Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Q1 2011 Earnings Presentation
31 slides from Royal Vopak NV's earnings presentation, Apr 27, 2011
Slide 1: Q1 2011 Trading update
_ Q1 2011 Trading update 27 April 2011 – – –
Slide 2: Vopak's Network growth on track
Vopak’s Network growth on track: 25.3 mln cbm storage capacity to grow to 29.8 mln cbm by 2012 – – – Q1 2011 Trading update 27/04/2011 2
Slide 3: Agenda
Agenda Highlights Business performance Growth projects Financing Outlook Details and definitions used in this presentation are derived from the Q1 2011 press release, which is leading. – – – Q1 2011 Trading update 27/04/2011 3
Slide 4: Q1 2011 Summary
Q1 2011 Summary Q1 2011 EBIT of EUR 110 mln, excl. exceptional gains of EUR 128 mln Q1 2011 EBIT excl. exceptional items EUR 109.5 mln (Q1 2010 EUR 109.7 mln) Q1 2011 EBITDA excl. exceptional items EUR 148.1 mln (Q1 2010 EUR 145.4 mln) Further Q1 2011 highlights: - Joint venture (50-50) with NEIF to
Slide 5: Q1 2011 Summary
Q1 2011 Summary Q1 2011 EBIT of EUR 110 mln, excluding exceptional gains of EUR 128 mln In EUR mln Q1 11 Q1 10 ∆ EBIT incl. exceptionals 237.3 109.6 +117% EBIT excl. exceptionals 109.5 109.7 0% EBITDA excl. exceptionals 148.1 145.4 +2% Occupancy rate 92% 93% Storage capacity (in mln cbm) 25.3 28.4 –
Slide 6: Exceptional items Q1 2011
Exceptional items Q1 2011 Mainly related to divestment Vopak Terminal Bahamas Divestment Vopak Terminal Bahamas EUR 111.5 mln Total proceeds of USD 271.4 million: USD 164.6 million cash USD 106.8 million Buckeye units: - 620,861 Buckeye LP (common) units - 1,095,722 Buckeye Class B units After tax p
Slide 7: Divestment Vopak Terminal Bahamas
Divestment Vopak Terminal Bahamas Accounting principles I. II. III. Result Quarterly Book profit / loss at Fair Value at Divestment determination Sale of shares Proceeds of USD 271.4 mln: Fair value adjustment: Fair value adjustment: Cash USD 164.6 mln Q1 2011 effect EUR 0.4 mln Future effect ? Shar
Slide 8: Agenda
Agenda Highlights Business performance Growth projects Financing Outlook – – – Q1 2011 Trading update 27/04/2011 8
Slide 9: Healthy occupancy rates in the 90-95% bandwidth
Healthy occupancy rates in the 90-95% bandwidth Average occupancy decreased to 92% from 93% Q1 2011 Business environment: Improved results generated by new storage capacity on stream last year in China and Singapore (Asia) Better results in joint ventures (OEMEA) Occupancy rates per division: Rail c
Slide 10: EBIT of EUR 109.5 mln mainly driven by Asia's increased contribution
EBIT of EUR 109.5 mln mainly driven by Asia’s increased contribution In EUR mln, - excl. exceptional items - North America OEMEA Asia - 26% - 5% 29% 47.4 37.6 35.8 36.7 13.3 9.8 Q1 10 Q1 11 Q1 10 Q1 11 Q1 10 Q1 11 Latin America CEMEA Other 0% - 21% 25.3 20.1 7.3 7.3 -10.5 -10.9 Q1 10 Q1 11 Q1 10 Q1
Slide 11: Chemicals EMEA
Q1 2011 Q1 2010 Chemicals EMEA Capacity (in mln cbm) Occupancy rate 4.1 88% 4.3 90% FX Effect (in mln EUR) +0.3 Increased customer activity in chemicals Lower demand for storage and handling of biodiesel EBIT in EUR mln, - excl. exceptional items - 25.3 24.6 22.3 20.1 18.4 -21% Vopak Terminal Botlek
Slide 12: Oil EMEA
Q1 2011 Q1 2010 Oil EMEA Capacity (in mln cbm) Occupancy rate 11.0 93% 11.0 95% FX Effect (in mln EUR) +0.3 Intensified maintenance and inspection program Demolition of Waltershof terminal (Germany) Stronger results from joint ventures EBIT in EUR mln, - excl. exceptional items - 42.0 39.7 37.6 35.8
Slide 13: Asia
Q1 2011 Q1 2010 Asia Capacity (in mln cbm) Occupancy rate 6.9 94% 6.5 92% FX Effect (in mln EUR) +4.0 New storage capacity on stream in 2010 (China & Singapore) Improved occupancy rates EBIT in EUR mln, - excl. exceptional items - 46.2 47.4 42.7 40.1 36.7 29% Q1 Q2 Q3 Q4 Vopak Terminal Sakra, Singap
Slide 14: North America
Q1 2011 Q1 2010 North America Capacity (in mln cbm) Occupancy rate 2.3 91% 5.7 96% FX Effect (in mln EUR) +0.2 Uncertainties in biofuels Divestment Vopak Terminal Bahamas Rail car handling restrictions at Deer Park EBIT in EUR mln, - excl. exceptional items - 13.3 12.0 10.6 9.8 10.1 -26% Q1 Q2 Q3 Q4
Slide 15: Latin America
Q1 2011 Q1 2010 Latin America Capacity (in mln cbm) Occupancy rate 1.0 91% 0.9 91% FX Effect (in mln EUR) +0.5 Steady results EBIT in EUR mln, - excl. exceptional items - 7.3 7.3 7.1 6.6 4.7 Q1 Q2 Q3 Q4 Vopak Terminal Cartagena, Colombia – 2010 2011 – – Q1 2011 Trading update 27/04/2011 15
