Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — FY2012 Earnings Presentation
61 slides from Royal Vopak Nv's earnings presentation, Mar 1, 2013
Slide 1: Annual Results 2012 – Analyst presentation
Annual Results 2012 – Analyst presentation 1 March 2013
Slide 2: Forward-looking statement
Forward-looking statement This document 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 accuracy a
Slide 3: Ambition: EBITDA of EUR 1 billion in 2016
It is Vopak’s ambition to realize an EBITDA of EUR 1 billion in 2016 Focused strategy and Long-term trends Aligned organization disciplined execution 3 Annual Results 2012 1 March 2013
Slide 4: Topics 2012
Topics 2012 Capacity Economic turmoil Iraq and tight oil Renewables Regulation expansion 4 Annual Results 2012 1 March 2013
Slide 5: Questions arising on the business
Questions arising on the business US oil and gas LNG as Shale gas in European refining Biofuel Energy role of export scenarios transport fuel China & petrochemical scenarios Africa 5 Annual Results 2012 1 March 2013
Slide 6: Contents
Contents Achievements 2012 Business environment Growth projects Business performance Capital disciplined growth Outlook 6 Annual Results 2012 1 March 2013
Slide 7: Robust results in 2012
Robust results in 2012 Storage capacity Occupancy rate EBITDA* Storage capacity The occupancy rate EBITDA increased 20% increased 8% to was 91% to EUR 763.6 million 29.9 million cbm Vopak achieved its 2013 outlook of EUR 725-800 million EBITDA already in 2012 * Excluding exceptional items; i
Slide 8: Sustainability
Sustainability The core of every decision Environmental Excellent people Safety and Health Environmental Partner care Responsible partner Have the best people Provide a healthy Be energy and water Be a responsible and create an agile and safe workplace efficient and reduce partner for our and soluti
Slide 9: Sustainability
Sustainability We improved our process and own employee safety results The lost time injury rate (LTIR) Total Injury Rate Total injuries leading to lost time per million hours worked Total injuries per million hours worked by own employees by own employees and contractors -36% -30% 1.9 1.4 1.7 1.4 7
Slide 10: Vopak's strategy
Vopak’s strategy Disciplined execution existing business and new projects Growth Leadership Operational Excellence Customer Leadership Our ability to find or Our ability to construct, Our ability to create a identify the right location operate and maintain sustainable relationship for our terminals
Slide 11: Contents
Contents Achievements 2012 Business environment Growth projects Business performance Capital disciplined growth Outlook 11 Annual Results 2012 1 March 2013
Slide 12: Energy and chemical product trends drive Vopak's worldwide growth projects
Energy and chemical product trends Drive Vopak’s worldwide growth projects Oil products LNG Chemical products Biofuels & Vegoils • Non-OECD oil • A globalizing natural • Uncertainty in • Biofuel flows between demand will gas market with new Europe US-Brazil-Europe-Asia overtake OECD business models
Slide 13: Contents
Contents Achievements 2012 Business environment Growth projects Business performance Capital disciplined growth Outlook 13 Annual Results 2012 1 March 2013
Slide 14: Capacity growth under construction
Capacity growth under construction Capacity developments In mln cbm +5.2 35.1 0.5 3.5 +2.1 29.9 1.2 0.8 0.1 27.8 1.2 31-12- Expansions* New Acquisition 31-12- Expansions New Acquisition 31-12- 2011 terminals 2012 terminals 2015 * Including net change at various terminals (including decommissioning).
