FAQ

Corporate Governance

1. What is the current corporate structure of Rumo?

To access the Corporate Structure, click here.

2.  How often are Rumo‘s results disclosed?

The company‘s results are disclosed on a quarterly basis.

3. What are interest on own capital and dividends? What is the difference between them?

The dividend is the shareholder‘s part in the company‘s income. Whenever a company has profits, it reserves part of it to distribute to its shareholders. In Brazil, companies shall pay a minimum 25% of income as dividends.

The return generated with dividends may be expressed by the dividend yield of one share and it equals the dividend paid divided by the price of the share. In addition to dividends, the companies also pay interest on own capital, which is another means of distributing income to the company‘s shareholders. The difference is that this payment is treated as expense in the company‘s result, while the dividend is not.

Click here to access the Dividends section.

4. What are stock repurchase programs and how are they implemented?

Stock repurchase programs refer to the Company’s repurchase of its own stock, which may be cancelled or maintained in treasury for subsequent sale. The stock repurchase plan is regulated by CVM instruction 10/1980 and may be authorized by a decision of the Company’s Board of Directors, which must specify the Company’s objective in carrying out the operation, the number of shares to be acquired, the maximum term to carry out the operation (which may not exceed 365 days) and the quantity of shares in circulation. It must also specify the names and addresses of any financial institutions that will act as brokers or intermediaries during the operation. Publicly held companies may not hold in treasury more than 10% of each class of stock in market circulation. This percentage includes existing shares and shares held in treasury by subsidiaries or affiliated companies. Additionally, the price for shares acquired by repurchase can not be higher than market value.

Click here to access our Sharebuyback Program section.

5. What is Brado Logística?

Brado Logística is a company created by ALL in association with Standard Logística and FI-FGTS which is developing the intermodal logistic of containers, focusing on rail transportation, storage, operation of terminals and retro areas of ports, handling and other logistics services.

To access Brado Logística's website, click here.

Concessions

1. How many railway concessions does Rumo have? What are they?

Rumo has 4 railway concessions:

  • North Network (MT and MS States)
  • West Network (MS and SP States)
  • Paulista Network (SP State)
  • South Network (PR, SC and RS States)

Click here to access the Rumo's Rail Platform Map.

2. What concessions does Rumo Holding operate and how long are the terms for each?

Concessions for public rail cargo transport services in Brazil are valid for 30 (thirty) year terms which begin when their respective Concession Contracts are signed and may be renewed for up to an additional 30 (thirty) years, at the exclusive discretion of the ANTT.

With the exception of the concession operated by ALL Malha Norte, whose purpose is to establish a rail transport system that contemplates the construction, operation, exploration and conservation of a railway as set forth in its respective Concession Contract, which has a term of 90 (ninety) years, renewable one time for the same duration.

nETWORK ExtensION concession Maturity
North Network 735 km 2079
Paulista Network 2,039 km 2029
South Network 7,208 km 2027
West Network 1,951 km 2026
Total 11,933 km  

Financial

1. Net Operating Revenue

Represents all services provided during a certain period after taxes, discounts and cancellations.

2. Cost of Services Provided (CSP)

Cost of Services Provided: The cost of purchase of raw materials and services, including direct and indirect labor, maintenance, diesel and other costs.

3. Gross Income

Net revenue net of cost of services provided.

4. Sales, General and Administrative Expenses

These expenses typically include employees‘ salaries related to the company‘s sales and management, advertisement, communication and other.

5. EBITDA

Earnings Before Interests, Taxes, Depreciation and Amortization.

6. Financial Expense / Revenue

This account includes revenues and expenses with interest and fees related to financial transactions.

7. Income Tax and Social Contribution

Reflects expenditure with payment of income tax and social contribution.

8. Net Income / Loss

Also called bottom line, once it is the last line of the statement of income. It represents the remaining income after all the cost and expenses (including taxes) are deduced from the total revenue in a certain period. If the result is positive, we call it income, if it is negative, we call it loss.

9. Assets

Represent the company‘s resources used to generate revenue. Assets may be physical (cash, inventories, properties and equipment) or intangible (goodwill, trademark, patents).

10. Liabilities

Represents the company‘s obligations. Liabilities typically include debt with banks, creditors and suppliers, taxes to the government and other.

11. Shareholders‘ Equity

Represents shareholder‘s investment in the company via capital contribution or reinvested income. Shareholders‘ equity amount equals total assets net of total liabilities.

12. Price / Earning (P/E)

Price of a share divided by earnings per share. This index gives investors na idea of how much they are paying for the capacity to generate the company‘s income. The higher P/E is, the higher the income expectation gets.

13. Net Debt / EBITDA

This index is a measurement of the company‘s financial leverage. It indicates the number of years of cash flow required to pay all the company‘s debts.

14. EBITDA Margin

Ratio between EBITDA and net revenue.

15. Yield

Average price obtained as from the division of revenue by volume transported in RTK.

Operational

1. Which metrics are used by Rumo?

GTK
Tons per gross kilometer (train total weight including locomotive + rail cars + freight multiplied by the transported distance)

RTK
Tons per net kilometer (freight weight multiplied by the transported distance)

KGF
Unit of power equal to 9,807 newton and equal to 2,204 lbf

2. What is gauge?

Regulatory measure; standard; rule: term used on roads to describe the distance between rails, or between wheels on train axis. In Brazil, there are many rail gauges. Rumo Brazil’s network comprises meter gauge (1.000m), broad gauge (1.600m) and mixed gauge (three rails, permitting trains of both gauges). Rumo Argentina uses standard (1.435m) and extra broad, or Indian, gauge (1.676m).

3. What is concession?

Permission to use or explore certain public service, granted by the Government to an individual or company.

4. What are commodities?

Term used to describe primary products or goods with a significant market share in the international market and which are purchased and sold at the commodities exchange, including for future delivery. Example: soybean, corn, wheat, coffee, cotton, sugar (agricultural), or steel (industrial), iron ore and oil.

5. What is refrigerated cargo?

Cargo submitted to cold temperatures for conservation; frozen products.

6. What does intermodality mean?

Integration of more than a transportation modal. It often implies in the full integration of the customer‘s logistics chain.

7. What are dedicated operations?

Customized logistics projects, including from inbound operations to warehouse management and the distribution to end customers.

8. What does take or pay mean?

Contractual clause which sets forth the payment of part of the tariff in case the contract is not performed.

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