Investor Relations

Site Visit to Rio Grande Container Terminal

25 OCTOBER 2023

Only Container Terminal in the State of Rio Grande do Sul

World-class infrastructure with the most extensive backyard area in the country, authorised to serve New Panamax ships.

1.4M TEU/year

Handling Capacity

Santa Clara Terminal (TSC)

577k TEU

900 m

9 STSs

15 m

735k m2

R$252M (55%)

Volume (Jun-23 LTM)

Quay Length

Quay Cranes

Draft

Total Area

EBITDA Jun-23 LTM

and Margin(2)

Rio Grande

do Sul GDP

2022:

EXTERNAL

US$115B(1)

CONTAINER

YARD

RAILWAY

CONNECTION

AREA AVAILABLE

FOR EXPANSION

(PART OF TRG LEASE)

ADDITIONAL AREA

AVAILABLE FOR

EXPANSION

Sources: Company Information; Brazilian Institute of Geography and Statistics (IBGE); International Monetary Fund (IMF)

2

Notes: (1) Considers average FX rate of R$5.16 as of 2022; (2) IFRS excluding non-transactional corporate apportionment

TRG has a Privileged Position in the South of Brazil

Only option for containerised cargo in the state with an attractive hinterland and excellent connectivity.

Diversified Hinterland Captured by the Terminal

Waterway

Railway

Paraná River

Argentina

TSC

BR-116 Highway

Rosário

TRG

Uruguay

Zárate

Highway

Legend

Railway

Attractive Hinterland

Excellent Connectivity

Montevideo

Waterway

Only dedicated terminal in the state, capturing a

Double-lane highway, railway access and inland

Buenos Aires

diversified and growing cargo base

navigation via Lagoa dos Patos

Sources: Company Information

3

TSC Significantly Expands TRG Hinterland to Important Areas of Rio Grande do Sul and Santa Catarina

Installed infrastructure to support future growth via additional and/or larger barges.

TSC's Infrastructure

Location of TSC and Triunfo Petrochemical Complex

TRIUNFO

PETROCHEMICAL

COMPLEX

Premium Solution

  • Door-to-portsolution
  • Four weekly calls
  • Multimodal transport integration
  • Reduced logistics costs
  • Improved cargo safety
  • Lower GHG(1) emissions

Capacity Increase with

Low Investment

  • Increase from 4 to 6 weekly calls with a third barge
  • Increase barge capacity by replacing existing vessels with larger ones

TSC

TSC is within Porto Alegre Metro

Area, the state capital

Source: Company Information

4

Notes: (1) Greenhouse Gas (GHG)

TRG External Container Yard

Own Property

The external container yard is strategically located only 2.8 km from the terminal.

4,000 TEU

Storage Capacity

1,540 m2

Warehouse Area

30,000 m2

Paved Area

60,000 m2

Total Area

Container Stuffing

External

Container Yard

~2.8 km

TRG

Source: Company Information

5

Worldwide Connectivity to a Diversified and Solid Client Base

TRG captures cargo from important hinterlands in southern Brazil as well as transshipment volumes from nearby countries.

Volume Profile(1)

Shipping Line Services Calling TRG

Exceptional

Connectivity

NEUR

WCNA

ECNA

MED

FEAS

USGC

WAFR

ME

ECSA

WCSA

AFRES

ANZ

11 direct lines

indirect services

Volume by Trade Flow

Volume by Origin/Destination

(TEU, 2022)

(TEU, deep-sea and full containers, 2022)

USGC

Others

(2)

6%

9%

FEAS/ME

Empty

Exports

34%

ECSA/WCSA

36%

544k

31%

7%

TEU

MED

10%

Inland

TS (3)

Imports

Navigation

11%

ECNA/WCNA

NEUR

4%

11%

Cabotage

10%

23%

8%

Revenue Profile

(R$ M, 2022)

Liners

Shippers

48%

52%

Sources: Company Information; Datamar | Notes: (1) FEAS (Far East Asia), NEUR (North Europe), ECNA (East Coast North America), WCNA (West Coast North America); USGC (US Gulf Coast), ECSA (East Coast South

America), WCSA (West Coast South America), MED (Mediterranean), AFRES (South-East Africa), WAFR (West Africa), ME (Middle-East), and ANZ (Australia and New Zealand); (2) Except transshipment; (3) Transshipment

6

(TS), includes shifting (full + empty)

Growth Strategy

Multiple growth prospects underpinning sustainable long-term value creation.

1

Post-Covid Normalisation

2

Plate Transshipment

3

Industrial Development

4

Containerisation

5

Expansion Projects

Source: Company Information

7

1 TRG Recent Operational Performance

TRG is recovering its cargo volume and shows great prospects going forward.