Slide 15: Projects commissioned in 2012
Projects commissioned in 2012 Storage capacity increased by 2.1 million cbm A’dam Westpoort 2 (100%) Gothenburg (100%) Tianjin Lingang (50%) 582,000 cbm; oil products 60,000 cbm; oil products 95,300 cbm; chemicals Eemshaven (50%) Fujairah (33.3%) Zhangjiagang (100%) Commissioned 660,000 cbm; oil pro
Slide 16: Various projects under construction
Various projects under construction Total storage capacity under construction 5.2 million cbm Europoort (100%) Thames Oilport (33.3%) Hainan (49%) 400,000 cbm; oil products 500,000 cbm; oil products 1,350,000 cbm; oil products Algeciras (80%) Jubail (25%) Pengerang (44%) 403,000 cbm; oil products 25
Slide 17: It is Vopak's ambition to realize an EBITDA of EUR 1 billion in 2016
It is Vopak’s ambition to realize an EBITDA of EUR 1 billion in 2016 The year of 400 years of entrepreneurship
Slide 18: Contents
Contents Achievements 2012 Business environment Growth projects Business performance Capital disciplined growth Outlook 18 Annual Results 2012 1 March 2013
Slide 19: Robust results in 2012
Robust results in 2012 Achieved 2013 EBITDA outlook of EUR 725-800 million in 2012 Storage capacity Occupancy rate In mln cbm In percent +2.1 90-95% 94.0 96.0 95.0 94.0 93.0 93.0 91.0 27.1 28.3 28.8 27.8 29.9 21.2 21.8 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 EBITDA Deve
Slide 20: 2012 Financial overview
2012 Financial overview 20% EBITDA growth 19% EBIT growth 25% EPS growth Proposed cash dividend of EUR 0.88 per share (+10%) Solid funding of growth strategy secured Note: Excluding exceptional items; including net result from Joint Ventures. 20 Annual Results 2012 1 March 2013
Slide 21: Healthy occupancy rates and EBIT margins
Healthy occupancy rates and EBIT margins Expansion projects main value driver for further EBITDA growth Past Near Past Present Future 2003-06 2007-09 2010-2011 2012 2013 2014 > Occupancy improvements Playing field between 90 - 95% Operational efficiency gains Capacity expansion 21 Annual Results 201
Slide 22: Healthy occupancy rates between 90-95%
Healthy occupancy rates between 90-95% Occupancy rate In percent 90-95% 96 96 95 94 95 95 95 92 94 93 93 93 93 92 92 92 93 93 94 93 90 91 90 84 ’04 ’05 ’06 ’07 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 2011 2012 22 Annual Results 2012 1 March 2013
Slide 23: Vopak is well positioned to maintain healthy EBIT(DA) margins
Vopak is well positioned to maintain healthy EBIT(DA) margins EBIT(DA) Margin* In percent 50 EBITDA Margin 40 30 EBIT Margin 20 10 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Continued focus on logistic efficiency improvements for our clients has led to increased EBIT(DA) margins * Excluding exce
Slide 24: Strategic alliances support Vopak's growth strategy
Strategic alliances support Vopak’s growth strategy Subsidiaries Storage capacity Joint Ventures In mln cbm +5.2 +2.1 34.7 35.1 +7.6 31.3 28.8 29.9 27.1 28.3 27.8 13.2 13.5 9.6 10.4 20.4 21.2 21.8 10.2 10.5 8.1 20.2 9.6 4.9 5.4 5.1 5.1 19.7 20.3 20.9 21.5 21.6 15.5 15.8 16.7 17.5 18.1 18.3 15.1 2004
Slide 25: Duration of over 80% of contract portfolio exceeds 1 year
Duration of over 80% of contract portfolio exceeds 1 year period Contract position 2011 Contract position 2012 In percent of revenues In percent of revenues < 1 year < 1 year > 3 year 19% > 3 year 18% 44% 52% 30% 37% 1-3 year 1-3 year Note: Based on original contract duration. 25 Annual Results 2012
Slide 26: Solid financial performance
Solid financial performance Revenues EBIT* In million EUR In million EUR 1,313.9 469.4 560.9 1,171.9 +12% +19% 2011 2012 2011 2012 Net Profit** Earnings per share** In EUR million In EUR 343.6 2.70 275.4 +25% 2.16 +25% 2011 2012 2011 2012 * Including net result from Joint Ventures. ** Attributable t
