Contents
About Santos Brasil
Tecon Santos
Port of Santos
Tecon Imbituba
Tecon Vila do Conde
TEV – Vehicle Terminal
Logistics
Investments & Financial Highlights
Corporate Governance
Sustainability
2
12
Libra
BTP
Rodrimar
Ecoporto
Embraport
About Santos Brasil Privileged location
3
1997
Santos Brasil was founded to participate in
the privatization of the Port of Santos. The
company acquired Tecon Santos for a 25-
year concession period, renewable for
another 25 years.
2006
A successful IPO took place,
strengthening the company’s
Corporate Governance and
preparing it for further expansion.
2007
Acquisition of the logistics arm
(Santos Brasil Logística) enabling the
company to provide large-scale
logistic services to customers.
2008
Acquisition of Imbituba and Vila do
Conde container terminals, aiming to
attend the Brazilian Coast and to
become a nationwide leader in Logistics
and Container Terminal Operations.
2009
Acquisition of the Santos Vehicle Terminal
for a 25-year concession period, renewable
for another 25 years.
2010
Corporate restructuring, merger of
the business units into the holding
company, and rebranding.
2012
Tecon Santos sets a new record in
the Brazilian port sector, handling
105,530 containers in one month.
2013
Tecon Santos received the biggest
vessel of the port’s history. Standard &
Poor's upgrades the Company’s rating to
“brAAA”, the highest grade for a
Brazilian company.
2014
Santos Brasil surpassed the 200
movements per hour (MPH) mark on a
single vessel, maintaining an average of
100 MPH in Tecon Santos.
2015
Tecon Santos concession is early
renewed for an additional 25-year
period.
2016
Santos Brasil’ shares migrate to
“Novo Mercado”, B3’s (ex-
BM&FBovespa) segment with the
highest corporate governance level.
All preferred shares are converted to
voting shares.
2017
An amendment to the Port Law
increases the maximum concession
period for public port terminals from 50
years to 70 years.
History
About Santos Brasil
4
About Santos Brasil
Publicly-traded company, listed in B3
(ex-BM&FBovespa)
Five terminals on the Brazilian coast
- Three Container Terminals
- One Vehicle Terminal
- One General Cargo Terminal
Handling: over 1.5 million TEU (twenty-
foot equivalent unit) in 2016
Port-to-Door full logistic solution (Santos
Brasil Logística)
19% of the Brazilian throughput*
* Source : ANTAQ 2016
TECON
IMBITUBA
DISTRIBUTION
CENTER (SÃO BERNARDO
DO CAMPO)
TECON
SANTOS
TECON VILA
DO CONDE
TEV
BONDED LOGISTICS
CENTERS (SANTOS AND GUARUJÁ)
TCG IMBITUBA (GENERAL CARGO TERMINAL)
Highlights
5
Main clients
About Santos Brasil
6
TECON
SANTOS
7
7
Tecon Santos Best solution for containers in South America
Country’s highest productivity*
Largest container terminal in South
America and leader in Brazil
Growth capacity
* According to ANTAQ (National Agency for Waterway Transportation) 8
7
Tecon Santos
Structure to receive Super Post-Panamax vessels
Operation with internet access
Equipment is 100% GPS controlled
Annual capacity: 2,000,000 TEU
- Average monthly productivity per crane: 37 MPH
- Average monthly productivity per vessel: 105 MPH
- Total area: 596,000 m²
- Quayline extension: 980m + 310m (vehicle terminal)
- 13 STS (ship-to-shore gantry cranes) and 1 MHC (mobile harbour crane)
