Presentation - V Brazil Equity Ideas Conference

The broadest portfolio of
logistics services in
Brazil
Presentation
January 2012
Agenda
1
Main Highlights and Corporate Profile
2
Acquisition of Schio
3
SIMPAR Concessionárias
4
3Q11 Results
2
1
Main Highlights of the Quarter
Acquision of Schio, leading company in logistics of controlled temperature cargo in Brazil, with
operations in other countries in South America
Extraordinary Shareholders Meeting’s approvall of the proposal for the merger of SIMPAR
Concessionárias, network of concessionaries of vehicles, trucks and buses
JSL elected for the 7th consecutive year byTransporte Moderno Magazine as the largest logistics
operator in terms of net revenue in the highway transportation of cargo segment
ILOS Award: JSL was elected the best Brazilian logistics operator for the 3rd
consecutive year:
 1st Place in the Pulp and Paper Sector
 1st Place in the Auto and Auto Parts Sector
 1st Place in the Steel and Mining Sector
Launch of JSL Aluguel de Caminhões, a new business model in the country
Beginning of operation of municipal passenger transportation in Sorocaba-SP
- Concession with an 8-year term and overall revenue estimated at R$ 241.0 million
Material Fact (12/21/2011) about non-binding agreement with Marfrig Alimentos S.A. estabilishing the
basis for negotiation to transfer the management of Marfrig‟s logistics operations in Brazil to JSL
3
1
JSL: Track Record and Actual Moment
Brazil‟s Largest Portfolio of Logistics Services
Acquisition of Rodoviário
Schio (2011)
IPO
Perpetuity
and Growth
Support
R$ 3.0 billion of gross revenues*
in last 12 months and CAGR of
27.3% in the last 10 years
AP
RR
Start of Urban
Distribution
AM
Acquisitions:
Lubiani (2007)
Grande ABC (2008)
2009: Incorporation
of CS Brasil
CE
MA
PA
PI
AC
RO
PE
AL
TO
MT
SE
BA
MG
MS
ES
SP
Concessions for
Passenger
Transportation
Largest buyer of
heavy vehicles in
the Brazilian market
DF
GO
Start of Dedicated
Services - automotive
and forestry
RN
PB
PR
Important buyer of tires
and fuel
RJ
SC
RS
More than 29 thousand
assets in operation
Present in all regins of Brazil*:
Car Rental and
Chartering
» 139 branches in 16 states
» 12 used vehicle dealerships
» More than 18,000 employees
1956: Foundation - Transport
of general cargo
Data Base: 09/30/2011
*Considers the Rodoviário Schio acquired in nov/2011
4
1
Complete Portfolio of Services
Leading company focused on high value-added businesses
Maior Valor Agregado
Greater Logistic Integration
Participation in the Gross
Revenue from Services*
50%
Dedicated Supply Chain Services
24%
Fleet Management and Outsourcing
13%
Passenger Transportation
11%
General Cargo Transportation
*Data Base: JSL - LTM (the remaining 2% is related to other activities)
5
1
Excellent Reputation and Market Recognition
Solid relations with clients and diversified revenue
Petrochemical
6%
JSL has been building relationships with its
clients for more than 50 years
Pulp and Paper
15%
Consume
7%
Gross Revenue
from Services
Food and beverage
8%
by Sector ¹
50 largest clients represent around 65% of
Steel and Mining
9%
the gross revenue in the last 12 months
Public
14%
Municipal and Automotive
inter-municipal
11%
transportation
10%
Don’t consider the clients of Schio
¹ Last 12 months. Considering the merger with Schio
1º
1º
Pulp & Paper
Others
7%
Agriculture
6%
Breakdown of
More than 300 clients
Electric
Capital
Energy
Goods
Retail
2%
3%
2%
Automotive
55 years
16 years
9 services
5 services
33 years
16 years
12 services
2 services
1º
Metal & Mining
Food &
Beverage
2º
Eletric & Bioenergy
Others
2º
27 years
38 years
2 years
9 years
1 service
7 services
2 services
1 services
27 years
19 years
2 years
17 years
3 services
4 services
1 services
1 services
15 years
9 years
14 years
2 years
1 year
2 services
7 services
5 services
3 services
2 services
8 years
15 years
5 years
12 years
1 year
4 years
7 services
1 services
