Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Q1 2009 Earnings Presentation
78 slides from Royal Vopak NV's earnings presentation, 2009
Slide 1: Roadshow Presentation 2009
_ Roadshow Presentation 2009 Annual results 2008 and Q1 2009 – – –
Slide 2: The world of Vopak
The world of Vopak – – – Roadshow Presentation 2009 2
Slide 3: Agenda
Agenda Introduction Highlights 2008 Vopak: A robust company Business performance Divisions’ performance Outlook – – – Roadshow Presentation 2009 3
Slide 4: Vopak transformation process
Vopak transformation process “Vopak in 5 years has transformed from being a non-focussed slow growth industrial conglomerate into a pure – well focussed – high growth terminal operator. “ Analyst – – – Roadshow Presentation 2009 4
Slide 5: Tank terminal: key role in oil and chemical supply chain
Tank terminal: key role in oil and chemical supply chain Vopak Terminal Europoort – Rotterdam, the Netherlands – – – Roadshow Presentation 2009 5
Slide 6: Strategic position tank terminals
Strategic position tank terminals Outgoing Logistics Downstream Chemicals – – – Roadshow Presentation 2009 6
Slide 7: Logistic hub terminal
Logistic hub terminal Where large flows of products merge – logistics crossroad Houston, Rotterdam / Antwerp, Singapore and Fujairah Example fuel oil – – – Roadshow Presentation 2009 7
Slide 8: Import / Export terminal
Import / Export terminal - Break or make bulk - Local distribution – – – Roadshow Presentation 2009 8
Slide 9: Industrial terminal
Industrial terminal Vopak Singapore – Sakra Terminal – – – Roadshow Presentation 2009 9
Slide 10: Vopak core businesses
Vopak core businesses Existing market Oil Chemicals New products in existing market Biofuels New market LNG – – – Roadshow Presentation 2009 10
Slide 11: Growing demand for Vopak's services by the oil industry
Growing demand for Vopak’s services by the oil industry - Increasing product differentiation - Increasing geographical imbalances - Liberalization of new markets - New giant oil players Annual growth rate = 5,1% Annual growth rate = Annual growth rate = 2,9% 0,5% – – – Roadshow Presentation 2009 11
Slide 12: Growing demand for Vopak's services by the chemicals industry
Growing demand for Vopak’s services by the chemicals industry - Increasing demand for storage - Robust growth in developing markets - Construction of new petrochemical complexes in Asia and Middle East – – – Roadshow Presentation 2009 12
Slide 13: Increased interest in biofuels leading to growing storage demands
Increased interest in biofuels leading to growing storage demands - Interest in biofuels is soaring - Biofuels an answer to energy security and climate change - Increased interest in biofuels from producers due to subsidies and governmental requirements – – – Roadshow Presentation 2009 13
Slide 14: Worldwide LNG demand drives need for independent import terminals
Worldwide LNG demand drives need for independent import terminals – – – Roadshow Presentation 2009 14
Slide 15: Vopak market definition
Vopak market definition Definition Vopak’s competitive environment is defined as non-captive marine tank storage for liquid oil and chemical products. Primary competition Independent competition renting only to third parties Secondary competition Partly using the capacity for storing own products (S
Slide 16: Market share according to the definition
Market share according to the definition Storage market (in cbm) Oil Chemicals Total World Market 176 mln 45 mln 221 mln CBM Primary Competition 110 mln 40 mln 150 mln CBM Secondary Competition 66 mln 5 mln 71 mln CBM Vopak 16.7 mln 10.7 mln 27.4 mln CBM Vopak Market Share: As % of total market 9% 2
Slide 17: Vopak - the global market leader
Vopak - the global market leader In mln CBM Source: company websites, including inland capacity and Joint Ventures Vopak – – – Roadshow Presentation 2009 17
Slide 18: Agenda