- 46 RTG / 18 reach stackers
- 4 internal railway lines
Infrastructure
9
7
Exports (FY16) – 279.3 thousand containers Imports (FY16) – 201.5 thousand containers
Main cargoes
Tecon Santos
Chemicals / Plastics
28%
Machinery 8%
Metals 8%
Electronics 2% Paper
5%
Auto-parts 4%
Textile 4%
Others 41%
Coffee 10%
Sugar 8%
Meat 6%
Metals 6%
Other commodities
4%
Others* 66%
* Others: 11.5% Chemicals / Plastics, 4.5% Auto-parts, 8.7% Paper, 8.0% Food, 2.6% Machinery, 3.9% Textile / Cotton and 26.4% Others. 10
Tecon Santos in 1997: 11 MPH
R$ 2.5 billion invested to upgrade and expand the terminal
11
47
53
80
94 106
105
1997 2005 2008 2013 2014 2015 2016
MPH
High Productivity - movements per hour per vessel (MPH)
Tecon Santos in 2016: 105 MPH
Tecon Santos
11
Focus on efficiency through
automation
New Capacity
2,400,000 TEU
Estimated CAPEX
R$ 1.3 billion (US$ 400M)
Detailed Engineering Project
October 2016
NEW LAYOUT
Up-to-date technology, modern layout, a new terminal
Tecon Santos
Quay extension
12
Port of Santos
Largest Port in South America
Port hinterland covering 55% of
Brazil’s GDP
Privileged rail and road connections
Source: ANTAQ
39%
3% 2% 2% 13%
8%
8%
6%
4%
5%
3% 2% 1%
2%
Santos Other Southeast South North /Northeast Others
Rio de Janeiro Itaguaí / Sepetiba Vitória Itajaí/Navegantes
Paranaguá Rio Grande Itapoá/S. F. do Sul Suape
Manaus Salvador Pecém Fortaleza
59%
“Must-call port” in South America
Brazilian Ports (volume market share – 2016)
13
Source: CODESP
40% market share
in 2016
Throughput (TEU x 1,000)
Port of Santos: 18-year CAGR of 8.7%
Tecon Santos: 18-year CAGR of 10.2%
- - 5 13 - 42 68 108 123 110 106 85 94 123 149 163 283 287 291 248 302 341 337 436 570 678
903 997 1.125 1.149 947
1.262 1.358 1.599 1.624
1.097 1.027 1.135
- - - - -
- 43
20 123
157 162
154
154 170
172 174
342 458 405
551 473 460 711
788
990
1.094
1.237 1.203
1.141 1.268
1.066
1.212 1.333
1.184 1.487 1.934
2.008 1.734
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Tecon Santos - Cabotage Tecon Santos - Long Haul Other Terminals - Cabotage Other Terminals - Long Haul
Port of Santos
14
Inserir imagem aqui,
preenchendo o espaço por
completo.
Tecon Imbituba
TECON
IMBITUBA
15
7
Tecon Imbituba Premium location at the Southern Region
R$ 565 million invested in expansion and upgrade since 2008
Ready to receive Super-Post-
Panamax vessels
Potential to become a hub in the
South of Brazil
16
7
Tecon Imbituba
Close to Santa Catarina and Rio Grande do Sul industrial
zones
Competitive advantages: 24/7 operation, water draft,
weather conditions
Benefit from infrastructure projects:
- The widening of BR-101 federal highway
- Construction of Coastal Railway
- Port of Santos’ draft increase to 15 meters
Annual capacity: 450,000 TEU
- Total area: 207,000 m²
- Quayline extension: 660m / Water draft: 14.5m
- 2 STS and 2 MHC / 8 reach stackers
Highlights
17
Container Terminal
Imbituba Hinterland
Pork and Poultry Production
Rio Grande do Sul Industrial Zone
Tecon Imbituba
Paranaguá 725,041 TEU*
Itapoá / São Francisco do Sul 554,907 TEU*
Imbituba 27,209 TEU*
Rio Grande 705,154 TEU*
Itajaí / Navegantes 1,104,143 TEU*
* Source: Volume in 2016 (ANTAQ)
PR
SC
RS
Potential for volume increase
Tecon Imbituba
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
