Beto

Abreu

Connecting Brazilian agribusiness to rising global demand

Brazil already accounts for 40% of global grain trade

RELIABLE INFRASTRUCTURE TO

INCREASE COMPETITIVENSS

POPULATION GROWTH AND

HIGHER GRAIN PRODUCTION TO

BASE SCENARIO

URBANIZATION TO INCREASE

GUARANTEE GLOBAL FOOD SUPPLY

PROTEIN CONSUMPTION

Corn

Soybean

INVESTMENTS

GRAINS GLOBAL DEMAND

More efficiency and

316 mln ton

productivity on the field

BRAZILIAN EXPORTS

117 mln ton

Major exporters

Major importers

INCREASE FOOD

New agriculture

EXPENDITURE

BETTER PLANNING

frontiers

Increasing footprint

Rumo to reach 80% of grains exporting areas

26% of brazil grain exports

AC

TO

50.3

(38%)

RO

Porto Nacional

MT

BA

Rondonópolis

GO

Anápolis

Alto Araguaia

Alto Taquari

Chapadão do Sul

MG

ES

MS

Fernandópolis

Votuporanga

Barretos

Op. Norte

SP

Pradópolis

Araraquara

RJ

Op. Sul

Jaú

Itirapina

Sumaré

PR

PORTO DE SANTOS

PORTO DE PARANAGUÁ

SC

PORTO DE SÃO FRANCISCO

RS

MT

1St

PORTO DE RIO GRANDE

35% of brazil grain exports

states in 2019 (mln ton)

AC

TO

1

MT

Porto Nacional

RO

Lucas do Rio Verde

BA

2 Nova Mutum

Rondonópolis

GO

17.8

14.6

MS

MG

ES

(13%)

11.9

(11%)

6.4

Maracajú

3

SP

(9%)

5.8

RJ

(5%)

(4%)

Guaíra

PR

PORTO DE SANTOS

Cascavel

PORTO DE PARANAGUÁ

FERROESTE

PORTO DE SÃO FRANCISCO

SC

PR

RS

GO

MS

SP

RS

2nd

3rd

4th

5th

6th

PORTO DE RIO GRANDE

States that are or will be served by Rumo

Strategic Framework

Our Roadmap

Growth

Efficiency

Customers

People

Key success factors: SAFETY | INNOVATION | SUSTAINABILITY

North Operation

Accretive network extension

MATO GROSSO EXPORTS

+37% 68.8

43.450.3

2018

2019

2028

Source: MAPA

Ministry of Agriculture, Livestock and Food Supply of Brazil

  • Environmental licenses requested
  • Improving commercial strategy with multiple terminals
  • High returns on additional volume

RELIABLE LOGISTICS FOR MT

Lucas do Rio Verde

MT

Nova Mutum A

Rondonópolis B

A Future Nova Mutum terminal

B Rondonópolis expansion

South Operation

New opportunities grounded on Ferroeste deal

West PR grain production (mln ton)

MS grain exports (mln ton)

7.7

7.9

6.1

6.3

2018

2019

2018

2019

Source: Agroconsult

Source: Agroconsult

Signed agreement with Ferroeste:

Rumo network Ferroeste network Ferroeste extension

  • State-ownedrailway serving west Paraná
  • Access with new locomotives and passthrough fee
  • Possible extension to MS southern area

Central Operation

Accessing new markets

  • Cargo diversification
  • Operational synergies
  • Higher ROI on lower cost of capital

Investments already started:

Addressable market

Grains export (mln ton)

Goiás

25.1

Tocantins

13.2

15.2

20.4

10.5

12.2

2.7

3.0

4.7

2018

2028 Base scenario

2028 Optimistic scenario

Source: MAPA - Ministry of Agriculture, Livestock and Food Supply of Brazil

Rio Verde grain terminal:

Rio Verde - GO

Container Operation

Growing fast with profitability

RTK VolumeEBITDA Margin (%)

2,305

2,766

10.0%

5.2%

2018

2019

2018

2019

Business Strategy:

  • Improved profitability
  • More volume: double stack railcars
  • Huge market opportunity
  • Assortment of cargo/customers

Higher capacity and efficiency

17.6%

4Q19

Diversified customers and cargoes

Cargo diversification

Market opportunities well beyond grains

Fuel

5.8

Sugar

4.3

3.1

Pulp

Rumo 2019

Volume

2.8 Iron ore

(mln ton)

Grains 34.9

2.8

Fertilizers

2.8

Sugar 2019 exports

Brazil17.8

Rumo Area

14.0

Served by Rumo 4.3

9.7

Opportunity

Pulp 2019 exports

Brazil15.3

Rumo Area

8.4

Served by Rumo 3.1

5.3 Opportunity

Fertilizers 2019 imports

Brazil

31.1

1.2

Containers

Rumo Area

19.8

Others

Served by Rumo 2.8

17.0

Opportunity

Operational efficiency

More efficient trains: higher capacity with lower fuel consumption

120 train in North Operation

Double stack railcars

Trip optimizer roll-out

+5% reduction

fuel consumption

Fuel consumption

000)

4.8 -18%3.9

20162019

Operational efficiency:

  • Longer train in North Operation
  • Double stack railcars for containers
  • Trip optimizer: more fuel efficiency

Operational Efficiency

Every hour matters:

1 hour = BRL 23 MM/year

  • Transit time
    Rondonópolis Santos = 90h
  • Train stopped half of the time:
    • Crossovers
    • Dwell time
    • Anomaly

AI + Machine learning

Network

AI

Scheduling

Network optimization

Yard

Yards optimization

Trip optimizer

Customers

As logistics expand RUMO should become more commercial oriented

FARMERS

TRADINGS

COOPERATIVES

INDUSTRIES

Broader customer perspective

Making difference in the value chain

CAPACITY

NEW GEOGRAPHYS

ASSORTMENT

PARTNERSHIP

MARKET INTELIGENCE

INNOVATION

People

Developing and attracting people

to support our

DIFERENT SKILLS

DIVERSITY

TALENT ATRACTION

DEVELOPMENT

growth

Transformational project for logistics in Brazil

High growth / Different geographies / New competences

LEADERSHIP

BRANDING

CULTURE

PERFORMANCE

ESG

24% reduction of CO2 emission since 2016

CDP participant

Compliance with GRI methodology

Participant company

2020 commitments

Safety - LTIF

3.20

Consistent performance

over years

  • Better than average of Class I Railways in US [0,20]

2.07 2.06

0.82

0.39

0.25 0.13

2013

2014

2015

2016

2017

2018

2019

Lost Time Injury Frequency measured by the number of accidents with leave by the total hours worked with risk exposure (in millions hours)

2023 Guidance

Long term commitments

Volume

CAPEX

EBITDA

(bln RTK)

(BRL bln)

(BRL bln)

88.0 - 94.0

13.0 - 15.0

6.2 6.9

CAGR

CAGR

60.1

+10%

3.8

+15%

2019

2023

2019-2023

2019

2023

Final Remarks

Safety is our license to operate

People committed to the improvement of Brazilian logistics Building value with customers

High operational efficiency to capture market growth Return to shareholders with capital discipline

Attachments

Disclaimer

Cosan Limited published this content on 09 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 March 2020 12:52:06 UTC