Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Non-Deal Roadshow (2008)
72 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 Achievements 1H08 Business Performance 1H08 Outlook – – – Roadshow Presentation 2008 2008 3
Slide 4: Vopak transformation process
Vopak transformation process _ Growth, Customer, Cost Leadership New strategy “Vopak in 5 years has transformed from being a non-focused slow growth industrial conglomerate into a pure – well focused – high growth tank terminal operator.” Analyst 1999: Merger Vopak (Pakhoed & Van Ommeren) – – – Road
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 _ Logistic hub Import / Export Industrial Incoming Logistics Chemicals Raw Materials Outgoing Logistics Textile Plastics Electronics Downstream Chemicals Key link for incoming Storage of products Complete integration and outgoing flows of that are exported or with t
Slide 7: Logistic hub terminal
Logistic hub terminal _ Where large flows of products merge Houston, Rotterdam / Antwerp, Singapore and Fujairah – – – Roadshow Presentation 2008 2008 7
Slide 8: Import / Export terminal
Import / Export terminal _ Break or make bulk Import terminal Local distribution Export terminal Ningbo Alemoa – – – 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: World gross trade in major oil products has risen strongly
World gross trade in major oil products has risen strongly over the last years _ CAGR=5.1% 1000 CAGR=2.9% CAGR=0.5% Million tonnes 750 500 250 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 LP G N aphtha G a s o lin e Je t / k e ro G a s / d i
Slide 12: World trade in major liquid petrochemicals has risen strongly
World trade in major liquid petrochemicals has risen strongly over the last years _ Increasing demand for storage Robust growth in developing markets Build-up of new petrochemical complexes in Asia and the Middle East W o rld Tra d e in M a jo r L iq u id P e tro c h e m ic a ls T h o u sa n d M etr
Slide 13: Growth in biofuels will continue to grow
Growth in biofuels will continue to grow _ Government requirements Increased producers’ interest in biofuels due to subsidies and incentives – – – Roadshow Presentation 2008 2008 13
Slide 14: LNG demand worldwide will continue to grow
LNG demand worldwide will continue to grow… _ More focus on LNG solutions as energy source – – – Roadshow Presentation 2008 2008 14
Slide 15: 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 •
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
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 10.4 mln 26.4 mln CBM Vopak Market Share: As % of total market 10 %
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%
Slide 19: Worldwide competition: Top 20
Worldwide competition: Top 20 _ Vopak NuStar Oiltanking Kinder Morgan C.L.H. IMTT Vitol CIM S.N.C. SUMED Sunoco Horizon Transmontaigne Magellan Sinochem Odfjell EAPC Dalian Port LBC Universal Scandinavian Tank Storage 0 5 10 15 20 25 30 *Source: Company websites; including: inland capacity, Joint Ve
Slide 20: Agenda
Agenda _ Introduction Strategy Achievements 1H08 Business Performance 1H08 Outlook – – – Roadshow Presentation 2008 2008 20
Slide 21: Executing and embedding the strategy
Executing and embedding the strategy _ EXCELLENT EXCELLENT CUSTOMER MAXIMUM MAXIMUM OPERATIONAL ACCELERATED ACCELERATED COMPANY CUSTOMER OPERATIONAL COMPANY SERVICE SERVICE EFFICIENCY EFFICIENCY GROWTH GROWTH •• KAM KAM •• Operational Operational •• Growth Growth •• Customer Customer Metrics Metrics