18
TECON
VILA DO
CONDE
19
7
Tecon Vila do Conde
Access to all continents, directly or through the main
Caribbean hub ports
No physical limitation to receive large vessels
Major competitor (port of Belém) is a river port with limited
draft (~ 6 meters)
Best logistics to serve the North and Amazon regions:
logistics with container barges using different rivers’ basins
Main cargoes: high-value minerals, wood, frozen beef, frozen
fruits and pepper
Annual capacity: 140,000 TEU
- Total area: 86,615m²
- Quayline extension: 254m / Water draft: 13.0m
- 2 MHC / 8 reach stackers
Located in the delta of Amazon River region
20
TECON VILA DO CONDE
Vila do Conde x BELÉM
Main Cargo: Wood
Vila do Conde x MACAPÁ-AP
Main Cargoes: Chemical Products
Vila do Conde x SANTARÉM X ITAITUBA
Main Cargo: Wood
Vila do Conde x MUNGUBA
Main Cargoes: Kaolin and Cellulose
Vila do Conde x CAMETÁ
Main Cargo: Palm Oil
Vila do Conde x TUCURUÍ
Main Cargo: Silicon
Vila do Conde x MANAUS-AM
Main Cargoes: Spare Parts and
Chemical Products
Vila do Conde x ALTAMIRA
Main Cargo: Machinery
Vila do Conde
Tecon Vila do Conde Inland waterway transport
21
Neighbor of Tecon Santos
Handling of different types of cargo such as trains,
dismantled industrial plants, power transformers,
dismantled machinery, large sculptures etc
Annual capacity: 300,000 units
- Static capacity: 10,000 units
- 2016 throughput: 179,888 units (211,150 units in 2015)
- Total area: 164,000 m²
- Quayline extension: 310m
TEV - Vehicle Terminal Largest vehicle terminal in Brazil
22
Bonded
warehousing
Distribution
center
Transportation Industrial
Logistics
Distribution Center in São Bernardo do Campo
(105,000m²)
CLIA Guarujá (bonded warehouse - 52,900m²)
CLIA Santos (bonded warehouse - 64,755m²)
Own truck fleet with 95 GPS-tracked vehicles
Taylor-made logistics projects, meeting every
customers’ need
Logistics Vertical integration
23
Port-to-Door: complete logistics solution
Potential to increase customers’ competitiveness: E.g. “K-10” logistic operation to BASF
Synergies between logistics and port operations
Tecon Santos
Bonded warehousing
- Tecon Santos (left bank)
- Clia Santos (right bank)
- Clia Guarujá (left bank)
Distribution Center Imports
Container Transportation
Just-in-Time delivery
to Industrial Plants
Exports Container Transportation
Imports Just-In-Time Industrial Plants
Exports
Logistics Port-to-door
24
274
95
190 220
86 5 12 10 48
28 61
91 112
97
127
297 197
124
184
98 85
28 27 15
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
M&A CAPEX 487
417
222 210
INVESTMENTS Investments R$ million
R$ 4.4 billion invested in 20 years
Source: Santos Brasil 25
162 39%
224 46%
267 37%
219 33%
310 36%
457 41%
551 43%
529 38%
293 29%
147 15%
87 11%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Port Terminals Logistics TEV Corporate
468 549
819 744
983
1,279 1,472
1,601
1,152 1,109 957
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
6 93
46 65
112
247 270 255
92
(18) (20) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Gross Revenue
Source: Company’s financial statements
Operating Cash Flow
36
EBITDA and EBITDA Mg.
Financial Highlights
34% 46% 43% 46% 47% 39%
46% 49% 51% 22%
1% 6% 10%
19%
13% 22% 21% 18%
9%
Net Income and Net Mg.
