Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — FY2015 Earnings Presentation
49 slides from Royal Vopak Nv's earnings presentation, Feb 26, 2016
Slide 1: Full Year 2015 Results
FULL YEAR 2015 RESULTS ROYAL VOPAK ANALYST PRESENTATION – FEBRUARY 26, 2016
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 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, Chairman of the Executive Board and CEO
Eelco Hoekstra CHAIRMAN OF THE EXECUTIVE BOARD AND CEO ROYAL VOPAK ANALYST PRESENTATION – FEBRUARY 26, 2016
Slide 4: Key Topics
KEY TOPICS 400 YEARS OF HISTORY SUSTAINABILITY AT THE CORE BUSINESS ENVIRONMENT STRATEGY EXECUTION PERFORMANCE 2015 OUTLOOK 2016 4 Analyst presentation FY 2015 February 26, 2016
Slide 5: Continuing to adapt to new realities
In the future, as in the past 400 years, we continue to adapt to new realities, aim to maintain our relevance in society and aspire to be recognized as reliable by our stakeholders.
Slide 6: Vopak's Ambition
400 years Sustainability Business Strategy Performance Outlook of history at the core environment execution 2015 2016 VOPAK’S AMBITION OPERATING A GLOBAL NETWORK OF TERMINALS Strategic Safe, Strong and Ability to Operating efficient reliable link in innovate and according to locations the value stay
Slide 7: Sustainability at the Core
400 years Sustainability Business Strategy Performance Outlook of history at the core environment execution 2015 2016 SUSTAINABILITY AT THE CORE STAYING HEALTHY AND FIT FOR THE FUTURE 7 Analyst presentation FY 2015 February 26, 2016
Slide 8: Commitment to Safety
400 years Sustainability Business Strategy Performance Outlook of history at the core environment execution 2015 2016 COMMITMENT TO SAFETY Total injury rate (TIR) Lost time injury rate (LTIR) Total injuries per 200,000 hours worked by Total injuries leading to lost time per 200,000 hours own employe
Slide 9: Topics Influencing 2015
400 years Sustainability Business Strategy Performance Outlook of history at the core environment execution 2015 2016 TOPICS INFLUENCING 2015 OPERATING IN A COMPLEX ENVIRONMENT Oil price Growth Geopolitical developments in China events 9 Analyst presentation FY 2015 February 26, 2016
Slide 10: Developments per Product Group
400 years Sustainability Business Strategy Performance Outlook of history at the core environment execution 2015 2016 DEVELOPMENTS PER PRODUCT GROUP OVERALL SOLID DEMAND FOR STORAGE Oil products LNG Lower oil price Increase in LNG supply environment More short-term and Oversupply refined spo
Slide 11: Market Dynamics
400 years Sustainability Business Strategy Performance Outlook of history at the core environment execution 2015 2016 MARKET DYNAMICS GLOBAL IMBALANCES CONTINUE TO DEVELOP Netherlands EMEA Asia Americas Favorable trading Strong demand for road Uncertainty China Oil producing dynamics support
Slide 12: Execution of the Strategy
400 years Sustainability Business Strategy Performance Outlook of history at the core environment execution 2015 2016 EXECUTION OF THE STRATEGY HIGHLIGHTS OF 2015 Optimization of the terminal Focus on safety and the Service improvement portfolio through the: prevention of incidents initiatives
Slide 13: Business Highlights
400 years Sustainability Business Strategy Performance Outlook of history at the core environment execution 2015 2016 BUSINESS HIGHLIGHTS SOLID FINANCIAL RESULTS ALIGNED WITH OUTLOOK Terminal *** Network * EBITDA *** 34.3 812 In million cbm In EUR million Occupancy Cash flows Rate ** Operating ****
Slide 14: Outlook 2016
400 years Sustainability Business Strategy Performance Outlook of history at the core environment execution 2015 2016 OUTLOOK 2016 We expect 2016 occupancy rates of our global terminal network to exceed 90%, supported by: our diversified portfolio both geographically and in different product group
Slide 15: Jack de Kreij, Vice-Chairman and CFO
Jack de Kreij VICE-CHAIRMAN OF THE EXECUTIVE BOARD AND CFO ROYAL VOPAK ANALYST PRESENTATION – FEBRUARY 26, 2016
Slide 16: Key Topics
KEY TOPICS LONG-TERM VALUE CREATION KEY DEMAND DRIVERS BUSINESS DEVELOPMENTS CAPITAL MANAGEMENT FINANCIAL RESULTS 2015 PRIORITIES FOR 2016 16 Analyst presentation FY 2015 February 26, 2016
