Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Investor Day (December 2014)
24 slides from Royal Vopak Nv's investor day presentation, December 2014
Slide 1: Hubs at the Center
DECEMBER 2014 CAPITAL MARKETS DAY HUBS AT THE CENTER
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: Hub Dynamics
HUB DYNAMICS Pengerang, Malaysia
Slide 4: Hubs are the backbone for liquid trade
HUB DEMAND NETWORK QUESTIONS AND DYNAMICS DRIVERS ALIGNMENT ANSWERS HUBS ARE THE BACKBONE FOR LIQUID TRADE AROUND 1/3 OF THIRD-PARTY OIL STORAGE LOCATED IN GLOBAL OIL HUBS ARA 9% US Gulf Coast 11% Strait of Hormuz 3% Singapore Strait 6% % Oil storage capacity of Total independent oil storage capacit
Slide 5: What is a hub?
HUB DEMAND NETWORK QUESTIONS AND DYNAMICS DRIVERS ALIGNMENT ANSWERS WHAT IS A HUB? RESILIENT FUNDAMENTALS FOR HUBS SERVING A PHYSICAL MARKET Strategic Location Refining Centers Trading Liquidity Storage and Blending capabilities Pricing Center Shipping Connections Intra & inter Changing product Regi
Slide 6: Vopak well established at hub locations
HUB DEMAND NETWORK QUESTIONS AND DYNAMICS DRIVERS ALIGNMENT ANSWERS VOPAK WELL ESTABLISHED AT HUB LOCATIONS 24 TERMINALS IN DIFFERENT PRODUCT MARKETS WITH 19 MILLION CBM ARA region Strait of Hormuz All product groups Oil products 13 terminals 1 terminal 11 million cbm 2.1 million cbm Singapore Strai
Slide 7: Demand Drivers
DEMAND DRIVERS Deer Park, Houston
Slide 8: Fundamentals continue growth path
HUB DEMAND NETWORK QUESTIONS AND DYNAMICS DRIVERS ALIGNMENT ANSWERS FUNDAMENTALS CONTINUE GROWTH PATH MORE GLOBAL AND REGIONAL FLOWS NEEDED DUE TO IMBALANCES Feedstock Refinery supply Demand Trade flows & Conversion Growth in production Restructuring and Non OECD continues Distance between i
Slide 9: Growth in hub storage capacity
HUB DEMAND NETWORK QUESTIONS AND DYNAMICS DRIVERS ALIGNMENT ANSWERS GROWTH IN HUB STORAGE CAPACITY NEW EXPANSIONS HAVE MADE THE MARKETPLACE MORE COMPETITIVE 30% 30% 75% 30% Globalizing oil trade and distribution main driver behind customer need for storage Independent tank storage market growth 2011
Slide 10: Crude oil markets: six key elements
HUB DEMAND NETWORK QUESTIONS AND DYNAMICS DRIVERS ALIGNMENT ANSWERS CRUDE OIL MARKETS: SIX KEY ELEMENTS 1 Light tight oil 2 OPEC production 3 Demand in asia The shale revolution in the US has Growth in OPEC production is Demand in non-OECD has increased the production of light concentrated in Iraq w
Slide 11: Fuel oil markets: six key elements
HUB DEMAND NETWORK QUESTIONS AND DYNAMICS DRIVERS ALIGNMENT ANSWERS FUEL OIL MARKETS: SIX KEY ELEMENTS 1 Bunker demand 2 Inland demand 3 Production Solid fuel oil bunker market with Growth in the Middle East Refinery upgrades in the FSU growth in asia and the impact of whereas global demand and clos
Slide 12: CPP markets: six key elements
HUB DEMAND NETWORK QUESTIONS AND DYNAMICS DRIVERS ALIGNMENT ANSWERS CPP MARKETS: SIX KEY ELEMENTS Rapid growth Refinery landscape Demand growth 1 Tight oil 2 3 Tight oil revolution in North 2015 -2020 next wave of closures: Economic and population growth America: USGC is expected to take upgrades an
Slide 13: Imbalances continue to develop
