Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Q3 2012 Earnings Presentation
68 slides from Royal Vopak Nv's earnings presentation, 2012
Slide 1: Roadshow presentation Q3 2012 Trading update
Roadshow presentation Q3 2012 Trading update
Slide 2: 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 31 countries in which Vopak provides logistics services, the company cannot guarantee the accur
Slide 3: Contents
Contents General Introduction Strategy update Business environment Growth projects Business performance Capital disciplined growth Outlook 3 Roadshow presentation Q3 2012
Slide 4: Vopak and storage since 1616
Vopak and storage since 1616 Almost four centuries of history Porter early 1600 Discharge of oil barrels at Charlois site Rotterdam 1900 First barrels of oil in Rotterdam 1862 4 Roadshow presentation Q3 2012
Slide 5: 84 Terminals in 31 countries
84 Terminals in 31 countries And a number of terminals under construction. 5 Roadshow presentation Q3 2012
Slide 6: Key figures and some of our customers
Key figures and some of our customers Employees 5,901 (incl. JVs) Terminals 84 Countries 31 Capacity** 29.9 Million cbm Net Revenues ‘11 € 1,172 Million EBIT* ‘11 € 469 Million Market capitalization** € 6.6 Billion * Excluding exceptional items. ** 30 September 2012. 6 Roadshow presentation Q3 2012
Slide 7: Tank terminal: key role in oil and chemical supply chain
Tank terminal Key role in oil and chemical supply chain Customers Products Oil, Gas and Oil (derivatives) LNG Chemicals companies Chemicals LPG Governments Vegetable oils Chemical Trading companies Biofuels gases Services Supply and transport Storage Vessels Blending Barges Break bulk Pipelines Make
Slide 8: Vopak's role in the supply chain
Vopak’s role in the supply chain Feedstock Feedstock Production & Products Independent Mid-Stream Production Gathering Refining Transmission Storage & & End-user Transshipment Distribution Oil, Gas and Chemical supply chain 8 Roadshow presentation Q3 2012
Slide 9: Strategic logistic functions of tank terminals
Strategic logistic functions of tank terminals Vital link for incoming and outgoing Storage of products that are Complete integration with the flows of oil and chemicals exported or transferred to end users production process Example Example Example Rotterdam Europoort Vopak Terminal London Sakra Te
Slide 10: Logistics hub terminal
Logistics hub terminal Example fuel oil Where large flows of products merge - logistics crossroad Houston, Rotterdam/Antwerp, Singapore and Fujairah 10 Roadshow presentation Q3 2012
Slide 11: Import/Export terminal
Import/Export terminal Break or make bulk Local distribution 11 Roadshow presentation Q3 2012
Slide 12: Industrial terminal
Industrial terminal Storage facilities integrated at chemical park Exxon Mobil Perstorp Sumitomo Chemical Mitsui Chemicals Air Products Chevron Asahi Kasei Chemicals SembCorp Utilities Celanese Kuraray Dupont Vopak Terminals Singapore - Sakra Terminal 12 Roadshow presentation Q3 2012
Slide 13: Global mega trends drive Vopak's markets
Global mega trends drive Vopak’s markets Population GDP growth in Increasing Increasing need growth, mainly non-OECD (sustainable) transport and non-OECD energy need mobility 13 Roadshow presentation Q3 2012
Slide 14: Non-OECD economies drive energy consumption growth
Non-OECD economies drive energy consumption growth, fossil fuels will remain the dominant energy provider until 2035 World primary energy demand by region World primary energy demand by fuel in in IEA New Policies Scenario IEA New Policies Scenario In Mtoe In Mtoe OECD China Rest of world Source: IE
Slide 15: Strengthening Vopak's competitive position in worldwide challenges
Strengthening Vopak’s competitive position in a period of worldwide challenges Financial turmoil and Socio-economic unrests Geopolitical challenges economic uncertainties (e.g. ‘Arab-spring’) 15 Roadshow presentation Q3 2012
Slide 16: Contents