Agenda Introduction Highlights 2008 Vopak: A robust company Business performance Divisions’ performance Outlook – – – Roadshow Presentation 2009 18
Slide 19: 2008: Another good year for Vopak
2008: Another good year for Vopak Added 5.3 mio CBM storage capacity Improvements in safety performance TIR Number of injuries per mln hours worked 6.5 6 5.5 5 4.5 4 2007 2008 High occupancy rate Strong business performance EBIT excl. exceptionals In EUR mln 350 325 +17% 94% 96% 95% 92% 300 275 250
Slide 20: Strategic highlight: Company growth
Strategic highlight: Company growth Acquisition: Bahamas Merger: Vopak E.O.S., Tallinn Brownfield: Banyan, Singapore Greenfield: Left Bank, Antwerp – – – Roadshow Presentation 2009 20
Slide 21: Expansions at existing terminals
Expansions at existing terminals Galena Park, USA Barranquilla, Colombia Penjuru, Singapore Product: Chemicals Product: Chemicals Product: Chemicals Capacity: 9,500 cbm Capacity: 6,500 cbm Capacity: 22,000 cbm – – – Roadshow Presentation 2009 21
Slide 22: Acquisitions in 2008
Acquisitions in 2008 Nagoya, Japan Product: Chemicals Capacity: 37,300 CBM Moji, Japan Product: Chemicals Capacity: 46,400 CBM South Wilmington, USA Product: Chemicals Capacity: 49,760 CBM Merak, Indonesia Product: Chemicals Capacity: 76,900 CBM – – – Roadshow Presentation 2009 22
Slide 23: New terminal under construction: Gate terminal
New terminal under construction Gate terminal Launching customers: Division: LNG Start operations: 2H 2011 Capacity: 540,000 cbm Product: LNG – – – Roadshow Presentation 2009 23
Slide 24: The growth of Vopak: Projects in progress
The growth of Vopak: Projects in progress – – – Roadshow Presentation 2009 24
Slide 25: Strategic highlight: Customer excellence
Strategic highlight: Customer excellence Based on a world wide customer survey the service principles campaign was launched to further improve our customer service – – – Roadshow Presentation 2009 25
Slide 26: Strategic highlight: Operational efficiency
Strategic highlight: Operational efficiency Standardization: “The Vopak Way” – – – Roadshow Presentation 2009 26
Slide 27: Strategic highlight: Employee Survey
Strategic highlight: Employee Survey High involvement Job satisfaction Personal development On-the-job coaching Learning networks – – – Roadshow Presentation 2009 27
Slide 28: Accelerated strategy execution
Accelerated strategy execution EXCELLENT EXCELLENT CUSTOMER CUSTOMER MAXIMUM MAXIMUM OPERATIONAL OPERATIONAL SERVICE SERVICE EFFICIENCY EFFICIENCY •• Key Key Account Account Management Management •• Operational Operational Efficiency Efficiency •• Customer Customer Metrics Metrics Improvements Impro
Slide 29: Agenda
Agenda Introduction Highlights 2008 Vopak: A robust company! Business performance Financing Outlook – – – Roadshow Presentation 2009 29
Slide 30: Vopak's challenge
Vopak’s challenge The challenge is to facilitate the current and future product flows: – – – Roadshow Presentation 2009 30
Slide 31: Drivers of structural growth in demand remain
Drivers of structural growth in demand remain Countries setting individual specifications for products Liberalization of previously closed economies Increasing geographical imbalances Growing demand for environmentally friendlier fuels – – – Roadshow Presentation 2009 31
Slide 32: Robust revenue line!
Robust revenue line! Diverse portfolio of stored products Strong regional diversification Latin Oil America CEMEA North America Biofuels (incl. vegoils) Chemicals Asia OEMEA Various contract durations Well spread client base 100% < 1yr 75% Top 10 50% 1yr < > 3yr 29% 25% > 3yr 0% 2007 2008 – – – Road
Slide 33: Various initiatives supporting robustness
Various initiatives supporting robustness EXCELLENT EXCELLENT CUSTOMER CUSTOMER MAXIMUM MAXIMUM OPERATIONAL OPERATIONAL SERVICE SERVICE EFFICIENCY EFFICIENCY •• Key Key Account Account Management Management •• Operational Operational Efficiency Efficiency Improvement Improvement •• Focus Focus on se
Slide 34: "Confidence in the future!"