HUB DEMAND NETWORK QUESTIONS AND DYNAMICS DRIVERS ALIGNMENT ANSWERS IMBALANCES CONTINUE TO DEVELOP INCREASING TRADE EXPECTED TO CONTINUE 2014 2020 2014 2020 2014 2020 2014 2020 2014 2020 Refined petroleum accumulated deficits 2014 2020 2014 2020 Refined petroleum accumulated surpluses Source: Wood M
Slide 14: Chemicals: six key elements
HUB DEMAND NETWORK QUESTIONS AND DYNAMICS DRIVERS ALIGNMENT ANSWERS CHEMICALS: SIX KEY ELEMENTS Growth in demand for Increased NGL / shale gas Drive for downstream 1 chemicals 2 in us 3 specialties in Middle East Significant development in US on Job creation, and value add Chemicals / plastic consum
Slide 15: Imbalances continue to develop
HUB DEMAND NETWORK QUESTIONS AND DYNAMICS DRIVERS ALIGNMENT ANSWERS IMBALANCES CONTINUE TO DEVELOP US AND MIDDLE EAST EXPORT; ASIA AND EUROPE IMPORT Source: ATEC / ICIS database and Vopak intelligence 15 CMD 2014
Slide 16: Gases: six key elements
HUB DEMAND NETWORK QUESTIONS AND DYNAMICS DRIVERS ALIGNMENT ANSWERS GASES: SIX KEY ELEMENTS 1 Supply driven 2 Shale gas boom US 3 Less flaring LPG is a byproduct of oil & gas The shale development turns the Kyoto protocol demand less winning, it is a supply driven US from importer to largest flaring
Slide 17: Imbalances in gases continue to develop
HUB DEMAND NETWORK QUESTIONS AND DYNAMICS DRIVERS ALIGNMENT ANSWERS IMBALANCES IN GASES CONTINUE TO DEVELOP MIDDLE EAST AND US MAIN CONTRIBUTOR TO DEVELOPMENTS 2012 global net international trade ~66 mtpa 2020 global net international trade ~97 mtpa Net inter-regional ~42 mtpa Net inter-regional ~71
Slide 18: Network Alignment
NETWORK ALIGNMENT Fujairah, UAE
Slide 19: Changing customer portfolio at hubs
HUB DEMAND NETWORK QUESTIONS AND DYNAMICS DRIVERS ALIGNMENT ANSWERS CHANGING CUSTOMER PORTFOLIO AT HUBS CONSOLIDATION IN MARKET PLAYERS Impact of legal changes (Dodd-Frank Act, European Basel III/CRD IV and MIFID II) Increased transparency of oil and commodity trade (technological developments and g
Slide 20: Flexibility and service improvements
HUB DEMAND NETWORK QUESTIONS AND DYNAMICS DRIVERS ALIGNMENT ANSWERS FLEXIBILITY AND SERVICE IMPROVEMENTS COMPETITIVE EDGE AND LONG-TERM VALUE CREATION Changing customer demand 1 (Safety, pump speeds, demurrage reduction, blending systems, stock control) 2 Changing environmental requirements (Safety
Slide 21: Enhancing market leadership
HUB DEMAND NETWORK QUESTIONS AND DYNAMICS DRIVERS ALIGNMENT ANSWERS ENHANCING MARKET LEADERSHIP EXPANSION AND IMPROVEMENT AT HUB LOCATIONS (2012-2014) Ara region Fujairah Midex expansion Phase 6 Westpoort phase 2/3 Phase 7 Westpoort service improvement OTB pipeline connections Vlissingen presto Euro
Slide 22: Summary
HUB DEMAND NETWORK QUESTIONS AND DYNAMICS DRIVERS ALIGNMENT ANSWERS SUMMARY All hub locations will maintain their importance • Combination of several demand drivers • Growing imbalances and changing flows • Impact US and Middle East developments significant Vopak analyzes and acts upon market develo
Slide 23: Questions and Answers
QUESTIONS AND ANSWERS Europoort, Netherlands
Slide 24: We have built our company over 400 years on trust and reliability
We have built our company over 400 years on trust and reliability Royal Vopak I Westerlaan 10 I 3016 CK Rotterdam I The Netherlands I Tel: +31 10 400 2911 I Fax: +31 10 413 9829 I www.vopak.com