Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — H1 2018 Earnings Presentation
31 slides from Royal Vopak Nv's earnings presentation, Aug 17, 2018
Slide 1: Vopak Half Year 2018 financial results
Vopak Half Year 2018 financial results Analyst presentation - 17 August 2018
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: Eelco Hoekstra, CEO
Chairman of the Executive Board and CEO of Royal Vopak Eelco Hoekstra
Slide 4: Key messages
Key messages strategic direction HY1 2018 key messages 2017-2019 Capture growth Satisfactory financial results, given market conditions to date Spend EUR 750m Execution of our strategy towards 2019 is well on track on sustaining and service capex • Efficiency program to support margin developmen
Slide 5: Product-market update
Product-market update Diversified portfolio across different product-market segments Oil products Oil hubs: solid long-term demand Vegoils Strong biofuels market despite drivers despite short-term weakness & biofuels volatility due to anticipated Fuel oil: unsettled market changes in governmen
Slide 6: Key figures HY1 2018
LNG import facility - Engro Elengy Terminal Pakistan Key figures HY1 2018 EBITDA* CFFO (gross) In EUR million In EUR million 371 341 Occupancy rate** Terminal network In percent In million cbm HY1 2018: 36.0 86 2019: 39.2 * Including net result from joint ventures and associates and excluding except
Slide 7: Execution of strategy on track
Execution of strategy on track Strategic direction is set towards growth and productivity improvement Capture growth in the 2017-2019 period New projects in Malaysia, Indonesia, Singapore, South Africa, Canada, Brazil Spend maximum EUR 750 million on Sustaining and service improvement capex
Slide 8: Portfolio developments
Portfolio developments Focus on 4 strategic terminal types Botlek German LNG RIPET 63,000 cbm Open season completed Deer Park PT2SB 96,000 cbm EETPL 138,000 cbm 1,496,000 cbm 151,000 cbm Sebarok PITSB Panama 67,000 cbm Merak 430,000 cbm 360,000 cbm Lesedi Jakarta 50,000 cbm Alemoa 100,000 cbm Durban
Slide 9: Terminals under strategic review
Terminals under strategic review Hamburg Amsterdam 669,000 1,216,000 Estonia 1,026,000 Hainan Algeciras 1,339,000 cbm 403,000 cbm Per February Per August HY1 2018 – Analyst presentation 9
Slide 10: Key messages
Key messages strategic direction HY1 2018 key messages 2017-2019 Capture growth Satisfactory financial results, given market conditions to date Spend EUR 750m Execution of our strategy towards 2019 is well on track on sustaining and service capex • Efficiency program to support margin developmen
Slide 11: Gerard Paulides, CFO
Member of the Executive Board and CFO of Royal Vopak Gerard Paulides
Slide 12: Summary financial performance
Summary financial performance strategic direction HY1 2018 key messages 2017-2019 Capture growth Satisfactory financial performance with solid CFFO Spend EUR 750m Investment momentum (CFFI) towards 2019 on sustaining and service capex Efficiency program to support margin development has been d
Slide 13: HY1 2018 vs HY1 2017 EBITDA
HY1 2018 vs HY1 2017 EBITDA Adjusted for adverse currency translation effects HY1 2018 EBITDA was comparable to prior year. 394.1 19.5 374.6 7.8 5.4 370.9 9.3 1.7 6.7 5.2 HY1 FX-effect Adjusted Asia & Europe & LNG Americas China & Others HY1 2017 HY1 2017 Middle East Africa North Asia 2018 Figures i
Slide 14: Divisional segmentation
Divisional segmentation Europe & Africa and Asia & Middle East oil hub weakness, Americas, China & North Asia and LNG benefit from strong chemical and gas markets Europe & Africa Asia & Middle East Americas 90 90 90 86 83 91 90 88 89 86 89 88 89 90 90 78.8 80.8 85.2 80.8 74.5 71.7 66.3 66.5 65.2 64.