“Confidence in the future!” – – – Roadshow Presentation 2009 34
Slide 35: Agenda
Agenda Introduction Highlights Vopak: A robust company! Business performance Financing Outlook – – – Roadshow Presentation 2009 35
Slide 36: 2008: Another good year for Vopak
2008: Another good year for Vopak ROBUST ROBUST CUSTOMER CUSTOMER FOCUSED FOCUSED OCCUPANCY OCCUPANCY GROWTH GROWTH 94% 96% 95% 92% 20.4 21.2 21.8 27.1 0.8 0.6 5.3 2005 2006 2007 2005 2006 2007 2008 2008 Storage capacity in mln CBM STABLE STABLE MARGINS MARGINS 50% EBITDA margin* 40% EBIT margin* 30
Slide 37: 2008 EBIT excl. exceptional items up 17% to EUR 320.4 mln
2008 EBIT excl. exceptional items: up 17% to EUR 320.4 mln Net Revenues EBIT Net Profit EPS in mln EUR in mln EUR in mln EUR in EUR 923.5 320.4 2.62 3.24 853.0 272.9 163.5 202.1 + + + + 8% 17% 24% 24% 2007 2008 2007 2008 2007 2008 2007 2008 – – – Roadshow Presentation 2009 37
Slide 38: Solid 4th Quarter in 2008
Solid 4th Quarter in 2008 80. 8 82. 8 79. 2 77. 6 71. 8 67. 6 68. 6 64. 9 2007 17% 8% 18% 28% 2008 Q1 Q2 Q3 Q4 EBIT in EUR mln, excl. exceptionals – – – Roadshow Presentation 2009 38
Slide 39: Net Profit 2008 increased by 17%
Net Profit 2008 increased by 17% In EUR mln 2007 2008 ∆% Net Revenues 853.0 923.5 8% EBIT 292.2 322.2 10% Finance Income & Expenses -42.9 -37.6 14% Tax -51.2 -54.9 7% Minority Interests -15.2 -16.5 1% Net Profit 181.1 212.0 17% attributable to holders of ordinary shares EPS 2.90 3.40 17% All figures
Slide 40: Pro forma EBIT 2008 vs 2007: increased by 25%
Pro forma EBIT 2008 vs 2007: increased by 25% In EUR mln, excl. exceptionals 63.3 320.4 272.9 - 8.5 - 7.3 EBIT 2007 Divestments Exchange rate Improvement EBIT 2008 – – – Roadshow Presentation 2009 40
Slide 41: Exceptional Items in 2008
Exceptional Items in 2008 In EUR mln Merger Vopak E.O.S. 5.2 Vopak Barging 4.5 Impairments & others -7.9 Exceptional Items 1.8 – – – Roadshow Presentation 2009 41
Slide 42: Net Finance Costs decreased
Net Finance Costs decreased In EUR mln 2007 2008 Interest and dividend income 7.0 8.5 Finance costs -49.9 -46.1 Net finance costs -42.9 -37.6 Mainly attributable to: • Lower variable interest rates • Currency effects • Higher capitalized interest on capacity expansion projects • Measurement of hedgi
Slide 43: Slightly decreased effective tax rate
Slightly decreased effective tax rate following settlement of prior-year tax positions Effective Tax Rate Incl. exceptionals 2007 2008 Tax in EUR mln -51.2 -54.9 Tax in % 20.5 % 19.3 % – – – Roadshow Presentation 2009 43
Slide 44: Pensions
Pensions Vopak defined Pension obligations Impact of Dutch Pension obligations 2008 • Pension fund cover ratio Other per year end around 97% 18% 2009 Cash • One-off contribution of EUR 10 mln • Increased pension contribution Dutch 82% IFRS • Estimated 2009 impact EUR 13.8 mln – – – Roadshow Presenta
Slide 45: Sources and uses of cash
Sources and uses of cash In EUR mln 2007 2008 25.5 Net Cash Flow -133.1 1200 686.1 -660.6 937.9 -1071.0 1000 Dividends 800 Proceeds from interest-bearing Investments 600 Proceeds from Dividends loans interest-bearing 400 loans Investments Divestments Divestments 200 Operations Operations Financing F