2 services
7 services
1 services
1 services
4 years
15 years
2 years
8 years
1 year
1 year
7 services
6 services
1 services
4 services
1 services
3 services
21 years
1 services
Rankings correspond to the classification of JSL in the respective segments in ILOS Logistics Award 2011, traditional award that recognizes the best companies in the industry
6
1
JSL‟s Business Model
• Capex pegged to contracts
- Asset acquisition price
- Depreciation
- Return on Capital
- Residual Value of asset at the end of the contract
- Operational Costs
- Apportionment of Expenses
- Taxes
-Expected margin
• Scale gains in acquisition
• Use of specific lines:
- Trucks
- BNDES - Buses
FINAME - Machinery and Equipment
• Structure of contracts:
- Contracts of 2 to 10 years
- Annual price readjustment
- Guaranteed minimum volume
- Penalty for cancellation
- Specific assets:
obligation of sale in case
of early termination
Security in cash
generation
1
2
Pricing and
signing of
contract
- Financial
Leasing
Financing and
acquisition of
assets
- Light Vehicles
- Imported Equipment
Strong Bargaining Power
“Understand to Serve”
• Pricing:
- Bank directly pays the supplier
• Used vehicle stores
- 12 stores in 7 states
Resale of asset
at the end of
the contract
4
• Improvement of the
buying and selling process
Lower depreciation
• Diversification of clients
and sectors
Rendering of
Services
3
• Cross Selling Opportunities
Dedicated
Services
General Cargo
Management and
Outsourcing
Passenger
Transportation
Broadest Service Portfolio
Maximization of the sale value
Expected
Return
7
Additional Contribution from New Contracts to
existing Revenues
1
Profile of New Contracts
Negotiated in 5M11
Gross Revenue from Services
Additional Annual Contribution from New Contracts in 2010 and 5M11
(Base 2010A – R$ million)
High renewal
prospects
R$ 1.130 billion
Does not include
annual adjustments
or growth of
existing operations

88% Cross Selling

79% Dedicated Services

20% Management and Outsourcing
Negotiated in 2010 + 5M11
R$ 3.644 billion

78% Cross Selling

43% Dedicated Services

44% Management and Outsourcing¹
2,448
2,263
Additions
Over 2011
Additions
over 2010
Revenue
from
Services
2010A
2,263
1,878
1,878
Gross Revenue from Services in 2010
Additional Contribution from New Contracts in 2010
¹ Include equipment rental contracts booked at the present value in 3Q10, pursuant to CPC06
Additional Contribution from New Contracts in 5M11
The above estimates do not consider annual price adjustments or the growth potential from existing contracts (RSC²)
Expected revenue growth of around 25% in 2011 over 2010
² Revenue from Same Contracts
8
2
Acquisition of Schio
Net Revenues and EBITDA
(R$ million)
One of the leading companies in logistics of
controlled temperature cargo and one of the 10th
largest of Brazil
41 years of existence, with presence in Argentina,
359
327
Venezuela, Chile and Uruguay
Roughly 3,800 employees specialized in the segment
Over 1,400 own operational assets with average age
of 3.8 years and more than 2,300 vehicles in
independent contractors and third parties
259
232
38
35
2008
Net Revenues
ILOS Award 2011: awarded as one of the best
companies in the food and beverage sector
2009
2
EBITDA
68
75
14
21
54
54
2010
1
12M
EBITDA from Sale of Assets
Gross Revenues breakdown per Sector
Eletric Energy
2.2%
Petrochemical
6%
Others
14%
Retail
11%
Petrochemical
2%
JSL
Food and
Beverage
45%
Household &
Personal Care
28%
Schio
Source: Schio
Note: (1) Last 12 months as of June 30, 2011 (2) Reported EBITDA and Revenue includes Sale of Assets
Electric
Capital
Energy
Goods
Retail
2%
3%
2%
Others
7%
Agriculture
6%
Pulp and Paper
15%
Consume
7%
Food and beverage
8%
Steel and Mining
9%
Public
14%
Municipal and Automotive
inter-municipal
11%
transportation
10%
Highly diversified,
present in more
than 17 economic
sectors with longterm contracts,
ensuring business
resilience.
