Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — H1 2006 Earnings Presentation
36 slides from Royal Vopak Nv's earnings presentation, Sep 1, 2006
Slide 1: Professionals in liquid bulk logistics
Professionals in liquid bulk logistics www.vopak.com 1
Slide 2: Semi Annual Results 2006
Presentation Semi Annual Results 2006 September 1, 2006 John Paul Broeders (CEO) Jack de Kreij (CFO) 2
Slide 3: Today's agenda
Today’s agenda • Strategy and achievements • Business performance • Performance divisions • Outlook 3
Slide 4: Excellence and Growth
Excellence and Growth CULTURE AT VOPAK CULTURE AT VOPAK Tank Terminal Strategy CULTURE AT VOPAK Excellence Growth Human Resources Finance Operational Growth in ICT core activity Commercial Operational Key Account Mgt. Financial 4
Slide 5: Commercial and operational excellence
Commercial and operational excellence LTIR 6 5 4 3 2 1 0 02 03 04 05 1H 06 Income from rendering of services core activities In mln EUR 400 375 350 325 300 275 250 1H 2H 1H 2H 1H 2004 2005 2006 5
Slide 6: New projects completed in 2006
New projects completed in 2006 Banyan Caojing Vietnam 6
Slide 7: Projects under construction for future growth
Projects under construction for future growth Sydney Fujairah Sebarok Darwin London Zhangjiagang Europoort Banyan 7
Slide 8: Building for future growth
Building for future growth Amsterdam London Europoort Gävle Rotterdam Biodiesel LNG (R’dam) Zhangjiagang Antwerp Lanshan Fujairah Banyan Biodiesel Banyan Sebarok Darwin Biodiesel Sydney Announced investigation Construction 8
Slide 9: Singapore one of the growing areas
Singapore one of the growing areas 6 1 Penjuru 2 3 9 16 7 11 Banyan 13 10 15 14 5 12 4 10 Singapore’s 3rd party capacities 8 9 caverns excluded 8 X 1,000,000 cbm 7 6 5 4 3 2 1 0 2005 2006 2007 2008 2009 9
Slide 10: Jurong Island – potential for chemicals expansion
Jurong Island – potential for chemicals expansion Shell cracker ? announced 2nd cracker Banyan Current: 370,000 cbm 2007: 535,000 cbm Potential up to: 1,400,000 cbm 10
Slide 11: Vopak 2006 capacity additions
Vopak 2006: • Successful improvement steps on road to excellence • Further growth continues worldwide • Pipeline well-filled with potential and ongoing projects 24 X 1,000,000 cbm 23 ? ? 22 Addition 21 Capacity 20 19 2004 2005 2006 2007 2008 11
Slide 12: Today's agenda
Today’s agenda • Strategy and achievements • Business performance • Performance divisions • Outlook 12
Slide 13: Summary of market developments
Summary of market developments Oil: Chemicals: • Product differentiation • Increasing demand for storage • Intensification of geographical • Build-up of new petrochemical imbalance between demand and complexes in Asia and supply Middle East • Liberalisation of new markets LNG: Bio fuels: • More focu
Slide 14: 1H 2006: 28% EBIT increase
1H 2006: 28% EBIT increase EUR (mln) 1H 2006 1H 2005 ∆% Net Revenues 382.8 326.2 17.4 EBIT 103.3 80.8 27.8 Net Profit* 52.9 41.8 26.6 EPS 0.85 0.68 25.0 ROCE 18.6 15.9 * attributable to holders of ordinary shares All figures are including exceptional items 14
Slide 15: Significant increase of net revenues: 17%
Significant increase of net revenues: 17% 78.9 65.2 67.4 59.3 54.8 46.9 1H 2005 1H 2006 1H 2005 1H 2006 1H 2005 1H 2006 North America OEMEA Asia 145.9 127.6 31.2 23.6 5.9 2.3 1H 2005 1H 2006 1H 2005 1H 2006 1H 2005 1H 2006 Latin America CEMEA Other 15
Slide 16: 1H 2006: 25% EBIT increase excl. exceptionals
1H 2006: 25 % EBIT increase excl. exceptionals EUR (mln) 1H 2006 1H 2005 ∆% EBIT 106.8 85.1 25.5 Net Profit* 55.3 45.5 21.5 EPS 0.89 0.74 20.3 * attributable to holders of ordinary shares All figures are excluding exceptional items 16
Slide 17: 1H 2006: 21.7 mln increase in EBIT
1H 2006: 21.7 mln increase in EBIT* 36.9 31.7 27.8 28.6 12.1 9.4 1H 2005 1H 2006 1H 2005 1H 2006 1H 2005 1H 2006 North America OEMEA Asia 27.4 Other 20.9 1H 2005 1H 2006 10.4 7.5 -9.1 -11.7 1H 2005 1H 2006 1H 2005 1H 2006 Latin America CEMEA *EBIT excluding exceptional items 17
Slide 18: EBIT composition
1H 2006: 25% growth in EPS EUR (min) 1H 2006 1H 2005 ∆% EBIT 103.3 80.8 27.8 Finance charges -23.2 -16.9 37.3 Tax -19.0 -14.3 32.9 Minority interests -7.0 -6.3 11.1 Net profit* 52.9 41.8 26.6 EPS 0.85 0.68 25.0 120 EBIT composition 100 27.8% In EUR millions 80 Finance charges 60 Tax 25.0% 40 Minorit
