Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Non-Deal Roadshow (2008)
58 slides from Royal Vopak NV's roadshow presentation, 2008
Slide 1: Roadshow Presentation 2008
_ Roadshow Presentation 2008 – – – Roadshow Presentation 2008 2008 1
Slide 2: The world of Vopak
The world of Vopak – – – Roadshow Presentation 2008 2008 2
Slide 3: Agenda
Agenda Introduction Strategy Business Performance Growth continues Outlook – – – Roadshow Presentation 2008 2008 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 2008 2008 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 2008 2008 5
Slide 6: Strategic position tank terminals
Strategic position tank terminals Outgoing Logistics Downstream Chemicals – – – Roadshow Presentation 2008 2008 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 2008 2008 7
Slide 8: Import / Export terminal
Import / Export terminal - Break or make bulk - Local distribution – – – Roadshow Presentation 2008 2008 8
Slide 9: Industrial terminal
Industrial terminal Vopak Singapore – Sakra Terminal – – – Roadshow Presentation 2008 2008 9
Slide 10: Vopak core businesses
Vopak core businesses Existing market Oil Chemicals New products in existing market Biofuels New market LNG – – – Roadshow Presentation 2008 2008 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 2008 200
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 2008 2008 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 2008 2008 13
Slide 14: Worldwide LNG demand drives need for independent import terminals
Worldwide LNG demand drives need for independent import terminals – – – Roadshow Presentation 2008 2008 14
Slide 15: Vopak's challenge
Vopak’s challenge The challenge is to facilitate the current and future product flows: – – – Roadshow Presentation 2008 2008 15
Slide 16: 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 17: Market share according to the definition
Market share according to the definition Storage market (in cbm) Oil Chemicals Total World Market 165 mln 45 mln 210 mln CBM Primary Competition 105 mln 40 mln 145 mln CBM Secondary Competition 60 mln 5 mln 65 mln CBM Vopak 16 mln 10.6 mln 26.6 mln CBM Vopak Market Share: As % of total market 10 % 2
Slide 18: Demand growth in storage market to support international trade flows
Demand growth in storage market to support international trade flows Terminal capacity growth from 2008 up to 2011 Announced projects Additional Worldwide Total Storage Capacity World Market, incl. Vopak 48 Million CBM Annual Growth Rate 6% Vopak (incl. E.O.S.) 7 Million CBM Annual Growth Rate 7% As
Slide 19: Vopak - the global market leader
Vopak - the global market leader Vopak in Million m³ – – – Roadshow Presentation 2008 2008 19
Slide 20: Agenda
Agenda _ Introduction Strategy Business Performance Growth continues Outlook – – – Roadshow Presentation 2008 2008 20
Slide 21: Strategic focus Vopak
Strategic focus Vopak ACCELERATED ACCELERATED EXCELLENT EXCELLENT MAXIMUM MAXIMUM COMPANY COMPANY CUSTOMER CUSTOMER OPERATIONAL OPERATIONAL GROWTH GROWTH SERVICE SERVICE EFFICIENCY EFFICIENCY Pursue and strengthen Attain service Attain low cost position leadership in key excellence across the compar
Slide 22: Strategic initiatives delivering results
Strategic initiatives delivering results Key Account Management: increased revenue with KAM clients Business Intelligence: improved market knowledge Branding: new visual identity to support one company brand Operational Efficiency Improvement: program will be started at 10 terminals Repeatable Formu
Slide 23: Agenda
Agenda _ Introduction Strategy Business Performance Growth continues Outlook – – – Roadshow Presentation 2008 2008 23
Slide 24: Business Performance YTD 2008
Business Performance YTD 2008 – – – Roadshow Presentation 2008 2008 24
Slide 25: EBIT excl. exceptionals
EBIT excl. exceptionals Minimum of 310 272.9 220.9 179.7 151.0 EBIT 2004 2005 2006 2007 2008 – – – Roadshow Presentation 2008 2008 25
Slide 26: Vopak has now completed a successful 'shrink to grow' revitalization
