TÍTULO DA Institutional Presentation APRESENTAÇÃO Log ......3Q18 R$48.6 MM (17.7%) vs. 3Q17...
Transcript of TÍTULO DA Institutional Presentation APRESENTAÇÃO Log ......3Q18 R$48.6 MM (17.7%) vs. 3Q17...
TÍTULO DA
APRESENTAÇÃOInstitutional Presentation
Log-In Logística Intermodal S.A.
December 2018
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)
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HISTORICAL BACKGROUND
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Historical Background
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▪ IPO in 2007 as a spin offfrom Vale
▪ Order of 7 vessels (2 bulksand 5 containers) from EISA– Brazillian shipyard
▪ Cabotage volume increasedfrom 32 thousand TEU(2007) to 143 thousand(2014), presenting a CAGR of24%
IPO & Growth(2007-2015)
Restructuring (2016-2017) Growth (2017-2018 onwards)
▪ EISA requested judicial settlement (“RJ”) in JAN/16without delivering 3 vessels (*EI-506, EI-507 e EI-508)
▪ Start process of renewing TVV concession agreement
▪Major management turnaroundmeasures implemented:
✓ Sale of bulk business for R$680 MM in 2016
✓ Operational fleet restructuring (selling of Amazoniavessel and acquisition of Resiliente vessel – increaseof capacity)
✓ Restructuring debt with major lenders (BNDES/G4)
✓ Record AFRMM release in 2017 (>R$110M)
✓ Improvementof operation and organization structure
▪ Improvement in Brazillian economic outlook.
▪ Adjusted EBITDA (ex non-recurrent events) increasedfrom R$38.6 MM (9M17) to R$102.8 MM (9M18)driven mostly by:
✓ 11% volume increase in container operationsvolume
✓ 18% increase in Log-In’s revenue
✓ Dilution of fixed costs and expenses.
▪ TVV concession agreement ends in 2023 and isexpected to be renewed for an additional 25 years(up to 2048).
SHIPPING – EFFICIENCY AND VOCATION OF BRAZIL
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Coastal Shipping efficiency
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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 CO2 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
Redução significativa nos custos de
serviços de logística com a utilização
da cabotagem para longas distâncias
Redução nos investimentos em CDs ou
fábricas localizadas próximas aos pontos
de consumo (otimização/escala da produção)
Brazil - A country ready for cabotage and its
benefits
8.500 km
of ocean
coast
✓ Brazil is the 5th largest country in the world in territorial dimension
✓ 8,500 km of ocean coast, reaching approx. 10,500 km navigable
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
✓ Opportunity to reduce investments in distribution centers or
factories near points of consumption
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OPERATIONS: COASTAL SHIPPING, TVV AND INTERMODAL TERMINALS
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Coastal Shipping: fleet and services
Vessels and allocation to services:
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Cabotage, Mercosur and Feeder
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SAM - Amazonas Service
Operations
Cabotage, Mercosur and
Feeder
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Cabotage, Mercosur and Feeder
Operations
Cabotage, Mercosur and
Feeder
SAS - Atlântico Sul Service
Shuttle Service – Shuttle Rio
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Cabotage, Mercosur and Feeder
Operations
Cabotage, Mercosur and
Feeder
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Cabotage, Mercosur and Feeder
Operations
Cabotage, Mercosur and
Feeder
Amazonas Service
Atlântico Sul Service
Shuttle Rio Service
Manaus Service
Door to door operation illustration
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Road Section Road SectionMaritime Section
DESTINATION
Recipient’s
Plant
Loading PortUnloading
PortORIGIN
Shipper’s Plant
➢ 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
➢ Concession agreement of 25 years (until 2023), with automatic renewal for another 25 years.
The renewal process has started
➢ Area of 108 thousand m2, capacity of 350 thousand TEU per year and its berth has a length of
450 meters
TVV – Vila Velha Terminal
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General view Warehouse Loading yard + Quay (left)
Loading yard (left)
Loading yard (right)
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
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RESTRUCTURING
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Operational Efficiency
Liquidity
Debt Profile
▪Capitalization
process
▪AFRMM -
regularization of
receipts
▪Debt restructuring
▪Capture results
from the
optimization
project
▪Vessel under
construction in
China and
bareboat
chartered vessel
Log-In delivered all goals proposed for restructuring
process expected for 2017 and 2018 (until this moment)
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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.
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Record AFRMM releases in 2017: R$110.6 million
Historic of AFRMM Releases (R$ million)
✓ In 2017 several proceedings overdue were released in favor of the Company.
AFRMM - Additional Freight for the Renewing of the Merchant Marine
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• 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)
Debt: adequacy of payments flow
Renegotiated Amortization schedule - Sep 30, 2018:
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.
Medium-term challenge
Turnaround process will provideadditional cash in order to supportCompany’s long-term Debt Schedule
Original Amortization schedule - Mar 31, 2016:
...to balance the financial obligations with the expectation
of cash generation
(Apr - Dec)
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Gross Margin after Variable Costs (%) – Coastal Shipping
Efficiency – Development of Gross Margin after
Variable Costs in Coastal Shipping
Gross Margin excludes AFRMM and vehicle transportation operations.
Tendência
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
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New vessels being constructed at Guangzhou
Wenchong Shipyard
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Strike Steel General view Keel Laying
Mangkut Typhoon effect 1 month ago
Today Status
Medium-term fleet planning
TODAY UNTIL 3Q19 UNTIL 4Q19
Own Brazilian ships (built in Brazil + under construction in China to be nationalized)
Own vessels operated via tonnage right
Bareboat chartered vessels via tonnage right
Time chartered vessels via public interest
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3Q18 / 9M18 RESULTS
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Highlights
✓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%)
✓EBITDA reached R$60 MM in 3T18 and R$152.7 MM in 9M18
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✓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%)
✓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$54.1 MM)
Economic and financial data
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Income Statement
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EBITDA increased 166% in 9M18(R$ MM)
166%
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Developments of EBITDA and Margin (Adjusted) over
quarters (R$ MM)
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In addition to the debt profile improvement, Log-In has begun
to capture gains from the restructuring process
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Trend
Truck drivers strike