Contents General Introduction Strategy update Business environment Growth projects Business performance Capital disciplined growth Outlook 16 Roadshow presentation Q3 2012
Slide 17: Focused strategy and disciplined execution
Focused strategy and disciplined execution A B C Growth Leadership Operational Excellence Customer Leadership Our ability to find or Our ability to construct, Our ability to create identify the right location operate and maintain a relationship for our terminals our terminals to with our customers d
Slide 18: Sustainability themes within Vopak
Sustainability themes within Vopak Excellent People Health and Safety Environmental Care Responsible Partner Have the best Provide a healthy Be energy and Be a responsible people and create and safe workplace water efficient and partner for our an agile and for our employees reduce emissions stakeho
Slide 19: Personal and process safety
Personal and process safety The lost time injury rate (LTIR) Total Injury Rate Total injuries leading to lost time per million hours worked Total injuries per million hours worked by own employees by own employees and contractors -11% -50% 3.7 2.8 2.5 1.8 1.2 0.6 HY1 2010 HY1 2011 HY1 2012 HY1 2010
Slide 20: Various projects completed in HY2 2011
A Various projects completed in HY2 2011 Storage capacity increased by 2.3 million cbm A’dam Westpoort 1 (100%) Kandla (100%) 620,000 cbm; oil products 261,600 cbm; chemicals Altamira Gate terminal (45%) Altamira LNG terminal (60%) 540,000 cbm; LNG 300,000 cbm; LNG Commissioned Commissioned (Joint V
Slide 21: Projects commissioned YTD 2012
A Projects commissioned YTD 2012 Tianjin Lingang (50%) Storage capacity increased by 2.1 million cbm 95,300 cbm; chemicals A’dam Westpoort 2 (100%) Gothenburg (100%) 582,000 cbm; oil products 60,000 cbm; oil products Eemshaven (50%) 660,000 cbm; oil products Fujairah (33.3%) Zhangjiagang (100%) Comm
Slide 22: Efficiency
B Strengthening competitive position of services to our customers Safety Efficiency 22 Roadshow presentation Q3 2012
Slide 23: Serving markets from a product perspective
C Serving markets from a product perspective Product strategy Understand basic technology Understand imbalances Understand trade flow dynamics Winning clients and ports Account Management Portfolio of Terminals Customer segmentation Port attractiveness Access to the right people Relevance for networ
Slide 24: Contents
Contents General Introduction Strategy update Business environment Growth projects Business performance Capital disciplined growth Outlook 24 Roadshow presentation Q3 2012
Slide 25: Global product trends drive Vopak's markets
Global product trends drive Vopak’s markets Example of growth project Oil products LNG Chemical products Biofuels & Vegoils Global crude oil A globalizing natural Increasing demand Flows between US- trade business gas market with new in Asia and lower Brazil-Europe-Asia Europe’s gasoline business mo
Slide 26: 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 (So
Slide 27: Market share according to the definition
Market share according to the definition Storage market (cbm) Oil Chemicals* Total World Market 226 mln 57 mln 283 mln cbm Primary Competition 146 mln 49 mln 195 mln cbm Secondary Competition 80 mln 8 mln 88 mln cbm Vopak 16.8 mln 11.6 mln 28.4 mln cbm Vopak Market Share As % of total market 7% 20%
Slide 28: Demand growth in storage market to support international trade flows
Demand growth in storage market to support international trade flows Additional Worldwide Storage Capacity* Total World Market, incl. Vopak 32.4 mln cbm Growth % 11.4 % Vopak 5.3 mln cbm** Growth as % of Vopak capacity 18.7%*** * Based on disclosed projects per July 2012. ** Including the acquisitio
Slide 29: Vopak: the global market leader
Vopak: the global market leader Storage capacity as per July 2012 In mln cbm Vopak Oiltanking Kinder Morgan NuStar Magellan Buckeye CLH Vitol IMTT Horizon Sunoco CIM SUMED Odfjell Dalian Port 0 5 10 15 20 25 30 Note: Including inland capacity and Joint Ventures. Source: Vopak; company websites. 29 R
Slide 30: Contents
