Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Investor Day (November 2011)
28 slides from Royal Vopak Nv's investor day presentation, Nov 11, 2011
Slide 1: Strategic Finance considerations: the past, present and future
Strategic Finance considerations: "the past, present and future" Capital Markets Day, 11 November 2011 Jack de Kreij, Vice-chairman of the Executive Board and CFO
Slide 2: 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 31 countries in which Vopak provides logistics services, the company cannot guarantee the accur
Slide 3: Capital-disciplined and client focussed growth strategy delivers robust results
Vopak’s capital-disciplined and client focussed growth strategy delivers robust results Vopak’s Growth 2003-2010 2003 = 100 percent 350 EPS 300 250 EBITDA 200 150 Capacity 100 50 0 2003 2004 2005 2006 2007 2008 2009 2010 3 Capital Markets Day 11 November 2011
Slide 4: 2003: Focus and Clear Choices
2003: Focus and Clear Choices Situation before 2003 Situation 2003 Products CO 2 Natural Gas LNG Terminal types Bio fuels Geographies “Industrial” Vegetable oils ME America’s “Distribution” Chemicals Asia Value chain “Hub” Oil Europe Value chain (backward) (forward) Sea ports Barging Shipping Inland
Slide 5: 2011: world market leader in independent tank storage
2011: world market leader in independent tank storage Products Situation 2003 Situation 2011 CO 2 Natural Gas LNG Terminal types Bio fuels Geographies “Industrial” Vegetable oils ME America’s “Distribution” Chemicals Asia Value chain “Hub” Oil Europe Value chain (backward) (forward) Sea ports Bargin
Slide 6: Strategic challenge is to facilitate current and future product flows
Vopak’s strategic challenge is to facilitate the current and future product flows LOCATION INFRASTRUCTURE MEETING DIFFERENT CLIENT NEEDS Product Flow Analysis Sound Master Plans Lean / Service / Cost management / Safety 6 Capital Markets Day 11 November 2011
Slide 7: Vopak's EBITDA contributors
Vopak’s EBITDA contributors Occupancy improvements EBITDA Operational efficiency gains Capacity expansion Group company Joint venture 7 Capital Markets Day 11 November 2011
Slide 8: Contribution of Vopak value drivers over past, present and future
Contribution of Vopak value drivers over the past, present and future Past Present Present Future 2003-06 2007-09 2010-2011 2012 > Occupancy improvements Playing field between 90-95 percent Operational efficiency gains Capacity expansion 8 Capital Markets Day 11 November 2011
Slide 9: Healthy occupancy rates
Healthy occupancy rates Occupancy rate Occupancy improvements In percent 96.0 95.0 94.0 94.0 93.0 93.0 92.0 90-95% 84.0 2004 2005 2006 2007 2008 2009 2010 2011 Q3 9 Capital Markets Day 11 November 2011
Slide 10: Well positioned to maintain healthy EBIT(DA) margins
Vopak is well positioned to maintain healthy EBIT(DA) margins EBIT(DA) Margin* Operational efficiency gains In percent 50 EBITDA Margin 40 30 EBIT Margin 20 10 0 2004 2005 2006 2007 2008 2009 2010 Focus on logistic efficiency improvements for our clients has led to increased EBIT(DA) margins * Exclu
Slide 11: Development of storage capacity
Development of storage capacity Subsidiaries Joint ventures Westpoort Phase I (October 2011) Capacity expansion Storage capacity In mln cbm 33.4 32.1 28.3 28.8 27.8 27.1 0.6 11.3 12.6 21.2 21.8 9.6 10.2 10.5 8.2 19.9 20.2 20.4 5.4 5.1 4.8 5.1 4.9 20.8 20.8 16.7 17.5 18.1 18.3 19.0 15.1 15.1 15.5 15.
Slide 12: Characteristics of remaining 6.2 mln cbm projects under construction (1)
Characteristics of remaining 6.2 mln cbm projects under construction (1) Split per product Split per region In mln cbm In mln cbm OEMEA 2.8 LPG 0.2 CEMEA 5.5 0.0 0.1 Latin America 0.5 Chemicals 0.0 Biofuels/Vegoil Oil products 3.3 Asia 12 Capital Markets Day 11 November 2011
Slide 13: Characteristics of remaining 6.2 mln cbm projects under construction (2)
Characteristics of remaining 6.2 mln cbm projects under construction (2) Split per year of commissioning Split by ownership In mln cbm In mln cbm 2013 Joint Venture 2014 2.1 4.4 1.3 0.6 2011 1.8 Group company 2012 2.2 * Westpoort Phase I in October 2011. 13 Capital Markets Day 11 November 2011
Slide 14: Growth projects will change EBIT contribution per product group
Growth projects will change EBIT contribution per product group Oil Industrial Biofuels and Chemicals LNG ~ 60% of EBIT terminals vegoils ~ 17.5 – 20% < 1% of EBIT ~ 7.5 – 10% 2011 ~ 12.5% of EBIT of EBIT of EBIT ROBUST SOLID MIXED ENCOURAGING SOLID Oil Industrial Biofuels & Chemicals LNG ~ 60 – 65%
Slide 15: Business characteristics versus Investors' questions