Vopak has now completed a successful ‘shrink to grow’ revitalization Revenues in billion EUR; all figures are excl. exceptional items and incl. joint ventures Revenues EBITDA margin EBIT margin ROCE 6 50% 5 40% 4 30% 3 20% 2 1 10% 0 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 – – – Roadshow Pres
Slide 27: Process Safety & Quality Performance
Process Safety & Quality Performance Spills LTIR 160 3 140 2,5 120 2 100 80 1,5 60 1 40 0,5 20 0 0 2004 2005 2006 2007 1H 2008 2004 2005 2006 2007 1H 2008 – – – Roadshow Presentation 2008 2008 27
Slide 28: Pro forma EBIT 1H 08 vs 1H07
Pro forma EBIT 1H 08 vs 1H07: increased by 20% 1H 2008 1H 2007 % EBIT incl. exceptionals 166.5 149.3 12 Exceptionals -9.7 -9.9 EBIT excl. exceptionals 156.8 139.4 12 Divestments -3.4 FX translation effects -5.3 Pro forma EBIT 156.8 130.7 20 – – – Roadshow Presentation 2008 2008 28
Slide 29: Exceptional Items in 1H 2008
Exceptional Items in 1H 2008 In EUR millions Merger Vopak E.O.S. 5.2 Vopak Barging 4.5 Exceptional Items 9.7 – – – Roadshow Presentation 2008 2008 29
Slide 30: Effective tax rate
Effective tax rate Effective Tax Rate € In EUR millions 1H08 1H08 % 1H07 % Tax -31.4 21.3% 21.5% 25% 20% 15% 10% 5% 0% 2003 2004 2005 2006 2007 1H08 – – – Roadshow Presentation 2008 2008 30
Slide 31: Net Profit 1H 2008 increased by 17%
Net Profit 1H 2008 increased by 17% In EUR millions 1H07 1H08 ∆% Net Revenues 423.7 453.9 7% EBIT 149.3 166.5 12% Finance Income & Expenses -21.0 -19.4 8% Tax -27.6 -31.4 14% Minority Interests -8.3 - 8.2 1% Net Profit 91.5 106.9 17% EPS 1.47 1.71 16% All figures are including exceptional items – –
Slide 32: Sources and uses of cash
Sources and uses of cash EUR (mln) 1H07 1H08 56.0 Net Cash Flow -138.4 390.1 -334.1 433.0 -571.4 600 Dividends 500 400 Proceeds from Proceeds from Dividends Investments 300 interest-bearing interest-bearing loans loans 200 Investments Divestments Divestments 100 Operations Financing Operations Finan
Slide 33: Dividends
Dividends dividend policy: 25 - 40% In EUR 1 0,8 0.95 0,6 0.75 0,4 0.60 0.50 0.50 0,2 0 2003 * 2004 * 2005 2006 2007 * optional in cash or ordinary shares – – – Roadshow Presentation 2008 2008 33
Slide 34: Business Performance Q3 2008
Business Performance Q3 2008 – – – Roadshow Presentation 2008 2008 34
Slide 35: All Divisions contributed to the 18% Q3 EBIT improvement
All Divisions contributed to the 18% Q3 EBIT* improvement € mln OEMEA 27.9 Asia 20.1 24.2 19.9 North America 7.7 8.4 39% 22% Q3 07 Q3 08 Q3 07 Q3 08 9% Q3 07 Q3 08 CEMEA 21.7 22.8 Latin America 5.5 5.8 Other 5% 5% Q3 07 Q3 08 Q3 07 Q3 08 Q3 07 Q3 08 22% *EBIT excl. exceptionals -6.5 -7.9 – – – Roads
Slide 36: Division: Chemicals EMEA
Division: Chemicals EMEA Antwerp transition completed Continued high demand for biofuels storage € mln 30 23,1 22,2 21,7 22,8 25 21,7 21,8 20,3 20 2007 15 2008 10 5 14% 2% 5% 0 Q1 Q2 Q3 Q4 EBIT excl. exceptionals – – – Roadshow Presentation 2008 2008 36
Slide 37: Division: Oil EMEA
Division: Oil EMEA Utilizing capacity additions € mln 27,9 30 26,0 25,1 25 21,9 21,9 20,1 19,1 20 2007 15 2008 10 5 19% 15% 39% 0 Q1 Q2 Q3 Q4 EBIT excl. exceptionals – – – Roadshow Presentation 2008 2008 37
Slide 38: Division: Asia
Division: Asia Continued growth by expanding capacity Strong emerging markets growth potential € mln 30 23,4 23,1 24,2 25 19,8 19,9 19,9 19,2 20 2007 15 2008 10 5 22% 17% 22% 0 Q1 Q2 Q3 Q4 EBIT excl. exceptionals – – – Roadshow Presentation 2008 2008 38
Slide 39: Division: North America
Division: North America Focus on improving results is bearing fruit € mln 30 25 20 2007 15 9,3 2008 7,5 8,3 7,7 8,4 7,9 7,2 10 5 4% 12% 9% 0 Q1 Q2 Q3 Q4 EBIT excl. exceptionals – – – Roadshow Presentation 2008 2008 39
Slide 40: Division: Latin America
Division: Latin America Continuing steady performance € mln 30 25 20 2007 15 2008 10 5,3 5,4 5,1 5,5 5,8 5,1 5,1 5 4% 6% 5% 0 Q1 Q2 Q3 Q4 EBIT excl. exceptionals – – – Roadshow Presentation 2008 2008 40
Slide 41: All Divisions contributed to the 14% YTD EBIT improvement