JSL + Schio
9
2
Schio Highlights: Branches Localization
Latin America (6 supporting units)
Brazil: 18 branches (10 Distribution Centers)
Ipojuca - PE (In-house)
Ananindeua, PA
Ipojuca, PE
São Paulo, SP
Araucária, PR
Maceió, AL
Campinas, SP
Cabo S. Agostinho, PE
Manaus, AM
São José dos Campos, SP
Camaçari, BA
Porto Alegre, RS
Simões Filho, BA
Contagem, MG
Pouso Alegre, MG
Uruguaiana, RS
Goiânia, GO
Rio de Janeiro, RJ
Vacaria, RS
Cabo de Santo Agostinho - PE
Simões Filho - BA
Goiânia - GO (In-house)
Buenos Aires, Argentina
Mendonza, Argentina
Rio de Janeiro - RJ
Rio Negro, Argentina
2
Paso de Los Libres, Argentina
Los Andes, Chile
Contagem - MG
Montevidéu, Uruguai
Rio de Janeiro - RJ (In-house)
Branches
Source: Schio
International Supporting Units
10
2
Schio: Acquisition Rationale
Enhancement of JSL‟s logistics services
platform,
entering
the
controlled
temperature food and products market
as the leader
Pro Forma: JSL + Schio
An even greater consolidation of a
unique platform of logistics services in
Brazil and entrance in the international
market
Generation of even greater gains of
scale, mainly in the purchase and resale of
the assets and main inputs
Strengthening of the relationship with
Schio‟s clients offering services of JSL‟s
portfolio
“Schio
culture”, of
-- Maintenance
Maintenance ofofthethe
management
Schio,
com especialização
em mão
de obra
with specialization
in labor and
operational
eassets
ativos operacionais
-- Cross-selling
Cross-selling opportunities
new
opportunities with
with the new
customer
base and
and less
lower
dependenceonon
customer base
dependence
them
them
New debt of R$ 300 million, with a cost of debt of 114.2% of
Brazilian CDI :
- Maturing in 8 years, 5-year grace period (Average maturity of
6.5 years)
- Average maturity of JSL will increase from 2.7 to 3.2 years
11
Note: (1) Includes issue of new debt of R$ 300 million, which already contains R$ 162 million to acquire Schio
3
SIMPAR Concessionárias – Approved by a
Shareholders‟ Meeting on January 9, 2012
Overview
Current portfolio of Concessionárias and JSL Seminovos
Business segment created in 1995 aiming the sale of new
and used vehicles
Legend:
3 stores in other states
Goiânia (GO): 1 JSL store
Recife (PE): 1 JSL store
Betim (MG): 1 JSL store
Concessionárias: light vehicles
Concessionárias: heavy vehicles
Brazil‟s largest Volkswagen light vehicle dealership, it
also operates with Ford and Fiat. Largest MAN heavy
vehicle dealership in the country.