Slide 15: Q2 2018 vs Q1 2018 EBITDA
Q2 2018 vs Q1 2018 EBITDA Impact at hub locations, strong performance of chemical and gas terminals, others reflect insurance impact and IT costs 0.8 191.0 3.3 190.2 2.8 6.3 1.5 2.8 14.4 180.7 Q1 2018 FX-effect Adjusted Europe & LNG Americas China & Asia & Others Q2 2018 Q1 2018 Africa North Asia Mi
Slide 16: Cash flow overview
Cash flow overview Investment momentum (CFFI) towards 2019 Half year 2018 341 28 313 108 119 115 29 CFFO Tax & other CFFO Sustaining, service Growth Other Free Cash (gross) operating items (net) improvement & IT investments CFFI Flow before investments financing Figures in EUR million HY1 2018 – Ana
Slide 17: Investment phasing
Investment phasing Investments 2008-2019 Investments 2017-2019 Additional growth In EUR million In EUR million investments 2,012 1,899 New ~EUR 175 million of 1,729 projects* projects with capacity expansion announced 900 Growth in 2018: investments** • Indonesia – Jakarta • Singapore – Sebarok ~365
Slide 18: Fuel Oil and bunkering network
Fuel Oil and bunkering network Terminals will be fully ready to support new market requirements in 2020 Hamburg Conversion: Rotterdam Rail infrastructure Rotterdam Conversion Estonia Fujairah Hamburg Los Angeles Strategic review Algeciras Expansion: Singapore Panama Singapore Expansion Fujai
Slide 19: Subsequent & portfolio events
Subsequent & portfolio events IAS 19 Defined contribution plan Venezuela In July, Vopak formalized the agreement Our terminal in Venezuela operates in a regarding a new pension plan that qualifies as a continuously deteriorating economic, social defined contribution plan under IAS 19 and politic
Slide 20: IFRS 16 Leases
IFRS 16 Leases IFRS 16 Leases Impact for Vopak Applicable as from 1 January 2019 No changes in economics, Vopak has a portfolio of long-term land leases only changes in accounting and leases of other non-current assets Effects on Vopak’s key metrics* Annual Report 2017: Metric Effect • Ope
Slide 21: Non-IFRS proportionate information
Non-IFRS proportionate information Occupancy rate EBITDA Maintenance, Service In percent In EUR million & IT Capex IFRS BASED In EUR million 421 394 94 91 86 371 104 96 108 Non-IFRS proportionate information provides HY1 HY1 HY1 HY1 HY1 HY1 HY1 HY1 HY1 2016 2017 2018 2016 2017 2018 2016 2017 2018 tr
Slide 22: Summary financial performance
Summary financial performance strategic direction HY1 2018 key messages 2017-2019 Capture growth Satisfactory financial performance with solid CFFO Spend EUR 750m Investment momentum (CFFI) towards 2019 on sustaining and service capex Efficiency program to support margin development has been d
Slide 23: Looking ahead
Looking ahead • The financial performance in 2018 is expected to be influenced by currency exchange movements of primarily the USD and SGD, and the currently less favorable oil market structure, impacting occupancy rates and price levels in the hub locations • Given the current 3.2 million cbm expan
Slide 24: Questions & answers
The world’s leading independent tank storage company building Questions on an impressive history of more & answers than 400 years
Slide 25: HY1 2018 Results
For more information please contact: Upcoming events: Investor Relations contact: Publication of 2018 third-quarter interim update Laurens de Graaf, Head of Investor Relations 5 November 2018 Telephone: +31 (0)10 400 2776 e-mail: investor.relations@vopak.com Capital Markets Days 2018 Media contact:
Slide 26: Europe & Africa developments
Europe & Africa developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million Total Q2 2018 90 90 90 86 160.6 157.7 165.8 158.9 2.3 83 153.2 13.7 million cbm Subsidiaries 11.4 Joint ventures & associates Operatorship Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2017 2017 2017 201
Slide 27: Asia & Middle East developments
Asia & Middle East developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million Total Q2 2018 91 90 88 89 86 86.8 81.8 79.7 80.2 76.4 3.3 4.2 13.4 million cbm Subsidiaries 5.9 Joint ventures & associates Operatorship Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2017 2017 2017 20
Slide 28: China & North Asia developments
China & North Asia developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million Total Q2 2018 77 79 0.7 70 69 70 4.2 million cbm 7.7 8.4 8.6 7.4 7.2 Subsidiaries 3.5 Joint ventures & associates Operatorship Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2017 2017 2017 2018 2018 20
Slide 29: Americas developments
Americas developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million 0.1 0.5 Total Q2 2018 89 88 89 90 90 71.8 69.3 68.4 71.5 66.8 3.9 million cbm Subsidiaries 3.3 Joint ventures & associates Operatorship Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2017 2017 2017 2018 2018 201
Slide 30: JVs & associates developments
JVs & associates developments Net result JVs and associates* Europe & Africa* Asia & Middle East* In EUR million In EUR million In EUR million 30.7 26.1 23.8 25.4 25.0 14.9 14.1 12.4 9.6 1.0 0.9 7.7 0.5 0.2 -0.1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2017 2017 2017 2018 2018 2017 2017 2017 201
Slide 31: EBITDA to Net profit overview
EBITDA to Net profit overview HY1 2018 HY1 2017 EBITDA 370.9 394.1 Depreciation and amortization 134.2 136.0 EBIT 236.7 258.1 Net finance costs 38.7 52.3 Income tax 39.8 33.8 Non-controlling interests 18.0 21.6 Net profit to holders 140.2 150.4 of ordinary shares EPS 1.10 EPS 1.18 Figures in EUR mil