Business characteristics versus Investors’ questions Business characteristics Investors’ questions Natural global Relatively stable A Role of joint ventures diversification cash flows 1 2 B Capital allocation in a growth strategy Barriers to 5 Infrastructure entry 3 characteristics C Stability versu
Slide 16: Remaining joint venture projects under construction
A Remaining joint venture projects under construction Capacity expansion up to 2014 Joint venture projects In mln cbm In mln cbm 0.3 China, Tianjin 0.0 0.2 China, Dongguan Group company 0.6 Thailand, Map Ta Phut 0.0 U.A.E. Fujarah 0.7 China, Coajin 1.8 4.4 Netherlands, Eemshaven 1.3 China, Yangpu Jo
Slide 17: JV's of increasing importance
A JV’s of increasing importance… Subsidiaries Joint ventures Westpoort Phase I (October 2011) Storage capacity Storage capacity In mln cbm In percent of total 33.4 32.1 24 25 24 25 23 28.3 28.8 27.8 35 36 30 35 27.1 36 38 0.6 11.3 12.6 21.2 21.8 9.6 10.2 10.5 8.2 19.9 20.2 20.4 5.4 5.1 4.8 5.1 4.9 7
Slide 18: Sustainable strategic alliances
A Sustainable strategic alliances < 5 yrs 10 - 25 yrs Gate Terquimsa Vopak EOS Vopak Horizon PT Jakarta Tank Terminal Sabtank Sealink Terminal Dongguan Xiamen Paktank Vopak Terminal Yangpu Hainan Terminal Ningbo Bohai Petrochemicals Lingang Thai Tank Terminal Terminal Maritimo Mejillones Engro Vopak
Slide 19: Critical success factors for joint ventures
A Critical success factors for joint ventures 1 2 3 Added value of Partnership the joint venture Common focus on for the Vopak business win/win network values situation and ethics 4 5 6 Sustainability of the relationship Agreement Mutual Trust with the joint on Intent venture partner 19 Capital Mark
Slide 20: Growth strategy based on global infrastructure needs for tank storage
Commissioned B Growth strategy based on global Acquired infrastructure needs for tank storage Under construction Under study Westpoort Kandla Gate Hainan Altamira Pengerang The total investment for Vopak and partners in expansion projects EUR 1.7 billion, of which Vopak’s remaining share in Capex EU
Slide 21: Disciplined capital investment considerations for different purposes
B Disciplined capital investment considerations for different purposes Type of investment Advanced security Evaluation matrix ▪ Greenfield ▪ Launching Customers ▪ Local WACC ▪ Brownfield ▪ “Contracted ▪ Pay-back period ▪ Acquisition infrastructure” ▪ Project IRR ▪ Supporting Key- ▪ Equity IRR Accoun
Slide 22: Dividend policy: annual cash dividend of 25-40 percent of net profit
B Dividend policy: “the intention to pay an annual cash dividend of 25-40 percent of the net profit*” Dividend share of EPS 2003-10** Dividend share of EPS In EUR 2.08 1.92 1.62 1.31 0.98 0.81 0.64 0.63 0.55 0.63 0.70 0.30 0.38 0.48 0.25 0.25 2003 2004 2005 2006 2007 2008 2009 2010 * Excluding excep
Slide 23: Historical investments and EBITDA
B Historical investments and EBITDA Total investments up to HY1 2011 EBITDA Development* In mln EUR In mln EUR 800 600-640 535 565 598.2 513.4 446 429.3 369.5 268 281 314.1 262.5 231.8 188 458.8 147 2004 2005 2006 2007 2008 2009 2010 HY1 2004 2005 2006 2007 2008 2009 2010 2011 2011 outlook * Excludi
Slide 24: Net senior debt : EBITDA ratio and total investments
B Net senior debt : EBITDA ratio and total investments Net senior debt : EBITDA ratio Total CAPEX projects Group companies and JVs** 5 3.75 4 3 ~EUR1.3 bln ~EUR0.4 bln 2 2.42 2.20 2.54 2.23 2.63 2.61 1 1.76 1.61 1.71 Remaining Vopak share in 0 Capex 2003* 2004 2005 2006 2007 2008 2009 2010 Q3 2011 M
Slide 25: Valuation versus MLP's
C Valuation versus MLP’s Total cumulative shareholder return* TEV / LTM EBITDA** MLP Comparables Vopak C-Corps C-Corps Vopak KMP Buckeye Nustar * Based on local trading currency. Total shareholder returns including dividends paid. ** For Vopak, EBITDA adjusted to include pre‐tax income from JVs and
Slide 26: Diversified product/regional/contract-duration portfolio: stability versus cyclicality
C Diversified product/regional/contract-duration portfolio: stability versus cyclicality Oil Industrial Biofuels and Chemicals LNG ~ 60% of EBIT terminals vegoils ~ 17.5 – 20% < 1% of EBIT ~ 7.5 – 10% 2011 ~ 12.5% of EBIT of EBIT of EBIT ROBUST SOLID MIXED ENCOURAGING SOLID Oil Industrial Biofuels &
Slide 27: Well positioned to realize EBITDA of EUR 725-800 million in 2013
We remain well positioned to realize an EBITDA of between EUR 725-800 million in 2013 Historical results Guidance/Outlook EBITDA Development and guidance In EUR mln 725-800 600-640 598.2 513.4 429.3 369.5 314.1 231.8 262.5 2004 2005 2006 2007 2008 2009 2010 2011 2013 Note: Excluding exceptional item
Slide 28: Royal Vopak contact details
Royal Vopak Westerlaan 10 Tel: +31 10 4002911 3016 CK Rotterdam Fax: +31 10 4139829 The Netherlands www.vopak.com