Slide 27: All regions contribute to the 12% revenue increase
All regions contribute to the 12% revenue increase North America Netherlands Asia +14% 457.6 +15% +15% 400.8 Revenues 355.4 308.7 137.7 158.4 +12% 1,313.9 1,171.9 2011 2012 2011 2012 2011 2012 Latin America EMEA 2011 2012 +4% +8% 226.6 235.9 93.6 100.9 2011 2012 2011 2012 Note: Revenues in EUR milli
Slide 28: EBIT excluding exceptional items increased by 19%
EBIT excluding exceptional items increased by 19% to EUR 560.9 million 2011 2012 Delta In EUR mln In EUR mln In percent Operating profit 365.1 438.8 20% Net result Joint Ventures 220.4 97.1 -56% EBIT incl. exceptional items 585.5 535.9 -8% Exceptional gain (loss) 116.1 (25.0) EBIT excl. exceptional
Slide 29: Except for Latin America, all regions contribute to EBIT increase
Except for Latin America, all regions contribute to the 19% EBIT increase North America Netherlands Asia +23% 192.9 +17% EBIT +9% 156.3 217.0 185.3 33.8 37.0 +19% 560.9 469.4 2011 2012 2011 2012 2011 2012 Latin America EMEA Global LNG 2011 2012 +4% -2% +368% 92.9 96.8 28.2 27.6 20.6 4.4 2011 2012 20
Slide 30: 63% of EBIT generated in non-euro currencies
63% of EBIT generated in non-euro currencies 2012 EBIT transactional currencies FX translation-effect on 2012 EBIT In percent In mln EUR USD Netherlands 0.0 Other 12% 24% EMEA 2.6 27% SGD Asia 17.7 North America 2.5 37% EUR Latin America 0.0 Transactional currency exchange risks are Non allocated
Slide 31: Net result of Joint Ventures increases with 17%
Net result of Joint Ventures increases with 17%, mainly due to Global LNG North America Netherlands Asia Net result of JVs +11% -100%* +27% 29.6 33.0 +17% 1.2 1.5 1.9 107.2 0.0 91.7 2011 2012 2011 2012 2011 2012 Latin America EMEA Global LNG 2011 2012 -4% +156% 48.7 46.6 0% 25.3 9.9 0.8 0.8 2011 201
Slide 32: IFRS equity accounting versus proportionate consolidation
IFRS equity accounting versus Proportionate consolidation IFRS equity accounting Proportionate consolidation* Revenues Revenues Subsidiaries 1,676.9 1,313.9 1,171.9 +12% 1,452.0 +15% 2011 2012 2011 2012 EBITDA EBITDA Subsidiaries and net result from Joint Ventures 888.1 763.6 636.0 +20% 701.4 +27% 2
Slide 33: Quarterly EBIT development
Quarterly EBIT development Robust year-on-year growth EBIT 2010 EBIT 2011 EBIT development per Quarter* EBIT 2012 In mln EUR +26% +31% +19% +5% 138.0 141.9 144.0 130.2 137.0 109.7 109.5 113.3 108.4 114.8 121.3 107.5 Q1 Q2 Q3 Q4 * Excluding exceptional items; including net result from Joint Ventures.
Slide 34: Netherlands
Netherlands - Additional oil storage capacity - Lower occupancy rates in crude and gasoil storage EBIT* In EUR million +23% +4% 157.2 156.3 192.9 36.5 46.2 47.9 2010 2011 2012 Q4 2010 Q4 2011 Q4 2012 Occupancy rate Storage capacity In percent In mln cbm -5pp -8pp 8.3 9.5 +14% 95 94 89 93 95 87 2010
Slide 35: EMEA
EMEA - Additional oil storage capacity in Fujairah (UAE) - Lower net result joint ventures and lower result in Sweden and Belgium - Higher throughputs in the UK and Hamburg EBIT* In EUR million +4% 96.8 -5% 89.8 92.9 19.0 23.3 22.1 2010 2011 2012 Q4 2010 Q4 2011 Q4 2012 Occupancy rate Storage capaci
Slide 36: Asia
Asia - Additional chemical storage capacity - Strong storage demand in key locations - Currency translation gain of EUR 17.7 million on EBIT EBIT* In EUR million +17% 217.0 +14% 165.7 185.3 46.2 46.7 53.2 2010 2011 2012 Q4 2010 Q4 2011 Q4 2012 Occupancy rate Storage capacity In percent In mln cbm 0p
Slide 37: North America
North America - Higher occupancy rates - Positive market circumstances at the Gulf Coast terminals EBIT* In EUR million +9% 46.0 -2% 33.8 37.0 10.6 8.9 8.7 2010 2011 2012 Q4 2010 Q4 2011 Q4 2012 Occupancy rate Storage capacity In percent In mln cbm +3pp -1pp 94 93 96 92 96 95 2.3 2.3 0% 2010 2011 20