All Divisions contributed to the 14% YTD EBIT* improvement OEMEA € mln 79.0 63.9 Asia 70.5 58.9 North America 23.2 25.2 YTD 07 24% YTD 08 20% YTD 07 YTD 08 YTD 07 9% YTD 08 CEMEA 64.2 67.6 Latin America Other YTD 07 YTD 08 16.0 16.2 11% YTD 07 1% YTD 08 YTD 07 5% YTD 08 -18.5 -20.5 EBIT excl. except
Slide 42: Agenda
Agenda _ Introduction Strategy Business Performance Growth continues Outlook – – – Roadshow Presentation 2008 2008 42
Slide 43: The growth of Vopak – projects in progress
The growth of Vopak – projects in progress – – – Roadshow Presentation 2008 2008 43
Slide 44: Strong demand for storage capacity
Strong demand for storage capacity Occupancy rate 2004 2005 2006 2007 Q308 YTD 85% 92% 94% 96% 95% Capacity (in cbm) 20.2M 20.4M 21.2M 21.8M 26.6M – – – Roadshow Presentation 2008 2008 44
Slide 45: Projects completed in 1H 2008
Projects completed in 1H 2008 Additional CBM Location Ownership Type Product Consolidated JVs & Associates Rotterdam 100% Expansion Oil 200,000 Fujairah 30% Expansion Oil 380,000 Sebarok 69.5% Expansion Oil 223,000 Zhangjiagang 100% Expansion Chemicals 84,900 Bahamas 20% Acquisition Oil 3,000,000 Ta
Slide 46: Projects completed in Q3 2008
Projects completed in Q3 2008 Additional CBM Location Ownership Type Product Consolidated JV & Associates Banyan 69.5% Expansion Oil/Chemicals 80,600 Penjuru 69.5% Expansion Chemicals 22,000 Galena Park 100% Expansion Chemicals 9,500 Columbia 100% Expansion Chemicals 6,500 Merak 95% Acquisition Chem
Slide 47: Gate terminal
Gate terminal - Gate terminal project: well progressing - E.ON Ruhrgas - fourth customer - Financing of EUR 745 mln concluded Q4 2007 Q3 2008 ? Launching customers: Tanks 3 3 4 Jetties 1 2 2 Throughput 9 bcm 12 bcm 16 bcm Clients 3 4 ? – – – Roadshow Presentation 2008 2008 47
Slide 48: Vopak E.O.S.
Vopak E.O.S. Pakterminal till YE 2007 Vopak Pakterminal 50% 304,900 Pakterminal till 23 April 2008 Vopak Pakterminal 100% 304,900 Vopak E.O.S. 23 April 2008 till August Vopak E.O.S. Vopak 35% 740,000 Vopak E.O.S. from August 2008 Vopak in 2009 Vopak E.O.S. 50% 740,000 940,000 – – – Roadshow Presenta
Slide 49: Strategic Financing
Strategic Financing – – – Roadshow Presentation 2008 2008 49
Slide 50: Total investments
? Total investments 1H 2008: € mln 375 446 268 188 146 151 2003* 2004 2005 2006 2007 2008 * Based on Dutch GAAP Remaining Vopak Share Approved & Under Construction Projects EUR 400 mln 1H08 2011 – – – Roadshow Presentation 2008 2008 50
Slide 51: 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 1B EUR 745M senior ventures project finalized USD 375M Option to increase project financing financing to EUR 1.2B
Slide 52: Strategic finance
Strategic finance Net debt : EBITDA ratio Q3 2008 2.34 1H 2008 2.22 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 Presenta
Slide 53: Overview of US PP terms and RCF
Overview of US PP terms and RCF Covenant/ Term US PP 2001 US PP 2007 New 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 USD USD EUR 396 mln 375 mln 1 bln + EUR 200 mln – –
Slide 54: Agenda
Agenda _ Introduction Strategy Business Performance Growth continues Outlook – – – Roadshow Presentation 2008 2008 54
Slide 55: Reconciling Q3 2008 YTD EBIT to Outlook 2008
Reconciling Q3 2008 YTD EBIT* to Outlook 2008 requires an eye for detail… Actual Q3 08 YTD EBIT: € 237.6M + -/- * expansions * tanks out of operation * margin management * one-off revenues * pre-operating expenses * depreciation * start-up results * IFRS 3 * timing differences Outlook 2008 Minimum *
Slide 56: Outlook
Outlook* Outlook Guidance 2004 2005 2006 2007 2008 2009 / 2010 EUR (mln) 475 - 550 369.6 314.1 262.4 EBITDA** 231.9 Minimum 272.9 of 310 220.9 EBIT 179.7 151.0 Long-term * Excluding exceptional items Long-termguidance guidanceROCE ROCEofof16% 16% Bearing Bearingininmind mindsubstantial ** EBITDA inc
Slide 57: 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 58: www.vopak.com
– – – – www.vopak.com Roadshow Presentation 2008 2008 58