Slide 46: Dividend: Increase with 16%
Dividend: Increase with 16% Pay-out ratio of 32% Proposed 2008 dividend amounts to EUR 1.10 per ordinary share Payable in stock unless a shareholder Proposed expressly requests payment in cash dividend +16% 1.10 0.95 0.75 0.60 0.50 2004 2005 2006 2007 2008 – – – Roadshow Presentation 2009 46
Slide 47: Business performance per Division
Vopak Terminal Europoort Vopak Horizon Fujairah Business performance per Division Vopak Houston Vopak Singapore Deer Park Terminal Sebarok Terminal – – – Roadshow Presentation 2009 47
Slide 48: All Divisions contributed to the 17% 2008 EBIT improvement
All Divisions contributed to the 17% 2008 EBIT* improvement *EBIT in EUR mln, excl. exceptionals North America OEMEA Asia 108.1 82.9 95.5 78.8 31.1 34.4 2007 11% 2008 2007 30% 2008 2007 21% 2008 Latin America CEMEA Other 86.1 89.7 2007 8% 2008 21.1 22.0 2007 4% 2008 2007 4% 2008 -27.1 -29.3 – – – Ro
Slide 49: Division: Chemicals EMEA
Division: Chemicals EMEA Solid performance with opportunities for further expansion 23.1 22.8 22.1 22.2 21.7 21.7 21.9 20.3 2007 2008 Storage capacity (x 1,000 CBM) 3,961 3,984 Occupancy rate 96% 96% EBIT (in EUR mln 86.1 89.7 excl. exceptionals) 14% 2% 5% 1% Q1 Q2 Q3 Q4 2007 2008 EBIT in EUR mln, e
Slide 50: Division: Oil EMEA
Division: Oil EMEA Pro-active response to global imbalances 29.1 27.9 26.0 25.1 21.9 21.9 2007 2008 20.1 19.0 Storage capacity (x 1,000 CBM) 9,960 11,067 Occupancy rate 97% 95% EBIT (in EUR mln 82.9 108.1 excl. exceptionals) 19% 15% 39% 52% Q1 Q2 Q3 Q4 2007 2008 EBIT in EUR mln, excl. exceptionals –
Slide 51: Division: Asia
Division: Asia Expanding tank terminal network delivers results 25.0 24.2 23.4 22.9 19.8 19.9 19.9 2007 2008 19.2 Storage capacity (x 1,000 CBM) 4,818 5,819 Occupancy rate 97% 94% EBIT (in EUR mln 78.8 95.5 excl. exceptionals) 22% 17% 22% 25% Q1 Q2 Q3 Q4 2007 2008 EBIT in EUR mln, excl. exceptionals
Slide 52: Division: North America
Division: North America Focus on tank storage improves results 9.3 9.2 8.3 8.4 7.5 7.7 7.9 7.2 2007 2008 Storage capacity (x 1,000 CBM) 2,258 5,315 Occupancy rate 96% 95% EBIT (in EUR mln 31.1 34.4 excl. exceptionals) 4% 12% 9% 16% Q1 Q2 Q3 Q4 2007 2008 EBIT in EUR mln, excl. exceptionals – – – Road
Slide 53: Division: Latin America
Division: Latin America Continuation of robust performance 5.8 5.8 5.3 5.4 5.5 2007 2008 5.1 5.1 5.1 Storage capacity (x 1,000 CBM) 837 882 Occupancy rate 86% 91% EBIT (in EUR mln 21.1 22 excl. exceptionals) 4% 6% 5% 14% Q1 Q2 Q3 Q4 2007 2008 EBIT in EUR mln, excl. exceptionals – – – Roadshow Presen
Slide 54: Business performance Q1 2009
Vopak Terminal Europoort Vopak Horizon Fujairah Business performance Q1 2009 Vopak Houston Vopak Singapore Deer Park Terminal Sebarok Terminal – – – Roadshow Presentation 2009 54
Slide 55: Q1 2009 Highlights
Q1 2009 Highlights EBIT excl. exceptional items up 8% to EUR 85.6 mln (Q1 2008 EUR 79.2 mln) EBITDA excl. exceptional items increased by 10% to EUR 115.6 mln (Q1 2008 EUR 105.5 mln) Increase in Vopak storage capacity by 0.3 mln cbm, total capacity of 27.4 mln cbm Gate terminal: Expansion project fin