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 For
Slide 23: The world of Vopak
The world of Vopak London LNG Eemshaven Teesside _ Amsterdam Europoort Gothenburg Zhangijagang This slide is meant for showing a picture in Tallinn Korea R’dam biodiesel LNG Rostock Japan your presentation and can randomly be placed Bahamas LNG Rotterdam Pakistan Spain in your presentation. Houston
Slide 24: Many projects in the pipeline
Many projects in the pipeline _ Potential Projects Announced opportunities under study projects – – – Roadshow Presentation 2008 2008 24
Slide 25: Agenda
Agenda _ Introduction Strategy Achievements 1H08 Business Performance 1H08 Outlook – – – Roadshow Presentation 2008 2008 25
Slide 26: 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 26
Slide 27: Ongoing improvement in financial performance
Ongoing improvement in financial performance _ Net Revenues 500 400 300 200 100 0 1H 2H 1H 2H 1H 2H 1H 2H 1H 2004 2005 2006 2007 2008 EBIT excl. exceptionals 160 EPS excl. exceptionals 150 2 140 130 1,5 1H 07 1H08 1 1H 07 1H08 – – – Roadshow Presentation 2008 2008 27
Slide 28: Growth continues
Growth continues Occupancy rates 100% 75% _ 50% 25% 0% 2004 2005 2006 2007 1H 2008 Capacity (in mln cbm) ? 27 25 23 21 19 17 15 2005 2006 2007 2008 Existing capacity New capacity – – – Roadshow Presentation 2008 2008 28
Slide 29: Step into the LNG terminal business - Operational in 2011
Step into the LNG terminal business - Operational in 2011 _ The launching customers: – – – Roadshow Presentation 2008 2008 29
Slide 30: Vopak Terminal Bahamas
Vopak Terminal Bahamas _ – – – Roadshow Presentation 2008 2008 30
Slide 31: Vopak Terminal Linkeroever
Vopak Terminal Linkeroever _ – – – Roadshow Presentation 2008 2008 31
Slide 32: Agenda
Agenda _ Introduction Strategy Achievements 1H08 Business Performance 1H08 Outlook – – – Roadshow Presentation 2008 2008 32
Slide 33: 1H08 EBIT excl. exceptional items: up 12% to EUR 156.8 mln
1H08 EBIT excl. exceptional items: up 12% to EUR 156.8 mln _ Net Revenues EBIT Net Profit* EPS in mln EUR in mln EUR in mln EUR in EUR 453.9 156.8 1.32 1.59 423.7 139.4 82.3 98.9 + + + + 7% 12% 20% 20% 1H 07 1H 08 1H 07 1H 08 1H 07 1H 08 1H 07 1H 08 – – – All figures are excluding 2008 33 exceptiona
Slide 34: Pro forma EBIT 1H 08 vs 1H07: increased by 20%
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 34
Slide 35: 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 35
Slide 36: EBIT(DA) margins excl. exceptionals
EBIT(DA) margins excl. exceptionals _ – – – Roadshow Presentation 2008 2008 36
Slide 37: Net Financing Costs
Net Financing Costs _ In EUR millions 1H07 1H08 Interest and dividend income 3.2 3.2 Financing costs -24.2 -22.6 Net financing costs -21.0 -19.4 Effective Access to Financing Sources May 2007 July/Aug 2007 Aug / Sep 2007 July 2008 USPP 2007: RCF: VTS: Gate: New Notes for Increase to EUR 1B Increase
Slide 38: Effective tax rate 1H 2008
Effective tax rate 1H 2008 _ Effective Tax Rate € In EUR millions 1H08 1H08 % 1H07 % Tax -31.4 21.3% 21.5% – – – Roadshow Presentation 2008 2008 38
Slide 39: 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 40: Business Performance per Division
_ Business Performance per Division – – – Roadshow Presentation 2008 2008 40
Slide 41: Strong demand for storage capacity
