Tecon Santos 12
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Institutional Presentation - 2019 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 . Corporate Governance 36 . ESG 37 2 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 4,324,478 USA 51,425 2 Santos Brazil 4,122,243 Singapore 33,600 3 Manzanillo Mexico 3,078,505 South Korea 27,427 4 Cartagena Colombia 2,862,787 Malaysia 24,719 5 Panamá Pacífico Panama 2,520,587 Japan 21,904 6 El Calao Peru 2,340,657 United Arab 21,281 Emirates 7 Guayaquil Equador 2,064,281 20,770 Hong Kong 19,448 8 Kingston Jamaica 1,833,053 Germany 17,065 9 Buenos Aires Argentina 1,797,955 Spain 14,965 10 San Antonio Chile 1,660,832 Taiwan 11 San Juan Puerto Rico 1,405,348 Netherlands 13,951 12 Buenaventura Colombia 1,369,139 Indonesia 13,860 13 Caucedo Dominican Republic 1,331,907 India 13,259 14 Lázaro Cardenas Mexico 1,314,798 Vietnam 12,284 Belgium 11,857 15 Limón-Monin Costa Rica 1,187,140 Thailand 10,732 16 Veracruz Mexico 1,176,253 Italy 10,698 17 Freeport Bahamas 1,050,140 United Kingdom 10,530 18 Itajaí Brazil 1,045,813 Brazil 9,365 19 Valparaíso Chile 903,296 20 Altamira Mexico 820,092 Source: ANTAQ, CEPAL and United Nations Conference about Trading and Development - UNCTAD 3 Macroeconomic indicators Containers volume: resiliency amidst economy slowdown Inflation x Interest Rate Industrial Activity x Interest Rate 16% 20% 1,4% 14% 1,2% 12% 10% 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 ***jul-17 mai-18 IPCA (12 months) Selic (12 months) Industrial Activity - %YoY (L) Monthly Selic (R) GDP X Brazil Container Throughput Exchange Rate X Long Haul Cntrs 10,9 3,68 7.5% 10,0 9,9 10,2 9,2 9,6 5,0 5,0 8,4 4,7 4,5 7,9 4,6 4,6 4,7 4,3 4,6 4,7 4,4 4,5 6,8 3,39 3,45 4.0% 4,0 4,2 4,1 3,20 3.0% 3,9 1.9% 1.0% 0.5% 1.1% 3,5 3,3 1,76 2,36 1,67 2,17 -3.5% -3.5% 1,96 2010 2011 2012 2013 2014 2015 2016 2017 2018 2010 2011 2012 2013 2014 2015 2016 2017 2018 Brazil (MM TEU) GDP Imported Containers (MM TEU) Exported Containers (MM TEU) Exchange Rate Source: IBGE, ANTAQ and IPEADATA 4 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 21 17 16 17 17 21 17 18 613 631 534 577 570 487 501 515 462 122 116 118 117 118 110 111 100 105 75 74 68 70 71 66 72 67 66 34 34 5 5 5 6 5 7 29 29 27 26 28 31 31 4 5 5 63 71 71 78 80 79 77 82 84 5 6 7 9 10 10 11 12 13 2010 2011 2012 2013 2014 2015 2016 2017 2018 2010 2011 2012 2013 2014 2015 2016 2017 2018 Containerized Cargo General Cargo Liquid and Gaseous Bulk Solid Bulk Containerized Cargo General Cargo Liquid and Gaseous Bulk Solid Bulk Brazil Container Throughput (MM TEU) Brazil GDP X Port of Santos Container Throughput (MM TEU) 7,2 6,9 7,0 6,8 6,8 4,1 6,5 6,4 6,5 7.5% 5,6 3,7 3,8 3,9 3,4 3,6 3,2 3,0 2,7 4.0% 3.0% 2,8 1.9% 2,3 2,5 1.0% 1.1% 2,1 2,3 2,3 0.5% 1,8 1,1 1,3 -3.5% -3.5% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2010 2011 2012 2013 2014 2015 2016 2017 2018 Cabotage Long Haul Port of Santos (MM TEU) GDP Source: ANTAQ 5 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 / Sepetiba 366 283 210 Vitoria 195 1.112 Itajaí / Navegantes 1.108 766 Paranaguá 725 737 Rio Grande 744 Itapoá / S. F. do Sul 634 592 85 Imbituba 50 455 Suape 461 310 Salvador 301 360 Pecém / Fortaleza 284 154 Vila do Conde 117 Source: ANTAQ and IBGE 6 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 kilometers from the Port of Santos Libra 7 12 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% (+9.5% in TEU) - Tecon Santos: 9.2% Libra 3,9% BTP 39,2% Others 0,6% Container throughput (TEU x 1,000) 4,122 3,854 3,656 3,780 3,448 3,565 2,984 3,104 3,061 2,685 2,722 2,446 2,533 2,268 2,252 9M19 1,883 1,733 1,811 1,560 1,487 1,380 1,426 1,446 1,270 1,355 1,314 1,316 1,224 1,159 1,253 1,048 1,008 1,044 746 799 302775 801 612 436 248 346 350 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Port of Santos Tecon Santos 8 Source: CODESP and 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 2008 at the Port of Santos Initial Public Tecon Santos reaches a Offering new productivity record 1997 2007 2009 2015 2017 of 243.58 MPH (Moves per Hour) The Santos Vehicle Terminal - TEV is 2013 2016 2018 2006 acquired under a lease Tecon Santos Santos Brasil is renews its lease founded, and Tecon for additional Santos is acquired in 25 years an auction under a Migration to the 25-year leasing period B3 Novo Mercado Mesquita, now Santos Brasil Logística, is acquired 9 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 unit) in 2018 . Port-to-Door full logistics solution (Santos Brasil Logística) . 17% of the Brazilian container throughput in 2018* TECON SANTOS TEV DISTRIBUTION BONDED LOGISTICS CENTER (SÃO BERNARDO CENTERS DO CAMPO) (SANTOS AND GUARUJÁ) TECON IMBITUBA TCG IMBITUBA * Source : ANTAQ (GENERAL CARGO TERMINAL) 10 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 Ship arrives at the Ship-to-Shore (STS) or Trucks Reach Stackers Port Warehouse/ De- 1 2 3 4 Reefer containers are 6 Port Mobile Harbor Cranes Consolidation positioned in a reefer yard. (MHC) Connections and functionalities are regularly monitored (i.e. temperature) 5b Reefer Containers Containers are transported by Cranes unload the containers After the container is placed RTGs are used to lift the ships, which dock at the from the ships, positioning Cargo of dry on the truck's bed, it is taken containers from flat-bed trucks terminal’s quayline them in trucks and/or terminal containers is partially to the (reefer or dry) backyard and to position them in the tractors unstuffed (fee is stockpiles at the yard. charged over the Containers are stored before importer) collected by the client 10 Importer 9 Logistics Unit 8 Road 7 Customs The containers transportation Containers can be transported After the container is placed in is made by truck, train (Tecon by road to freight processing the yard or warehouse, Santos) or barge (Tecon Vila units in the region customs have the green light do Conde) to make any required inspection or to clear the cargo 11 TECON SANTOS Tecon Santos Best solution for containers in South America .