Syn Prop e Tech SA · BMFBOVESPA:SYNE3

Syn Prop e Tech SA — Santos Brasil — Investor Presentation (November 2019)

38 slides from Syn Prop e Tech SA's investor presentation, November 2019

  1. Slide 1: Institutional Presentation - 2019

    Institutional Presentation - 2019

  2. Slide 2: Content

    Content  World Port Container Throughput 03  Macroeconomic Context 04  Container Ports in Brazil 06  Port of Santos 07  About Santos Brasil 09  Tecon Santos 12  Tecon Imbituba 18  Tecon Vila do Conde 23  TEV – Vehicle Terminal 28  Logistics 29  Investments & Financial Highlights 31  Corp

  3. Slide 3: Largest countries in container handling

    Largest countries in container handling World port container throughput in 2017 -> 752 million TEU Brazil: world’s 20th largest container throughput in 2017 (‘000 TEU) Port of Santos: Latin America’s 2nd largest container throughput in 2018 Rank Port Country Volume (TEU) China 213,720 1 Colón Panama

  4. Slide 4: Macroeconomic indicators

    Macroeconomic indicators Containers volume: resiliency amidst economy slowdown Inflation x Interest Rate Industrial Activity x Interest Rate 16% 20% 1,4% 14% 10% 1,2% 12% 10% 1,0% 0% 8% 0,8% 6% -10% 0,6% 4% 2% -20% 0,4% 0% -30% 0,2% jan-10 nov-10 set-11 jul-12 mai-13 mar-14 jan-15 nov-15 set-16 ***

  5. Slide 5: Port sector in Brazil

    Port sector in Brazil Resiliency amidst economy slowdown Brazil Long-Haul Cargo Breakdown (MM Ton) Brazil Cabotage Cargo Breakdown (MM Ton) 622 657 671 684 714 754 743 805 823 127 136 139 142 148 149 150 157 161 19 16 17 21 17 17 17 21 18 613 631 534 577 570 487 501 515 462 122 116 118 117 118 110 1

  6. Slide 6: Port sector in Brazil

    Port sector in Brazil South and Southeast ports are the largest in volume North Northeast Southeast South Container throughput - main Brazilian ports (‘000TEU) % Population 9% 28% 42% 14% % GDP 6% 15% 53% 17% 2018 2017 % Volume (TEU) 7% 12% 46% 35% Santos 4.122 3.854 Rio de Janeiro 327 281 Itaguai /

  7. Slide 7: Port of Santos

    Port of Santos ‘Must-call port’ in South America  Largest Port in South America BTP  > 25% of Brazilian Trade Balance  Hinterland covers 55% of Brazil’s GDP Rodrimar  Connected to Brazil’s main roads and railways Ecoporto  ~90% of São Paulo’s industrial base is located DPW Santos less than 200

  8. Slide 8: Port of Santos

    Port of Santos Tecon Santos’ market-share recovery: 40.3% in 9M19 vs. 35.4% in FY18 Market share – 9M19 Container throughput (TEU x 1,000) Santos Brasil 40,3%  2018 x 2017  CAGR 1998 – 2018 DP World - Port of Santos: +4.0% (+7.0% in TEU) - Port of Santos: 8.5% Santos 16,0% - Tecon Santos: +7.8% (+

  9. Slide 9: About Santos Brasil

    About Santos Brasil History Tecon Imbituba and Tecon Vila do Conde are acquired Tecon Santos Tecon Vila do operates the vessel Conde renews its with the highest cargo lease for additional capacity ever to call 15 years at the Port of Santos Initial Public 2008 Tecon Santos reaches a Offering new pro

  10. Slide 10: About Santos Brasil

    About Santos Brasil Highlights  Publicly-traded company, listed in B3’s Novo Mercado segment TECON VILA DO CONDE  Five terminals on the Brazilian coast - Three container terminals - One vehicle terminal - One general cargo terminal  Container throughput: 1.68 million TEU (twenty-foot equivalent u

  11. Slide 11: Container terminal operation

    Container terminal operation The container cycle in a import operation (reverse for exports) 5a Regular Containers Regular containers are taken to the common yard, where they are positioned according to the order in which they will most likely be moved into trucks to leave the terminal 1 Ship arrive

