Investor meeting December/2020 - Mziq
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Investor meeting
December/2020
1
Disclaimer
Santos Brazil makes statements about future events that are subject to risks and uncertainties. Such statements are based on
management's beliefs and assumptions and information to which the Company currently has access. Forward-looking statements
include information about current intentions, beliefs or expectations, as well as those of the members of the Board of Directors and
Directors of the Company.
Disclaimers regarding forward-looking statements and information also include information about possible or assumed operating
results, as well as statements that are preceded, followed or that include the words "believes", "may", "will", "continues", "expects",
"predicts", "intends", "plans", “estimates" 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 Company’s capacity to control or predict.
2
2020 Retrospective
3
Actions to face COVID-19
Delivery of hygiene kits and PPEs to workers; Maintenance of high level of productivity with
Suspension of travel, external visits, all preventive measures in all business units;
Employees
corporate events and on-site training
sessions;
Control of access checking body temperature Customers
and delivery of hygiene kits to the crew;
Isolation of employees in risk groups and Implementation and communication of
home office for administrative employees
Business Continuity Plan - BCP;
(>400 employees).
New cargoes at Imbituba General Cargo
Terminal and capture of new customers and Increase in days payable outstanding and
special services due to the demand volatility; inventory drawdown;
Renegotiation and review of the scope of Replacement of court deposits for other
contracts with suppliers; guarantees;
Financial Cash position
Automation and shortening of work CapEx contingency focus on strategic
shift/proportionate salary and suspension of investments.
employment agreement (Law nº 14,020/2020)
4The Port of Santos and Tecon Santos in 2020
Tecon Santos (‘000 containers¹) Porto de Santos (‘000 containers¹)
238 242 245
223 225 223 230 230 235
212 220 220
207 210 208 209 210 209
195 201
181 174
99 94 95
76
85 81 88 85 87 86 78
89 84 85 90
64 69 75 67 68 67 73
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
2019 2020 2019 2020
10.3% YoY decrease in the accumulated throughput of Stability in the accumulated throughput of 10M20 vs.
11M20; 10M19, due to export resilience;
Growth of 14.3% in the two months oct-nov/20 vs. aug- Growth of 13.5% in the two months oct-nov/20 vs. aug-
sep/20, with high quantity of extra calls due to the late peak sep/20, due to the late peak season and export
season, import and cabotage recovery; increase;
Blank sailings and extra calls Port of Santos capacity utilization of ~80% (annualized).
5
42 ¹ Source: Santos Port Authority;Business units performance
Despite the 8.9% drop in container handling in 9M20 vs. 9M19, due to the impacts of
COVID-19, mainly on cabotage, commodity exports remained heated, with emphasis on
refrigerated cargo.
Vila do Conde
Marginal drop of 2.0% in container handling in 9M20 vs. 9M19, due to the decrease in
cabotage throughput. The highlight was the + 4.8% YoY growth in general cargo
handling, due to new contracts for handling pulp and food.
Imbituba
28.9% drop in vehicle handling in 9M20 vs. 9M19, mainly due to the retraction in exports
to the argentine market. Despite the sharp decline accumulated in the year, the decline
slowed in 3Q20 (-2.4% vs. 3Q19).
Vehicle Terminal
22.6% decrease in container warehousing in 9M20 vs. 9M19 due to the decrease in
imports at the Port of Santos. The highlight was the growth in the provision of integrated
logistics services, among others (i.e. cross docking).
SBLog 6
42ESG e Corporate
restructuring
7Environmental, Social e Governance (ESG)
ENVIRONMENTAL SOCIAL GOVERNANCE
• Disclosure of the 12th Sustainability • Work safety: ‘Zero Acidente’ campaign • New Code of Conduct: on-site and on-line
Report, with GRI standard; • Social Development: ‘Formare Aprendiz’ training
• The Company’s stocks (ticker B3: STBP3) • Individual appreciation: ‘Eu sou Voluntário’ • Compliance Program Restructuring
participates in the S&P/B3 Brazil ESG
Index
CO2 emission control (25% reduction in Transparency (‘Viva Voz ao Vivo’ – town
Tecon Santos: >160 days working without
6 years) hall meetings)
lost-time accidents
Sustainable water consumption Compliance Committee
Tecon Vila do Conde: >365 days working
Waste management without lost-time accidents Independent anonymous tip hotline
Sustainability Committee Tecon Imbituba: > 620 days working without Shares listed at ‘Novo Mercado’ - B3
lost-time accidents One share, one vote
8Wide corporate restructuring
Innovation Platform
Innovation
Consolidation of an innovation-based culture, starting from tools that expand, democratize and
encourage improvements, changes and the review of practices, processes and procedures.
