Rumo ALL. South Operation

Transcription

1 Rum 2015 Results

2 Rum Disclaimer 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 varius risks and uncertainties and are made based n the 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 depreciatin f the Brazilian real; (3) cmpetitive develpments in the ethanl and sugar industries; (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, duties 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 Rum ALL Nrth Operatin Suth Operatin Cntainer Operatins Nrth Netwrk Paulista Netwrk Prt f Sants Terminals West Netwrk Suth Netwrk Cntainer peratins including Brad Lgística

4 Cnslidated Results Operatins Operatinal imprvements and investments made in 2015 drve grwth f transprt and lading vlumes. Transprted Vlume and Yield (MM RTK and R$/RTK x 1000) ,124 2,529 8,596 Lading Vlume (MM tns) +9% 78 12,131 2,107 10, ,959 +5% 44,910 10,237 8,911 32,722 35,999 Agricultural Prducts Industrial Prducts Average Yield Grwth in transprted vlume due t higher capacity and prductivity gains, in line with the investment plan Exprts f the strng crn crp lasted until the yearend, driving grwth (+10%) f transprtatin f agricultural prducts in 2015 Increase in average yield due t the better mix f prducts and rutes perated, as well as cntractual pass-thrughs f diesel price increase and inflatin 3, % 3,514 +5% 11,118 11,682 Grwth in prt lading vlume due t the handling f grains, which cmplemented sugar shipments in the year

5 Cnslidated Results Financial Grwth in revenue and EBITDA and leverage reductin in 2015, reflecting higher-than-expected transprtatin vlumes and increase in yields due t a better mix f rutes and prducts Net Revenue +14% 4,802 4, % 970 1,254 EBITDA and EBITDA Margin -6,3% (62) 37% 468 EBITDA 35% 1, % 40% EBITDA Margin 8.300,0 1, , , ,0 300,0 Debt 4.85x 4.08x 7,294 +7% 7,829 3Q15 Net Debt Leverage -20,00x -19,00x -18,00x -17,00x -16,00x -15,00x -14,00x -13,00x -12,00x -11,00x -10,00x -9,00x -8,00x -7,00x -6,00x -5,00x -4,00x -3,00x -2,00x -1,00x 0,00x 1,00x 2,00x 3,00x 4,00x 5,00x Net revenue grwth in 2015 due t the higher vlume f agricultural prducts transprted (+10%), better prt lading perfrmance (+5%) and higher yields (+11%) in the year EBITDA grwth despite the higher allcatin f perating csts and expenses (+R$309 millin) in 2015 with the adptin f new accunting practices Net bank debt f R$7.8 billin due t higher funding and lwer leverage caused by EBITDA grwth in the last 12 mnths Nte that in there was a cncentratin f accunting adjustments resulting frm the new criteria adpted by ALL Nte: 4T14 and 2014 cmbined accunting infrmatin f Rum and ALL ; 2015 prfrma accunting infrmatin

6 Cnslidated Results Prducts mix, crridrs and market share 80% f ur demand attached t the Agricultural-GDP grwth and 90% ur vlumes transprted by mst efficient crridrs Transprted Vlumes Prducts (BLN RTK) Transprted Vlumes Rutes (BLN RTK) +10% % +12% % -16% % -32% % Cntainers Industrial Fuel Prducts Agricultural Prducts Metric Nrth Ri Grande Central f Paraná Nrth (MT-SP) Nte: Nrth crridr that cnects Rndnóplis (MT) t Sants Prt (SP) Central f Paraná crridr that cnnects suth regin f Mat Grss d Sul and Nrth f Paraná t the Prts f Paranaguá and Sã Francisc d Sul

