Santos Brasil joined the National Quality Foundation (Fundação Nacional de Qualidade - FNQ), a non-governmental, non-profit organization that provides large companies with tools of excellence. The initiative will enable the Company to access management practices disseminated worldwide for improving its processes. Santos Brasil is the first port sector company to join the organization. The FNQ´s concepts include innovation, quality, transformative leadership, social responsibility, processes, and people valuation. "With this membership, we will take new learning and shared experiences to our employees, which will certainly collaborate to enrich our knowledge, enabling us to achieve real improvement", says Santos Brasil Quality, Safety, Health and Environment (QSSMA) Manager Hemerson Braga. Santos Brasil will also be able to perform benchmarking with global organizations, as well as participate in a studies center that debates issues related to improving Brazilian management.

Santos Brasil´s Sustainable Driver program, which stimulates and guides employees to adopt good safety practices and rational use of resources, directly benefitting the environment, reached an average of 2.57 traveled kilometers per liter of fuel in the first five months of the year. The result is 3.21% better than the same period last year, when 2.49 kilometers per liter were recorded, and 8% more than in 2014, when the average was 2.38 kilometers per liter. In the year to date, 2,635,604 kilometers were traveled with 1,026,537 liters of fuel. Individually, the highest fleet efficiency record was shown by the Local Transport Cell (CTL) in Guarujá, with 2.72 traveled kilometers per liter of fuel in the month - significantly exceeding the 2.01 goal set by the company. This is the best result achieved by the program since it was introduced in 2004. It means more efficiency and less CO 2 released in the air. To Wendell Fernandes, Santos Brasil Road Transportation Executive Manager, the result reflects attention to fleet maintenance and constant investment, in addition to periodical efforts and training for the company´s drivers. "We individually monitor each professional and their performance with specific tools. Within this context, there is also recognition of drivers who achieve good results", he says. The Executive Manager of Corporate Communications and Competitive Intelligence Raquel Ogando highlights the company´s commitment to environmental responsibility. "We have environmental matters that are a priority and that are aligned with the United Nations Sustainable Development (ODS) goals. In the CO 2 emission reduction area, we have an ongoing work with the drivers that involves fuel efficiency, which will lead to less greenhouse gas emissions in the atmosphere", she says.

Seeking to increasingly contribute to its clients´ competitiveness, Santos Brasil is launching a pioneering and innovative project in the Port of Santos that will directly benefit importers. The new service is called "cross-docking", and aims to reduce demurrage costs (a penalty paid by the contracting party when the container remains in its possession longer than the agreed term) for companies that import goods or raw materials from abroad. Depending on the characteristics of the client´s operation, there could be savings of up to 50%. In line with the integrated logistics concept offered by Santos Brasil, the service consists of transferring the goods from the containers used for transporting them overseas to Santos Brasil´s own units, eliminating the possibility of any demurrage fee that could eventually burden the importers´ consignments. After this procedure is completed, the containers are stored in one of the Company´s three terminals in Santos. According to Wagner Toffoli, Santos Brasil´s commercial director for logistics operations, the new service also generates a positive impact on the entire logistics chain, because in addition to reducing costs to the importers, it enables ship owners to gain in optimizing the use of their assets, and adds value to the services provided by the terminal. The service is also a demand from Santos Brasil´s clients, and it began to be designed last year. "It took time for developing the systems, obtaining approval from Customs/ Internal Revenue Service, and other procedures", explains Toffoli. "The company´s fundamental premise for its projects is customs security, and this is a core issue for cross- docking. Everything must be in full compliance with legal procedures", he adds. According to the executive, the Company is focused on continuing to offer its clients the best service and helping them to be more competitive in their markets. "We continue focusing on a full service mix, with greater interconnectivity for clients using the Port of Santos. We have the best expertise in the industry, and we will continue to seek solutions that add value for our clients", stresses Toffoli. At a time of strong competition in the Port of Santos under the shadow of an economic recession scenario, those who have enhanced management with innovation will stand out, says the director of Santos Brasil. "We will also continue to get closer to our clients, individualizing our operations as much as possible, especially in the cargo services we offer. We believe that in this manner we will be able to maintain our leadership and capture a larger share of the growth in the Port", says Toffoli.

