Foward-Looking Statements

Transcription

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2 2 Foward-Looking Statements Certain of the statements contained herein are forward-looking statements based on Management s current estimates regarding future performance that may result in material differences regarding future results, performance and events. In fact, actual results, performances or events may differ materially from those expressed or implied by the forward-looking statements, as a result of several factors, such as the general and economic conditions in Brazil and other countries, interest rate and exchange rate levels, future rescheduling or prepayment of debt denominated in foreign currencies, protectionist measures in the US, Brazil and other countries, changes in laws and regulations and general competitive factors (on a global, regional or national basis).

3 3 Current Situation Existing railway Stretch under renovation A private logistics company since 1998, Transnordestina operates the Northeastern Network of the former RFFSA; Porto do Itaqui SÃO LUÍS Sobral Porto de Pecém FORTALEZA Porto do Mucuripe The rail network extends for 4,238 km: 2,722 km of which operational, 408 km under renovation and 1,108 km under deactivation process with ANTT (Brazilian National Agency for Land Transportation); MA TERESINA Ribeiro Gonçalves Uruçuí Barreiras Eliseu Martins TERESINA PI Eliseu Martins PETROLINA CRATEÚS CE Crato MISSÃO Missão VELHA Velha ARARIPINA PARNAMIRIM SALGUEIRO BA PIQUET CARNEIRO PE PE SE SE (15.4 million ha) Jucurutú C.Grande PB RN PB Caruarú Caruarú AL Propriá NATAL MACEIÓ Porto do Cabedeiro JOÃO PESSOA Cinco Pontas RECIFE Porto de Suape Porto de Jaraguá Operates with 100 locomotives and 1,743 rail cars; Capacity: 2.0 million tonnes p.a.; Gross Revenue (2009): R$ 81 million; Transported volume (2009): 731,945 thousand RTK or 1,472,000 tonnes.

4 4 Transnordestina Project Existing railway New stretches Stretch under renovation Integrated logistics solution to attend Brazil s northeast region, especially the transportation of agricultural products and ore; Porto do Itaqui SÃO LUÍS Sobral Porto de Pecém FORTALEZA Porto do Mucuripe 1,728 km of extension connecting Eliseu Martins (PI) with the ports of Suape (PE) and Pecém (CE), near large consumer markets and able to operate capesize ships; MA TERESINA Uruçuí Ribeiro Gonçalves Barreiras Eliseu Martins TERESINA PI Eliseu Martins PETROLINA CRATEÚS CE PARNAMIRIM BA PIQUET CARNEIRO Crato C.Grande MISSÃO VELHA ARARIPINA Salgueiro Missão Velha SALGUEIRO PE PE SE SE (15.4 million ha) Jucurutú PB RN PB Caruarú Caruarú AL Propriá NATAL Porto do Cabedeiro JOÃO PESSOA Cinco Pontas RECIFE Porto de Suape MACEIÓ Porto de Jaraguá World-class Railway: Wide and mixed gauge; Maximum speed: 80 kph; 32.5 tonnes per axle. Region that produces grain, iron ore and gypsum.

5 5 Project s Characteristics 1,728 km of extension; 25 work fronts; 10,000 jobs generated (rising to 12,000); Potential creation of 500,000 direct and indirect jobs during the project; Approximately 1,200 heavy machines operating; Construction of the world s largest factory of concrete wide-gauge rail ties, with a capacity of 4,800 parts per day; 13 km of bridges built, equivalent to a Rio Niterói bridge; 170,000 tonnes of track in stock, equivalent to 4,100 km, more than the distance between São Paulo and Manaus; 16 million cubic meters of rock moved; 46 hectares in the Salgueiro s industrial site, equivalent to 63 soccer fields; Investment of R$2.9 million per km.

