Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Non-Deal Roadshow (2008)
58 slides from Royal Vopak Nv's roadshow presentation, 2008
Slide 1: Road Show 2008
Road Show 2008 Professionals in liquid bulk logistics 1
Slide 2: Executive Board
Executive Board Jack de Kreij John Paul Broeders Frans de Koning 2
Slide 3: Table of Contents
Table of Contents ▢ Agenda 4 ▢ Terminal types 8 ▢ Industrial terminal 11 ▢ Market developments 14 ▢ Competition 15 ▢ Strategy 17 ▢ Current growth projects 21 ▢ Net Revenues/EBIT 27 ▢ Net Profit 31 ▢ Tax rates 34 ▢ Sources and uses of cash 35 ▢ Total investments 39 ▢ Difference in investments per cbm
Slide 4: Agenda
Agenda ▢Introduction ▢Strategy & Achievements ▢Business Performance FY 2007 ▢Outlook 4
Slide 5: 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) 5
Slide 6: The world of Vopak
The world of Vopak
Slide 7: 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 7
Slide 8: 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 the
Slide 9: Logistics hub terminal
Logistics hub terminal • Where large flows of products merge • Houston, Rotterdam / Antwerp, Singapore and Fujairah 9
Slide 10: Import / Export terminal
Import / Export terminal • Break or make bulk Import terminal • Local distribution Export terminal Ningbo Alemoa 10
Slide 11: Industrial terminal
Industrial terminal Vopak Singapore – Sakra Terminal 11
Slide 12: 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 •Hi
Slide 13: Strategically positioned worldwide
Example Fuel Oil Strategically positioned worldwide 1. Export from Russia, Vopak Estonia 2. Consolidation Vopak Europoort 4. Distribution in the region 3. Receipt Vopak Singapore Well positioned in the global supply chain 13
Slide 14: Market Developments
Market Developments Oil: Chemicals: • Product differentiation • Increasing demand for storage • Increasing geographical imbalances • Robust growth in developing markets between demand and supply • Liberalisation of new markets • Build-up of new petrochemical complexes in Asia and Middle East • High
Slide 15: Competition Overview
Competition Overview Cbm in million Vopak 21.8 Oiltanking 12.5 NuStar 11.3 Kinder Morgan 11.2 IMTT 6.1 CIM S.N.C 5.0 SUMED Terminal 4.2 Magellan Midstream Partners 3.7 Vitol 3.3 Borco Oil 3.2 EAPC 2.9 Scandinavian Tank Storage 2.8 Odfjell Terminals 2.8 Sunoco Logistics Partners 2.5 Universal 2.4 Hor
Slide 16: Agenda
Agenda ▢Introduction ▢Strategy & Achievements ▢Business Performance FY 2007 ▢Outlook 16
Slide 17: Strategic Focus Vopak
Strategic Focus Vopak Execution of the strategy is on track Growth Leadership Customer Leadership Cost Efficient Operations Pursue and strengthen Attain service excellence leadership in key locations across the network Attain low cost position compared to key Invest in partnerships with Become prefe
Slide 18: Process Safety & Quality Performance
Process Safety & Quality Performance LTIR Terminal Health Assessment 6 100% 5 80% 4 60% 3 40% 2 1 20% 0 0% 2002 2003 2004 2005 2006 2007 2004 2005 2006 2007 Spills 160 140 120 Increased management attention 100 80 60 40 20 0 2004 2005 2006 2007 18
Slide 19: Commissioned projects
Commissioned projects Once again, more gained from our existing network in 2007 Vlaardingen Zhangjiagang Lanshan Ulsan Sydney site B Banyan ACS Antwerp Darwin Europoort Botlek Altamira SABtank Thai Tank Savannah (Al Jubail) Ownership of the companies in Estonia and Vietnam was increased to 100%. 19
Slide 20: 2007 EBIT Growth Mainly By Autonomous Growth
2007 EBIT Growth Mainly By Autonomous Growth EBIT Growth in 2007 Net Revenues 900 15% In mln EUR 800 700 85% 600 500 2003* 2004 2005 2006 2007 Autonomous growth New capacity growth Occupancy rates 100% 96% 92% 88% 84% 80% 2003* 2004 2005 2006 2007 * based on Dutch GAAP. Revenues in 2003 include tank
Slide 21: Current Growth Projects
Current Growth Projects – delivering 4 centuries of future London Amsterdam Teesside Europoort Rotterdam Gothenburg Biodiesel Tallin LNG (R’dam) Zhangjiagang Savannah Botlek pit11 Bahamas Pakistan Korea Botlek pit19 Vlaardingen Al Jubail Lanshan Houston Antwerp Fujairah Caojing Altamira Thailand Ban
Slide 22: Step Into The LNG Terminal Business - Fulfilled
Step Into The LNG Terminal Business - Fulfilled Operational in 2011 The launching customers: 22