Focus on digital, low-touch and low-latency systems;
Customer
Experience Digitalization and automation of operating and administrative processes
Inauguration of a new Operational Control Center at Tecon Santos, improvement of processes
with use of artificial intelligence, internet of things and new platforms (e.g., SAP HANA; Gupy -
Employee Amazon's Artificial Intelligence platform for hiring and selection; new integrated management
system for the Transportation business unit and others);
Experience
Customer Experience department | CX & Employee Experience department |
Revenue EX
Management The CX department focuses on the customer experience, improving the service level with a
focus also on competitiveness and costs – NPS methodology. The EX department focuses on
creating a meritocratic and challenging environment – Great Place to Work ;
Creation of Pricing department
Launched in December 2020, the department will focus on the contracts profitability and
42 search for new opportunities. 9Tecon Santos expansion
10Expansion and modernization of Tecon Santos
1st phase to be concluded in 2H21
Capacity is expected to reach 2.4 million TEUs in 2022: the only
planned expansion in container in the Port of Santos, in the short term;
R$ 285 million invested from 2018 to September 2020: new equipment,
upgrade of IT systems and extension / reinforcement of the quay;
Gate automation generated costs savings and reduced vehicle entry
and exit times from the terminal;
Seal reading with OCR (Optical Character Recognition)
2nd phase of the project: automation and modernization of the layout of
the backyard will increase the terminal's capacity to ~ 3 million TEUs;
11Growth avenues
12Organic Growth
Tecon Santos should be the main driver in 2021
Increase of
Import Cabotage average ticket
throughout Incentive and of
recovery after
/////
(BR do Mar) container
COVID-19 throughput
Contracts renewal in 2021:
Cabotage increase in Tecon Santos'
CAGR: 12% average box rate;
24.0
23.5
21.6
1.3 1.8
2.1 2.3 2.3 2.3 2.5 2.8
0.2
3.2
0.2
Tecon Santos: capacity
19.2 1.1 0.1 0.1 availability should meet the
18.5
growth of the Port of Santos in
31.8 6.5 6.4 6.9 7.0 6.8 6.5 6.8 7.2 7.1
22.2 26.8 5.6 2021;
18.2 18.1
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Jul Ago Sep Oct Nov Expansion of Tecon Santos'
Import (Full) Export (full) capacity in the coming years
Long Haul Inland Cabotage
should absorb the additional
demand. 13Inorganic growth
Capital allocation in projects to be auctioned and through M&A
Auctions: robust port project pipeline
1 - Cargo diversification (solid e liquid bulk);
- Greater presence on the Brazilian coast;
- Search for double-digit returns (real base);
Attracting additional value in the logistics chain
2 - M&A Strategy;
- Integrated logistics with the Port of Santos;
- Asset-light business model;
Increase exposure in the container market in Brazil
3 - Plug-and-play strategy;
- Commercial strengthening;
- Technology and costs synergy;
14Cash position and leverage
15Financial indicators
Net cash position of R$655.0 million in 09/30/2020
Debt Amortization (R$M) Net Debt (R$M) and Net Debt/ EBITDA pro-forma
140 108
0.48x 0.73x 40
0.46x -0.25x
-0.45x 11 -0.03x
(27) 0.09x (3)
(38)
1,089
355
-7.04x
33 20 26 (655)
Cash & Equivalents Short Term 2021 2022 2023+ 2014 2015 2016 2017 2018 2019 3Q19 3Q20
16IR contact, Web and Social Medias
dri@santosbrasil.com.br
+55 (11) 3279-3279
SantosBrasil
santosbrasil_
santosbrasiloficial
santos-brasil 17
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