Brado Logística and the Merger of Standard. Update - December 20, 2010

Transcription

1 Disclaimer This document targets the shareholders of ALL América Latina Logística S.A. and aims to present the same facts and events described in the Material Fact disclosed on December 20, The information presented in this document does not constitute a sale, a promise of sale, an offer of sale, an invitation to purchase or an acceptance of a request for the purchase of securities (including subscription). Statements that may be presented in this document related to ALL s business, projections and operating and financial targets are estimates and assumptions of the Company s management based on information currently available to all. Forward-looking statements are not guarantees of performance. They involve risks and uncertainties and consequently actual results may differ from those in the forward-looking statements. 1

2 Brado Logística and the Merger of Standard Update - December 20, 2010

3 Agenda Brado Logística Merger of Standard Logística The Consolidated Company

4 Agenda Brado Logística Merger of Standard Logística The Consolidated Company

5 Brado Logística Brado will operate in a market that is not covered by rail The addressable market in ALL s operational region comprises more than 2.6 million full containers/year, equivalent to 65 million tonnes/year In 2009, ALL had a market share of less than 2% in such market Cargo containerization is a trend in Brazil and around the world Cargo transportation (%) - Global 78% 69% 63% 53% 43% 35% 25% 22% 31% 37% 47% 57% 65% 75% Container transportation General cargo

6 Brado Logística ALL subsidiary created to operate in the container logistics Focus on import, export and refrigerated cargo operations Consolidate the container market around the railway Retail commercial approach (fragmented market) Customized services for the client, complementary to rail-road integration Specialized infrastructure to support services Vs. Concentrated client portfolio Large volumes per client Cargo homogeneity Focus on wholesale Fragmented client portfolio Low/medium volumes per client Cargo variety and unitization Focus on retail

7 Brado Logística Combines the flexibility of road transport with the low cost of rail More efficient logistics model, proven to be successful in the USA and other countries Offers substantial savings over current logistics costs Investments in intermodal terminals to attract more containers Storage facilities in the country-side more competitive than port storage Cargo regularity from the plant to the port Railway Plant Road Transport Consolidation Terminals Port

8 Brado Logística Agreement with railway generates sustainable cost savings Cost competitiveness and regularity of services for the client Investments in strategically-located terminals in inland cities Expansion of rail capacity through the investment in rolling stock and infrastructure Estimated CAPEX of R$ 1 billion in the next 5 years, modular, accompanying transported volume growth Agreement with ALL Provision of rail transportation services with competitive tariffs Investments in intermodal terminals and expansion of rail capacity

9 Agenda Brado Logística Merger of Standard Logística The Consolidated Company

10 Merger of Standard Logística The largest intermodal refrigerated container logistics company Recognized by clients for its high-quality services Alto Taquari Deep knowledge of highly complex, value-added logistics 06 Logistic Bases Cambé Bauru 05 intermodal terminals strategically located in Brazil s South region and the states of Mato Grosso and São Paulo Cascavel Guarapuava Curitiba Colombo Cubatão Intermodal operations, using integrated assets with ALL, since 2006 Cruz Alta Itajaí Merit-based culture Esteio Approximately 1,000 employees Porto de Rio Grande do Sul

11 Merger of Standard Logística Wide range of value-added logistic services Multi-temperature storage Transportation and fractioned distribution Container Handling Customs services (exp and imp) Customized services: Inventory management Product tracking Cargo sharing Interface for export authorization Wide client base

12 Merger of Standard Logística Wide client base

13 Merger of Standard Logística Standard Facilities Integrate clients and suppliers through terminals and logistics facilities Bauru - SP With 72,600 m² of total area, Bauru-SP facilty is also a dry depot, offering products of high added value Esteio - RS Esteio-RS facility has 16,000 pallet positions, tunnel with a 50 ton capacity, 34 docks and 20 plugs for reefer containers

14 Merger of Standard Logística Standard Facilities Colombo - PR With 46,000 m², Colombo-PR facility has 16,000 pallet positions, tunnel with a 50 ton capacity and 25 docks Cubatão - SP Cubatão-SP facility has 105,000 m² of total area, 15,000 pallet positions, 2 tunnels with a 100 ton capacity and 300 plugs for reefer containers

15 Merger of Standard Logística Standard Facilities Cambé - PR With 34,000 m² of total area, Cambé facility has 5,000 pallet positions and 9 docks, as well as 60 plugs for reefer containers With 90,000 m², Itajaí-SC facility has pallet positions, tunnel with a 100 ton capacity, 28 docks and 300 plugs for reefer containers Itajaí - SC

16 Merger of Standard Logística Financial highlights: High performance track record since 2001, with average annual Net Revenue growth of 31% and EBITDA growth of 60% In 2009, BRZ Investimentos acquired 38% of the company for R$80 million, valuating the company at R$ 210 millions R$(million) Net Revenue EBITDA EBITDA Margin 14.0% 19.2% Net Debt 42.5 (37.1) Cash Gross Debt Total Assets Shareholders Equity

17 Merger of Standard Logística Reasons for the merger: Asset synergies: both companies operate in the same region and several terminals are already integrated with the railway, reducing CAPEX and accelerating ramp-up Sector know-how: Standard has experience in retail. The merger combines strong cost savings with high quality services Operational and administrative structure: Standard brings an operational structure with over one thousand employees, which will be used by Brado Fragmented management focus: operates with clients of various sizes and differing needs, providing customized and high value-added services Culture in line with ALL: merit-based culture and professional management

18 Merger of Standard Logística Structure of the transaction Standard shareholders transfer 100% of Standard shares in exchange of 20% of Brado s Standard is merged into Brado 80% 20% Standard Shareholders There is no cash payment Maintenance of strategic shareholders in the Company Jose Luis Demeterco, founder and current CEO of Standard will be Brado s CEO 100% The transaction is subject to usual government approval

19 Agenda Brado Logística Merger of Standard Logística The Consolidated Company

20 The Consolidated Company Business model ensures sustainable competitive advantage Replicate in Brazil a model that has proven to be successful abroad, where the container market share in the railway is above 50% Strong know-how in the retail container sector Operational structure with more than 1,000 employees Results-driven professional management Investments in terminals and rail capacity following Brado s increased scale, according to operating agreements The company will raise funds through loans (BNDES), strategic partnerships and capital markets * The aforementioned operations are subject to usual conditions regarding this type of transaction, including required government authorizations. The operating agreements will remain effective until the end of the concession of each of ALL s concessionaires and, if the concessions are renewed, they will be renewed for the same period of time.

21 The Consolidated Company Serving the small and medium size companies, combining ALL s efficiency and culture with Standard s expertise in service Investments for excellence in the containers multimodal logistics A first step towards the creation of the largest intermodal container logistics company in Brazil

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