Slide 23: Rationalization
Rationalization Portfolio Business Rationalisation Sale Hemiksem Sale Dordrecht Sale Westwego Westwego Hemiksem Dordrecht 23
Slide 24: Vopak Strategic Position
Vopak Strategic Position Current Locations: Excellent Position New Investments Well Spread Capacity of new announced investments Focus on strategic Product Per Division locations diversification CEMEA Approx. OEMEA 50% of Asia capacity North America Latin America increase: LNG HUB Hub Other Oil Chem
Slide 25: Relation With The Client
Relation With The Client Changed Role >> Integral Part of Supply Chain New oil players – national companies: Petrochina, Sinopec, Petrobras, Gazprom Long-term contracts are increasing: Focus on relations Revenues Contract > 3 Years 60% 40% 20% 0% 2005 2006 2007 25
Slide 26: Agenda
Agenda ▢Introduction ▢Strategy & Achievements ▢Business Performance FY 2007 ▢Outlook 26
Slide 27: Net Revenues / EBIT FY 2007
Net Revenues / EBIT FY 2007 | a enna age ; ; ce ae = www.vopak.com 27
Slide 28: Robust Financial Performance
Robust Financial Performance FY 2007: EBIT increased by 24% In EUR millions FY06 FY07 ∆% Net Revenues 778.1 853.0 10% EBIT 220.9 272.9 24% Net Profit* 122.2 163.5 34% EPS (EUR) 1.96 2.62 34% All figures are excluding exceptional items * attributable to holders of ordinary shares 28
Slide 29: EBIT incl. Exceptionals Increased By 35%
EBIT incl. Exceptionals Increased By 35% In EUR millions FY06 FY07 ∆% Net Revenues 778.1 853.0 10% EBIT 216.6 292.2 35% Net Profit* 129.4 181.1 40% EPS (EUR) 2.08 2.90 39% All figures are including exceptional items * attributable to holders of ordinary shares 29
Slide 30: Exceptional Items in 2007
Exceptional Items in 2007 In EUR millions Result of divestments 21.7 Other - 2.4 Exceptional items 19.3 30
Slide 31: Net Profit
Net Profit . www.vopak.com 31
Slide 32: Net Profit FY 2007 Increased By 40%
Net Profit FY 2007 Increased By 40% In EUR millions FY06 FY07 ∆% Net Revenues 778.1 853.0 10% EBIT 216.6 292.2 35% Finance Income & Expenses -44.2 -42.9 3% Tax -25.5 -51.2 101% Minority Interests -15.0 -15.2 1% Net Profit* 129.4 181.1 40% EPS 2.08 2.90 39% All figures are including exceptional items
Slide 33: Net Financing Costs
Effective Access to Financing Sources Net Financing Costs In EUR millions FY06 FY07 Interest and dividend income 6.8 7.0 Financing costs -51.0 -49.9 Net financing costs -44.2 -42.9 33
Slide 34: Effective Tax Rate FY 2007
Effective Tax Rate FY 2007 Effective Tax Rate € In EUR millions FY07 FY07 % FY06 % Tax -51.2 20.5% 20.8%* Effective Tax Rate -51.2 20.5% 14.8%** * excl. exceptional movements in prior-year taxes ** incl. exceptional movements in prior-year taxes Changes in tax rates: Tax rates 2006 2007 As of 2008 S
Slide 35: Sources and Uses of Cash
Sources and Uses of Cash | www.vopak.com 35
Slide 36: Sources and Uses of Cash
Sources and Uses of Cash FY06 FY07 Net Cash Flow -64.8 25.5 EUR (mln) 305.2 -370.0 686.1 -660.6 800 700 Dividends 600 Proceeds from Proceeds from 500 interest-bearing interest-bearing 400 loans loans Dividends Investments 300 Divestments Divestments 200 Investments 100 Operations Financing Operation
Slide 37: Step Up in Dividends
Cash Use Step Up in Dividends Dividends Sources Uses Proposed dividend in 2007 amounts to EUR 0.95 per ordinary share Proposed dividend 1 0,8 0,6 0.95 0.75 0,4 0.60 0.50 0.50 0,2 0 2003 * 2004 * 2005 2006 2007 * optional in cash or ordinary shares 37
Slide 38: Total investments
Total investments | www.vopak.com 38
Slide 39: Total Investments 2003-2007
Total Investments 2003-2007 446 268 188 146 151 2003* 2004 2005 2006 2007 * based on Dutch GAAP 39
Slide 40: Investing In Growth
Investing In Growth 2008 and onwards Group companies and Around joint ventures € 450M € 1.6B Total investments to be spent from 2008+ Vopak share 2008+ Approved & Under Construction Projects Approved & Under Construction Projects Yearly Sustaining Capex +/- € 100M 40
Slide 41: Focus On Growth
Focus On Growth Capacity will be increased by more than 2.7M cbm by the end of 2009 2006 Capacity 21,224,300 cbm 2007 New capacity on stream 878,000 cbm 2007 Divestments 268,100 cbm 2007 Capacity 21,834,200 cbm 2008 & 2009 +/- 2.7M cbm Gate 0.5M cbm Bahamas 3.0M cbm Total > 28.0M cbm 41
Slide 42: Why does typical CAPEX investment per cbm differ?