6 Main Clients 6

7 Project s Progress PECÉM Itapiúna Quixadá Piquet Carneiro Acopiara TRINDADE Aurora 50km MISSÃO VELHA Estimated date of project completion: December ELISEU MARTINS São José do Belmonte SALGUEIRO RECIFE SUAPE Cabo PORTO REAL DO COLÉGIO Works under way Works not yet under way In hiring process 7

8 8 Productivity Current Operation Future Operation Capacity(tonnes/year) 2.0 million 30 million Railcars per train Tonnes per axle 18 32,5 Locomotives (hp) 1,200 4,400 Locomotives (productivity) 1,300 TKU/hp 15,000 TKU/hp Fuel consumption 16 liters/ 000 TKU 4.4 liters/ 000 TKU Cruising speed (kph)

9 9 Transnordestina 170,000 tonnes of track purchased by the end of July

10 10 Transnordestina Salgueiro to Missão Velha - Special Works 47-meter-high and 167-meter-long bridge over the Jardim River, Ceará

11 11 Transnordestina Special Works: 68-meter-long, 6-meter-wide and 10-meter-high tunnel in Ceará

12 12 Transnordestina Eliseu Martins Trindade Stretch

13 13 Transnordestina Eliseu Martins Trindade Stretch

14 14 Transnordestina Salgueiro Port of Suape Stretch

15 15 Transnordestina Salgueiro Port of Suape Stretch Bridge Over Formiga River

16 16 Transnordestina Salgueiro Port of Suape Stretch Bridge Over Formiga River

17 17 Transnordestina Salgueiro Port of Suape Stretch Special Works - Culvert

18 18 Transnordestina Industrial Site of Salgueiro

19 19 Transnordestina Rail Tie Factory

20 20 Transnordestina Cabo Porto/PE to Real do Colégio/AL

21 21 Northeast Region - Demand Agriculture State Open Area Potential area of occupation Estimated production for rail transport Piauí 306 1, % Maranhão 387 2, % Bahia 1,185 1, % Source: Campo Consultoria e Agronegócios Mining Several mines located in the states of Pernambuco, Piauí and Ceará, including: Araripe Gypsum Complex Gypsum with up to 95% of purity in northeast Pernambuco Production (2007) 4.4 Mt Estimated Reserves (2007) 1,220 Mt Estimated 30%-40% reduction in the cost with rail transport Increase in international demand due to depletion of reserves in other countries Iron ore in Piauí Discovery of a high-quality iron ore mine in Piauí, with estimated reserves of 2.97 billion tonnes The Piauí of Transnordestina stretch will be implanted 20 km away from the mine Source: Sindugesso and State Government of Piauí

22 22 The Market s Growth Potential Production Growth (million tonnes) Iron Ore Grain Plaster Fruit Oil Products Fertilizer Ethanol Source: Campo Consultoria e Agronegócios

23 23 Ports Suape - PE Pecém - CE Privileged location in the center of the Northeast region, with easy access to foreign ports; 70 companies installed or in the process of being installed; 7.7 million tonnes handled in 2009; Transnordestina will operate a site in the port for future facilities in Suape and Pecem. Port with the smallest transit time between Brazil, the USA and Europe ; 1.9 million tonnes handled in 2009; Exports more fruit than any other Brazilian port; The first iron ore shipment in the state of Ceará through the TLSA rail network.

24 24 Competitive Advantages Competitive Advantages Licenses Logistics Complex Currency Risk Transnordestina s Status All stretches have an installation license Straight and flat route, with access to 7 ports Funding, investment, revenue and debt in Reais Execution Risk Project Feasibility Competition Conflict of Interest Client Portfolio Funding Concession, environmental licenses and appropriations in advanced stage Strong demand for agricultural products and minerals in a region with poor logistics infrastructure Monopolistic concession Revenue does not depend on associated companies Some transportation agreements have already been signed Large volume of financing from government bodies

25 25 Funding Funding Structure Funding R$ Billion Share (%) Equity CSN Federal Government FINOR* Dívida FDNE BNDES - TLSA BNB/FNE Future Capital Structure * The ratio between CSN and federal government participation in relation to FINOR will take place during the project. At the end of the project it should be 50%/50%.

26 26 CAPEX Estimated CAPEX (R$ billion)

27 27 Projections Base Scenario Volume (in million tonnes) Main Cargo Return Cargo Productivity (in billion RTK) Gross Revenue (R$ billion) Projected IRR Between 13% and 14%

28 28 Visit our website: Investor Relations: (55 11) / / / invrel@csn.com.br