Log In Logística Intermodal S A : 3Q20 Earnings Release - english version

RESULTS

3Q20/9M20

	3Q20 / 9M20
Index
Highlights ...........................................................................................................................................	2
Financial and Operational Summary..................................................................................................	3
Consolidated Result ...........................................................................................................................	3
Net Operating Revenue .....................................................................................................................	4
Cost of Services Provided (CSP) .........................................................................................................	4
Operating Expenses ...........................................................................................................................	5
AFRMM (Additional to Freight for Renewal of the Merchant Navy);................................................	5
EBITDA................................................................................................................................................	6
Financial Result ..................................................................................................................................	7
Profit (Loss) for the Period.................................................................................................................	8
Coastal Shipping.................................................................................................................................	9
Vila Velha Terminal (TVV) ................................................................................................................	15
Intermodal Terminals.......................................................................................................................	18
Investments (CAPEX)........................................................................................................................	18
Debt..................................................................................................................................................	18
Subsequent Events...........................................................................................................................	20

Highlights

• Record results in 3Q20 and 9M20:
• • Adjusted EBITDA record of R$83.9 million in 3Q20 (19.9% higher than 3Q19) and R$204.8 million in 9M20 (9.3% higher than 9M19);
  • Adjusted EBITDA Margin of 28.1% in 3Q20, an increase of 2.9 p.p., mainly due to the high efficiency in the operation of the vessels, due to the increase in revenue and optimization of the costs and expenses in view of the pandemic scenario;
  • Coastal Shipping Adjusted EBITDA record of R$ 76.9 million in 3Q20 (37,6% above the 3Q19) and of R$ 179.3 million in 9M20 (14,9% higher than Adjusted EBITDA in 9M19);
  • TVV EBITDA record of R$ 67.2 million in 9M20 (7.3% above the 9M19).
• Log-Inreached the Net Profit of R$ 9.1 million in 3Q20 (R$ 26.3 million higher than the 3Q19 result).
• Coastal Shipping NOR record of R$ 241.2 million in 3Q20, 10.0% higher than 3Q19.
• On July 16, 2020, Fitch Ratings attributed to Log-In, for the first time, the national long-term rating 'BBB+ (bra)', with stable perspective.
• On September 22, 2020, TVV entered into an amendment to the port lease agreement, for additional effective term of 25 years, through September 2048.

Marcio Arany da Cruz Martins	Contato RI
Chief Executive Officer	Sandra Calcado
	Fábio Ornellas
Pascoal Cunha Gomes	[phone] - [e-mail]
Chief Financial and Investor Relations Officer	www.loginlogistica.com.br/ri

Results Presentation

Wednesday, November 11, 2020 - 11:00 am (Brasília Time) - Portuguese (simultaneous translation in English)

The conference will be performed in the Zoom webinar at https://us02web.zoom.us/j/83985638065 (Zoom ID: 839 8563 8065)

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3Q20 / 9M20

Financial and Operational Summary

*Fleet capacity in operation at the end of the reporting period.

Consolidated Result

3

3Q20 / 9M20

Net Operating Revenue

Net Operating Revenue (NOR) (R$ million)

3Q20 x 3Q19

Growth of 7.3% in NOR, due to the increase in Coastal Shipping (Container) revenue, +R$26.7 million, resulting from the following factors:

• Higher volume transported by vessels in Cabotage (+5,5%) and Mercosur (28,2%); and
• Positive impact of the depreciation of the Brazilian real against the revenues denominated in US dollars in the Feeder and Mercosur segments, which increased by 31.5% and 41.4%, respectively.

9M20 x 9M19

Growth of 2.2% in NOR, due to the increase in Coastal Shipping (Container) revenue, +R$44.2 million, resulting from the following factors:

• Higher volume transported by vessels in Cabotage (+2.0%); and
• Positive impact of the depreciation of the Brazilian real against the revenues denominated in US dollars in the Feeder and Mercosur segments, which increased by 27.2% and 13.7%, respectively.

Despite of the restrictions imposed by the pandemic in the 2Q20, the growth recorded resulted from the successful commercial strategy adopted by the Company, which captured cargo from sectors that were less impacted in the period. Beginning the 3Q20, in view of the more flexible measures that had limited the commercial activities, these sectors resumed the transportation of the products with the Company.

Cost of Services Provided (CSP)

3Q20 x 3Q19

The CSP increase of 8.4% resulted mainly from the following factors:

• Increase in running costs, due to the start of Log-In Polaris, on December 2, 2019, and Log-In Endurance, on May 1, 2020, own vessels operation against the reduction of the charter cost, as such vessels replaced those operated under the charter agreement;

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