Why does typical CAPEX investment per cbm* differ? Low end: €150 / cbm High end: €800 / cbm • Multipurpose • Dedicated • Carbon steel • Stainless steel • Large size of tanks (40,000 cbm) • Small size of tanks (500 cbm) • No pre-investments • Considerable pre-investments • Commodities • Speciality ch
Slide 43: Strategic Finance
Strategic Finance | www.vopak.com 43
Slide 44: Strategic Finance: Sufficient Flexibility
Strategic Finance: Sufficient Flexibility Net debt : EBITDA ratio 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 3.75 4 Maximum Ratio under US PP Maximum Ratio under other loans and syndicated revolving credit facility * based on Dutch GAAP 44
Slide 45: Strategic Finance: Solid Equity Position
Strategic Finance: Solid Equity Position Shareholders’ equity EUR (mln) Net Debt 900 810 785 800 671 700 619 604 625 600 521 500 509 504 496 472 500 400 300 200 2002* 2003* 2004** 2005 2006 2007 * based on Dutch GAAP 45 ** Restructuring preference shares: -50.3 and IFRS adjustment: -44.7
Slide 46: Divisions' performance
Divisions’ performance www.vopak.com 46
Slide 47: All Divisions Contributed to 10% Increase in Net Revenues
All Divisions Contributed to 10% Increase in Net Revenues North America OEMEA 165.1 193.4 128.2 130.4 Asia 121.4 136.8 2% 17% 06 07 06 07 13% 06 07 CEMEA 324.2 296.6 Latin America 61.8 63.7 3% 06 07 9% 06 07 47
Slide 48: FY 2007: EUR 52 mln increase in EBIT
FY 2007: EUR 52 mln increase in EBIT* OEMEA 79.7 North America 62.7 Asia 31.1 74.9 78.8 25.5 22% 27% 06 07 06 07 5% 06 07 CEMEA 89.3 Latin America 60.7 21.1 Other 19.9 -22.8 -27.1 6% 47% 19% 06 07 06 07 06 07 *excluding exceptional items 48
Slide 49: Division: Chemicals EMEA
Division: Chemicals EMEA “Improved results with existing capacity” EBIT* (mln) 25 23.5 22.5 22.4 20.9 20 17.6 15.7 14.3 15 13.1 2006 2007 10 5 0 60% 64% 28% 43% Q1 Q2 Q3 Q4 * excluding exceptional items 49
Slide 50: Division: Oil EMEA
Division: Oil EMEA “Effective response to increasing market demand” EBIT* (mln) 25 21.3 20.6 19.3 18.5 20 17.8 16.3 15.4 15 13.2 2006 10 2007 5 0 31% 34% 8% 40% Q1 Q2 Q3 Q4 * excluding exceptional items 50
Slide 51: Division: Asia
Division: Asia “Continuing growth with good results” EBIT* (mln) 25 19.2 20.0 19.8 19.9 19.2 19.9 20 18.8 16.9 15 2006 2007 10 5 0 14% 0.1% 6% 4% Q1 Q2 Q3 Q4 * excluding exceptional items 51
Slide 52: Division: North America
Division: North America “Focus on improving results is bearing fruit” EBIT* (mln) 25 20 15 2006 10 8.3 2007 7.2 7.7 7.2 7.9 6.7 6.2 5.4 5 0 7% 54% 24% 10% Q1 Q2 Q3 Q4 * excluding exceptional items 52
Slide 53: Division: Latin America
Division: Latin America “Continuing steady performance” EBIT * (mln) 25 20 15 2006 10 2007 5.4 5.1 5.0 5.4 5.5 5.4 5.1 5 4.1 0 6% 8% 34% 6% Q1 Q2 Q3 Q4 * excluding exceptional items 53
Slide 54: Agenda
Agenda ▢Introduction ▢Strategy & Achievements ▢Business Performance FY 2007 ▢Outlook 54
Slide 55: Outlook EBIT 2008
Outlook EBIT 2008 2008 (March 7, 2008) Vopak expects Group operating profit excluding exceptional items to increase around 10% in 2008 (2007: EUR 272.9 million). As a consequence of the commissioning of the current expansion projects in the coming years Vopak expects to achieve the lower end of its
Slide 56: Outlook Summary
Outlook Summary Guidance Outlook 5 year plan EUR (mln) FY 2006 FY 2007 FY 2008 (2011) Long-term EBITDA* 309.8 388.8 475-550 Updated to EBIT** 220.9 272.9 increase 2009 / 2010 around 10% ROCE 19.4% 25.1% Around 16% Bearing Bearingininmind mind substantial investments substantial investments iningreen
Slide 57: 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 58: Thank you for your attention!
Thank you for your attention! 58