Contents General Introduction Strategy update Business environment Growth projects Business performance Capital disciplined growth Outlook 30 Roadshow presentation Q3 2012
Slide 31: Capacity growth under construction
Capacity growth under construction Capacity developments In mln cbm +4.7** 34.6 0,5 3.2 +2.1 29.9 1.0 0.8 0,1 27.8 1.2 31-12- Expansions* New Acquisition 30-09- Expansions New Acquisition 31-12- 2011 terminals 2012 terminals 2014 * Including net change at various terminals (including decommissioning
Slide 32: Various projects under construction
Under construction Various projects under construction Under construction (Joint Venture) Total storage capacity under construction 4.7 million cbm Acquired (Joint Venture) Thames Oil Port (33.3%) Hainan (49%) 500,000 cbm; oil products 1,350,000 cbm; oil products Algeciras (80%) Europoort (100%) Pen
Slide 33: Storage capacity under construction (1)
Storage capacity under construction (1) Location Ownership Product cbm 2010 2011 2012 2013 2014 China, Coajing 50% C 16,000 Spain, Algeciras 80% O 403,000 Netherlands, 100% C 20,000 Rotterdam Singapore, 69.5% C 100,200 Banyan UK, assets former 33.3% O 500,000 Coryton refinery* China, Tianjin 50% LPG
Slide 34: Storage capacity under construction (2)
Storage capacity under construction (2) Location Ownership Product cbm 2010 2011 2012 2013 2014 Brazil, Aratu 100% C 15,300 Netherlands, 100% V/B 140,000 Vlaardingen China, 50% C 153,000 Dongguan Spain, Barcelona 50% C 18,800 Terquimsa China, Hainan 49% O 1,350,000 Malaysia, 44% O 1,284,000 Pengeran
Slide 35: Contents
Contents General Introduction Strategy update Business environment Growth projects Business performance Capital disciplined growth Outlook 35 Roadshow presentation Q3 2012
Slide 36: Financial performance is fuelled by different value drivers
Financial performance is fuelled by different value drivers Present Present/ Past Near Past Future 2003-06 2007-09 2010-2011 2012 > Occupancy improvements Playing field between 90 - 95% Operational efficiency gains Capacity expansion 36 Roadshow presentation Q3 2012
Slide 37: Healthy occupancy rates between 90-95%
Healthy occupancy rates between 90-95% Occupancy rate In percent 90-95% 96 96 95 94 95 95 95 92 94 93 93 93 93 92 92 92 93 93 94 93 90 91 84 ’04 ’05 ’06 ’07 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 2011 2012 37 Roadshow presentation Q3 2012
Slide 38: Vopak is well positioned to maintain healthy EBIT(DA) margins
Vopak is well positioned to maintain healthy EBIT(DA) margins EBIT(DA) Margin* In percent 50 EBITDA Margin 40 30 EBIT Margin 20 10 0 2004 2005 2006 2007 2008 2009 2010 2011 HY1 2012 2012 Focus on logistic efficiency improvements for our clients has led to increased EBIT(DA) margins * Excluding excep
Slide 39: Development of storage capacity
Development of storage capacity Subsidiaries Storage capacity Joint Ventures In mln cbm +6.8 +6.0 34.6 29.9 31.3 28.3 28.8 27.8 27.1 13.1 9.6 10.3 21.8 10.2 10.5 8.1 9.6 5.1 18.3 19.7 20.3 21.0 21.5 16.7 17.5 18.1 2007 2008 2009 2010 2011 2012 2013 2014 * Including the acquisition of the assets of t
Slide 40: Contract duration portfolio did not change significantly since 2008
Contract duration portfolio did not change significantly since 2008 Contract position 2008 Contract position 2011 In percent of revenues In percent of revenues < 1 year < 1 year 20% 19% > 3 year 39% > 3 year 44% 37% 41% 1-3 year 1-3 year 40 Roadshow presentation Q3 2012
Slide 41: Q3 2012 Summary
Q3 2012 Summary EBIT* EBITDA* In million EUR In million EUR 195.1 163.5 121.3 144.0 +19% +19% Q3 2011 Q3 2012 Q3 2011 Q3 2012 Occupancy rate Storage capacity In percent In mln cbm 93.0 91.0 27.2 29.9 -2pp +10% Q3 2011 Q3 2012 Q3 2011 Q3 2012 * Including net result from Joint Ventures; excluding exce
Slide 42: EBIT(DA) and net result of Joint Venture developments
EBIT(DA) and net result of Joint Venture developments +19% +25% EBIT* 423.9 121.3 144.0 339.2 +19% +25% EBITDA* 458.8 572.8 163.5 195.1 +24% Result +7% JVs 24.7 26.4 66.9 83.0 Q3 2011 Q3 2012 YTD 2011 YTD 2012 * Including net result from Joint Ventures. Note: in EUR million; excluding exceptional it