The third edition of the Environmental Day, an environmental education program sponsored by Santos Brasil, will begin next Tuesday, June 07. That same day, from 09:00 am, a training workshop for volunteer employees will take place at the Tecon Santos auditorium.

Tecon Santos, the largest and most efficient container terminal in South America, handled 208,953 containers in the period, up 10.4% from the terminal´s handled volume in Q1 2015. The company´s market share in the Port of Santos was 38.4% (5.3 percentage points higher than in the same period last year). The growth in volume at Tecon Santos was provided by two navigation services operating on routes to the west coast of South America and Africa, which started using the terminal in late 2015. Tecon Vila do Conde handled 13,450 containers in Q1 2016, a volume 6.5% higher than the one handled in the terminal in Q1 2015. The volume increase at the terminal came from a service that began operating on the route to Europe in late January. In the same period, Tecon Imbituba showed an 11.7% decrease in volume. Consolidated volume growth recorded in Q1 2016 was mainly from export and transshipment operations. Coasting operations accounted for 24.1% of the containers handled in the period, and transshipment operations accounted for 32.3%. The mix of full-empty containers showed recovery, totaling 75.7% of full containers in Q1 2016, compared to 74.3% in Q1 2015. The company´s consolidated net revenue totaled R$ 197.2 million in the quarter, down 12.6% compared to the net revenue in Q1 2015 adjusted for non-recurring events. During the period, the company recorded a 7.5% decrease in its recurring expenses. EBITDA (earnings before interest, taxes, depreciation and amortization) adjusted for non-recurring items was R$ 17.2 million, with an 8.7% margin. The company closed 2015 with R$ 207.4 million in cash and a net debt of R$ 89.5 million, equivalent to one EBITDA in the last 12 months.

Santos Brasil closed the second quarter of 2016 with a 7.4% growth in operated volume, totaling 245,074 containers handled at its three terminals - Santos (SP), Imbituba (SC) and Vila do Conde (PA). Year-on-year growth through June was 8.4%, mainly driven by the positive performance of operations at Tecon Santos and Tecon Vila do Conde. In the largest and most efficient container terminal in South America, 222,586 containers were handled in Q216, exceeding the terminal´s performance in Q215 by 5.0%. Year-on-year growth in Tecon Santos was 7.6%. The company´s market share in the Port of Santos was 39.1% (4.2 percentage points higher than in the same period last year). This result was partially driven by the volume of two navigation services that operate on routes to the West Coast of South America and Africa, which began mooring in late 2015. Maintaining its upward trend observed since last year, Tecon Vila do Conde handled 16,946 containers in Q216, a volume 65.4% higher than the terminal´s volume in Q215. YoY growth in 2016 is 32.9% in both long-haul and coasting navigation. Both operations showed higher operating performance due to navigation services that began operating on the route to Europe and the Caribbean in late January. In the same period, Tecon Imbituba showed a 6.8% lower volume, due to a decrease in the handling of long-haul containers. On the other hand, the Santa Catarina terminal recorded a 35.5% growth in its coasting navigation operations, which now account for most of the volume handled in Q216. Consolidated volume growth in Q216 was recorded mainly in export and transshipment operations. Coasting navigation operations accounted for 22.3% of the containers handled in the period, and transshipment accounted for 32.6%. The mix of full-empty containers showed recovery, totaling 76.9% of full containers in Q216, compared to 74.1% in Q215. The Company´s consolidated net revenue totaled R$ 202.3 million in the second quarter. During the period, the Company´s recurrent costs and expenses decreased by 0.8% and 3.7% respectively. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for non-recurring items was R$ 15.2 million, with a 7.5% margin. The Company closed Q216 with a R$ 173.3 million cash surplus and a net debt of R$ 90.5 million, equivalent to 0.8x the adjusted EBITDA in the last 12 months.