Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — FY2017 Earnings Presentation
31 slides from Royal Vopak NV's earnings presentation, Feb 16, 2018
Slide 1: Storing vital products with care
Storing vital products with care Vopak reports on 2017 financial results Analyst presentation - 16 February 2018
Slide 2: Forward-looking statement
Forward-looking statement This presentation contains ‘forward-looking statements’, based on currently available plans and forecasts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the
Slide 3: Eelco Hoekstra, CEO of Royal Vopak
Chairman of the Executive Board and CEO of Royal Vopak Eelco Hoekstra
Slide 4: Summary key messages
Summary key messages PERFORMANCE Despite challenging market conditions, particularly in the oil 2017 markets, satisfactory financial performance in 2017 Projects under development will add 3.1 million cbm of storage PROGRESS capacity to our global network by 2019 STRATEGIC We are on track with
Slide 5: Key figures 2017
Key figures 2017 Terminal network Occupancy rate* In million cbm In percent 35.9 90 Revenues* EBITDA** In EUR million In EUR million 1,306 763 * Occupancy rate and revenues figures include subsidiaries only ** Including net result from joint ventures and associates and excluding exceptional items FY
Slide 6: Product-market update
Product-market update Diversified portfolio across different product-market segments Oil products Fuel oil: uncertain short-term outlook Vegoils US and EU policy changes in Oil hubs: Soft short-term markets & biofuels the biofuels markets creates with solid long-term underlying volatility dema
Slide 7: Progress on strategic direction
Progress on strategic direction The strategic direction is set towards disciplined growth and productivity improvement Capture growth in the 2017-2019 period New projects in South Africa, Canada, . Brazil, Malaysia Spend maximum EUR 750 million on sustaining EUR 212 million sustaining and serv
Slide 8: Growth projects under development
Growth projects under development 3.1 million cbm under development German LNG* RIPET* Open season Deer Park PT2SB 96,000 cbm 138,000 cbm Jubail 1,496,000 cbm 93,000 cbm Sebarok** PITSB* Panama 67,000 cbm 430,000 cbm 360,000 cbm Lesedi* Jakarta** Alemoa* Industrial 100,000 cbm Durban* Gas 100,000 cb
Slide 9: Summary key messages
Summary key messages PERFORMANCE Despite challenging market conditions, particularly in the oil 2017 markets, satisfactory financial performance in 2017 Projects under development will add 3.1 million cbm of storage PROGRESS capacity to our global network by 2019 STRATEGIC We are on track with
Slide 10: Gerard Paulides, CFO of Royal Vopak
Member of the Executive Board and CFO of Royal Vopak Gerard Paulides
Slide 11: Summary financial performance
Summary financial performance Satisfactory financial performance with solid cash flow FULL YEAR from operations PERFORMANCE Strong balance sheet and sufficient financial flexibility Continued cash dividend Q4 2017 Stronger than expected Q4 results PERFORMANCE FY 2017 – Analyst presentation 1
Slide 12: Key figures developments
Key figures developments Terminal network Occupancy rate* Revenues* In million cbm In percent In EUR million Subsidiaries +1.2 -3pp Joint Ventures & Associates -3% Operatorship 88 88 92 93 90 1,295 1,323 1,386 1,347 1,306 33.8 34.3 34.7 35.9 30.5 20.1 19.7 19.6 20.8 21.7 9.9 11.9 12.2 12.5 8.1 1.6 2
Slide 13: 2017 EBITDA development
2017 EBITDA development 822.3 6.2 10.7 11.5 800.1 15.9 36.1 17.0 0.2 763.2 6.1 EMEA Americas LNG 2016 2017 Asia 2016 Divestments FX-effect Pro forma Others Netherlands EBITDA -excluding exceptional items- decreased 7%, adjusted for the divestments and FX-effects, the pro forma EBITDA decreased by 4%
Slide 14: EBITDA to Net profit overview
EBITDA to Net profit overview 2017 2016 EBITDA 763.2 822.3 Depreciation and 272.8 263.9 amortization EBIT 490.4 558.4 Net finance costs 98.5 107.2 Income tax 64.7 79.3 Non-controlling interests 39.8 45.8 Net profit to holders 287.4 326.1 of ordinary shares EPS 2.25 EPS 2.56 Figures in EUR million, e
Slide 15: Continued cash dividend
Continued cash dividend Dividend maintained at EUR 1.05 per ordinary share Earnings per ordinary share Dividend per ordinary share In EUR In EUR 2.45 2.55 2.56 2.31 2.25 1.00 1.05 1.05 0.90 0.90 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Barring exceptional circumstances, the intention is to
Slide 16: Q4 vs Q3 EBITDA
Q4 vs Q3 EBITDA 192.7 14.2 180.8 3.0 0.3 0.6 1.9 2.5 4.4 176.4 EMEA Americas LNG Q3 2017 Q4 2017 Adjusted Q3 2017 Asia FX-effect Others Netherlands Q4 results stronger than expected during Q3 Figures in EUR million, excluding exceptional items FY 2017 – Analyst presentation 16 including net result f
Slide 17: 2017 cash flow overview