Slide 43: Except from EMEA, all regions contribute to the 19% EBIT increase
Except from EMEA, all regions contribute to the 19% EBIT increase North America Netherlands Asia +26% +21% 56.6 50.8 45.0 EBIT 41.9 +6% +19% 8.0 8.5 144.0 121.3 Q3 2011 Q3 2012 Q3 2011 Q3 2012 Q3 2011 Q3 2012 Latin America EMEA Global LNG Q3 2011 Q3 2012 -6% +4% 23.9 +100% 22.4 7.0 7.3 5.6 2.8 Q3 20
Slide 44: Strategic alliances support Vopak's growth strategy
Strategic alliances support Vopak’s growth strategy Storage capacity* Subsidiaries Net result from Joint Ventures** In mln cbm Joint Ventures In mln EUR 34.6 29.9 31.3 28.3 28.8 27.8 27.1 13.1 9.6 10.3 21.8 10.2 10.5 8.1 9.6 5.1 24.7 26.4 19.7 20.3 21.0 21.5 +7% 16.7 17.5 18.1 18.3 2007 2008 2009 20
Slide 45: IFRS equity accounting vs proportionate consolidation
IFRS equity accounting Proportionate consolidation* EBITDA EBITDA Subsidiaries and net result from Joint Ventures 226.7 195.1 178.8 +27% 163.5 +19% Q3 2011 Q3 2012 Q3 2011 Q3 2012 EBIT EBIT Subsidiaries and net result from Joint Ventures 159.6 144.0 126.5 +26% 121.3 +19% Q3 2011 Q3 2012 Q3 2011 Q3 2
Slide 46: Net finance costs aligned with expansion program
Net Finance costs aligned with expansion program Net finance costs HY1 2011* Net finance costs HY1 2012 In EUR mln In EUR mln Interest and dividend income 4.8 2.2 Finance costs 48.3 43.5 Net finance costs -43.5 -41.3 Net interest bearing debt Average interest rate In EUR mln In percent 1,793.4 7.0 6
Slide 47: Effective tax rate HY1 2012
Effective tax rate HY1 2012 Tax In EUR mln 45.2 30.3 +49% HY1 2011 HY1 2012 Effective Tax Rate In 2011, EUR 108.5 million of book In percent gain on the sale of our 20% equity 18.9 18.9 stake in BORCO (Bahamas) was 0.0 8.9 exempted for tax purposes 10.0 Excluding exceptional items, the effective tax
Slide 48: Sources and uses of cash in HY1 2012
Sources and uses of cash in HY1 2012 Consolidated Statement of Cash Flows In EUR mln 34.7 20.9 298.1 296.6 1.3 -9.7 19.2 -67.0 210.9 9.9 110.1 Net Cash Gross Net finance Tax paid Invest- Disposals Derivatives Dividend Other FX Net Cash position operating costs paid ments settlement paid in financing
Slide 49: FX translation-effect on EBIT
FX translation-effect on EBIT 2009 2010 2011 HY1 2012 In EUR mln In EUR mln In EUR mln In EUR mln EMEA (1.7) 3.5 (0.6) 0.9 Asia 2.2 17.4 5.4 8.2 North America 1.6 2.6 (1.6) 1.1 Latin America 0.2 3.2 (0.7) 0.1 Non allocated 0.0 (0.8) 0.1 (0.3) Total 2.3 25.9 2.6 10.0 49 Roadshow presentation Q3 2012
Slide 50: Consequences IAS 19 Employee Benefits
Consequences IAS 19 Employee Benefits Effect on comparative figures 2012 as a result of application amendment in 2013 Total effect on equity In EUR mln Actuarial gains and losses 107.4 Removal 10% corridor approach at 1 January 2012 (higher volatility in net pension Income tax 31.1 liability) Actuar
Slide 51: Netherlands
Netherlands - New oil storage capacity on stream in Eemshaven - Lower occupancy rates in crude and gasoil storage EBIT* In EUR million +21% 41,9 46,2 45,9 48,3 50,8 33,5 34,7 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Occupancy rate Storage capacity In percent -6pp In mln cbm 9,5 95 95
Slide 52: EMEA
EMEA - Lower net result joint ventures and lower result in Sweden - Higher throughputs in the UK EBIT* In EUR million -6% 22,4 23,3 23,9 23,3 24,1 28,2 22,4 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Occupancy rate Storage capacity In percent In mln cbm -4pp 9,0 8,4 90 91 91 +7% 89 89 8
Slide 53: Asia
Asia - Strong storage demand for the hub terminals - Currency translation gain of EUR 5.3 million on EBIT EBIT* In EUR million +26% 47.4 46.2 45.0 46.7 53.6 53.6 56.6 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Occupancy rate Storage capacity In percent +2pp In mln cbm 94 95 95 95 95 94
Slide 54: North America
