Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Investor Presentation (October 2003)
19 slides from Royal Vopak NV's investor presentation, Oct 31, 2003
Slide 1: Past, Present and Future of Vopak
Past, Present and Future of Vopak 1839 1616 1818 Blaauwhoeden Pakhuis Past Van Ommeren veem meesteren Van Ommeren Pakhoed Pakhoed November 1999: Tank Tank Chemical Vopak merger Terminals Terminals distribution July 2002: split off Vopak: Tank Terminal Plus Univar Chemical distribution 1
Slide 2: Profile
Profile Professionals in liquid bulk logistics • Storage and handling of oil and chemical products • Related logistic services (shipping, warehousing) • Worldwide network • Five regional divisions • Chemicals Europe & Africa • Oil Europe & Middle East • Asia • North America • Latin America 2
Slide 3: Functions of a tankterminal
Functions of a tankterminal Products Services Oil Storage Chemicals Blending Edible Oils Break bulk Make bulk Drumming Additives Temperature control (Re)delivery modes Ships Customers Barges Oil majors and Chemical producers Pipelines Governments Trucks Traders Railcars Drums 3
Slide 4: Major characteristics independent tank terminals
Major characteristics independent tank terminals • Excellent locations protected by high barrier to entry • Market leader with approx. 20% market share • Focused on tank terminals plus strategy • Strategic review of non tank terminal activities • Expand and optimise tank terminal network • Sound Cas
Slide 5: The world of Vopak
The world of Vopak Different terminal concepts for different purposes 13.2 mln cbm 2.4 mln cbm 3.3 mln cbm 0.8 mln cbm 71 terminals – 19.7 mln cbm - 29 countries – 4,000 people 5
Slide 6: Competition overview
Competition overview Global competition Competitors present on more than one continent market share market share 40% 40% 35% 35% 30% 30% 25% 25% 19% 19% 20% 20% 15% 15% 9% 9% 7% 10% 6% 5% 10% 6% 4% 3% 2% 2% 2% 5% 5% 1% 1% 1% 0% 0% 0% ay TT k k ng en ll l ng s C ui s e n es n ca pa pa e je u ag la ga
Slide 7: The Vopak strategy: Tank Terminal Plus (1)
The Vopak strategy: Tank Terminal Plus (1) • Improve the funding position • Target net debt of less than EUR 700 mln • Status per June 30, 2003: EUR 714.6 mln • Sept. 22: EUR 45 mln of proceeds ex sale of gasshipping assets announced • Oct. 24: sale of tankershipping announced • Expand and optimise
Slide 8: The Vopak strategy: Tank Terminal Plus (2)
The Vopak strategy: Tank Terminal Plus (2) • Safety, Health and Environment is key • Competitive edge for services to the chemical and oil industry • Standard global brand for global clients • Good citizenship approach • Divestment of non-core activities • Activities in volved: shipping, warehousing
Slide 9: Key figures
Key figures H1 2003 H1 2002 ∆% Revenues 1H 2003 EUR (mln) Net sales 371.1 403.1 -7,9 EBITDA 127.0 157.4 -19,3 Latin-America 5% Group operating CLEA North-America income (EBIT) 78.2 104.7 -25,3 28% 14% Net income 34.8 47.2 -26,3 OLEM • Results at European divisions 16% Other down due to incidents and
Slide 10: Factors influencing group operating income
Factors influencing group operating income • Currency effects Income 120 • US$ down 18.5% versus H1 2002 104,7 • S$ down 15.9% versus H1 2002 100 - 9,3 78,2 80 -6,9 • Divestments -3,5 -6,8 60 • Sale of COSM, Broström, 40 Mexican Basf terminal • Q1 incidental factors 20 0 • Severe winter in the Balti
Slide 11: Factors influencing the 2003 outlook
Factors influencing the 2003 outlook Exchange rate development USD / EUR • Currency effects USD 1,20 • US$ 15% lower in 2003 1,10 (H1) v. 2002 (av.) • S$ 12.5% lower in 2003 1,00 0,90 (H1)v. 2002 (av.) 0,80 • Mixed economic 0,70 environment 2 02 02 02 02 02 03 03 03 03 03 -0 1- 3- 5- 7- 9- 1- 3- 5-
Slide 12: Vopak in EMEA – Chemicals (incl. Shipping)
Vopak in EMEA – Chemicals (incl. Shipping) United Kingdom Finland Sweden The Netherlands & Belgium H1 2003 (EUR mln) Germany Revenues 197 EBIT 25 Av.Cap.Empl. 632 Spain ROCE 8.0% Personnel 2.524 South Africa South Africa Saudi Arabia 12
Slide 13: Vopak in EMEA – Oil Products
Vopak in EMEA – Oil Products Sweden United Kingdom Germany Estonia H1 2003 (EUR mln) Switzerland Revenues 60 EBIT 19 TheBenelux Netherlands & Av.Cap.Empl. 142 Belgium ROCE 26.2% Personnel 486 United Arab Emirates 13
Slide 14: Vopak in Asia
Vopak in Asia H1 2003 (EUR mln) Ulsan, Revenues 46 Korea EBIT 26 Av.Cap.Empl. 286 ROCE 18.5% Kawasaki, Personnel 320 Japan Pakistan Tianjin, China Thailand Malaysia Sydney, Singapore Australia 14
Slide 15: Vopak Logistics North America
Vopak Logistics North America H1 2003 (EUR mln) Hamilton, Canada Revenues 52 EBIT 11 Av.Cap.Empl. 178 ROCE 12.9% Los Angeles, USA Personnel 462 Wilmington, USA Deer Park, USA 15
Slide 16: Vopak in Latin America
Vopak in Latin America Coatzacoalcos, Puerto Cabello, Mexico Venezuela Barranquilla, H1 2003 (EUR mln) Colombia Revenues 18 Guayaquil, Ecuador EBIT 6 Av.Cap.Empl. 89 Callao, Peru ROCE 13.9% Personnel 394 San Antonio, Chile Ilha Barnabé, Brazil 16
Slide 17: Financial targets
Financial targets Status H1 2003 • Improve return on capital employed 11.4% • Target: ROCE of 16% • Dividend: N.A. • 25 - 40% • Net debt: • Net debt ( max. euro 700 mln.) EUR 714.6 mln • Net debt : EBITDA ratio (target 2.5) 2.6 • Interest cover ratio (minimum 4) 5.1 17
Slide 18: Sale of Gas shipping and chemical tankers
Sale of Gas shipping and chemical tankers • Sold at approximately book value • ROCE shipping in 2002: 5% • No strategic link with tank terminals • Net debt target of less than EUR 700 mln achieved • Re-investment opportunities at target returns mainly in Asia 18
Slide 19: Key figures
Key figures In million EUR H1 2003 H1 ∆% 2002 Net sales 371.1 403.1 -7.9 Income from equity participations 18.6 24.3 -23.5 EBITDA 127.0 157.4 -19.3 Group operating income (EBIT) 78.2 104.7 -25.3 Net income 34.8 47.2 -26.3 Net income for holders of common 31.3 45.5* -31.2 shares Earnings per share €0