Slide 56: Q1 2009 EBIT excl. exceptional items up 8% to EUR 85.6 mln
Q1 2009 EBIT excl. exceptional items up 8% to EUR 85.6 mln In EUR mln Q1 09 Q1 08 ∆ EBIT incl. exceptionals 91.2 79.2 +15% EBIT excl. exceptionals 85.6 79.2 +8% EBITDA 115.6 105.5 +10% Exceptional items Q1 2009 mainly relate to gains on divestments – – – Roadshow Presentation 2009 56
Slide 57: Except for CEMEA, all divisions contribute to the EBIT increase in Q1 2009
Except for CEMEA, all divisions contribute to the EBIT* increase of 8% in Q1 2009 *EBIT in EUR mln, excl. exceptional items North America OEMEA Asia 26.0 31.5 23.4 30.6 7.5 11.4 Q1 08 52% Q1 09 Q1 08 21% Q1 09 Q1 08 31% Q1 09 Latin America CEMEA Other 23.1 17.7 5.3 6.4 -6.1 -12.0 Q1 08 21% Q1 09 Q1
Slide 58: Agenda
Agenda Introduction Highlights 2008 Vopak: A robust company! Business performance Financing Outlook – – – Roadshow Presentation 2009 58
Slide 59: A stable balance sheet
A stable balance sheet Solvency remains stable 60% 50% 40% 30% 20% 2004 2005 2006 2007 2008 – – – Roadshow Presentation 2009 59
Slide 60: Financing sources
Financing sources Effective Access to Financing Sources March 2007 May 2007 July/Aug 2007 July 2008 2007 / 2008 USPP 2001: USPP 2007: RCF: Gate: Various joint Amendment New Notes for EUR 1 bln EUR 745 mln senior ventures project finalized USD 375 mln Option to increase project financing financing to
Slide 61: Overview of US PP terms and RCF
Overview of US PP terms and RCF Total program around EUR 1.5 bln Covenant Term US PP 2001 US PP 2007 RCF Maximum Net Debt / EBITDA 3.75 3.75 3.75 Additional headroom Up to 4.25 > 3.75 When financed with subordinated debt EBITDA / Net Interest > 4.0 > 3.5 > 3.5 Payable Amount EUR EUR EUR 282.1 mln 26
Slide 62: Strategic finance
Strategic finance Net debt : EBITDA ratio 2008 2.54 2007 1.71 2006 1.61 2005 1.76 2004 2.20 2003* 2.42 2002* 2.49 0 0.5 1 1.5 2 2.5 3 3.5 4 Maximum Ratio under US PP Maximum Ratio under other loans and syndicated revolving credit facility * Based on Dutch GAAP – – – Roadshow Presentation 2009 62
Slide 63: Debt: no major debt repayments until 2011
Debt: no major debt repayments untill 2011 Vopak debt repayment schedule In EUR mln 313.2 317.9 180 83.7 50.0 25.3 2009 2010 2011 2012 2013 2014 > 2014 – – – Roadshow Presentation 2009 63
Slide 64: Investments
Vopak Terminal Europoort Vopak Horizon Fujairah Investments Vopak Houston Vopak Singapore Deer Park Terminal Sebarok Terminal – – – Roadshow Presentation 2009 64
Slide 65: Strong demand for storage capacity
Strong demand for storage capacity Occupancy rate 2005 2006 2007 2008 Q1 2009 Q1 2008 92% 94% 96% 96% 95% 95% 95% 96% 95% Capacity (in cbm) 20.4 mln 21.2 mln 21.8 mln 27.1 mln 27.4 mln 22.6 mln – – – Roadshow Presentation 2009 65
Slide 66: Growth continues with 2.2 mln CBM under construction
Growth continues with 2.2 mln CBM under construction at strategic locations YE 2007 storage capacity 21.8 mln CBM Storage capacity increase in 2008 5.3 mln CBM YE 2008 storage capacity 27.1 mln CBM Storage capacity increase in Q1 2009 0.3 mln CBM Q1 2009 storage capacity 27.4 mln CBM Remaining 2008
Slide 67: Total investments