  12. Slide 12: Tecon Santos

    TECON SANTOS

  13. Slide 13: Tecon Santos

    Tecon Santos Best solution for containers in South America  Growth capacity: CAPEX plan of c.R$1.5 billion, already started Geographic Footprint  Lease contract renewed until 2047 RR AP  Equipment 100% GPS-controlled Southeastern AM MA CE RN PA Ports PI PB AC PE  Connected to Brazil’s main roads

  14. Slide 14: Tecon Santos

    Tecon Santos Infrastructure and other information General data Security Equipment # STS MHC Reach Stacker RTG Depth: 13.5m Allows Scanner (non-invasive Ship-to-Shore 13¹ Post- Quayline extension: 980m + inspection) Panamax MHC 1 310m (TEV) vessels Surveillance cameras to dock Reach Stackers 18 Area:

  15. Slide 15: Tecon Santos

    Tecon Santos R$ 3.0 billion1 invested to upgrade and expand the terminal  High Productivity - movements per hour per vessel (MPH) Tecon Santos in 1997: 11 MPH 106 105 99 93 92 Monthly Average in 2018 92 MPH 69 Tecon Santos in 2018: 92 MPH MPH 2013 2014 2015 2016 2017 2018 (1) IGP-M inflation adjust

  16. Slide 16: Tecon Santos

    Tecon Santos Investment cycle in progress: cutting-edge technology, modern layout NEW LAYOUT Automation Focus on efficiency New Capacity 2,400,000 TEU Quay extension Estimated CapEx R$ 1.5 billion Investments contracted (FY18) c.R$ 100M 16

  17. Slide 17: Tecon Santos

    Tecon Santos Phases of the project Phase 2 Phase 1 Backyard capacity expansion Berths extension and modernization to attend ships with 366 meters length Improvement of the road-rail access Phase 3 Automation: increasing capacity and cost reduction 17

  18. Slide 18: Tecon Imbituba

    TECON IMBITUBA Tecon Inserir imagem aqui, preenchendo o espaço por Imbituba completo. 18

  19. Slide 19: Tecon Imbituba

    Tecon Imbituba Strategic Location at Southern Region, with developed logistical access  14.5m draft: port terminal ready to receive Super-Post-Panamax Geographic Footprint vessels of 366 meters length RR  Close to Santa Catarina and Rio Grande do Sul industrial zones AP Southern AM PA MA CE RN Por

  20. Slide 20: Tecon Imbituba

    Tecon Imbituba Infrastructure and other information General data Security Equipment # STS MHC Reach Stacker Depth: 15.0m Allows Scanner (non-invasive Ship-to-Shore 2 Super- Quayline extension: 660m inspection) Post- MHC 2 Panamax Surveillance cameras Area: 207,000m2 vessels Reach Stackers 8 Restrict

  21. Slide 21: Tecon Imbituba

    Tecon Imbituba TECON VILA DO CONDE Potential for volume increase  Tecon Imbituba and its peer terminals (Itajaí/Navegantes and Rio Grande) are equidistant from the industrial zones and the consumption centers in the Southern region PARANAGUÁ 765,785 TEU* ITAPOÁ / SÃO FRANCISCO DO SUL  The states o

  22. Slide 22: Tecon Imbituba

    Tecon Imbituba R$ 965 million(1) invested since 2008  Improving Productivity - movements per hour per vessel (MPH) Montlhy Average in 2018 60 MPH (1) IGP-M inflation adjusted. Includes investments in Imbituba General Cargo terminal 22

  23. Slide 23: Tecon Vila do Conde

    TECON VILA DO CONDE 23

  24. Slide 24: Tecon Vila do Conde

    Tecon Vila do Conde Located in the delta of Amazon River  Located in the North region of Brazil, with no physical constraints Geographic Footprint to receive long haul vessels RR Northern  Dominant container terminal in Pará state, well connected to other AP Ports Brazilian ports via cabotage AM P

  25. Slide 25: Tecon Vila do Conde

    Tecon Vila do Conde Infrastructure and other information General data Security Equipment # MHC Reach Stacker Depth: 13.5m Allows Scanner (non-invasive Post- MHC 3 Quayline extension: 254m inspection) Panamax Reach Stackers 11 vessels Surveillance cameras Area: 86,615 m2 to dock Restricted access Ann

  26. Slide 26: Tecon Vila do Conde

    Tecon Vila do Conde TECON VILA DO CONDE North Region: inland waterway cargo transportation Vila do Conde x MACAPÁ - AP Main Cargos: Chemical Products Vila do Conde x MUNGUBA Vila do Conde x BELÉM Main Cargoes: Kaolin and Cellulose Main Cargo: Wood VILA DO CONDE Vila do Conde x CAMETÁ Main Cargo: Pal

