LLX Logística S.A.June, 2008
2
This presentation relating to LLX Logística S.A. (“LLX”) includes “forward-looking statements”, as that term is defined in the Private Securities
Litigation Reform Act of 1995, in Section 27A of the Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All
statements other than statements of historical facts are statements that could be deemed forward-looking statements and are often
characterized by the use of words such as “projects”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “may”, “will”, or
“intends”, or by discussions or comments about our objectives, strategy, plans or intentions and results of operations. Forward-looking
statements include projections regarding our operating capacity, operating expenditures, capital expenditures and start-up dates.
By their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both general and specific.
The risk exists that these statements may not be fulfilled or, even if they are fulfilled, the results or developments described in such
statements may not be indicative of results or developments in future periods. We caution participants of this presentation not to place
undue reliance on these forward-looking statements as a number of factors could cause future results to differ materially from these
statements.
Forward-looking statements may be influenced in particular by factors such as the ability to obtain all required regulatory approvals and
licenses on a timely basis or at all, and changes in economic, political and regulatory conditions. We caution that the foregoing list is not
exhaustive. When relying on forward-looking statements to make decisions, investors should carefully consider these factors as well as other
uncertainties and events.
LLX does not undertake to update our forward-looking statements unless required by law. This presentation is neither an offer to sell (which
can only be made pursuant to definitive offering documents) nor a solicitation of an offer to buy any securities in the United States, or any
other jurisdiction. The securities referred to herein have not been registered in any jurisdiction, and in particular, will not be registered under
the U.S. Securities Act of 1933, as amended, or any applicable state securities laws and may not be offered or sold in the United States
absent registration or an applicable exemption from such registration requirements.
This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part
without LLX’s prior written consent.
Investor Relations
Ricardo Antunes Carneiro Neto –
CEO & Investor Relations Director
Antonio Castello Branco – Manager
Tel.+ 55 21 2555 5661
Disclaimer
1. Overview
4
EBX Lines of Business
MMXMMX
Mining &
Metals
LLXLLX
Logistics
MPXMPX
Energy
OGXOGX
Oil & Gas
AMXAMX
Renewables
REXREX
Real Estate
XHOW
PFX
XHOW
PFX
Entertainment
CorumbáSystem
AVX
Açu Superport
& Industrial Park
Brasil Superport
&
Industrial Park
PortSudeste
Port in Chile
(option)
Coal
Pecém
Maranhão
Açu
Seival
Diesel / FuelOil
Serra do Navio
Gas
TermopantanalBR
TermopantanalBol
SHP (PCH)
Capivara
HPP (UHE)
Baixo Iguaçú
Seival CoalMines
New CoalDevelopments
Campos Basin
5 Blocks 100%
2 Blocks 50%
Santos Basin
4 Blocks 100%
Espírito Santo Basin
4 Blocks 100%
Pará-Maranhão Basin
5 Blocks 100%
Waterexploration
Handlingsustainableforests
MDX Day Hospital
La Cañada de Pillar
HaciendaCastilla
Barra
São João da Barra
Mr Lam
Pink Fleet
Hotel Gloria
XISXISXIS AXXAXX
Social
Museu das Minas e do Metal – BH
LagoaRodrigo de Freitas - RJ
Aviation
Helicopter Agusta Elite
Helicopter Agusta Grand
CJ3
Legacy
NVXNVX
Shipping
Time Charter Contracts
MMXMMX
Mining &
Metals
LLXLLX
Logistics
MPXMPX
Energy
OGXOGX
Oil & Gas
AMXAMX
Renewables
REXREX
Real Estate
XHOW
PFX
XHOW
PFX
Entertainment
CorumbáSystem
AVX
Açu Superport
& Industrial Park
Brasil Superport
&
Industrial Park
PortSudeste
Port in Chile
(option)
Coal
Pecém
Maranhão
Açu
Seival
Diesel / FuelOil
Serra do Navio
Gas
TermopantanalBR
TermopantanalBol
SHP (PCH)
Capivara
HPP (UHE)
Baixo Iguaçú
Seival CoalMines
New CoalDevelopments
Campos Basin
5 Blocks 100%
2 Blocks 50%
Santos Basin
4 Blocks 100%
Espírito Santo Basin
4 Blocks 100%
Pará-Maranhão Basin
5 Blocks 100%
Waterexploration
Handlingsustainableforests
MDX Day Hospital
La Cañada de Pillar
HaciendaCastilla
Barra
São João da Barra
Mr Lam
Pink Fleet
Hotel Gloria
XISXISXIS AXXAXX
Social
Museu das Minas e do Metal – BH
LagoaRodrigo de Freitas - RJ
Aviation
Helicopter Agusta Elite
Helicopter Agusta Grand
CJ3
Legacy
NVXNVX
Shipping
Time Charter Contracts
5
LLX Management
Management Team Experience
Ricardo Antunes
CEO
Engineer Degree from PUC-RJ and Master´s degree from the Imperial College in London.