7 70 Nrth Operatin EBITDA grwth due t higher vlumes and yields Transprted Vlume and Yield (MM RTK and R$/TKU x1000) 6, , % 85 8, , % 28,666 25,651 2,737 2,894 22, ,929 Net Revenue +37% , % 3,374 Grwth in transprted vlume due t higher capacity generated thrugh peratinal imprvements and investments Favrable market cnditins fr grain exprts (crn secnd crp) bsted agricultural vlumes, ffsetting the decrease in industrial vlume EBITDA and EBITDA Margin 50.6% 51.0% (4.3%) % 1, % 1,722 Prduct and rute mix led t higher yields, cntributing t net revenue and EBITDA grwth in 2015 (29) Nte: 4T14 and 2014 cmbined accunting infrmatin f Rum and ALL ; 2015 prfrma accunting infrmatin

8 Suth Operatin EBITDA impacted by lwer industrial vlumes and rainfall Transprted Vlume and Yield (MM RTK and R$/TKU x 1000) ,739-9% ,117-7% 14,072 3,408 1, ,152 4,002 2,513 2, (11.9%) 9,964 10,069 EBITDA and EBITDA Margin % 26.8% 295 Net Revenue +15,6% % 1,101 1,117-16% % Decrease in transprted vlume due t lwer industrial vlumes and perating cntingencies caused by heavy rainfall at the end f the year Increase in net revenue due t higher average yield and increase in transprtatin f agricultural prducts, which ffset lwer industrial vlumes Decrease in EBITDA due t lwer industrial vlumes and higher perating csts (26) Nte: 4T14 and 2014 cmbined accunting infrmatin f Rum and ALL ; 2015 prfrma accunting infrmatin

9 Cntainer Operatins EBITDA impacted by higher csts and expenses Transprted Vlume and Average yield (000 Cntainers and R$ '000/Cntainers) EBITDA and EBITDA Margin % % (0.3%) (22.2%) (6.6) (16.1) (0.1%) (16.9%) (8.8) (52.6) Vlume Average Yield Vlume in 2015 supprted by higher vlumes in the flws frm Mat Grss t Sants and the Central Crridr f Paraná, ffsetting the drp in vlumes in the Ri Grande d Sul and Mercsur crridrs Negative EBITDA due t higher variable csts and increase in diesel prices, as well as higher expenses during the year Nte: 4T14 and 2014 cmbined accunting infrmatin f Rum and ALL ; 2015 prfrma accunting infrmatin

10 Indebtedness Decrease in Net Debt/EBITDA t 4.1x Net Bank Debt Debt Amrtizatin Schedule Main events in +7% 1,444 2,382 2,437 Funding R$200 millin frm CCB R$198 millin frm FINAME R$145 millin frm FINEM 7,294 7, Amrtizatin R$336 millin frm FINEM, FINAME, NCE, Debentures and Wrking Capital 3Q15 Ttal Indebtness 12/31/ /30/2015 (Amunts in R$ MM) 3Q15 Cmmercial Banks % NCE % BNDES 3, , % Debentures 2, , % Ttal Debt 8, , % Cash and Cash Equivalents and Secutities (658.5) (948.7) -30.6% Net Derivatives Instruments (98.1) (68.7) 42.8% Net Debt 7, , % Leverage (Net debt / EBITDA ICVM 527) 4.08x 4.85x Chg. % Leverage 5.0x 4.9x 4.1x 7,091 7,294 7,829 2Q15 3Q15 Net Debt Net Debt/EBITDA Average Cst f Debt 92% f CDI Leverage Net debt/ebitda LTM reduced t 4.1x Hedge 8% f debt in freign currency, 100% hedged Nte: 4T14 and 2014 cmbined accunting infrmatin f Rum and ALL ; 2015 prfrma accunting infrmatin