Slide 19: Strategic Finance: Sufficient flexibility
Strategic Finance: Sufficient flexibility Net debt : EBITDA ratio 1H 2006 1.82 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 till June 30, 2007 from then onwards 2.75 Maximum Ratio under other loans and syndicated revolving credit facility * Based on D
Slide 20: Strategic Finance: solid equity position
Strategic Finance: solid equity position Restructuring preference shares:-50.3 IFRS adjustment:-44.7 Shareholders’ equity Net Debt 800 700 600 500 400 532 300 785 496 619 521 509 500 472 604 608 200 2002* 2003* 2004 2005 1H 2006 * Based on Dutch GAAP 20
Slide 21: Cash flow
Cash flow Excluding pension contribution EUR (mln) 1H 2006 1H 2006 1H 2005 Net CF from operations 43.8 93.8 65.2 Cash flow from divestments 31.5 11.5 9.2 Cash flow from financing -12.7 -12.7 -3.3 Total cash available 62.6 92.6 71.2 Investments -109.5 -109.5 -81.9 Dividends* -40.5 -40.5 -9.9 Net Cash
Slide 22: Building for future growth
Building for future growth Amsterdam London Europoort Gävle Rotterdam Biodiesel LNG (R’dam) Zhangjiagang Antwerp Lanshan Fujairah Banyan Biodiesel Banyan Sebarok Darwin Biodiesel Sydney Announced investigation Construction 22
Slide 23: Indication of capacity in 2006 - 2007
Indication of capacity in 2006 - 2007 x1,000 cbm Lanshan 22,500 London Sydney Banyan Zhangjiagang Sebarok 21,500 Fujairah Vietnam Europoort Darwin Westwego Coajing Banyan 20,500 2006 2007 23
Slide 24: CAPEX 2002 - 2006
CAPEX 2002 - 2006 (In)Tangible fixed assets Outlook ±250 160.3 124.9 97.0 106.5 2002* 2003* 2004 2005 2006 * Dutch GAAP 24
Slide 25: Today's agenda
Today’s agenda • Strategy and achievements • Business performance • Performance divisions • Outlook 25
Slide 26: Division: Chemicals EMEA
Division: Chemicals EMEA “Considerable improvement in results” EBIT* (mln) 16 14 12 10 2005 8 2006 6 4 10.2 13.1 10.7 14.3 12.9 10.8 2 0 Q1 Q2 Q3 Q4 * Excluding exceptional items 26
Slide 27: Division: Oil EMEA
Division: Oil EMEA “Actively addressing the oil market imbalance” EBIT* (mln) 18 16 14 12 10 2005 8 2006 6 13.4 16.3 14.3 15.4 15.7 14.2 4 2 0 Q1 Q2 Q3 Q4 * Excluding exceptional items 27
Slide 28: Division: Asia
Division: Asia “Expansion continues in major growth region” EBIT* (mln) 25 20 15 2005 2006 10 5 13.8 16.9 14.9 20.0 14.4 16.8 0 Q1 Q2 Q3 Q4 * Excluding exceptional items 28
Slide 29: Division: North America
Division: North America “Actively addressing rising demand” EBIT* (mln) 8 7 6 5 2005 4 2006 3 2 4.5 6.7 4.9 5.4 5.4 1 5.8 0 Q1 Q2 Q3 Q4 * Excluding exceptional items 29
Slide 30: Division: Latin America
Division: Latin America “Phased network expansion” EBIT * (mln) 6 5 4 2005 3 2006 2 4.0 5.4 3.5 5.0 3.8 5.0 1 0 Q1 Q2 Q3 Q4 * Excluding exceptional items 30
Slide 31: Today's agenda
Today’s agenda • Strategy and achievements • Business performance • Performance divisions • Outlook 31
Slide 32: Outlook EBIT 2006
Outlook EBIT* 2006 2006 (April 27, 2006) Barring unforeseen circumstances, Vopak expects to achieve a group operating profit of around EUR 200 million excluding exceptional items for the whole of 2006 (2005: EUR 179.7 million). Excluded from this outlook are the financial and reporting impacts of th
Slide 33: Outlook summary
Outlook summary 2005 1H 2006 2006 and beyond EBITDA (mln) 253.5 149.0 Growth to 275-350 EBIT* (mln) 179.7 106.8 Group operating profit excluding exceptional items for the second half of 2006 to be comparable to that for the first half. EPS 1.46 0.85 an improvement of around 10% per annum on average
Slide 34: 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 35: Overview current announced major projects (1)
Enclosure Overview current announced major projects (1) cbm 2006 2007 ≥ 2008 Group companies “investments in progress” Banyan 69.5% 370,000 Zhangjiagang 100% 185,000 Sydney 100% 75,000 Europoort 100% 440,000 Sebarok 69.5% 216,000 Banyan 69.5% 165,000 London 100% 45,000 Darwin 100% 36,500 Lanshan 60%
Slide 36: Overview current announced major projects (2)
Enclosure Overview current announced major projects (2) cbm 2006 2007 ≥ 2008 Group companies “plans under review” Antwerp 100% 100,000 Amsterdam 100% 720,000 Subtotal 820,000 820,000 Joint ventures and associates “investments in progress” Caojing 50% 187,600 Fujairah 30% 360,000 Subtotal 546,700 187