Slide 38: Latin America
Latin America - Indexation offset by higher costs - Expiration of concession resulted in ceased operation of the terminal in Ilha Barnabé in Brazil EBIT* In EUR million -2% 28.2 27.6 +1% 25.7 4.7 7.5 7.6 2010 2011 2012 Q4 2010 Q4 2011 Q4 2012 Occupancy rate Storage capacity In percent In mln cbm -1p
Slide 39: Q4 2012 Summary
Q4 2012 Summary EBITDA* EBIT* In million EUR In million EUR 177.2 190.8 +8% 130.2 137.0 +5% Q4 2011 Q4 2012 Q4 2011 Q4 2012 Occupancy rate Storage capacity In percent In mln cbm 94.0 90.0 27.8 29.9 -4pp +8% Q4 2011 Q4 2012 Q4 2011 Q4 2012 * Excluding exceptional items; including net result from Join
Slide 40: HY2 2012 Summary
HY2 2012 Summary Revenues EBIT* In million EUR In million EUR 665.8 251.5 281.0 610.8 +9% +12% HY2 2011 HY2 2012 HY2 2011 HY2 2012 Net Profit** Earnings per share** In EUR million In EUR 174.1 1.37 151.9 +15% 1.19 +15% HY2 2011 HY2 2012 HY2 2011 HY2 2012 * Including net result from Joint Ventures. *
Slide 41: Contents
Contents Achievements 2012 Business environment Growth projects Business performance Capital disciplined growth Outlook 41 Annual Results 2012 1 March 2013
Slide 42: Capital disciplined consideration
Capital disciplined consideration Stable solvency ratio Total equity and liabilities In EUR mln 4,570 4,152 3,649 Net 2,947 57% 2,585 56% liabilities* 58% 1,997 55% 1,703 61% 56% 57% Equity 44% 43% 45% 42% 43% 44% 39% 2006 2007 2008 2009 2010 2011 2012 * Cash and cash equivalents are subtracted from
Slide 43: Capital disciplined growth
Capital disciplined growth Total investments Total Investments 2007-2015 Expansion Capex** In EUR mln In EUR mln; 100% = EUR 2.1 billion 1,919 1,781 ▪ Remaining Vopak share in ~1,300-1,500 Capex (Group ~600 Capex and equity share in JVs) ~700-900 Other Capex* ~1,500 Expansion ~600 Capex** ▪ Group Ca
Slide 44: Capital Disciplined Growth
Capital Disciplined Growth Strategic Finance Access to Capital Markets Net senior debt : EBITDA ratio** 5 US Private Placements 3.75 4 (USD 2.1 billion) 3 SGD and JPY Private Placements 2 (SGD 435 million and 2.42 2.20 2.54 2.23 2.63 2.65 2.39 JPY 20 billion) 1 1.76 1.61 1.71 Syndicated Revol-
Slide 45: A new US PP Notes Program of ~USD 1 billion
A new US PP Notes Program of ~USD 1 billion - Reconfirmation of Vopak’s access to capital markets - 37 Institutional investors, of which 10 new investors - Repay outstanding debt and for other general corporate purposes A senior tranche of ~USD 900 million* Maturities ranging from 10.5 to 14.5 yea
Slide 46: Balanced debt repayment schedule
Balanced debt repayment schedule Average remaining maturity 10 years; average interest rate 4.4% Debt repayment schedule* In EUR mln RCF flexibility New US PP 2012 Asian PP New US PP 2012 (subordinated) Current US PP Other 1,200 1,100 200 100 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 47: Net finance costs aligned with growth
Net Finance costs aligned with growth The long-term financing activities completed in 2012 will weigh on 2013 EPS development due to higher net financing costs Net finance costs 2011* Net finance costs 2012 In EUR mln In EUR mln Interest and dividend income 7.3 3.8 Finance costs 85.9 87.3 Net financ
Slide 48: Proposed 2012 dividend amounts to EUR 0.88 per ordinary share
Proposed 2012 dividend amounts to EUR 0.88 per ordinary share (pay-out ratio: 33%) Dividend and EPS 2006-2012** Cash Dividend In EUR 2.70 2.16 +25% 2.08 1.92 1.62 1.31 0.98 +10% 0.70 0.80 0.88 0.475 0.55 0.625 0.375 2006 2007 2008 2009 2010 2011 2012 Dividend policy: “Barring exceptional circumstanc
Slide 49: Vopak's solid capital structure