23 years of experience at CVRD
Former CEO of Rio Doce International
Co-founder of MMX
Eliane Aleixo Lustosa
Chief Financial Officer
Masters degree in Economics from PUC-RJ and PhD in Finance. Held Yale Universitiy´s
certificate in Corporate Governance.
Government experience at BNDES, Ministry of Finance and as Director of Brazil´s Antitrust
Agency. Former VP and CFO of Grupo Abril, Globex and Petrobras Pension Fund (Petros).
Current board member of the Brazilian Institute of Corporate Governance (IBGC). Former board
member of several public companies (Perdigão, CPFL, Coteminas, Telet, Americel and Tele
Norte Celular).
José Salomão
Chief Development Officer
Mechanical Engineer (UFES) and MBA in COPPEAD/UFRJ
23 years of experience in the design, implementation and operation of port terminals (iron ore,
coal, pig iron, fertilizers, agricultural baul, containers and general cargo).
Held executive positions in Porto de Tubarão, Porto de Praia Mole, TVV, Pasha Terminal – Los
Angeles, Docenave and Brasil Ferrovias.
Luis Alfredo Osório de Castro
Chief Implementation Director
Civil Engineer (UGF/RJ) and MBA from FGV/RJ. Project Management (PMI) certificate from
FIA/USP.
30 years experience in implementing infrastructure projects (urban projects and port terminals);
power plants and industrial facilities at Pronil, OAS and Brascan.
6
MMX Structure before restructuring and Anglo´s proposal
30% Centennial
Asset Corumbá
49% Anglo American
MMX Corumbá
49% Anglo
American
LLX Logistica
85%
30% Centennial Asset
LLX AçuLLX Minas-Rio
100%
Minas-Rio Project
70%
30% Cleveland
Cliffs
MMX Amapá
70%
MMX Minas-Rio
51%
AVX Mineração MMX Metálicos
100%
15% OTPP
70%51%
7
Centennial Asset
MMX
Corumbá
70%
30%
MMX Amapá
70%
MMX
Minas-Rio
AVX
Mineração
MMX Metálicos
70%51%
Iron X
MMX current
shareholders
43%57%
100%
MMX restructuring and Anglo acquisition proposal
100%
100%
Controlling
Shareholders
+ minorities
LLX
Minas-Rio
LLX
Açu
30%
Centennial Asset
30%
49%
100%
( 1 ) ( 1 )( 2 )
( 1 ) Includes 100% of respective Metallics Projects
( 2 ) Includes MMX´s option to 50% of future Pelletizing Plant
8
LLX Corporate Overview after restructuring
(1) Eike Batista and Management
51%
43%
LLX Minas-Rio LLX Açu
70%
30%49%
Centennial
Logística
57%
LLX Brasil LLX Sudeste
Controlling
Shareholders + Minority Shareholders(1)
70% 70%
30%30%
9
LLX
Strategic locations and large back-areas;
Low-cost operational models;
Long Term contracts with diverse sectors and
synergies generated within the EBX Group;
Experienced management team;
Secured Debt Financing Source;
Social and Environmental Responsibility.
LLX was created in march 2007, aiming to explore
the significant growth potential in infrastructure
and logistics services through the development of
3 major port systems in the Southeast region of
Brazil.
Its main strenghs are:
10
Relevant Hinterland
LLX Port´s hinterland concentrates 72% of the Brazilian GDP
Source: IMF.
Country GDP 2006 (US$ Billion)
Brazil 1.067,7
Russia 984.93
South Korea 888.3
India 886.9
Mexico 840.0
LLX´s hinterland area 780.5
Australia 754.8
Netherlands 663.1
Belgium 393.6
Turkey 392.4
Sweden 385.3
11
Favorable Industry Fundamentals
Total Brazilian Seaborne Trade
Source: Global Insight.
(million tons)
Current port capacity is incapable of handling the rapid growth in Brazilian foreign trade
Economic Openness – Trade Flow / GDP 2006
Source: SECEX/Ministério do Desenv. Ind e Comercio Exterior
Brazil Trade Flow
(US$ billion)
60 73 96 118 138 1614748
6374
91121
107 121
159
192
229282
2002 2003 2004 2005 2006 2007
Exports Imports
Brazilian Ports’ Capacity Utilization
Source: Antaq.