Strong demand for storage capacity _ Occupancy rate 2004 2005 2006 2007 1H 2008 85% 92% 94% 96% 95% Capacity (in cbm) 20,191,481 20,441,000 21,224,300 21,834,200 26,396,221 – – – Roadshow Presentation 2008 2008 41
Slide 42: Growth continues - increase by more than 7M cbm (2008-2011)
Growth continues - increase by more than 7M cbm (2008-2011) _ Total 2007 Capacity 21.8M cbm Total net capacity increase in 1H 2008 4.6M cbm Total 1H 2008 Capacity 26.4M cbm Remaining 2008 till 2011 (incl. LNG) 2.7M cbm Total >28.0M cbm – – – Roadshow Presentation 2008 2008 42
Slide 43: Net Revenues 1H08: increase by 7%
Net Revenues 1H08: increase by 7% _ OEMEA 126.0 Asia 102.2 North America 67.1 77.6 66.0 56.0 23.3% 15.6% 1H 07 1H 08 1H 07 1H 08 15.2% 1H 07 1H 08 CEMEA Latin America 159.5 154.9 31.3 33.4 6.7% 1H 07 1H 08 3% 1H 07 1H 08 – – – Roadshow Presentation 2008 2008 43
Slide 44: EBIT excl. exceptional items 1H08: increase by 12%
EBIT excl. exceptional items 1H08: increase by 12% _ OEMEA Asia 51.1 43.8 46.3 39.0 North America 15.5 16.8 16.7% 18.7% 1H 07 1H 08 1H 07 1H 08 8.4% 1H 07 1H 08 CEMEA 42.5 44.8 Latin America 10.5 10.4 Other 1% 1H 07 1H 08 5.4% 1H 07 1H 08 1H 07 1H 08 5% -12.0 -12.6 – – – Roadshow Presentation 2008 2
Slide 45: Division: Chemicals EMEA
Division: Chemicals EMEA “Sound results taking into account divestments” _ 30 23,1 22,2 21,7 25 21,8 21,8 20,3 20 2007 15 2008 10 5 14% 2% 0 Q1 Q2 Q3 Q4 – – – Roadshow Presentation 2008 2008 45
Slide 46: Division: Oil EMEA
Division: Oil EMEA “Effective response to market demand” _ 30 26,0 25,1 21,9 21,9 25 20,0 19,1 20 2007 15 2008 10 5 19% 15% 0 Q1 Q2 Q3 Q4 – – – Roadshow Presentation 2008 2008 46
Slide 47: Division: Asia
Division: Asia “Maintaining growth with continuing _ good results” 30 23,4 22,9 25 19,8 19,9 19,9 19,2 20 2007 15 2008 10 5 22% 16% 0 Q1 Q2 Q3 Q4 – – – Roadshow Presentation 2008 2008 47
Slide 48: Division: North America
Division: North America “Focus on improving results is bearing fruit” _ 30 25 20 2007 15 9,3 2008 7,5 8,3 7,7 7,9 10 7,2 5 4% 12% 0 Q1 Q2 Q3 Q4 – – – Roadshow Presentation 2008 2008 48
Slide 49: Division: Latin America
Division: Latin America “Continuing steady performance affected by negative FX differences” _ 30 25 20 2007 15 2008 10 5,1 5,3 5,4 5,1 5,5 5,1 5 4% 6% 0 Q1 Q2 Q3 Q4 – – – Roadshow Presentation 2008 2008 49
Slide 50: Sources and Uses of Cash
_ Sources and Uses of Cash – – – Roadshow Presentation 2008 2008 50
Slide 51: 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 Fin
Slide 52: Total investments
Total investments ? _ 1H 2008: 375 446 268 188 146 151 2003* 2004 2005 2006 2007 2008 – – – Roadshow Presentation 2008 2008 52
Slide 53: Projects completed in YTD 2008
Projects completed in YTD 2008 Additional CBM _ Location Ownership Type Product Consolidated Joint venture 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 Vo
Slide 54: Gate terminal
Gate terminal _ Q4 2007 Q3 2008 ? Tanks 3 3 4 Jetties 1 2 2 Throughput 9 bcm 12 bcm 16 bcm Clients 3 4 ? – – – Roadshow Presentation 2008 2008 54
Slide 55: Expansion in progress Banyan Terminal (Singapore)
Expansion in progress Banyan Terminal (Singapore) _ 371,800 cbm 165,000 cbm 320,000 cbm 397,500 cbm 1.25 M 2006 – 2007 2008 – 2009 – Roadshow Presentation 2008 2008 55
Slide 56: Expansion in progress Vopak Jakarta Terminal (Indonesia)
Expansion in progress Vopak Jakarta Terminal (Indonesia) _ Jetty Undersea pipelines Tankfarm Division: Asia Start of operations: 2009 Capacity: 250,000 cbm Product focus: oil ‘Artist impression of Vopak Jakarta Terminal’ – – – Roadshow Presentation 2008 2008 56