JSL: light vehicles
JSL: heavy vehicles
Light vehicles:
Avante
Ponto
Original
Heavy vehicles:
Transrio
Automaker
# of stores
% of JSL‟s
fleet
Ford
2
4.8%
Fiat
Volkswagen
3
17
32.1%
MAN
8
51.1%
Total
44.5%
30
2010 Figures:
Operational metrics
Curitiba
1 JSL store
Garibaldi
1 TransRio store
1 JSL store
Rio dos Sinos
1 TransRio store
Financial metrics
Vehicles sold, „000
31.4
Net revenues, R$ mm
% new
67%
% growth
5.6%
# of stores - light
20
# of stores - heavy
7
% growth
Mogi
1 Original store
Grande Porto Alegre
1 TransRio store
Jacareí
1 Original store
1,205
17.3%
23.0
% Adjusted EBITDA margin
1.9%
% net margin adjusted
Caxias do Sul
1 TransRio store
Caçapava
1 Original
store
1 JSL store
São José dos Campos
2 Original stores
2010
Adjusted EBITDA ¹ , R$ mm
Net income adjusted¹ , R$ mm
Rio de Janeiro
1 Original store
2 TransRio stores
1 JSL store
Taubaté
1 Original store
Caçador
1 TransRio store
Pelotas
1 TransRio store
2010
Sumaré
1 JSL store
Arujá
1 Original store
Currently has 30 stores, as shown below:
Company
Ribeirão Preto
1 JSL store
8.1
17 Greater São Paulo
North area:
East area:
Greater ABC
 2 stores Original  5 stores Original  2 stores Original
 1 store Ponto
 2 stores Ponto
 1 store Avante  1 store Avante
 1 store JSL
 2 stores JSL
0.7%
Source: SIMPAR S.A.
(1) Adjusted for non recurring expenses in 2010
EBITDA of R$ 15.8 mm and net income of R$ 5.9 mm according with Credit Suisse’s report. The difference betwen
this numbers are respectively by ajustments in financial expenses with Floor Plan and non recurent expenses
12
3
JSL’s Business Model
Expected Synergies with Concessionárias
Expected Results:
 Higher asset
turnover = greater
economies of scale =
more competitive
prices
C
Concessionárias
 Expected increase in asset
sales price combined with
offer of specialized
services
• Scale gains in acquisition
• Use of specific lines: BNDES,
FINAME and financial leasing
1
2
Pricing and
signing of
contract
Financing
and
acquisition
of assets
Concessionárias
 Strengthen relationships
with automakers, putting
JSL in an even better
position than its
competitors
 Savings in the capex of
vehicles and trucks, by
purchasing assets through
its own dealers network
Expected
Return
Resale of
asset at the
end of the
contract
4
• Used vehicle stores
- 12 stores in 7 states
• Improvement of the buying
and selling process =>
Lower depreciation
B
Rendering of
Services
3
• Diversification of clients
and sectors
• Cross selling opportunities
Broadest Service Portfolio
 Increase in asset sales
chain (+30 stores in 4
states), avoiding channels
bottleneck and enabling
the increase of asset
turnover
“Understand to Serve”
C
Maximization of the sale value
B
• Structure of contracts
- Long term contract with
minimum volume
guaranteed
A
Strong Bargaining Power
A
• Capex pegged to contracts =>
Security in cash generation
• Pricing
Concessionárias
Concessionárias
 Establishment of strong
relationship with thirdparty truck drivers, taking
advantage of the value of
this business
13
SIMPAR Concessionárias
3
JSL and SIMPAR Concessionárias:
independent but complementary businesses
Auto Manufacturers
Dealerships
End Consumer
• Skilled labor
• Sales channel
expansion
• Avoiding
bottlenecks
•Operational
flexibility
Acquisition
scale
=
Best price
Individuals
Reseller
Truck drivers and small
transport companies
F&I and after sales
services
Strengthening of
relationships with
independent contractors and
third parties
Used-vehicle sales
Acquisition
Better Price
Operating synergies
Synergy Commission in
relation to the dealer
JSL
Assets used in
Operations
Flexibility
More intelligent fleet turnover
Improved competitiveness
One of the major Logistic
Service Provider active
in the automotive
industry
Rendering of
Services
14
6
4PL Operation
Uniquely positioned for these opportunities
JSL will be the logistics manager (4PL*) for Marfrig, one of the world’s largest food
companies, with global net revenue of R$ 21.4 billion in the alst 12 months.