(berth hours utilized / berth hours available)
97% 93% 91%
80%
63%
Itajaí São Francisco
do Sul
Rio Grande Santos Vitória
264283
343 354372
398
2002 2003 2004 2005 2006 2007E
Economics Opennes - Trade Flow 2006
18% 21%34% 38%
50% 54%62% 66% 67% 71%
Bra
zil
20
00
Bra
zil
Ind
ia
Arg
en
tin
a
Ind
on
es
ia
Ve
ne
zue
la
Me
xic
o
Ch
ile
Ch
ina
Ko
rea
Source: IMF
Economics Openness- Trade Flow 2006
12
LLX Projects
LLX will build 3 major port systems in the Southeast region of Brazil
Mixed-use terminal sized to berth carriers up to 200,000 tons
Back-area covering 7,800 ha
Draft of 18.5 m
Main Products: Iron Ore from MMX Minas-Rio pipelines and third parties
railway, steel products, coal, granite, LNG and containers.
Port Açu - “Super Port”
Mixed-use port terminal
Total Area of 1,900 ha (maritime structure with 50 ha)
Draft of 18.5 m
Main Products: Containers, iron ore, agricultural bulk, liquid bulk and fertilizers
70 km from its main competitor, with huge competitive advantage: major
expansion area and 2x current container capacity
Port Brasil - “Super Port”
Port terminal located in the Itaguaí Industrial Area
Accessed by MRS railway and BR-101
Best poised to capture transportation of Minas-Gerais main Iron Ore producers
Draft of 18.5 m
Area covers 52.1 ha
Port Sudeste
Every Port facilitiy has been designed to comply with ISPS (International Ship and Port Facility Security Code) regulations.
13
Developing Partners
Port Açu
Port Sudeste
Port Brasil
RAM EngenhariaDevelops Port Açu offshore
21 years experience
Developed ports such as: CSA/Thyssen in Sepetiba;
CVRD Terminal (Pier III in Ponta da Madeira,
onshore installations in Praia Mole; Tubarão terminal
for Oil, Agrilcultural Bulk, Fertilizers and Containers);
Pecém Port.
Develops Port Sudeste
Founded in 1969
Nearly 450 projects implemented
Several port projects in Brazil, Argentina, Paraguay,
Uruguay, Moçambique and Cabo Verde.
Develops Port Brasil and Port Açu onshore 75 years
experiece
World leader in ports development
Port Projects for CVRD, MBR, Rio Tinto, Votorantim,
CSN, Usiminas, Gerdau and CST.
14
LLX Timeline
2006 2008 20092007 2010 2011 2012
Bra
sil
Aç
uS
ud
es
te
Development
Detailing of the project
Environmental
License
Development
Project begin to be developed
Development
Project begin to be developed
Development
ANTAQ authorization
Construction License
Construction
Construction begins
Construction
Completion
Operations
Start up
Operations
Start up
Carve Out
LLX is carved out of MMX and begins operations as an independent company
Anglo American buys 49% stake in LLX Minas-Rio
OTPP acquired 15% of LLX Logística
Development
Environmental License
Development
EnvironmentalLicense
Operations
Start up
Min
as
-R
io
Development
Detailing of the project
Environmental License
Operations
Start up
Development
Construction License
ANTAQ authorization
Construction
Construction Begins
Construction
Construction begins
Development
Construction License
ANTAQ authorization
Development
Construction License
ANTAQ authorization
Construction
Construction begins
2. Projects
2A. Port Açu
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Unparalleled Port Facilities
Mixed-use private port facility featuring a deep draft port with minimum need for dredging
Natural draft of 15 meters
Future draft of 18.5 meters
Able to berth large vessels
7,800 hectares of land holdings for adjacent industrial complex ( 300 hectares for Iron Ore / LLX Minas Rio)
The thermal plant within the industrial complex will guarantee “inside-the-fence” energy availability based on the recent self-producer consortium regulation, even under a rationing scenario
Has already been granted both environmental and construction licenses.
Construction began in September, 07.
10 hectares
18
LLX Minas-Rio (Ore) / LLX Açu (non-Ore)
19
Railway Expansion
45 km of railway track will be
built to connect Port Açu to
the Brazilian railway system.
MMX
Sudeste
20
Port Infrastructure – General View
21
OGX´s Campos, Santos and Espirito Santo basin blocks and
Port Açu strategic location as a supply boat hub
22
Up to 3,300 hectares for rental Up to 330,000 TEUs py
Iron Ore: Coal: Liquid Bulk (LNG): Steel Products:
Granite: Containers: Supply Boats: Real Estate:
Up to 63.2 mtpy Up to 15.3 mtpy Up to 4.0 M m 3 py Up to 11.2 mtpy
Up to 1.5 mtpy Up to 80,000 tons of cargo py
Port Açu main activities
Capex
LLX Minas-Rio: US$ 900 M
Açu Non Ore: US$ 700 M
(Source : Verax Feasibility Study as of June 12th 2008)
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016... ...2032
53,2
348,8
766,0
274,5
75,415,1
65,2
38,1
283,6
560,4
17,8
80,7
205,6
Development Capex and Volume Ramp Up
Volume Ramp Up (Mtpy)
Port Açu
Development Capex US$ M
Port Açu
Minas-Rio (Iron Ore)
Port Açu Non Ore
256,7
Capex
LLX Minas-Rio: US$ 900 M
Açu Non Ore: US$ 700 M
*
(*) Tonnage excluding containers
- - -
20,0
30,3
39,8
62,2
67,9
77,682,0
93,5
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016... ...2032
(Source : Verax Feasibility Study as of June 12th 2008)
2B. Port Brasil
25
Port Brasil Overview
Industrial Area
(1300h)
Storage & Handling
(600h)
Maritime Structure
( 50h)
26
Railway
Port Brasil will be connected by a 1800 km railway track (ALL) and by a four-lane highway
(Padre Manoel da Nóbrega).