Slide 57: Strategic Financing
_ Strategic Financing – – – Roadshow Presentation 2008 2008 57
Slide 58: Investing in growth
Investing in growth _ Group companies and Around joint ventures € 400M € 1.7B Total investments 2008-2011 Remaining Vopak share 2008-2011 Approved & Under Construction Projects Approved & Under Construction Projects Yearly Sustaining Capex +/- € 100M – – – Roadshow Presentation 2008 2008 58
Slide 59: Strategic finance
Strategic finance Net debt : EBITDA ratio _ 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 * Based on Dutch GAAP Maximum Ratio under US PP Maximum Ratio under other loans and syndicated revolving credit facility – – – Roadshow Presentation 2008 2
Slide 60: 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 61: Financial Reporting Implications
_ Financial Reporting Implications – – – Roadshow Presentation 2008 2008 61
Slide 62: Gate terminal - financial implications
Gate terminal – financial implications _ Equity: 40% Capacity: 0.5M cbm Project Phase Operations 2007-2011 beyond 2011 Joint ventures Joint Jointventures ventures Balance Sheet and associates and associates and associates Result of jv based Profit & Loss Only pre-OPEX on equity method Equity Dividen
Slide 63: 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 Presen
Slide 64: Vopak E.O.S. financial implications
Vopak E.O.S. financial impliations _ Before Pakterminal transaction date E.O.S. Vopak E.O.S. (50%) (100%) (50%) Joint ventures Joint ventures Balance Sheet 100% consolidated and associates and associates Result of jv Result of jv Profit & Loss 100% consolidated (equity method) (equity method) Acquis
Slide 65: Vopak Terminal Bahamas
Vopak Terminal Bahamas _ Agreement Acquisition First Capacity: Possible between First BORCO, Reserve 80%, 3M cbm expansion up Reserve and April 2008 Vopak 20% to 5M cbm Vopak 2008 – – – Roadshow Presentation 2008 2008 65
Slide 66: Vopak Terminal Bahamas financial implications
Vopak Terminal Bahamas financial implications _ Equity: 20% Capacity: 3M cbm Joint ventures Balance Sheet and associates Result of jv Profit & Loss (equity method) + Management fee Acquisition price Cash Flow Dividend – – – Roadshow Presentation 2008 2008 66
Slide 67: Events After the Balance Sheet Date
_ Events After the Balance Sheet Date – – – Roadshow Presentation 2008 2008 67
Slide 68: Events after the balance sheet date
Events after the balance sheet date _ 20 July Financing agreement Gate terminal BV 30 July Vopak increases shareholding in joint venture Vopak E.O.S. to 50% 1 August Nippon Vopak acquires 2 terminals in Japan 5 August Gate terminal signs agreement with E.ON Ruhrgas AG – – – Roadshow Presentation 200
Slide 69: Agenda
Agenda _ Introduction Strategy Achievements 1H08 Business Performance 1H08 Outlook – – – Roadshow Presentation 2008 2008 69
Slide 70: Outlook 1H 2008
Outlook 1H 2008 Guidance _ Outlook 5 year plan EUR (mln) FY 2006 FY 2007 FY 2008 (2011) Long-term EBITDA* 314.1 369.6 475-550 Updated to EBIT** 220.9 272.9 a minimum 2009 / 2010 increase of 10% ROCE 19.4% 25.1% Around 16% Bearing Bearingininmind mind * EBITDA includes joint ventures & associates res
Slide 71: 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 31 countries in which Vopak renders logistics services, the company cannot guarantee the accu
Slide 72: www.vopak.com
_ – – – – www.vopak.com Roadshow Presentation 2008 2008 72