/11
Environmental License forTernium
Oct-Dec/11
TX2 land lease contractssigned: OSX, NKTF, Technipand InterMoor
2010
Jul/10
ANTAQ’s Authorization forLLX Açu
Sep/10
Installation License for OTF
Ternium and LLX sign anagreement - steel facilityin Açu Superport
Oct/10
LLX’s Partial Spin Off/
Portx is created
Dec/10
Renegotiation of the IronOre Contract - LLX Minas Rio/Anglo American
LLX Ownership and Corporate Structure
54%
Other Minority
Shareholders
18% 28%
51% 70%
LLX
Minas-Rio
LLX
Açu
Centennial
30%49%
Açu Superport
Controlling
Shareholder
LLX: Strategic Location
Hinterland of 75%of Brazilian GDP
Campos Oil Basin
■ Integrated with rail, highway – leapfrog from truck to coastal barging;
■ 150 km from Campos oil basin (85% of Brazil oil production);
■ Natural workshop for the pre salt in Brazil: one stop shop for the oil and gas industry;
■ Açu Superport : Brazil’s new route to China (Source: FT; May 9th, 2011).
Rio Amazonas
Manaus
Itaquí
Fortaleza
Suapé
Salvador
Vitória
Santos
Paranaguá
São Francisco do Sul
Rio Grande
Rio de Janeiro
Açu SuperportAuthorization to move 1.2 mbpd
VLCC/ChinamaxTankers
Campos Basin
85% of Brazil OilProduction
Storage & Treatment
Açu SuperportUnique location and integration to main railway and highway network
■ BR 101 to be duplicated
■ A 43 km new railway track will connect AçuSuperport to the railway and Campos withina multimodal Logistic Corridor
Açu SuperportUnique location and integration with the railway network
LLX: capability to receive VLCCs/ChinamaxOnly 7% of Brazilian Ports are able to receive capesize vessels*
Source : (*) CEL/COPPEAD 2008 – vol 1 and Port Sites
LLX’s Business Model
LLX is signing long term agreements with industry leaders guaranteeing
a steady cash flow and dividends to shareholders
Company
LLX Minas Rio
LLX Açu
Services Rendered
� Iron Ore handling
� Multi product handling (Steel,Coal,Liquid & Dry Bulk,General Cargo)
� Land Lease and Services & Utilities
Revenue Model
� Take or pay long-term contract (25 years) with Anglo.
� Initial ore shipment : July 2013. Expected revenues of US$ 190 million.
� Tariffs negotiated to ensure a minimum 15% py IRR to firm in US$ (under long term contracts) unleveraged.
Açu Industrial ComplexA new cluster for the offshore and heavy industry
LOGISTICS YARD/ OTFLOGISTICS YARD/ OTF
ENVIRONMENTAL
RESERVE AREA
40KM2
ENVIRONMENTAL
RESERVE AREA
40KM2
X CITYX CITY
SILICON VALLEYSILICON VALLEY
METAL-MECHANIC INDUSTRIESMETAL-MECHANIC INDUSTRIES
OFFSHORE
INDUSTRIES
IRON OREIRON ORE
CRUDE OILCRUDE OIL
COALCOAL
CEMENT
PLANTS
CEMENT
PLANTS
LIQUID BULKLIQUID BULK
SUPPLY BOATSUPPLY BOAT
STEEL/SOLID
BULK
STEEL/SOLID
BULK
Açu SuperportHighlights
Up to 350 million tons port complex with 2 terminals (TX1 and TX2), to be ranked among the
3 largest ports in the world.
17 km of quay, up to 40 berths and able to receive very large carriers (including Chinamax)
thanks to its 26 meters draft.
More than 60 contracts and MoUs signed with companies from sectors such as:
■ Steelmaking (Ternium, Wuhan);
■ Power generation (MPX);
■ Cement (Votorantim , Camargo Correa);
■ Offshore Industries (Technip, NKTF, InterMoor);
■ Oil and Gas;
■ Metal Mechanic;
■ Dry & Liquid Bulk Handling;
■ Automotive
Resources and energy supply security, operating and logistic efficiencies, truly just in time practices
and 2% VAT instead of 18%.