Slide 17: Long-Term Value Creation
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 LONG-TERM VALUE CREATION KEY ELEMENTS SUPPORTING OUR BUSINESS MODEL Strong capital Focus on structure with operational Stable margins cash flow balanced Diversified and tak
Slide 18: Mega Trends
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 MEGA TRENDS WORLD ENERGY DEMAND CONTINUES TO INCREASE Population GDP Energy demand In billion In trillion 2010$ In quadrillion BTUs 10 160 1.000 8 120 800 6 600 80 Energy c
Slide 19: Storage Capacity Developments
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 STORAGE CAPACITY DEVELOPMENTS FOCUS ON SELECTIVE DISCIPLINED GROWTH Storage capacity In million cbm +14.4 +4.2* Projects under Growing our global network through developmen
Slide 20: Enduring Demand for Storage
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 ENDURING DEMAND FOR STORAGE CONTINUE OPERATING AT HEALTHY OCCUPANCY RATES Occupancy rate In percent +4pp 90-95% 85-90% 88 92 84 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 21: Sound Contract Durations
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 SOUND CONTRACT DURATIONS Contract position FY2013 Contract position FY2014 Contract position FY2015 In percent of revenues In percent of revenues In percent of revenues 20%
Slide 22: Robust Business Model
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 ROBUST BUSINESS MODEL SOUND CONTRACTS, EFFECTIVE SUPPLY CHAIN POSITIONING AND STRONG CASH FLOW FOCUS EBITDA, Net result joint ventures and associates and Cash flows In EUR
Slide 23: Stable Margin Developments
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 STABLE MARGIN DEVELOPMENTS BALANCED RISK-RETURN PROFILE AND CONTINUOUS FOCUS ON COST COMPETITIVENESS EBIT(DA) margins* In percent 60 50% 50 40 32% 30 20 10 2004 2005 2006 2
Slide 24: Solid Financial Position
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 SOLID FINANCIAL POSITION MAINTAINING A CONSISTENT SOLVENCY WHILST GROWING OUR GLOBAL NETWORK Total equity and net liabilities In EUR million Net liabilities* Equity 60% 64%
Slide 25: Disciplined Growth
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 DISCIPLINED GROWTH SELECTIVE CAPITAL ALLOCATION Total investments 2004-2019 Expansion capex** In EUR million In EUR million; 100% = EUR 2,700 million 2,610 2,588 Remaining
Slide 26: Disciplined Capital Management
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 DISCIPLINED CAPITAL MANAGEMENT MAINTAINING A SOLID FINANCIAL POSITION Senior net debt : EBITDA ratio Maximum ratio under other PP programs and syndicated revolving credit f
Slide 27: Stable Dividend Growth
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 STABLE DIVIDEND GROWTH PROPOSED DIVIDEND INCREASED WITH 11% TO EUR 1.00 PER SHARE Barring exceptional Dividend and EPS* 2003-2015 circumstances, the In EUR intention is to
Slide 28: FY 2015 Key Figures
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 FY 2015 KEY FIGURES SOLID RESULTS SUPPORTED BY HEALTHY OCCUPANCY RATES Revenues* EBITDA** +5% +6% In EUR million In EUR million 1,386 812 1,323 763 2014 2015 2014 2015 EBIT
Slide 29: Q4 2015 Key Figures
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 Q4 2015 KEY FIGURES ALIGNED WITH 2015 OUTLOOK Occupancy* Revenues* +2% +6pp In percent In EUR million 94 350 351 350 93 91 91 344 88 335 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2014
Slide 30: FY 2015 EBITDA Analysis
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 FY 2015 EBITDA ANALYSIS WELL-DIVERSIFIED PORTFOLIO SUPPORTING EBITDA INCREASE +6% 6.2 19.7 7.5 25.9 811.5 27.7 41.2 804.0 9.6 14.5 762.8 Acquisitions/ Pre-OPEX Greenfields,
Slide 31: FY 2015 Exceptional Tax Items
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 FY 2015 EXCEPTIONAL TAX ITEMS Consolidated statement of income -excluding exceptional items- In EUR million EPS 555.5 2.55 Mainly impact tax 102.9 370.6 82.0 325.3 charge r
Slide 32: FY2015 Return Indicators
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 FY2015 RETURN INDICATORS FOCUS ON FREE CASH FLOW AND CAPITAL EFFICIENCY ROE* Non-IFRS In percent Proportional information 21.9 CFROGA** (after tax) 18.8 In percent 16.7 17.