11 Financial Result and Cash Flw Financial Result % Net Debt Interests +14% 1,501 1, Other Expenses CASH FLOW Indirect Cash Flw 2015 (Amunts in R$ MM) Prfrma EBITDA 1, Nn-Cash Effects Wrking Capital Variatin (455.7) (134.4) Operating Financial Result 31.7 (11.7) (a) (=) Operating Cash Flws 1, Ttal Capex (1,950.6) (515.3) (b) Recurring (839.7) (223.1) Expansin 9 (1,110.9) (292.2) Dividends Received (c) (=) Cash flws frm investments (1,946.6) (511.3) Funding 3, Amrtizatin f principal rates (3,237.7) (464.7) Amrtizatin f interest rates (582.4) (232.6) Derivative Financial Instruments and Other (275.0) (111.6) (d) (=) Financial cash flws (992.7) (260.9) (=) Generatin (Cnsumptin) ttal cash (1,219.9) (367.4) Higher grss debt charges fllwing the increase in the average grss debt balance and the hike in interest rates (CDI and TJLP) Decline in returns frm financial investments due t lwer average cash balance f cash (+) Cash and cash equivalents + marketable securities, pening balance Rum Cmbined 1, (=) Cash and cash equivalents + marketable securities, clsing balance Rum Cmbined Metrics (=) Cash generatin after recurring Capex (a+ b) (=) Cash generatin after Ttal Capex (a+ c) (231.2) (106.6) (=) Generatin (Cnsumptin) ttal cash (a+c+d) (1,219.9) (367.4) Negative impact (nn-cash) f swap f fixed t flating interest rate due t the rise in the CDI future curve Nte: 4T14 and 2014 cmbined accunting infrmatin f Rum and ALL ; 2015 prfrma accunting infrmatin

12 Operatinal Imprvements Cnslidated We ended 2015 with imprvements in ur key perating indicatrs, which evlved significantly as a result f several imprvements implemented in cmpliance with ur investment plan. OPERATING RATIO (%) PORTION OF NET REVENUE REQUIRED TO COVER OPERATING COSTS AND EXPENSES -8.6% 79% 72% DIESEL CONSUMPTION (Liters/ 000 GTK) RATIO OF LITERS OF DIESEL CONSUMED TO TRANSPORT '000 GTK (GROSS TON KILOMETERS) IN THE NORTH AND SOUTH OPERATION % 4.9 OTHER OPERATING METRICS Imprvements t rail structure: 53 km f stretches in Nrth Operatin 163 km f stretches in Suth Operatin Fleet renewal: 43 lcmtives (GE AC44) fr Nrth Operatin 354 HPT freight cars fr Nrth Operatin 378 HPE freight cars fr Suth Operatin Recvery f assets: 25% reductin in the maintenance backlg f lcmtives (2014: 67% and 2015: 50%) 4% reductin in the backlg f freight cars (2014: 81% and 2015: 78%) Nta: Operating Rati f Internatinal Railways in 2015 > Canadian Pacific = 60.0% Unin Pacific = 63.1% CSX = 69.7%

13 Operatinal Imprvements Nrth Operatin Nrth Operatin had a faster peratinal imprvements since it was the target the main investments fr the resumptin f efficiency and bttlenecks eliminatin AVERAGE CARLOADS PER DAY IN ALTO ARAGUAIA E RONDONÓPOLIS TERMINALS (units) +15.5% TRANSIT TIME TIME BETWEEN RONDONÓPOLIS TERMINAL (MT) AND SANTOS PORT (SP) (hurs) -7.1% CYCLE TIME OF FREIGHT CARS AVERAGE TIME BETWEEN RONDONÓPOLIS TERMINAL (MT) TO SANTOS PORT (SP) AND RETURN TO THE TERMINAL (hurs) -6.8% :49 97:23 270:32 252:07

14 Onging Financial Measures I CAPITAL INCREASE STRENGTHENING THE COMPANY'S CAPITAL STRUCTURE II DEBT REPROFILING III UNLOCKING BNDES POTENCIAL REPROFILING DEBT MATURING THE NEXT 3 YEARS ACCESS TO FINANCING NEW LINES

15 2015 Guidance Rum Achieved 2016 EBITDA 1,750 2,000 1, ,300 2,500 Ttal Capex 1,900 2,100 1, ,700 2,100 Capex Recurring Capex Expansin 1,150 1,350 1, ,000 1,200

16 Jse Cezári Menezes de Barrs Sbrinh Chief Financial and Investr Relatins Officer Guilherme Machad Investr Relatins Manager Website ir.rumall.cm Phne +55 (11) / (41)