Rumo ALL. South Operation

Transcription

1 Rum 3Q16 Results

2 Rum Disclaimer 2 This presentatin includes estimates and frward-lking statements regarding ur strategy and future grwth pprtunities. This infrmatin is based mainly n ur current expectatins and estimates r prjectins f future events and trends that affect r culd affect ur business and perating results. Althugh we believe these estimates and frward-lking statements are based n reasnable assumptins, these are subject t diverse risks and uncertainties and are made based n infrmatin currently available t us. Our estimates and frward-lking statements may be influenced by the fllwing factrs, amng thers: (1) general ecnmic, plitical, demgraphic and business cnditins in Brazil and specifically in the markets we serve; (2) inflatin, depreciatin and devaluatin f the Brazilian real; (3) cmpetitive develpments in the ethanl and sugar sectrs; (4) ur ability t implement ur capital expenditure plan, including ur ability t btain funds when required and n reasnable terms; (5) ur ability t cmpete and cnduct ur businesses in the future; (6) changes in cnsumer demand; (7) changes in ur businesses; (8) gvernment interventins resulting in changes in the ecnmy, taxes, fees r regulatry envirnment; and (9) ther factrs that culd affect ur financial cnditin, liquidity and perating results. The wrds believe," can," shuld," estimate," cntinue," prject," plan," expect and similar wrds are intended t identify said estimates and frward-lking statements. Estimates and frward-lking statements refer nly t the date n which they were made and we are under n bligatin t update r revise any estimates and/r frward-lking statements due t newly available infrmatin, future events r ther factrs. Estimates and frward-lking statements invlve risks and uncertainties and are nt guarantees f future perfrmance. Our future results may differ substantially frm thse expressed in these estimates and frward-lking statements. In view f the risks and uncertainties described abve, the estimates and frward-lking statements discussed in this presentatin may nt ccur and ur future results and perfrmance may differ materially frm that expressed in said frward-lking statements due t, but nt limited t, the factrs mentined abve. In view f these uncertainties, investrs are cautined nt t make any investment decisin based n these estimates and frward-lking statements.

3 Rum Business Units 3 Rum ALL Nrth Operatin Suth Operatin Cntainer Operatin Nrth Netwrk Paulista Netwrk Prt f Sants Terminals West Netwrk Suth Netwrk Cntainer peratins including Brad Lgística

4 Cnslidated Results Operatins Anticipated reductin n transprt demand, due t crn crp shrtfall Favrable scenari fr sugar exprts, encuraging the grwth in prt lading vlume 4 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - Transprted Vlume and Yield (MM RTK and R$/RTK x 1000) ,494 11,899 2,254-5% 2,100 10,240 9,799 3Q15 3Q16 Agricultural Prducts Industrial Prducts Average Yield Lading Vlume ('000 tns) 3, % 4,153 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, ,778 32,811 6,804 0% 5,748 25,974 27,062 9M15 8, M16 Agricultural Prducts +29% 10, Reductin f 5% in ttal vlume transprted in the quarter, due t the shrtfall in secnd crn crp, which affected demand in 3Q16 Despite the adverse market scenari, Rum achieved 695 market share in grains at the Prt f Sants (SP). This result was sustained by the guarantee f vlumes due t the new cmmercial plicy. Investments made during the year cntributed t the increase in sugar transprtatin. Rum capitalized n the favrable scenari fr sugar sales by using the idle capacity generated by the decline in crn vlumes In 9M16, vlume transprted remained in line with that in 9M15. Carg handling increased in the early mnths f the year, which partially ffset the impact f crn crp shrtfall. The grwth in prt lading vlume als reflects the psitive scenari in sugar sales and the increase in grain shipments. 3Q15 3Q16 9M15 9M16 Nte: 9M15 Rum and ALL cmbined infrmatin