Slide 16: Agenda
Agenda Highlights Business performance Growth projects Financing Outlook – – – Q1 2011 Trading update 27/04/2011 16
Slide 17: Company growth supported by healthy demand for storage capacity
Company growth supported by healthy demand for storage capacity Storage Capacity In mln cbm 29.8 28.8 28.3 27.1 25.3 21.2 21.8 20.4 +0.8 +0.6 +5.3 +1.2 +0.5 -3.5 +4.5 2005 2006 2007 2008 2009 2010 Q1 2011 2012 Occupancy Rate 92% 94% 96% 95% 94% 93% 92% – – – Q1 2011 Trading update 27/04/2011 17
Slide 18: Growth continues in 2011 and 2012
Growth continues in 2011 and 2012 Divestments in Q1 2011 decrease total storage capacity with 3.5 mln cbm Vopak Terminal Bahamas Ipswich, UK Product: Oil products Product: Oil products Capacity addition: - 3,400,000 cbm Capacity addition: -56,000 cbm YE 2009 Capacity 28.3 mln In cbm Total net capaci
Slide 19: Various projects under construction
Various projects under construction Total storage capacity under construction per Q1 2011: 4.5 mln cbm Algeciras (Spain) Dongguan (China) 403,000 cbm 153,000 cbm Gate terminal (Netherlands) 540,000 cbm Westpoort (Netherlands) 1,190,000 cbm MOT, Rotterdam (Netherlands) increase in entitlement with 36
Slide 20: Agenda
Agenda Highlights Business performance Growth projects Financing Outlook – – – Q1 2011 Trading update 27/04/2011 20
Slide 21: Strategic finance
Strategic finance Net Senior debt : EBITDA ratio Q1 2011 2.18 2010 2.63 2009 2.23 2008 2.54 2007 1.71 2006 1.61 2005 1.76 2004 2.20 2003* 2.42 0 0.5 1 1.5 2 2.5 3 3.5 4 Maximum Ratio under current US PP programs Maximum Ratio under other PP programs and syndicated revolving credit facility * Based o
Slide 22: Agenda
Agenda Highlights Business performance Growth projects Financing Outlook – – – Q1 2011 Trading update 27/04/2011 22
Slide 23: Outlook Assumptions
Outlook Assumptions Oil Industrial Biofuels and Chemicals terminals vegoils ~ 17.5 – 20.0% ~ 60.0% of EBIT ~ 7.5 – 10% ~ 12.5% of EBIT of EBIT of EBIT ROBUST SOLID MIXED ENCOURAGING Healthy demand for storage capacity Contract renewals + Some new storage capacity commissioned – – – Q1 2011 Trading u
Slide 24: EU Biofuels market continues to face uncertainties
EU Biofuels market continues to face uncertainties Current situation Clear “20/20/20” mandate ≥ 20% of the energy mix must come from renewable sources; with a 10% minimum target for the transport sector; by the year 2020. Sustainability Green House Gas (GHG) savings > 35% ILUC: No raw material from
Slide 25: Vopak Biofuels – The 2011 playing field
Vopak Biofuels – The 2011 playing field + Biofuels part of the long-term energy mix + Mandate is clear and has been introduced in many countries + Drive to decrease dependency on oil - New sustainability criteria remain unclear - No equal level playing field (taxes and subsidies) - Reduced blending
Slide 26: EBIT(DA) impacted by volatile FX developments
EBIT(DA) impacted by volatile FX developments Transactional currency exchange risks are limited. As a rule revenues, costs and financing are denominated in the same currency. 2.50 FX Translation-effect on EBIT: 2.25 EUR/SGD FY 2010 vs FY 2009 EUR +25.9 mln 2.00 Q1 2011 vs Q1 2010 EUR +5.1 mln 1.75 F
Slide 27: Outlook
Outlook 2011 “For 2011 Vopak expects Group operating profit before depreciation and amortization (EBITDA) between EUR 600 – 640 million, assuming no further appreciation of the Euro against applicable other currencies.” 2013 “Based on our growth strategy Vopak is well positioned to realize a Group o
Slide 28: EBITDA Outlook 2013: in the EUR 725-800 mln range
EBITDA Outlook 2013: in the EUR 725-800 mln range Outlook Guidance In EUR mln 2005 2006 2007 2008 2009 2010 2011 2013 725-800 600-640 598.2 513.4 429.3 EBITDA* 369.5 314.1 262.5 Q1 148.1 445.3 385.3 320.4 272.9 Long-term EBIT* 220.9 Long-termguidance guidanceROCE ROCEofof16% 16% 179.7 Bearing in min
Slide 29: Confidence in the future!
“Confidence in the future!” – – – Q1 2011 Trading update 27/04/2011 29
Slide 30: 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 30 countries in which Vopak provides logistics services, the company cannot guarantee the accur
Slide 31: www.vopak.com
– – – – Q1 2011 Trading update 27/04/2011 31 www.vopak.com