Revenue from Brazilian operations totaled R$ 13.1 billion
10-year agreement
Pioneering operation in Brazil
Development of a new market through creation of new opportunities
* Fourth-party logistics provider
15
4
3Q11 Operating Highlights – JSL
(R$ million)
With the effects of CPC06¹
2,529
Net Revenue of R$ 616.9 million in 3Q11 and
R$ 1.7 billion in 9M11
Total Gross Revenue
(Services + Sale of Assets)
2.529
4
1,896
1.896
4
1.627
1,627
142
- 4.3%
717
717
686
686
142
4
575
682
3Q10
3T10
3Q11
3T11
1,485
1485
9M10
9M10
1,892
1892
9M11
9M11
CPC06
Without the effects of CPC06¹
Pro-Forma Gross Revenue
(Services + Sale of Assets)
LTM
12 meses
12
meses
2,525
1,892
1,485
2.525
1954
355
84
491
3Q10
3T10
2,170
1,642
3T11
Services
-
Revenue: Growth of around 20% (versus initial
expectations of 25%)
-
Traditional EBITDA: maintained guidance of
approximately R$ 410 million
1,350
600
3Q11
Usual Resale of Assets: Total of R$ 77.3 million in
3Q11, 41.8% up on 3Q10
2011 Guidance Revision:
682
82
Priorization of contracts that guarantee minimum
returns
250
135
575
Business resilience due to the structure of contracts
and diversification in more than 15 sectors
9M10
9M10
9M11
9M11
Sale of Assets
LTM
1212
meses
M
¹ In 3Q10, the Company recorded at once R$ 141.8 million under gross revenue from Sale of Assets
related to the sum of the present value of revenue from certain machinery and equipment rental
contracts, with a 60 month term, pursuant to CPC06, due to the characteristics of these contracts. In
3Q11, these operations resulted in the recognition of R$ 4.0 million under revenue from the Sale of
Assets.
16
4
Breakdown of Gross Revenue from Services – JSL
By Business Line
13.5%
10.4%
By Economic Sector
1.7%
13.3%
1.9%
10.7%
+ 7.8 p.p
54.9%
20.2%
55%
12.6%
20%
2.0%
2%
+4.4 p.p.
+4.4 p.p.
10.3%
10%
13%
24.6%
25%
10%
49.8%
2%
13%
23.7%
24%
11%
2%
50.4%
10%
39% 47%
7%
50%
50%
6%
8%
15%
3T11
3Q10
3Q11
12 meses
12LTM
months
12%
12%
14%
Dedicated Services
General Cargo
6%
3%
4%
3%
10%
14%
13%
3T10
3Q103Q10
4%
1%
4%
4%
Management and Outsourcing
Passenger Transportation
20%
Others
3Q10
3Q10
11%
6%
2%
4%
3%
8%
7%
13%
11%
16%
15%
18%
3Q11
42%
11%
15%
3Q11
¹
LTM
LTM
Over 74% from Dedicated Services and Management
Increase in the share of the following sectors: Steel
and Outsourcing
and Mining, Electric Energy, Agriculture and Capital
Goods
Focus on Logistics Services with higher added value
Higher revenue diversification
¹Food and Beverages, Capital Goods, Laboratorial and Pharmaceutical and others,
17
Financial Results – JSL
(R$ million)
With
With the
the effects
effects of
of CPC06
CPC06
EBITDA-A
522
521
2.5
2,5
1,4
69,5
69
113
134
195
195
2.5
2,4
69
79
80
1,4
1.4
67
1,4
1.4
67
393
3Q11
3T11
9M10
9M10
191
9M11
9M11
12LTM
meses
CPC06CPC06
Cost
ofdo
Sale
Assets
Custo
ativoof
vendido
EBITDA
EBITDA
392
269
96
111
44
77
67
114
3Q10
3T10
3Q11
3T11
13.0%
116
3Q10
3T10
217
303
113
240
274
277
219
165
666
518
405
247
Without the effects of CPC06
670
2.5
2,4
EBITDA-A
4
EBITDA
301
173
18.6%
13.1%
9M10
9M10
17.3%
17.7%
9M11
9M11
Cost of Sale of Assets
LTM
12M
LTM
EBITDA Margin
Higher EBITDA from Services:
-
Increase of 4.4 p.p. in the share of Management and
Outsourcing in the business mix
-
Focus on contracts with minimum expected returns
-
Reduction of the average fleet age => lower
maintenance costs
-
Non-recurring costs and expenses of R$ 16.5 million
in 3Q10 and R$ 12.6 million in 3Q11 => the margin
from Services would be 15.7% in 3Q10 and 23.6% in
3Q11 without this impacts
EBITDA from services
396
305
158
113
21.0%
20.6%
9M11
12M
LTM
13.3%
52
21.3%
11.9%
3T10
3Q10
3T11
3Q11
9M10
9M10
Margem
EBITDA
defrom
Serviços
EBITDA
Margin
Services
Venda de Ativos
Net Income of R$ 17.5 million in 3Q11 and R$ 41.9
million in 9M11
18
4
Indebtedness – JSL
(R$ million)
Net Debt Breakdown
Average Cost
11.9% p.a.