5 Cnslidated Results Financial Net revenue and EBITDA grwth in 3Q16 due t yield adjustments, reductin f fixed csts and recgnitin f take-r-pay amunts frm cmmercial agreements. Leverage remained in line with 2Q16. 5 Net Revenue +6% 3, % 4,000 EBITDA and EBITDA Margin 40.9% 44.7% 40.6% +16% 1, % 42.0% 1,681 Brad Net Debt and Leverage 3.99x 3.87x +1% 8,218 8,310 1,358 1, Q15 3Q16 9M15 9M16 3Q15 3Q16 9M15 9M16 2Q16 Indebtedness 3Q16 Leverage Net revenue increased in 3Q16 due t higher average transprtatin yield (+7.0%), prt lading (+16.8%) and recgnitin f take-rpay amunts (R$52.0 millin) in the quarter EBITDA increased due t perating imprvements and fleet mdernizatin, which reduced variable csts, as well as in fixed csts cmpared t riginal prjectins Net debt increased 1.1%, due t lwer cash level n accunt f higher amrtizatins f principal and interest in 3Q16 Decline in leverage cnsidering EBITDA f R$ 2.1 billin in the last 12 mnths which has shwn cntinuus imprvement Nte: 9M15 Rum and ALL cmbined infrmatin

6 EBITDA Ttal Merger structure csts Equalizatin f maintenance expenses Rum and ALL cntract effects Adjusted EBITDA Cnslidated Results Financial 21% grwth in EBITDA in 9M16 cmpared t adjusted EBITDA in 9M15 6 EBITDA 9M16 vs. Adjusted EBITDA 9M (72) (30) 2, , , , , , M % 1,386 9M15 +21% 9M % 1,681 9M % 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% (i) Excluding the nn-recurring effects f: Nn-cash gain f R$ 29.8 millin due t the terminatin f agreement between Rum and ALL (ii) Nrmalizatin f maintenance expenses f R$ 72.3 millin (iii) Merger csts f R$ 38.3 millin EBITDA EBITDA Margin Nte: 9M15 Rum and ALL cmbined infrmatin

7 Nrth Operatin EBITDA grwth sustained by cmmercial agreements and cst reductin 7 Transprted Vlume and Yield (MM RTK and R$/RTK x 1000) Net Revenue EBITDA and EBITDA Margin % 54.2% ,483 +8% % 50.4% 54.5% +28% 8,125 7, % 653 7,398 7,323 18,437 20,371 +8% 972 1,051 2,445 2, % ,251 1,597 3Q15 3Q16 9M15 9M16 3Q15 3Q16 9M15 9M16 3Q15 3Q16 9M15 9M16 Agricultural Prducts Industrial Prducts Yield Agricultural Prducts EBITDA EBITDA Margin Vlume affected by shrtfall in secnd crn crp, which reduced demand fr crn transprtatin in 3Q16 The increase in average yield practiced in transprtatin and prt lading ffset the less favrable transprtatin mix, since the decline in grain vlume resulted in a higher share f sugar vlume transprted Despite the adverse market scenari, the effrts n cst cutting and the recgnitin f revenue frm take-r-pay clauses cntributed t EBITDA grwth Nte: 9M15 Rum and ALL cmbined infrmatin

8 Nrth Operatin Market share f grains transprted t the Prt f Sants (SP) 8 In 3Q16, Rum's share f grain transprtatin t the Prt f Sants increased t 69% Increase in Rum's market share f grain transprtatin t the Prt f Sants (MM tns) 43% +26% Rum's market share f grain transprtatin t the Prt f Sants (% share) % % 41% 69% Q15 3Q16 Ttal Exrts in rt f Sants (SP) Rum's Vlume Market share Rum in Prt f Sants (SP) 1Q16 2Q16 3Q16 Surce: Agência Marítima and Rum's system