Slide 33: FY 2015 Non-IFRS Proportional Information
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 FY 2015 NON-IFRS PROPORTIONAL INFORMATION Occupancy rate +4pp In percent 92 90 88 88 92 2011 2012 2013 2014 2015 Proportionate EBITDA* +10% In EUR million 836 904 817 824 6
Slide 34: Priorities for 2016
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 PRIORITIES FOR 2016 EXECUTION OF THE BUSINESS REVIEW VOPAK SETS STRATEGIC PRIORITIES AND PROVIDES FINANCIAL UPDATE 02 July 2014 Vopak publishes today the outcome of the bus
Slide 35: Outlook 2016
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 OUTLOOK 2016 FULLY ALIGNED WITH THE STRATEGIC PRIORITIES 2015 Expansions Healthy occupancy Productivity and Divestments FX effect and 2016 rates and stable organisational p
Slide 36: Quarterly Updates
Long-term Key demand Business Capital Financial Priorities value creation drivers developments management results 2015 for 2016 QUARTERLY UPDATES THE FIRST AND THIRD QUARTER ‘TRADING UPDATES’ WILL BE REPLACED BY ‘INTERIM UPDATES’ The interim updates will be focused on the main events and developme
Slide 37: Questions & Answers
QUESTIONS & ANSWERS ROYAL VOPAK ANALYST PRESENTATION – FEBRUARY 26, 2016 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: Chiel Rietvelt, Head of Invest
Slide 38: Appendix
APPENDIX ROYAL VOPAK ANALYST PRESENTATION – FEBRUARY 26, 2016 38 Analyst presentation FY 2015 February 26, 2016
Slide 39: Occupancy Rate Developments per Division
OCCUPANCY RATE DEVELOPMENTS PER DIVISION STEADY PERFORMANCE IN THE NETHERLANDS, EMEA AND AMERICAS IN 2015, PICK UP ASIA IN H2 2015 Occupancy rates In percent 96 95 95 95 94 93 92 91 91 91 91 91 90 90 89 89 89 89 Q4 2014 85 85 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Netherlands EMEA Asia Americas Note: occup
Slide 40: FY 2015 Netherlands Development
FY 2015 NETHERLANDS DEVELOPMENT Occupancy rate* +7pp In percent 94 94 89 83 87 2011 2012 2013 2014 2015 EBITDA** +10% In EUR million 267 279 243 253 211 2011 2012 2013 2014 2015 Favorable trading dynamics supporting oil storage Storage capacity Oversupply in NWE, high In million cbm Russian expo
Slide 41: FY 2015 EMEA Development
FY 2015 EMEA DEVELOPMENT Occupancy rate* +9pp In percent 93 90 88 88 84 2011 2012 2013 2014 2015 EBITDA** +8% In EUR million 132 136 128 123 118 2011 2012 2013 2014 2015 Strong demand for road fuels and stable bunker fuel markets Storage capacity supporting refineries In million cbm -1.1 Healthy
Slide 42: FY 2015 Asia Development
FY 2015 ASIA DEVELOPMENT Occupancy rate* -6pp In percent 95 94 94 94 89 2011 2012 2013 2014 2015 EBITDA** -1% In EUR million 273 282 291 289 235 2011 2012 2013 2014 2015 Uncertainty China impacts hubs (Singapore and Pengerang) Storage capacity Oversupply of refined products In million cbm +1.8 n
Slide 43: FY 2015 Americas Development
FY 2015 AMERICAS DEVELOPMENT Occupancy rate* In percent 94 92 90 90 90 2011 2012 2013 2014 2015 EBITDA** +17% In EUR million 123 92 102 95 105 2011 2012 2013 2014 2015 Oil producing countries impacted by the lower oil price Storage capacity environment In million cbm -0.2 In Latin America, excha
Slide 44: FY 2015 Net Result of Joint Ventures and Associates
FY 2015 NET RESULT OF JOINT VENTURES AND ASSOCIATES Netherlands Americas 1.9 2.4 2.5 2.5 0.9 1.0 0.1 0.2 2012 2013 2014 2015 2012 2013 2014 2015 Net result of joint ventures Global LNG EMEA and associates +19% +19% 46.6 +18% 107.2 105.3 104.3 35.9 28.5 28.1 33.4 87.5 17.9 21.1 25.3 2012 2013 2014 20
Slide 45: Storage Capacity Developments 2014-2019
SELECTIVE GROWTH OPPORTUNITIES STORAGE CAPACITY DEVELOPMENTS 2014-2019 +3.5 3.5 37.8 0.7 +0.5 0.2 1.7 0.7 0.3 34.3 33.8 1.7 Greenfield Greenfield Brownfield Brownfield Divestments* Divestments Acquisition 2014 2015 2019 Note: ‘storage capacity’ is defined as the total available storage capacity (joi
Slide 46: FX Translation Effects
FX TRANSLATION EFFECTS 2015 EBITDA* transactional currencies FX translation-effect on 2015 EBITDA* In percent In EUR million USD SGD 24% Netherlands EUR Other EMEA 6.8 Asia 31.2 37% 16% Americas 2.5 Non-allocated 0.7 23% Total 41.2 * Excluding exceptional items 46 Analyst presentation FY 2015 Februa
Slide 47: Debt Repayment Schedule
DEBT REPAYMENT SCHEDULE Debt repayment schedule In EUR million RCF flexibility US PP RCF drawn Asian PP Subordinated US PP Other 1,200 1,100 1,000 500 400 300 200 100 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2040 47 Analyst presentation FY 2015 February 26, 2016
Slide 48: Net Finance Costs
NET FINANCE COSTS Net finance costs 2015 Net finance costs 2014 In EUR million In EUR million Interest and dividend income 10.7 7.9 Finance costs -115.9 -97.7 Net finance costs -105.2 -89.8 Net interest bearing debt Average interest rate In EUR million In percent 2,266 2,296 7.0% 6.3% 1,431 1,606 1,
Slide 49: Other Topics
OTHER TOPICS Effective tax rate* In percent 20.9 18.0 17.1 18.1 2012 2013 2014 2015 Funding level Dutch pension fund In percent 118 121 117 112 2012 2013 2014 2015 * Excluding exceptional items 49 Analyst presentation FY 2015 February 26, 2016