Cash Flow from 714 Figures in EUR million Operations (gross) Income tax and other non-gross 45 cash flow items Cash Flow from 669 Operations (net) Cash Flow from Investment 242 (excl growth & divestments) 2017 cash flow overview Growth 127 Investments Divestment Solid operational cash flow result in
Slide 18: Investment phasing
Investment phasing Investments 2008-2019 Investments 2017-2019 Expansion capex In EUR million In EUR million increase 2,012 1,899 ~EUR 175 million additional 1,729 New expansion capex compared projects* to FY 2016 outlook: Expansion 725 capex** • Brazil – Alemoa • Canada – RIPET • Malaysia – PITSB O
Slide 19: Financial flexibility
Financial flexibility The solid operational cash flow generation, strong balance sheet and sufficient financial flexibility, provides an excellent platform to continue our capital disciplined growth journey Equity and net liabilities Senior net debt* : EBITDA ratio In percent Maximum ratio under oth
Slide 20: Non-IFRS proportionate information
Non-IFRS proportionate information Occupancy rate EBITDA* In percent In EUR million IFRS BASED 753 763 812 822 763 88 88 92 93 90 Non-IFRS proportionate information 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 provides transparency in Vopak’s Occupancy rate EBITDA* underlying performance and PR
Slide 21: Subsequent event
Subsequent event Growth projects Pension plan Further expansion of our import- Vopak reached agreement with the labor distribution terminal in Jakarta, unions and the works council regarding a Indonesia, with 100,000 cbm new pension plan, aimed to qualify as a defined contribution plan under IAS
Slide 22: Looking ahead
Looking ahead • Financial performance in 2018 is expected to be influenced by currency exchange movements of primarily the USD and SGD, and the currently less favorable oil market structure, impacting occupancy rates and price levels in the hub locations • The current 3.1 million cbm expansion progr
Slide 23: Questions & answers
The world’s leading independent tank storage company building Questions on an impressive history of more & answers • than 400 years
Slide 24: Full Year 2017 Financial results
For more information please contact: Media contact: Liesbeth Lans, Manager External Communications Telephone: +31 (0)10 400 2777, e-mail: [email protected] Investor Relations contact: Anil Acardag, Manager Investor Relations Telephone: +31 (0)10 400 2770, e-mail: investor.relations@vopa
Slide 25: Quarterly segmented EBITDA
Quarterly segmented EBITDA Vopak Group Netherlands EMEA In EUR million In EUR million In EUR million 92 91 90 89 89 94 92 90 90 96 93 91 92 91 89 197.6 203.1 191.0 192.7 176.4 67.8 63.1 59.3 63.7 63.3 29.6 27.6 27.4 23.7 27.4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2016 2017 2017 2017 2017 2016
Slide 26: Occupancy rate developments
Occupancy rate developments Occupancy rate* In percent Full year 93% Full year 90% 90-95% 85-90% 94 94 93 92 91 90 89 89 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 * occupancy rate figures include subsidiaries only FY 2017 – Analyst presentation 26
Slide 27: Netherlands developments
Netherlands developments Occupancy rate* Revenues* In percent In EUR million 87 94 95 90 487.9 496.4 471.6 83 442.5 442.1 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Storage capacity EBITDA** EBIT** In million cbm In EUR million In EUR million 9.5 9.9 9.9 10.0 10.0 278.5 286.5 181.2 180.8 242.
Slide 28: EMEA developments
EMEA developments Occupancy rate* Revenues* In percent In EUR million 88 93 96 92 248.2 257.6 251.5 84 189.9 176.3 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Storage capacity EBITDA** EBIT** In million cbm In EUR million In EUR million 9.6 9.7 135.6 128.1 91.0 8.6 8.5 8.7 118.3 121.1 81.6 80.
Slide 29: Asia developments
Asia developments Occupancy rate* Revenues* In percent In EUR million 94 95 89 91 88 358.8 370.1 379.4 385.2 370.1 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Storage capacity EBITDA** EBIT** In million cbm In EUR million In EUR million 11.6 11.5 12.5 282.5 291.2 288.9 296.7 274.1 227.5 235.3
Slide 30: Americas developments
Americas developments Occupancy rate* Revenues* In percent In EUR million 90 90 90 91 89 266.7 273.8 286.0 239.6 246.6 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Storage capacity EBITDA** EBIT** In million cbm In EUR million In EUR million 3.6 3.9 3.9 122.6 120.5 129.9 80.6 83.4 3.4 76.2 3.2
Slide 31: JVs & associates developments
JVs & associates developments Net result JVs and associates* Netherlands* EMEA* In EUR million In EUR million In EUR million 123.8 2.4 2.5 2.5 35.9 38.2 105.3 104.3 111.3 87.5 1.9 1.8 30.1 17.9 21.1 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Asia* Americas* LNG* In EU