Amortization Schedule
Average Cost
11.8% p.a.
457.9
457.9
605.8
605,8
Corporate
Other Loans
Loans
377.1
9.3
1,497.2
380.4
406.8
350.7
40.4
200.5
1,102.4
TJLP/PRE
1,349.2
190,9
74%
367.9
99.4
90%
Operating Loans
(Acquisition of Assets)
Cash and Financial
Investments
340.0
7.2
394.8
CDI Exposure
Total Gross Debt
Caixa
Cash
Net Debt
Curto
Prazo
Short-term*
2012
(Oct – Dec)
2013
Loan and Financing
3Q10
4Q10
1Q11
2Q11
3Q11
Net Debt ¹/ EBITDA-A²
1.9x
1.9x
2.0x
2.0x
2.2x
Net Debt ¹/EBITDA²
3.3x
3.2x
3.5x
3.4x
3.8x
EBITDA-A²/ Net Interest²
5.7x
5.8x
6.3x
6.3x
5.0x
EBITDA²/ Net Interest²
3.4x
3.4x
3.7x
3.6x
2.9x
Fixed Assets³/ Net Debt¹
1.7x
1.7x
1.6x
1.5x
1.5x
Cash and applications¹/
Gross Debt CP¹
0.9x
1.3x
1.2x
1.3x
1.2x
¹End of period
²Last 12 months
225.1
129.4
206.3
2014
115.7
28.2
159.7
92.1
26%
Data Base: 09/30/2011
Leverage Indicators
Long-term
Short-term
1,955.1
2015
95.7
87.5
2016
2017
2017
em
diante
onwards
Corporate Debt
*Short-term: debt falling due in the next 12 months
Evolution of Short-Term to Long-Term
Gross Debt Ratio
30.0%
24.0%
70.0%
76.0%
09/30/10
12/31/10
Long-term
19.9%
18.4%
19.3%
80.1%
81.6%
80.7%
03/31/11
06/30/11
09/30/11
Short-term
³Fixed assets + Receivables and Inventories “installment sales” (Sale of Assets with Management/CPC 06) + Used Vehicles
EBITDA-A or EBITDA Added (“EBITDA-A”) represents EBITDA plus the residual accounting cost of sales of fixed assets, which is non-cash, since it represents merely an accounting entry at the time of demobilization of the assets. Thus,
the Company's management believes that EBITDA-A is a better measure of cash generation than traditional EBITDA, so as to measure the Company’s capacity to meet its financial obligations.
