Syn Prop e Tech SA · BMFBOVESPA:SYNE3
Syn Prop e Tech SA — Wilson Sons — Investor Presentation (March 2018)
31 slides from Syn Prop e Tech SA's investor presentation, March 2018
Slide 1: Institutional Presentation
Institutional Presentation March 2018
Slide 2: Disclaimer
Disclaimer 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 ar
Slide 3: Commitment to Safety
Commitment to Safety Lost Time Injury Frequency Rate (LTIFR): 2010-2017 7.14 Reduction of 94% in the Lost Time Injury Frequency Rate (LTIFR) since 2010 FROM TO 4.68 7.14 0.50 in 2010 in 2022 Already 3.18 0.45 below the in 2017 2022 target 2.37 4 DuPont HSE 1.80 1.53 Awards 0.69 0.45 2012 2013 2014 2
Slide 4: 180 Years of Experience
180 Years of Experience 1928 Inauguration of the largest 1973 Acquisition of Guarujá I 1837 2003 2017 Wilson, Sons & Company covered warehouse in shipyard, bolstering the Offshore operations Wilson Sons celebrated its was founded in Salvador (BA) Latin America, in São Group’s shipbuilding begin with
Slide 5: Wilson Sons at a Glance
Wilson Sons at a Glance International & Domestic Trade Flow 84% of client exposure Head Office Terminals Offshore Support 16% of client exposure Towage Offshore 1. Based on 2017 Pro Forma Logistics Revenues, including JVs. Agency 2. Exposure to O&G industry considers only Brasco and Shipyards WSUT a
Slide 6: Trade Flow Drivers
Trade Flow Drivers Wilson, Sons
Slide 7: The Brazilian Trading and Port Activities
The Brazilian Trading and Port Activities Consistent growth in port activities with superior increase of container handling Brazil’s Total Port Handling Volume (M Tons) Source: ANTAQ Solid Bulk Liquid Bulk Container General Cargo CAGR 02-17 1,087 1,008 54 4.3% 997 969 49 51 106 7.7% 929 +4.9% 903 46
Slide 8: Brazilian Container Terminal Market
Brazilian Container Terminal Market After challenging economic periods, container volume demonstrated rapid growth Brazil’s Total Container Volume and GDP Growth (M TEU(1); %) Source: Datamar; Brazilian Central Bank; IBGE; Bradesco - GDP forecast (14-Feb-2018) Container Volume Real GDP Growth GDP 20
Slide 9: Brazilian Container Terminal Market
Brazilian Container Terminal Market Strong drivers supporting enormous growth potential Still Low Relevance of International Trade Low Population Density Relevant Containerization Potential Merchandise Trade (% of GDP) Container Density (TEU per '000 people) Containerization Potential (M TEU) Source
Slide 10: Major Brazilian Container Ports
Major Brazilian Container Ports Brazil’s Total Container Volume, by Port (‘000 TEU) Source: Datamar; Wilson Sons (RIG & SSA) Belém + VDC 2017 2014 Change Pecém + FOR 3,816 Santos 3.5% 3,686 Natal 1,119 Navegantes + ITJ 3.0% 1,086 Manaus Suape + REC 761 Paranaguá 0.1% 760 761 Santos + Rio Grande 10.7
Slide 11: Oil & Gas Drivers
Oil & Gas Drivers Wilson, Sons 11
Slide 12: Improved Regulation in the Oil Sector
Improved Regulation in the Oil Sector Changes in the New regulation for pre-salt law ✔ Transfer of Rights areas Flexible local content policy ✔ Better Regulatory Framework Extension of REPETRO ✔ New calendar Streamline environmental for bid rounds ✔ licensing Source: Petrobras 12
Slide 13: Brazilian Reserves: Strong Fundamentals
Brazilian Reserves: Strong Fundamentals Breakeven of Non-producing and Recently Onstream Oil Assets Source: Goldman Sachs; Brazil's National Petroleum Agency (ANP); Petrobras 160 150 Brazilian Pre-salt: Marginal heavy oil 140 Competitive breakeven ~36 USD/boe; and deep water, Kashagan 130 Lower
Slide 14: PSV Fleet in Brazil
PSV Fleet in Brazil Brazil’s PSV Fleet and Utilization Source: IHS Petrodata; Offshore Merchant Partners Research (as of Mar-2018) 14
Slide 15: Our Business
Our Business Wilson, Sons 15
Slide 16: Container Terminals
Container Terminals US$151M 1.1M TEU 2.1M TEU Net Revenues Containers Handled Total Capacity (38% of FY17 Revenues) (FY17, Rio Grande + Salvador) (Rio Grande + Salvador) Tecon Rio Grande CONCESSION AREA AVAILABLE FOR EXPANSION 1997 Start of operations 2000 Conclusion of 1st expansion 2008 Conclusion
Slide 17: Tecon Rio Grande
Tecon Rio Grande Regular Shipping Line Services, by Destination Container Volume, by Destination: 2017 (% of TEU) Source: Wilson Sons Source: Datamar (long-haul shipping and full containers only) 4% 8% NEUR FAR EAST (ASIA) 27% NORTH EUROPE ECNA 10% MED CENTRAL AMERICA / GULF FEAS SOUTH AMERICA USGC
