Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Investor Day (November 2007)
39 slides from Royal Vopak NV's investor day presentation, November 2007
Slide 1: Analyst Meeting Singapore November 2007
Analyst Meeting Singapore November 2007 Professionals in liquid bulk logistics www.vopak.com 1
Slide 2: Jack de Kreij, Chief Financial Officer
Jack de Kreij Member of the Executive Board Chief Financial Officer 2
Slide 3: Vopak's transformation process since 2002
Vopak’s transformation process since 2002 3
Slide 4: Vopak's transformation process
Vopak’s transformation process Growth, Customer, Cost Leadership 4
Slide 5: Many choices made…
Many choices made… Products LNG Terminal Bio fuels types Geographies “Industrial” Vegetable oils ME America’s “Distribution” Chemicals Asia Value chain “Hub” Oil Europe (backward) Value chain s Te Sim Pr (forward) s es nt rm Outs tio vice rvice rvic eme n od a ina o ple u m e r e s e ag l o urcin re
Slide 6: Focus after split-off (July 2002)
Focus after split-off (July 2002) Products LNG Terminal Bio fuels types Geographies “Industrial” Vegetable oils ME America’s “Distribution” Chemicals Asia Value chain “Hub” Oil Europe (backward) Value chain s Te Sim Pr (forward) s es nt rm Outs tio vice rvice rvic eme n od a ina o ple u m e r e s e
Slide 7: Clear choices in 2003
Clear choices in 2003 Products LNG Terminal Bio fuels types Geographies “Industrial” Vegetable oils ME America’s “Distribution” Chemicals Asia Value chain “Hub” Oil Europe (backward) Value chain s Te Sim Pr (forward) s es nt rm Outs tio vice rvice rvic eme n od a ina o ple u m e r e s e ag l o urcin
Slide 8: Growth and excellence focus (2005)
Growth and excellence focus (2005) Products LNG Terminal Bio fuels types Geographies “Industrial” Vegetable oils ME America’s “Distribution” Chemicals Asia Value chain “Hub” Oil Europe (backward) Value chain s Te Sim Pr (forward) s es nt rm Outs tio vice rvice rvic eme n od a ina o ple u m e r e s e
Slide 9: Accelerating growth strategy (2007)
Accelerating growth strategy (2007) Products LNG Terminal Bio fuels types Geographies “Industrial” Vegetable oils ME America’s “Distribution” Chemicals Asia Value chain “Hub” Oil Europe (backward) Value chain s Te Sim Pr (forward) s es nt rm Outs tio vice rvice rvic eme n od a ina o ple u m e r e s
Slide 10: Vopak's challenge
Vopak’s challenge The challenge is facilitating the product flows: MEETING LOCATION INFRASTRUCTURE DIFFERENT CLIENT NEEDS •Hinterland connections •Tanks sizes •Flexibility •Deep water access •Jetty capacity •Speedy ship turnaround •Permit structure •Truck/rail loading •Land availability stations •Hi
Slide 11: Different needs of different clients
FOR ILLUSTRATION PURPOSES ONLY Different needs of different clients CHEMICAL CHEMICAL PETROLEUM PETROLEUM PRODUCER PRODUCER PRODUCT PRODUCT IMPORT EXPORT PRODUCER TRADER IMPORT LOCATION Deep water Deep water Deep water Size of trade market (hubs only) Hinterland One-one Hinterland Other players usin
Slide 12: Vopak's transformation process
Vopak’s transformation process Growth, Customer, Cost Leadership 12
Slide 13: Vopak performance
Vopak performance | em ee oe ae _ SP eee ae ———— www.vopak.com 13
Slide 14: Robust Vopak performance
Robust Vopak performance 420-460 Note: 2002 & 2003 based on Dutch GAAP 14
Slide 15: ROCE
ROCE* ROCE Vopak 26 22 18 14 10 2002* 2003* 2004 2005 2006 1H 2007 * ROCE = EBIT/Capital employed 15
Slide 16: Dividend distribution
Dividend distribution 2006: 36% of EPS 1,00 0,75 0,50 0.75 0.60 0,25 0.50 0.50 0.50 0,00 2002 2003* 2004* 2005 2006 EPS 2,5 2,08 2 1,67 1,5 1,36 1,46 1 2003* 2004 2005 2006 * Optional in cash or ordinary shares 16
Slide 17: EBIT improvements
EBIT improvements 2003-2007 Beyond 2007 GROWTH MARGIN IMPROVEMENTS UTILISATION 17
Slide 18: Vopak has now completed a successful 'shrink to grow' revitalization
Vopak has now completed a successful ‘shrink to grow’ revitalization Revenues in bln EUR Revenues EBITDA margin EBIT margin ROCE 6 45% 40% 5 35% 4 30% 25% 3 20% 2 15% 10% 1 5% 0 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 18
Slide 19: North America & CEMEA
2003-2007 Beyond 2007 North America & CEMEA GROWTH MARGIN IMPROVEMENTS UTILISATION North America CEMEA Revenues NA Revenues CEMEA 150 400 300 100 200 50 100 0 0 2003 2004 2005 2006 2003 2004 2005 2006 EBIT CEMEA EBIT NA 80 30 60 20 40 10 20 0 0 2003 2004 2005 2006 YTD 2007 2003 2004 2005 2006 YTD 20
Slide 20: CAPEX
www.vopak.com 20
Slide 21: Focus on growth
Focus on growth Capacity to increase by 3.2M cbm by the end of 2009 2006 Capacity 21.224.300 cbm YTD 2007 New capacity on stream 270.240 cbm YTD 2007 Divestments 266.000 cbm YTD 2007 Capacity 21.228.540 cbm Capacity coming on stream: 2007 0.8M cbm 2008 1.5M cbm 2009 0.9M cbm 21
Slide 22: Projects completed YTD 2007
Projects completed YTD 2007 cbm 2007 Sydney 100% 75,000 Lanshan 41,7% 30,000 Ulsan 49% 10,000 Vlaardingen 100% 3,000 ACS Antwerp 100% 11,270 Darwin 100% 10,870 Zhangjiagang 100% 124,600 Otherr 5,500 TOTAL YTD 2007 270,240 22
Slide 23: Overview of announced major projects
Overview of announced major projects cbm 2007 2008 2009 Investment projects Completed YTD07 270,240 Fujairah 30% 380,000 Europoort 100% 440,000 Banyan Phase 2 69.5% 165,000 Banyan Phase 3 69.5% 320,000 Banyan Phase 4 69.5% 397,500 Sebarok 69.5% 216,000 Left Bank 100% 100,000 Jakarta 49% 450,000 Othe
Slide 24: CAPEX 2002 – 2006 & Outlook 2007
CAPEX 2002 – 2006 & Outlook 2007** (In)Tangible fixed assets 420 - 460 232.7 160.3 124.9 97 106.5 2002* 2003* 2004 2005 2006 2007 * based on Dutch GAAP 24 **including Maintenance and SHE CAPEX
Slide 25: Why does typical CAPEX investment per cbm differ?