19
3
Investments – JSL
(R$ million)
Capex Breakdown
Capex
700
180
710
173
568
227
710
- Addenda to current
contracts
- New contracts with larger
share of Management and
Outsourcing in the annual
revenue mix
710
By Nature
890
20%
27%
80%
73%
Renewal
Expansion
527
45
201
182
3Q11R
9M11R
Expansão
Expansion
2011E
2011E
2011E
2011E
Previous
Current
Renovação
Renewal Estimado
Estimated
Investments directly pegged to already contracted projects 
Confidence in future cash generation
By business
3Q10R
3T11R
2%
4%
1%
3%
19%
22%
Dedicated
Services
16%
31%
Passenger
Transportation
55%
47%
General Cargo
Gross Revenue from Resale of Assets
Others
250
230
105
Trucks
5%
By Category
217
21%
21%
6%
14%
34%
43%
32%
14%
Buses
Others
55
3Q11R
3T11R
Machinery and
Equipment
Light
Vehicles
10%
77
3Q10R
3T10R
Management and
Outsourcing
9M10R
9M10R
9M10R
9M11R
2011E
2011E
Anterior
Previous
2011E
2011E
Atual
Current
3Q11
LTM
20
Closing Remarks:
JSL: Unique Platform of Logistics Services in Brazil
Leader in logistics in Brazil and with the broadest portfolio of services
55 years of operations in over 15 sectors of the economy, with a history of strong customer loyalty
Largest buyer of heavy vehicles in the country, with a differentiated scale also in resale of
assets, specialized manpower and cost of financing
Ranking – Largest Cargo Transportation Companies by Net Revenues (R$ million)
1º
Consolidation of JSL‟s leadership in the domestic market and
entrance in the food and beverage and controlled temperature
products markets
1º
921
+
2º
772
3º
769
4º
617
5º
429
395
386
313
308
6º
7º
8º
Schio
10º
Source: Ranking Maiores e Melhores 2011 (Transporte Moderno Magazine, 2011)
21
Disclaimer
The forward-looking statements and information contained herein are subject to risks and uncertainties. Such statements and
information are based on beliefs and assumptions of our management and information to which the company currently has
access.
Forward-looking statements and information are not a guarantee of results. Since they refer to future events, they involve risks,
uncertainties, and assumptions and therefore depend on circumstances that may or may not occur. Our financial situation,
operating results, strategies, market share and values may have significant differences in the future compared with those
expressed or suggested in such statements and information. Many of the factors that will determine these results and values are
beyond our ability to control or predict.
The reservations concerning forward-looking statements and information also include information on possible or presumed
operating results, as well as statements that are preceded or followed by or that include the words “believe,” “may,” “will,”
“continue,” “expect,” “project,” “anticipate,” “intend,” “plan,” “estimate,” or similar terms.
JSL S.A.
Investor Relations
Phone: + 55-11-4795-7178
e-mail: [email protected]
www.jsl.com.br/ri
22
Appendix
Dedicated Logistics Services: Cross-selling started
with Passenger Transportation
Example: Automotive
Internal handling and
assembly of kits
Auto parts.
Milk run.
Transportation
of employees
Fleet management
and outsourcing
Shipping.
Outbound
Delivery of raw
materials.
Inbound
Inventory
maintenance and
management
Invoicing
Electronic
registration of
inventory
24
Dedicated Logistics Services: Development and
Implementation of Projects
Example: Pulp and Paper
1 Wood
5 Shipment
3 Delivery of
harvesting
and loading
Industrial landfill
raw material
Inbound
Outbound
Transportation
of waste
Transportation
of wood
Rental of
vehicles
4 Inventory
management
Transportation of
finished goods
Internal logistics
6
Dredging
Movement of inventory
and loading of ships and
barges
25
Management and Outsourcing of fleets with service
Example: Laboratory
2. Transportation
of biological
materials
to hospitals, clinics
and laboratories
3. Residential pick-up
of medical exams
with car and driver
1.Transportation
of materials
from warehouse to
laboratory
4. Rental
of vehicles
for sales
force
5.Transportation
of client’s
operational
equipment
Tracking of
the fleet via
satellite
26
Dedicated Services, Management and Outsourcing
and Passenger Transportation
Example: Mining Sector
Loading of ore
Passenger
Transportation
Rental of vehicle with
driver at the client’s
disposal
Highway
maintenance
Transportatio
n center
Transport of ore
Waste
management
24-hour monitoring
via satellite and
telemetry
Unloading of ore


Assets Involved:
Light Vehicles – 400
Buses – 180
Machinery – 20
Trucks – 50
Employees: 1,100
27
Intermodal Logistics Center
Railroad
connecting
Santos, SP, RJ
and BH.
Warehouse for consumer
goods: will be built upon
demand and will focus on
urban distribution.
Industrial Warehouse
Focus on steel,
automobiles, and
pulp and paper.
Consolidation of
cargo and
assembling of kits
28