Slide 18: Tecon Salvador
Tecon Salvador FUTURE EXPANSION SITE 2018-19 Future expansion site (initial phase) 2016-17 US$4.9M investment 2012 Conclusion of 1st expansion 2000 Start of operations • US$110M investment • 3 RTG yard cranes • 423m quay extension Located in the State of Bahia Notes: (1) RTG stands for Rubber-Tyred
Slide 19: Tecon Salvador
Tecon Salvador Regular Shipping Line Services, by Destination Container Volume, by Destination: 2017 (% of TEU) Source: Wilson Sons Source: Datamar (long-haul shipping and full containers) 6% 1% NEUR 10% FAR EAST (ASIA) 27% NORTH EUROPE ECNA MED NORTH AMERICA FEAS 11% CENTRAL AMERICA / GULF USGC ME
Slide 20: Towage
Towage US$207M 74 tugs 59,796 71.1k tons Net Revenues Operational Fleet Harbour Manoeuvres Avg. DWT(1) Attended (42% of FY17 Revenues) (Mar-2018) (FY17) (FY17) Ports and Terminals served Notes: (1) DWT stands for deadweight. 20
Slide 21: Towage
Towage ❱ Largest fleet in Brazil, with approximately 50% share of harbour manoeuvres, operating in all major ports; ❱ Priority policy to Brazilian flag vessels; ❱ Long-term and low-cost funding available from the FMM (Merchant Marine Fund). WS Tugboat Fleet Throughout Brazilian Ports: Mar-2018 (# of
Slide 22: Offshore Support Vessels
Offshore Support Vessels US$73M 23 PSVs US$24,267 6,035 Net Revenues Operational Fleet Avg. Net Daily Rate Days in Operation (FY17) (Mar-2018) (FY17) (FY17) Notes: (1) Considers total results from Offshore Vessels JV, of which Wilson Sons owns 50%. 22
Slide 23: Offshore Support Vessels
Offshore Support Vessels ❱ Policy priority for Brazilian flag vessels; ❱ Long-term and low-cost funding available from the FMM (Merchant Marine Fund); ❱ Wilson Sons 100%-owned shipyard is a key competitive advantage. Contract Orderbook Vessel Name Class (DWT) Start Date Contract Duration 2017 2018 2
Slide 24: Financial Highlights
Financial Highlights a Wilson, Sons
Slide 25: Wilson Sons' Financial Highlights
Wilson Sons’ Financial Highlights Pro Forma Net Revenues (US$M) Pro Forma EBITDA (US$M) IFRS Offshore Vessels JV IFRS Offshore Vessels JV 698 715 710 657 206 209 209 54 199 41 77 191 576 47 580 570 23 40 36 528 163 162 39 498 478 28 71 37 73 22 71 11 16 404 38 122 128 121 334 11 19 91 13 13 8 657 66
Slide 26: CAPEX & Dividends
CAPEX & Dividends Capital Expenditures - CAPEX Proforma (US$M) Briclog acquisition, Guarujá II shipyard construction, Tecon Salvador’s expansion, Towage and Offshore Vessels fleet renewal, capacity increases and 3rd berth at Tecon Rio Grande. IFRS Offshore Vessels JV ❱ From 2012, Offshore JV Investm
Slide 27: Main Capex Project: Tecon Salvador's Expansion
Main Capex Project: Tecon Salvador’s Expansion Initial Phase ❱ 423m quay extension, with a total length of 800m after expansion; ❱ Leveling and paving an existing 28,160 sqm backyard area; ❱ Acquisition of 3 STS(1) quay cranes (Super Post-Panamax), and 3 RTG(2) yard cranes; ❱ Capacity at the end of
Slide 28: Debt Profile
Debt Profile Debt Profile (as of 31-Dec-17) Net Debt to EBITDA ratio (as of Dec-2017) with Offshore IFRS Pro Forma (w/ Offshore Vessels JV) IFRS JV (50%) 2.8x 2.8x Denominated in US$ 92.8% 95.8% 2.6x CURRENCY 2.4x 2.4x 2.3x 2.2x Denominated in R$ 7.2% 4.2% 1.1x 0.8x 1.0x 1.0x 0.9x Fixed 79.8% 88.1%
Slide 29: Governance & Management Alignment
Governance & Management Alignment Shareholding Structure Estimated Revenue, Costs and EBITDA (Pro Forma; as of Dec-2015) Ocean Wilsons Free Float Holdings Limited 58.19% 41.81% Revenues 52% 48% Bermuda Brazil Costs 85% 15% PORT & LOGISTICS SERVICES MARITIME SERVICES EBITDA Port Logistics Towage Offs
Slide 30: Investment Considerations
Investment Considerations Commitment ✔ Continuing development of the culture of safety is a priority; to Safety ✔ The Lost Time Injury Frequency has decreased 96% since 2010. ✔ One of the largest port, maritime and logistics operators in Brazil; Outstanding ✔ Wilson Sons enjoys an unparalleled geogr
Slide 31: Investor Relations Contacts
ri.wilsonsons.com.br Michael Connell Pedro Rocha Raphael Figueira IRO & Treasury Investor Relations Investor Relations michael.connell@wilsonsons.com.br pedro.rocha@wilsonsons.com.br raphael.figueira@wilsonsons.com.br +55 21 2126-4107 +55 21 2126-4271 +55 21 3504-4641 WSON33 Twitter.com/WilsonSonsIR