Largest and most efficient port-industry complex in Latin America: total investments of US$ 40 billion
TX1
IRON OREIRON ORE
CRUDE OILCRUDE OIL
TX1
One of the largest offshore terminal in Latin America for Iron Ore and Oil
Threstle Completed : 3,000 m
Quay Length: up to 4,000 m
Number of Berths: 9
■ 5 dedicated to Oil (up to 1.2 mbpd)
■ 4 dedicated to Iron Ore (up to 100 mtpy)
Initial Dredging: 21 m to be
dredged up to 26 m for VLCCs and
Capesizes
TX1Iron Ore Pier 100% completed
Açu SuperportOil Treatment Facility
Desalting DewateringBlending
OilOilOilOil TreatmentTreatmentTreatmentTreatmentFacilityFacilityFacilityFacility
Investment ofUS$ 1.45 billion
OilOilOilOil ExportExportExportExport VLCCsBusiness opportunity with a leveraged IRR > 70% py
FPSOsFPSOsFPSOsFPSOs For 800,000 bpd
(+)
3.000 m
3.000 m
Tug boat Pier and 100% of Iron Ore Pier Completed
TX1: Offshore Terminal
Dredging for
execution of Oil
Treatment
Facility’s landfill
TX1
The world’s largets
concrete block
builder
AçuBreakwater
Docked at Porto
do Forno, in
Arraial do Cabo
Kugira
For the Breakwater
construction
Concrete
Block
OFFSHORE
INDUSTRIES
COALCOAL
STEEL/SOLID BULKSTEEL/SOLID BULK
SUPPLY
BOAT
SUPPLY
BOAT
LIQUID BULKLIQUID BULK
13 Km of quay
and capacity for
more than 30
berths
TX2
TX2: Main characteristics
Total Quay Length : 13,000 m
Onshore Channel Width: 300
Total Area: 8,000,000 m2
Extension: 6,500 m
Unique advantages for Oil & Gas E&P
segment
Able to handle Coal, Steel Products,
Dry and Liquid Bulks
TX2: Onshore Channel Dredging Sequence
Dredging of the
Canal
TX2
100 m
TX2: Canal Onshore Dredging Evolution
August/2011
■ Cyrus II began the process of dredging the channel and is progressing at a rate of 25 meters per day, extracting a daily volume of 34,000 m³ of sand.
November/2011
TX2
Dredging
Evolution:
January 2012
TX2
Dredging
Evolution:
February 2012
1370 m
X6
125 m
Overview –
Onshore Canal
TX2
Starting the
breakwater
construction
TX2
Açu SuperportMain Activities
Up to 12.6 Mtpy
Up to10.2 Mtpy
Iron Ore Steel ProductsReal Estate
Up to 100 Mtpy
Oil
Up to 1.2 Mbpd
Up to 2.0 Mtpy Up to 2.0 Mtpy Up to 1.0 Mtpy
Industrial Areas Rental
Coal Pig Iron Slag Granite
Açu SuperportMilestones – Construction on Track
1H06 2H06
Development
Construction
Operations
LLX Minas-Rio
Projectdetailing
EnvironmentalLicense
1H07 2H07 2008
UnderConstruction
2009 2010 2011 1H12 1H013 2H0132H12
Start UpUnder
ConstructionUnder
Construction
UnderConstruction
UnderConstruction
UnderConstruction
Projectdetailing
OffshoreEnvironmental
LicenseLLX Açu
ConstructionLicense
ANTAQAuthorization
Constructionbegins
OffshoreConstructionLicense
ANTAQAuthorization
Constructionbegins
UnderConstruction Start Up
OnshoreEnvironmental
License
OnshoreConstructionLicense
UnderConstruction
UnderConstruction
Açu SuperportCapex: R$ 3.8 bilion
Total Capex (Project): R$ 2.273 billion
Capex (2007 -2011) : R$ 1.5 billion
Capex LLX Minas -Rio: R$ 974 million
Capex AFMR: R$ 1.3 billionCash Position: R$ 530.6 million
Total Debt: R$ 888.1 million
Net Debt: R$ 357.5 million
Iron Ore ProjectLLX Açu
Total Capex (Project): R$ 2.8 billion
Capex (2007 -2011) : R$ 973 million
Contracts SignedAnnual Revenues: R$ 70 million
NKTF
■ Term: 20 years, renewable for a further 20 years
■ Area: 121,905 m² – with 210 m of quay
■ Revenue: R$ 8 million per year
■ Start Date: October 20th, 2011
Technip
■ Term : 25 years, renewable for a further 25 years
■ Area:289,800 m² – with 500 m of quay
■ Revenue: R$ 22 million per year
■ Start Date: November 18th, 2011
InterMoor
■ Term: 20 years, renewable for a further 20 years
■ Area: 52,302 m² - with 90 m of quay
■ Revenue: R$ 3.6 million per year
■ Start Date: December 2nd, 2011
MPX
■ Term: 35 years, renewable for a further 35 years
■ Area: 2,243,800 m²
■ Revenue: R$ 9.17 million per year
■ Start Date: November 24th, 2010
OSX
■ Term: 40 years, renewable for a further 40 years
■ Area: 3,200,000 m²
■ Revenue: R$ 28 million per year
■ Start Date: October 31st, 2011
LLX: Social & Environmental Responsibility
$ 70 million already invested in more than 50 social and environmental projects
Assistance programs to fishing activities, society and environment
Professional Qualification Program in partnership with Senai trained nearly 800 people and will provide
3,300 positions for professional development courses and technical support in 2012
40 km ² area dedicated to create an Environmental Reserve
Health and safety programs
The Acu Superport at full capacity will generate 50,000 jobs
Professional Qualification Program Turtle Release - partnership with the Tamar Project Actions to strengthen the fishing activity
www.llx.com.brEmail: [email protected]: +55 21 2555 5661