9 Suth Operatin EBITDA affected by lwer vlumes 9 Transprted Vlume and Yield (MM RTK and R$/RTK x 1000) Net Revenue EBITDA and EBITDA Margin ,664 3,126-12% 9,409 2,717-2% 26.7% 22.7% 27.2% 12.6% 3,845 3, % ,842 2,476 7,538 6,691 +1% % % 107 3Q15 3Q16 9M15 9M16 Agricultural Prducts Industrial Prducts Agricultural Prducts Yield 3Q15 3Q16 9M15 9M16 3Q15 3Q16 9M15 9M16 EBITDA EBITDA Margin The shrtfall in the secnd crn crp and the anticipatin f sybean shipments in the first half f the year affected the transprted vlume, which was partially ffset by the increase in industrial prducts, sugar and fertilizers Grwth in net revenue due t transprtatin yield, in additin t the recgnitin f revenue frm take-r-pay agreements in the perid Decline in EBITDA due t lwer vlumes and increase in ttal perating csts Nte: 9M15 Rum and ALL cmbined infrmatin

10 Cntainer peratins Lwer EBITDA due t lwer vlumes and rute ratinalizatin 10 Transprted Vlume and Yield ('000 Cntainers and R$ '000/Cntainers) EBITDA and EBITDA Margin CVM EBITDA % Vlume 60-20% 48 3Q15 3Q16 9M15 9M16 Vlume Average Yield The ratinalizatin f nn-prfitable rutes and shrtfall in the secnd crn crp affected transprted vlumes. Hwever, the peratin has been lking t diversify its perating segments and achieved transprtatin recrds n sugar, wd, pulp and paper % 3Q15 3Q16 9M15 9M16 (24) (4) -85% EBITDA -5.6% -15.4% (36) -36% -11.3% (23) EBITDA Margin Despite the negative EBITDA, the ratinalizatin f rutes cntinues t prduce results, with EBITDA recvering in cmparisn with 3Q15 and 9M15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 (12) (24) (16) (14) (5) (4) Nte: 9M15 Rum and ALL cmbined infrmatin

11 Debt Reductin in leverage t 3.9 times 11 Net Debt and Leverage Ttal Indebtedness (Amunts in R$ MM) 3Q16 2Q16 Var. % Grss Brad Debt 9.807, ,7-2,5% Cash and Cash Equivalents and Securities¹ (1.511,1) (1.864,4) -18,9% Net Derivative Instruments 14,2 20,2-29,7% Net Brad Debt 8.310, ,5 1,1% EBITDA LTM 2.148, ,6 4,4% Net Brad Debt / EBITDA LTM 3,87x 3,99x -3,2% Nte 1: : In 2Q16, includes restricted cash frm bank debts in the amunt f R$81.6 millin. Fr 3Q16, includes restricted cash frm bank debts in the amunt f R$84.2 millin. Debt Amrtizatin Schedule (R$ BN) Main develpments in 3Q16 Funding R$70.7 millin thrugh FINAME Amrtizatin Principal: R$462.7 millin Interest: R$211.6 millin Average Cst f Debt Belw 100% f CDI Brad Net Debt and Leverage x 3.87x +1% 8,218 8,310 4Q > 2Q16 3Q16 Indebtedness Leverage

12 Financial Result and Cash Flw Financial Result Q15 6% 424 3Q16 Cst f Net Debt 1, M15 19% Other Expenses Higher grss debt charges as a result f debt refinancing and increase in TJLP interest rate between the quarters Increase in financial revenues frm higher cas psitin due t prceeds frm capital increase cncluded in April , M16 Negative (nn-cash) impact f ther inflatin adjustments and inflatin adjustments n cncessin liabilities CASH FLOW Cash Flw (Amunts in R$ MM) 3Q16 EBITDA Nn-Cash effects 35.3 Wrking Capital Variatin 0.6 Operacinal Financial Result 12.6 (=) Operating Cash Flws Ttal Capex (440.9) Recurring (139.3) Expansin (301.6) Investments & Acquisitins (0.2) Dividends Received 6.5 (=) Cash Flws frm Investments (434.6) Fundings 69.2 Amrtizatin f principal (462.7) Amrtizatin f interest rates (211.6) Dividends paid (0.8) Capital Integralizatin (3.0) Derivative Financial Instruments and thers 2.4 Other (6.3) (=) Financial Cash Flws (612.8) (=) Generatin (Cnsuptin) Ttal Cash (356.0) (+) Ttal Cash + Marketable Securities 11, Opening Balance Rum Cnslidated 1,782.9 (=) Ttal Cash + Marketable Securities 11, Clsing Balance Rum Cnslidated 1,