27
Port Brasil Infrastructure
Back-area: 6 million m2 Island: 500.000 m2Taniguá Industrial Area
13 million m2
Distribution Center
Consolidation and
Deconsolidation Center
Depot
Annual Capacity:
• containers: 3,2 million (TEU)
• Iron ore: 20 million (ton)
• Agricultural bulk: 28,9 million (ton)
• Fertilizers: 10 million (ton)
• Liquid Bulk: 7,5 million (ton)
11 berths
Draft of 18.5 m
28
Port Brasil Overview
Port Brasil is a private port located in São Paulo State, the country’s primary economy engine
Mixed-use port terminal designed for operating containers, iron ore, agricultural bulk, liquid bulk and fertilizers;
11 Berths with 18.5 meters (reaching 21 meters with further dredging)
Offshore Structure: 500,000 m² (1,240 m X 403 m);
Breakwater designed for extreme weather conditions by specialized international consultancies;
Access bridge with 3 lanes prepared for heavy haul and with area for multiple conveyor belts and pipes;
Exceptionally large yard area;
Fully compliant with ISPS Code;
Direct link to railway (ALL) and a four-lane highway (Padre Manoel da Nobrega);
Located outside public port area, strong competitive advantage due to reduced costs.
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Containers
Up to 3.2 M TEUs py
Iron Ore
Up to 20.0 mtpy Liquid Bulk (Ethanol)
Up to 7.5 M m3 py
Agricultural Bulk
Up to 28.9 mtpy
Fertilizers
Up to 10.0 mtpy Real State
Up to 600 hectares for rental
Port Brasil main activities
Capex
Port Brasil : US$ 1,951 M
(Source : Verax Feasibility Study as of June 12th 2008)
30
Development Capex and Volume (Without Containers)
Volume Ramp Up (Mt)
Port Brasil
Developement Capex (US$ M)
Port Brasil
- - - - -
17,8
27,0
41,1
45,4 46,5
64,9
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016... ...2032
2,2
97,9
553,2 561,7
346,0
100,3
41,2 35,3
79,8
1,8 -
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016... ...2032
Capex
Port Brasil : US$ 1,951 M
(Source : Verax Feasibility Study as of June 12th 2008)
Development Capex (US$ M)
Port Brasil
2C. Port Sudeste
32
Port Sudeste Overview
Railway
Loop
Tunnel
1.18 km
Bridge
1.4 km
Berth
Iron Ore
Storage
33
MMX Sudeste iron ore logistics to Port Sudeste
MRS
Currently Transportation contract secured with MRS and port access with CSN
Sepetiba Terminal until 2011, when port Sudeste starts up.
Port Sudeste
Igarapé
MMX
Sudeste
34
Port Sudeste
The port is located in the State of Rio de Janeiro, adjacent to Itaguai Port at Sepetiba Bay. The whole
area of 512,000 m² is dedicated to iron ore operation.
Draft of 18,5 m.
The region is served by railway (MRS) and road (Coastal Highway BR-101); the federal government has
just approved investment in a road connecting the port area to the Rio-São Paulo highway;
The area is already available. Licensing and construction can be done in relatively short time; operation of
the iron ore terminal (storage and shipping) could start 2011.
Iron Ore
Up to 25.0 mtpy
Capex
Port Sudeste: US$ 381 M
(Source : Verax Feasibility Study as of June 12th 2008)
35
Development Capex and Volume
Volume Ramp Up (Mt)
Port Sudeste
Development Capex (US$ M)
Port Sudeste
- - - -
5,0
10,0
15,0
20,0
25,0 25,0 25,0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016... ...2032
43,949,0
169,1
118,3
- - - - - - -
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016... ...2032
Capex
Port Sudeste: US$ 381 M
(Source : Verax Feasibility Study as of June 12th 2008)
36
EBITDA share per Product and per Port
(Source : Verax Feasibility Study as of June 12th 2008)
37
Final Remarks
Unparalleled
Port Facilities
Attractive
Locations
Unique
Strategic
Position
Significant
Upside
Potential
Favorable
Industry
Dynamics
38
Thank You !