Why does typical CAPEX investment per cbm* differ? Low end: €150 / cbm High end: €800 / cbm • Multipurpose • Dedicated • Carbon steel • Stainless steel • Large size of tanks (40,000 cbm) • Small size of tanks (500 cbm) • No pre-investments • Considerable pre-investments • Commodities • Speciality ch
Slide 26: Strategic Finance: Sufficient Flexibility
Strategic Finance: Sufficient Flexibility Total Net Senior Debt : EBITDA ratio 1H 2007 1,83 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 3,75 4 4,25 Maximum Ratio * based on Dutch GAAP 26
Slide 27: 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 3.75x 3.75x 3.75x Debt / EBITDA Additional headroom Up to 4.25 > 3.75 When financed with subordinated debt EBITDA / Net Interest 4.0x 3.5x 3.5x Payable Amount USD USD EUR 396 mln 375 mln 1 bln 27
Slide 28: Asia from a financial perspective
Asia from a financial perspective 28
Slide 29: Vopak's footprint in Asia
Employees: 537 Vopak’s footprint in Asia Occupancy rate 1H 2007: 97% • Subsidaries – Singapore Revenues Asia FY06: EUR 121.4 mln • 4 terminals • Includes Lanshan (China) EBIT Asia FY06: – Australia EUR 74.9 mln • Sydney+Darwin – China Zhangjiagang – Vietnam • Joint Ventures – China 5 other locations
Slide 30: Tax rates in Asia
Tax rates in Asia: Singapore 18% China* 25% Japan 30% Korea 25% Pakistan 35% Vietnam 28% Thailand 30% Malaysia 28% Indonesia 30% Australia 30% * From January 1, 2008 30
Slide 31: Asia at a glance
Asia at a glance Revenues Asia 150 125 100 75 50 25 0 2003 2004 2005 2006 EBIT Asia 100 75 50 25 0 2003 2004 2005 2006 Occupancy rates Asia Storage capacity Asia 100% YTD 2007 98% 97% 2006 96% 96% 2005 95% 93% 2004 2003 2002 90% 2003 2004 2005 2006 1H 2007 0 1 2 3 4 5 2002 & 2003 are based on Dutch
Slide 32: Terminals in Asia
Terminals in Asia EBIT contribution: +/- 55% EBIT contribution: +/- 45% Industrial terminals Hub/import/export terminals YTD September 2007 EBIT Asia EUR 58.9M 32
Slide 33: Full focus on growth
Full focus on growth Zhangjiagang Terminal Banyan Terminal Darwin Terminal Artist impression of Vopak Jakarta Terminal 3.2M cbm 2007 2008 2009 All divisions 0.8M 1.5M 0.9M Of which Asia 0.5M 0.7M 0.7M 33
Slide 34: Outlook
Outlook | www.vopak.com 34
Slide 35: Outlook
Outlook 2007 • Vopak will add more than 3.2 million cbm in storage capacity worldwide during 2007, 2008 and 2009; Vopak expects total capital expenditure for 2007 of between EUR 420 and 460 million, including investments for maintenance, safety and the environment. • Barring unforeseen circumstances
Slide 36: Why outlook 2007 is not equal to 2 x 1H 07?
Why outlook 2007 is not equal to 2 x 1H 07? Tallin, Estonia: stagnation in the flow of products from Russia Negative US $ translation effect due to strong Euro Intensification of excellence and growth projects Divestments Timing indexation clause 36
Slide 37: Outlook Summary
Outlook Summary Guidance Outlook 5 year plan EUR (mln) FY 2005 FY 2006 FY 2007 (2011) Long-term EBITDA* 253.5 309.8 475-550 EBIT** 179.7 220.9 at least 20% higher CAPEX 160.3 232 420-460 ROCE 16.5% 19.4% Around 16% Bearing Bearingininmind mind substantial substantialinvestments investments iningreen
Slide 38: 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 renders logistics services, the company cannot guarantee the accura
Slide 39: Europe
Europe Middle East Wwww.vopak.com