North America - Higher occupancy rates - Relatively higher operating costs EBIT* In EUR million +6% 9.8 8.9 10.6 9.2 8.5 7.1 8.0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Occupancy rate Storage capacity In percent +3pp In mln cbm 96 97 95 96 91 92 93 2.3 2.3 0% Q1 2011 Q2 2011 Q3 2011
Slide 55: Latin America
Latin America - Higher occupancy rates - Ceased operation of the terminal in Ilha Barnabé in Brazil EBIT* In EUR million +4% 7,3 6,4 7,0 7,5 7,4 7,3 5,3 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Occupancy rate Storage capacity In percent +3pp In mln cbm 91 92 90 89 88 85 86 1,1 1,0 -9%
Slide 56: Contents
Contents General Introduction Strategy update Business environment Growth projects Business performance Capital disciplined growth Outlook 56 Roadshow presentation Q3 2012
Slide 57: Capital disciplined growth
Capital disciplined growth Total equity and liabilities In mln EUR 4,240 3,831 3,136 2,634 57% Liabilities 60% 2,133 58% 62% 59% 40% 43% Equity 38% 42% 41% 2007 2008 2009 2010 2011 57 Roadshow presentation Q3 2012
Slide 58: Capital disciplined growth: Total investments
Capital disciplined growth: Total investments Total investments 2006-HY1 2012 Total Investments 2006-2014 In million EUR In million EUR 2,108 800 711 1,514 535 565 ~900-1,100 446 268 297 ~500-700 Other Capex* Expansion ~400 Capex** 2006 2007 2008 2009 2010 2011 HY1 2006-2008 2009- Q4 2012- 2012 HY1
Slide 59: A new US PP Notes Program of USD 1 billion
A new US PP Notes Program of USD 1 billion - Reconfirmation of Vopak’s access to capital markets - 37 Institutional investors, of which 10 new investors - Repay outstanding debt and for other general corporate purposes A senior tranche of ~USD 900 million* Maturities ranging from 10.5 to 14.5 years
Slide 60: Balanced debt repayment schedule
Balanced debt repayment schedule - New US PP will further align the maturity profile of the outstanding debt - Syndicated Revolving Credit Facility provides flexibility in financing Debt repayment schedule* In mln EUR RCF flexibility New US PP 2012 (subordinated) Current US PP Other RCF (will be rep
Slide 61: Capital disciplined growth: Strategic finance
Capital disciplined growth: Strategic finance Net senior debt : EBITDA ratio 5 3.75 4 3 2 2.42 2.54 2.63 2.65 2.55 1 2.20 2.23 1.76 1.61 1.71 0 2003* 2004 2005 2006 2007 2008 2009 2010 2011 Q3 2012 Maximum Ratio under current US PP program Maximum Ratio under other PP programs and syndicated revolvi
Slide 62: 2011 Dividend amounts to EUR 0.80 per ordinary share
2011 Dividend amounts to EUR 0.80 per ordinary share Dividend and EPS 2003-2011** Cash Dividend In EUR 2.08 2.16 1.92 +4% 1.62 1.31 0.98 0.81 0.64 0.63 +14% 0.625 0.70 0.80 0.375 0.475 0.55 0.25 0.25 0.30 2003 2004 2005 2006 2007 2008 2009 2010 2011 Dividend policy: “Barring exceptional circumstance
Slide 63: Contents
Contents General Introduction Strategy update Business environment Growth projects Business performance Capital disciplined growth Outlook 63 Roadshow presentation Q3 2012
Slide 64: Outlook assumptions
Outlook assumptions ~x% Share of EBIT Oil products Chemicals Industrial terminals Biofuels & Vegoils LNG 2011 ~60% ~17.5-20% ~12.5% ~7.5-10% <1% ~60% ~17.5-20% ~10% ~7.5% ~2.5-5% 2012 Robust Mixed Solid Mixed Solid Note: width of the boxes do not represent actual percentages. 64 Roadshow presentatio
Slide 65: Vopak remains on track to achieve its 2013 EBITDA outlook
Vopak remains on track to achieve its 2013 outlook of EUR 725-800 million EBITDA in 2012 Historical results Outlook EBITDA Development and outlook Ambition In EUR mln 1,000 725-800 598,2 636,0 513,4 It is Vopak’s 429,3 ambition to 369,5 314,1 realize an 231,8 262,5 572.8 EBITDA of EUR 1 billion in 2
Slide 66: Ambition to realize an EBITDA of EUR 1 billion in 2016
It is Vopak’s ambition to realize an EBITDA of EUR 1 billion in 2016 The year of 400 years of entrepreneurship
Slide 67: Royal Vopak contact details
Royal Vopak Westerlaan 10 Tel: +31 10 4002911 3016 CK Rotterdam Fax: +31 10 4139829 The Netherlands www.vopak.com
Slide 68: The world of Vopak
The world of Vopak 68 Roadshow presentation Q3 2012