283
223 228
386
448 411
265
168 122
2008 2009 2010 2011 2012 2013 2014 2015 2016
74% 58%
10%
56%
24%
13%
22%
24% 19%
50%
63%
14% 15%
45%
31%
19%
R$ million
9%
26
84
323 359
410
297
199
140 108
40
2008 2009 2010 2011 2012 2013 2014 2015 2016
Net Debt / EBITDA Total Debt
Net Debt Net Debt / EBITDA
Financial Highlights
S&P national scale
rating: brAA-
0.3x
1.5x 1.2x
0.9x 0.5x 0.4x 0.5x 0.7x
0.5x
2008 2009 2010 2011 2012 2013 2014 2015 2016
Long term Short term
45%
47%
53%
35%
65% 51%
49%
38%
62% 54%
46% 55%
252
641
466
705
433
322
55%
45%
358
59%
41%
340
29%
71%
233
Indebtedness (R$ million)
Source: Company’s financial statements 27
“NOVO MERCADO” listing on B3 (ex-BM&FBovespa)
100% TAG ALONG for all minority shareholders
One Share, One Vote
Board of directors: 7 members (40% independent)
Permanent Fiscal Board (“Conselho Fiscal”)
Management:
- Stock Options for top management
- Compensation program for managers and employees - EBITDA and EVA oriented
- Individual performance plans = clear goals and meritocracy
38
Corporate Governance All preferred shares converted to voting shares in 2016
28
Corporate Governance Management
Chief Executive Officer Antônio Carlos Duarte Sepúlveda
Chief Financial Officer and Investor Relations Officer Daniel Pedreira Dorea
Chief Commercial Officer Marcos Magalhães Tourinho
Chief Operating Officer Marlos Silva Tavares
Antônio Carlos Duarte Sepúlveda - Mr. Sepúlveda is the Chief Executive Officer of Santos Brasil. He has been working in the port sector since 1992, and
in Santos Brasil since 2000. He was Chief Operation Officer of the company from 2002 to 2010. Mr. Sepúlveda holds a degree in Civil Engineering and an
MBA from Saint Joseph’s University in Philadelphia.
Daniel Pedreira Dorea - Mr. Dorea is the Chief Financial Officer, Investor Relations Officer and a member of the Board of Directors of Santos Brasil
Participações S.A.. He was a partner at Opportunity Asset Management (USD 8bn of AUM), responsible for managing its private equity portfolio from 2011
to 2016. Between 2014 and 2016 he was a member of the Board of Directors of Petrorecôncavo S.A. Prior to that, he participated in the Commercial Policy
Training Program promoted by the Embassy of Brazil in Washington, D.C. in 2008. Mr. Dorea holds a double major in Business Administration and Law.
Marcos Magalhães Tourinho - Mr. Tourinho is the Chief Commercial Officer of Santos Brasil. Prior to that, he was the Port Operations and Commercial
Director of the company. He started his career in Santos Brasil as Investor Relations Officer in 2006. Mr. Tourinho holds a bachelor degree in Business
Administration, a post-graduation degree in Finance from McGill University and an MBA from HPU Universtity.
Marlos Silva Tavares - Mr. Tavares is the Chief Operating Officer of Santos Brasil. He has a strong background in the shipping industry, where worked for
APM Maersk group. He also worked for the Brazilian logistics group Libra as Commercial Director of Libra's container terminal in the port of Santos. Mr.
Tavares holds a double major in Business Administration and Accounting and is a 6-sigma greenbelt from PMI International.
29
Corporate Governance Shareholding structure
* Total of 666,086,554 voting shares
International Market
Investments 26.6%
PW237 Participações
22.4%
Multi STS Participações
8.4%
Richard Klien 8.2%
Dynamo 10.1% Others
(free-float) 23.2%
Management 0.2%
Treasury 0.9%
30
Member of the Global Pact, an international
sustainability pact
Sustainability Report compliant with GRI
Standard since 2012
Sustainability Academy, an ongoing training
for leaders
42
MANAGEMENT FOR SUSTAINABILITY
Sustainability
31
We make forward-looking statements that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our Management and
on the information currently available to the company. Forward-looking statements include information on our current plans, beliefs or expectations and also those of
the company’s Board of Directors and its Officers.
Disclaimers involving forward-looking statements include information on potential or assumed operating results, as well as statements that are preceded, followed or
include the words “believe”, “may”, “will”, “continue”, “expect”, “project”, “seek”, “plan”, “estimate” or similar expressions.
Forward-looking statements and information provide no guarantee of performance. Because they refer to future events, and as such depend on circumstances that
may or may not occur, they involve risks, uncertainties and assumptions. Future results and the creation of value for shareholders may differ significantly from that
expressed or suggested in the forward-looking statements. Many factors that will determine these results and values are beyond our capacity to control or predict.
E-mail: [email protected]
Phone: +55 (11) 3279-3279
45
Disclaimer
32