Ship Call Cancellations

(#)

2019

2022

2023

32

38

7

11

10

4

1Q19

2Q19

1Q22

2Q22

1Q23

2Q23

Cancellations decreased dramatically in 2023, but there is more to go.

Empty Container Volume(1)

('000 TEU)

117

118

-13.8%

101

+16.7%

6M19

6M22

6M23

Empty container volume has already recovered to pre-pandemic levels.

Relevant Commodity Exports

('000 TEU)

38.8

4.0

-31.7%

+19.1%

31.6

4.3

2.3

26.5

4.9

10.5

1.6

+19.0%

4.1

-49.9%

+42.6%

7.5

5.3

19.9

16.9

15.6

-22.0%

+8.5%

6M19

6M22

6M23

Tobacco

Wood

Pork Rice

  • Shipping cost is an important factor for commodities
  • Since COVID-19, part of the cargo stayed in RS, part migrated to breakbulk or road transportation, and part went to other terminals which are not economically viable in the long term due to distance(2)

Cargo is already returning due to greater availability of empties.

Source: Company Information

8

Notes: (1) Does not consider transshipment and shifting; (2) Average distance of ~900 km from the following competitors to TRG, considering Itajaí-Navegantes (861 km), Itapoá (998 km) and Paranaguá (1,045 km)

2 Plate Transshipment Strategy

Maritime Access Restriction is a Significant Bottleneck for Plate Region Ports

TRG is well positioned to capture a relevant share of transshipment volume due to draft restrictions in the Plate region ports. Major liners have reinforced their feeder strategy and announced plans to serve ECSA with New Panamax ships.

PRY

BRA

Asunción

Santos ✓

Paranaguá ✓

Corrientes

Paraná

Itapoá

Navegantes

River

ARG

Current Port Draft and Largest Ship Size Supported(2)

(metres)

R. Grande

Santos

Paranaguá

Itapoá

Navegantes

B. Aires

Montevideo

Plate

Region

Overview

Rosário

URY

Rio Grande ✓

Zárate

Montevideo

Buenos Aires

Mar del Plata

Plate region ports

Bahía Blanca

handled c. 2.0M

TEU in 2022(4)

Puerto Madryn

URUGUAY

Paraná River

Zárate

12.5

13.5

15.0

15.0

14.5

13.0

12.8

10.0

10.7

Panamax: 5,000 TEU | 250m

12.7

Post-Panamax: 8,000 TEU | 285m

New Panamax: 12,500 TEU | 366m

Puerto Deseado

4%

33%

Montevideo

Buenos Aires

La Plata

River

(A)

Opportunity to Increase Terminal Profitability

World TEU Capacity(3) (M TEU)

Legend

Ports homologated ✓ to receive New

Panamax vessels

  • TEU share of the Plate region

63%

(B)

Pontón

Recalada(1)

ARGENTINA

Access Channel:

Ushuaia

A: +40 km, 11.0 m

B: +200 km, 9.8 m

0.02% Mar del Plata

  • ~50% of the orderbook comprises ships with capacities above 15k TEU
  • Share of large vessels in total capacity will increase as older, smaller vessels are scrapped

34.6

27.57.2

Current Capacity

Orderbook

Future Capacity

Sources: Company Information; Alphaliner; Datamar; Port Authorities

9

Notes: (1) Pontón Prácticos Recalada is the pilot point for the La Plata River; (2) TEU capacity when fully loaded; (3) Data from July 2023; (4) Including empty containers

3 Industrial Development in the Port of Rio Grande

The port zoning plan defines a significant area for industrial development.

Granel Química

BR-392

Petrobras

Yara

Bunge

Bianchini

Rocha

Temasa/Tegrasa

TRG

Gefco

Access Channel

Legend:

Available Areas

Public Areas

Reserved Areas

Preservation Areas

Occupied Areas

Railway

Source: Company Information, Rio Grande Port Authority (Portos RS); State of Rio Grande do Sul

  • The Rio Grande do Sul industrial districts are regulated by the Cooperation Agreement No. 001/2020 from the state's industrial development programme (PROEDI).
  • Law No. 15,646/2021 incentivises the acquisition of land to develop industrial, logistics and storage activities.

Existing Infrastructure

Enables the Development of

the Industrial Zone

  • Road access
  • Railway access
  • Nearby thermal plant ensuring power supply
  • Port access (container and bulk)
  • Inland navigation
  • Waterway access
  • Skilled labour through 13 universities

10

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Wilson Sons Holdings Brasil SA published this content on 24 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 October 2023 21:44:39 UTC.