Total investments 800 In EUR mln 446 268 188 146 147 2003* 2004 2005 2006 2007 2008 * Based on Dutch GAAP Remaining Vopak Share Approved & Under Construction Projects EUR 200 mln YE 2008 – – 2011 – Roadshow Presentation 2009 67
Slide 68: Investing in growth
Investing in growth Group companies and joint ventures Around EUR 200 mln Around EUR 1.5 bln Total CAPEX projects 2009-2011 Remaining Vopak share in CAPEX Spent 2009- Approved & Under Construction Projects 2011 Approved & Under Construction Projects Yearly Sustaining Capex +/- EUR 100-125 mln – – –
Slide 69: Expansion projects progressing well
Expansion projects progressing well Vopak Terminal Botlek Vopak Singapore – Banyan 156,000 cbm 398,000 cbm Vopak Terminal Bahamas Vopak Terminal Jakarta 429,000 cbm 250,000 cbm – – – Roadshow Presentation 2009 69
Slide 70: Gate terminal
Gate terminal Gate terminal project: well progressing E.ON Ruhrgas - fourth customer Financing of EUR 881 mln concluded 2007 2008 ? Launching customers: Tanks 3 3 4 Jetties 1 2 2 Throughput 9 bcm 12 bcm 16 bcm Clients 3 4 ? – – – Roadshow Presentation 2009 70
Slide 71: Gate Terminal: Project financing in place
Gate Terminal: Project financing in place July 2008 Gate (9 bcm): EUR 745 mln senior project financing agreement 20 years March 2009 Gate (12 bcm): Additional EUR 136 mln senior project financing agreement 20 years – – – Roadshow Presentation 2009 71
Slide 72: Many projects under construction
Many projects under construction Location Ownership Product CBM 2009 2010 2011 Tallinn 50% O 111,000 Gothenburg 100% O 60,000 Teesside 100% C/B 40,000 San Antonio 100% C 9,200 Houston 100% C/B 4,500 Banyan 69.5% O/C 398,000 Rotterdam 100% C/B 155,980 Vlaardingen 100% B/V 75,000 Ho Chi Minh City 100%
Slide 73: Many projects under construction
Many projects under construction Location Ownership Product CBM 2009 2010 2011 Alemoa 100% O/C 37,200 Savannah 100% O 30,000 Cartagena 100% C 17,750 Jakarta 49% 0 250,000 Penjuru 69.5% C 65,000 Tarragona 50% C 19,200 Zhanjiagang 100% C 75,000 Banyan 69.5% C 19,200 Sydney 100% C 75,000 LNG 40% O 540,
Slide 74: Agenda
Agenda Introduction Highlights 2008 Vopak: A robust company! Business performance Financing Outlook – – – Roadshow Presentation 2009 74
Slide 75: Outlook
Outlook “For 2009, Vopak expects a group operating profit before depreciation and amortization (EBITDA) of at least EUR 450 million, in line with the earlier indicated outlook.” – – – Roadshow Presentation 2009 75
Slide 76: Outlook
Outlook Outlook Guidance 2004 2005 2006 2007 2008 2009 In EUR mln > 450 429.3 369.5 314.1 262.5 EBITDA** 231.8 Q1 115.6 320.4 272.9 220.9 EBIT 179.7 151.0 Long-term Long-termguidance guidanceROCE ROCEofof16% 16% * Excluding exceptional items Bearing Bearingininmind mindsubstantial substantial invest
Slide 77: Forward-looking statement
Forward-looking statement This presentation contains statements of a forward-looking nature, based on currently available plans and forecasts. Given the dynamics of the markets and the environments of the 32 countries in which Vopak renders logistics services, the company cannot guarantee the accura
Slide 78: www.vopak.com
– – – – Roadshow Presentation 2009 78 www.vopak.com