Vopak’s solid capital structure - Vopak is currently reviewing additional fit for purpose equity(-like) alternatives to support the continued effective and efficient financing of the future growth we aim for - The alternatives include, amongst others, (listed) fixed yield equity, equity-like and oth
Slide 50: Various other topics
Various other topics I “Effective tax rate 2012: 17.9%*.” “Vopak’s III Pensions.” II “Sources and uses of cash in 2012.” See appendix for further details * Excluding exceptional items. 50 Annual Results 2012 1 March 2013
Slide 51: Contents
Contents Achievements 2012 Business environment Growth projects Business performance Capital disciplined growth Outlook 51 Annual Results 2012 1 March 2013
Slide 52: Outlook assumptions 2013
Outlook assumptions 2013 No material changes in product outlook assumptions ~x% Share of EBIT Oil products Chemicals Industrial terminals Biofuels & Vegoils LNG 2012 ~60% ~17.5-20% ~10-12.5% ~7.5-10% ~2.5-5% Robust Mixed Solid Mixed Solid ~60-65% ~17.5-20% ~7.5-10% ~5-7.5% ~2.5-5% 2013 Robust* Stead
Slide 53: Capacity growth under construction
Capacity growth under construction Modest planned capacity expansions in 2013 Capacity developments In mln cbm +5.2 0.4 35.1 3.4 Other Other Jubail Europoort Pengerang Hainan 1.4 Other Algeciras 2.1 Thames Oilport Other Westpoort Fujairah 27.8 Eemshaven FY 2011 2012 2013 2014 2015 FY 2015 27.8 29.9
Slide 54: FX translation effect 2013
FX translation effect 2013 Negative foreign exchange developments year to date EBIT transactional currencies Average FX rates 2012 FX translation-effect on 2012 EBIT In percent Per EUR 1.00 In mln EUR US dollar 1.29 Netherlands EMEA Singapore dollar 1.61 Asia North America Chinese yuan 8.11 Latin Am
Slide 55: Impact IAS 19 changes and lower discount rate
Impact IAS 19 changes and lower discount rate Higher pension charges for 2013 in addition to effect on equity Total effect on equity In EUR mln Actuarial gains and losses 107.4 Removal 10% corridor approach at 1 January 2012 (higher volatility in net pension Adjusted administration costs and taxes
Slide 56: EBITDA Ambition 2016: EUR 1 billion
EBITDA Ambition 2016: EUR 1 billion We expect a relatively limited EBITDA growth for 2013 Historical results Ambition EBITDA Development and ambition* In EUR mln 1,000 We expect relatively limited EBITDA growth for 2013: 763.6 20% EBITDA growth in 2012 Modest planned capacity 598.2 636.0 expansi
Slide 57: 2012 Financial overview
2012 Financial overview 20% EBITDA growth 19% EBIT growth 25% EPS growth Proposed cash dividend of EUR 0.88 per share (+10%) Solid funding of growth strategy secured Note: Excluding exceptional items; including net result from Joint Ventures. 57 Annual Results 2012 1 March 2013
Slide 58: Royal Vopak contact details
Royal Vopak Westerlaan 10 Tel: +31 10 4002911 3016 CK Rotterdam Fax: +31 10 4139829 The Netherlands www.vopak.com
Slide 59: Effective tax rate 2012
I Effective tax rate 2012 Tax In mln EUR 77.2 85.5 +11% 2011 2012 Effective Tax Rate In percent In 2011, EUR 108.5 million of book gain on 19.5 17.9 the sale of our 20% equity stake in BORCO 5.4 -8% (Bahamas) was exempted for tax purposes Excluding exceptional items, the effective 14.1 tax rate
Slide 60: Sources and uses of cash in 2012
II Sources and uses of cash in 2012 Consolidated Statement of Cash Flows In EUR mln 67.6 0.5 435.7 44.1 659.3 643.0 683.6 34.0 -67.0 9.9 110.1 Net Cash Gross Net finance Tax paid Invest- Disposals Derivatives Dividend Other FX Net Cash position operating costs paid ments settlement paid in financing
Slide 61: Vopak's Pensions
III Vopak’s Pensions Vopak’s Pension obligations Dutch Pension Fund In percent Highlights Dutch 83% Cover ratio ultimo 2012 Other 17% is 112% (2011: 106%) Return was 16% in 2012 Other (2011: 5%) Pension contribution to 17% 83% remain at the same, maximum level of 30% Dutch 61 Annual Results 20