13 Operating and Financial Perfrmance Indicatrs 13 Histrical perfrmance f key perating and financial indicatrs. Operatinal and Financial Perfrmance Indicatrs 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 3Q16 3Q15 Chg.% Cnslidad Operating rati 86% 66% 74% 81% 81% 73% 71% 71% 74% -3.0 p.p. Diesel Cmsuptin (Liters/ 000' TKB) % Nrth Operatin Grains frm Rndnóplis (MT) t Prt f Sants (SP) Average number f freight cars laded per day (units) % Transit time (hurs) % Cycle time f freight cars (days) % Suth Operarin Grains frm terminals in nrth f Paraná t Prt f Paranaguá (PR) and Prt f Sã Francisc d Sul (SC) Average number f freight cars laded per day (units) % Transit time (hurs) % Cycle time f freight cars (days) %

14 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nv-16 Develpment f crn secnd crp prductin and exprts 14 Brazil Crn Prductin (millin tns) (% participaçã) Brazil Crn Exprts (millin tns)(% participaçã) 2015/2016 Crn Crp Exprts Estimates Prgress (millin tns) -21% -43% CALL 2Q16-2,4 milin tns CALL 3Q , ,6 2014/2015 Crp 2015/2016 Crp 2014/2015 Crp 2015/2016 Crp ¹ ¹ Accrding t CONAB estimates, the 2015/2016 shrtfall crn crp is the largest in the last 5 years Larger effect in the vlumes dedicated t exprt due t the premium paid by custmers f dmestic market Recent revisin f crn exprts estimates reduced ttal vlume fr ctber and nvember in 2.4 millin tns Nte 1: Agrcnsult estimates Surce: CONAB

15 2016 Guidance 15 Revisin f guidance reprted Disclaimer: Infrmatin fr 2016 abut businesses and prjectins f perating and financial results are merely estimates and as such are mainly based n the management's beliefs and assumptins, and d nt cnstitute a prmise f perfrmance. These estimates are subject t diverse risks and uncertainties and are made using infrmatin currently available, which takes int cnsideratin the existence f the usual financing lines fr this type f business. As such, these estimates substantially depend n market cnditins, perfrmance f the Brazilian ecnmy, the business sectrs in which the Cmpany perates and internatinal markets, and hence are subject t change withut prir ntice. Due t these uncertainties, investrs must nt take any investment decisin slely based n these estimates and frward-lking statements. Any change in the perceptin r abve-mentined factrs may result in actual results differing frm the prjectins made and disclsed.

16 Expectatins fr sybean and crn 2016/2017 crps 16 Brazil Sybean Prductin Prjectin (millin tns) (% participaçã) +7% % Brazil Crn Prductin Prjectin (millin tns) (% participaçã) % +30% /15 15/16 16/17 Mat Grss Brasil /15 15/16 16/17 Mat Grss Brasil Sybean prdutin (+7%) and crn prductin (+28%) in 2016/2017, shuld be higher than the recrd grains crp in 2014/2015 Grains prductin in Mat Grss shuld be higher than the Brazilian average crp, with grwth f mre 8 millin tns in 2016/2017 crp Surce: Maritime Agency and Agrcnsult estimates

17 Financial Balance Targets 15 I CAPITAL INCREASE STRENGTHENING OF COMPANY'S CAPITAL STRUCTURE II DEBT REPROFILING III UNLOCK BNDES POTENTIAL REPROFILING OF DEBT MATURING IN THE NEXT 3 YEARS ACCESS TO NEW LINES OF FINANCING

18 Juli Fntana Net CEO Jse Cezári Menezes de Barrs Sbrinh Chief Financial and Investr Relatins Officer Guilherme Machad Investr Relatins Manager Website ri.rumlg.cm Telephne +55 (11) / (41)