  27. Slide 27: Tecon Vila do Conde

    Tecon Vila do Conde Recent upgrade and capacity expansion to 217,000 TEU annual capacity 27 7

  28. Slide 28: TEV - Vehicle Terminal

    TEV - Vehicle Terminal Largest vehicle terminal in Brazil  Neighbor to Tecon Santos  Handling of different types of cargo: trains, dismantled industrial plants, power transformers, dismantled machinery, large sculptures etc  Annual capacity: 300,000 vehicles - Static capacity: 10,000 vehicles - F

  29. Slide 29: Logistics

    Logistics Vertical integration  Taylor-made logistics services, integrating maritime transportation to exporters’ and importers’ supply chain  Potential to increase customers’ competitiveness: eg. “K10” logistics operation for BASF  Synergies between integrated logistics and port operations  Inf

  30. Slide 30: Main clients

    Main clients Port terminals and Logistics 30

  31. Slide 31: Investments

    Investments R$ 5 billion(1) in 22 years M&A CAPEX  1997 – Tecon Santos bidding  2004/2006 – Tecon Santos first expansion  2006 – Santos Brasil IPO  2008/2010 – Tecon Santos second expansion  2007 – Santos Brasil Logística acquisition  2008/2011 – Tecon Imbituba expansion  2008 – Tecon Imbitub

  32. Slide 32: Financial Highlights

    Financial Highlights EBITDA and EBITDA Mg. Net Revenue (R$M) Net Revenue Breakdown (3Q19) Logistics Port Terminals 26% (warehousing) 30% Vehicle terminal 965 922 829 824 5% 700 742 Port Terminals (quay) 2015 2016 2017 2018 9M18 9M19 36 39% Pro Forma EBITDA² (R$M) and EBITDA margin (%) Net Income (R$

  33. Slide 33: Debt Leverage and Cash Flow

    Debt Leverage and Cash Flow S&P – Corporate rating in national scale: brAAA EBITDA and EBITDA Mg. Operating Cash Flow (R$M) Net Debt (R$M) and Net Debt / pro-forma EBITDA¹ 0.73x 0.46x -0.03x -0.25x 108 -0.45x -0.37x 168 40 122 108 75 74 (3) 55 (27) (38) (39) 2015 2016 2017 2018 9M18 9M19 2015 2016 2

  34. Slide 34: Debt highlights and financial ratios

    Debt highlights and financial ratios Net cash of R$ 3.3 million at 09/30/2019 EBITDA and EBITDA Mg. Debt Amortization (R$M) Debt Currency Outstanding (R$M) % NCE BRL 103.2 22.4% 305 Finimp USD/EUR 15.7 3.4% Finame BRL 2.3 0.5% 464 Debentures BRL 295.3 64.1% 112 CCE BRL 10.3 2.2% 27 18 CCE USD 34.0 7

  35. Slide 35: CapEx and Dividends

    CapEx and Dividends R$ million Capital Expenditures (R$M) Dividends and Interest on Equity distribution (R$M) 87 72 28 27 15 7 205 187 194 8% 3% 1% 3% 16% 1% 3% 9% 45% 38% 31% 16% 99% 97% 85 82% 70 51% 52% 42% 31 18 2014 2015 2016 2017 2018 9M19 4 2 3 Port Terminals Logistics Corporate TEV Total (R$

  36. Slide 36: Corporate Governance

    Corporate Governance “Novo Mercado” listing on B3 – STBP3  100% Tag Along for all minority shareholders Shareholding Structure (Oct/19)  One Share, One Vote (no shareholders agreement) Management 0,4% Treasury 0,3%  Board of directors: 7 members formed by shareholders Others 32,7% THE BANK OF NEW

  37. Slide 37: Environmental, Social and Governance

    Environmental, Social and Governance  Sustainability Report¹ compliant with GRI Standard since 2011;  R$ 26 million invested in training over the last 6 years;  19.2% reduction in CO2 emission per TEU handled in our  ‘Formare Aprendiz’ program: 251 youngsters graduated since terminals; 2009; 86

  38. Slide 38: IR contact, Web and Social Medias

    IR contact, Web and Social Medias dri@santosbrasil.com.br +55 (11) 3279-3279 SantosBrasil santosbrasil_ santosbrasiloficial santos-brasil 45

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