Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — FY2003 Earnings Presentation
37 slides from Royal Vopak NV's earnings presentation, Mar 8, 2004
Slide 1: Presentation annual results 2003
Presentation annual results 2003 March 8, 2004
Slide 2: Overview of the presentation
Overview of the presentation • Operational and financial highlights core activities • Safety Health and Environment • Corporate Governance • Outlook • Strategy and future developments • Highlights per Division 2
Slide 3: Profile
Profile Professionals in liquid bulk logistics • Storage and handling of oil and chemical products • Related logistic services (supporting the Tankterminal activities) • Worldwide network • Five regional divisions • Chemicals Europe, Middle East & Africa • Oil Europe, Middle East & Africa • Asia • N
Slide 4: The world of Vopak
The world of Vopak Different terminal concepts for different purposes 13,4 mln cbm 2,4 mln cbm 3,4 mln cbm 0,8 mln cbm 71 terminals – 20 mln cbm – 29 countries – 4.000 employees * * At year end 2003 and excluding employees at participations. 4
Slide 5: Financial highlights 2003
Financial highlights 2003 2003 2002 ∆% Net Debt development Vopak EUR (mln) EUR (mln) Net turnover 749.6 796.2 -5.9 1000 EBITDA 307.2 334.2 -8.1 800 Group operating profit (EBIT) 192.2 213.0 -9.8 600 Chemical Net profit 104.5 111.3 -6.1 Tankers 400 200 0 2002 2003 • Weak first half of the year due t
Slide 6: Foreign Currency impact
Foreign Currency impact EBIT per type of currency F-X impact per division (incl. participations) 13% EUR mln 215 210 38% 205 200 21% 195 190 185 180 EBIT excl. Chemicals Oil EMEA Asia North- Latin- Reported FX EMEA America America EBIT 28% EBIT 2003 Currency Impact EUR USD SGD Other • Foreign Curren
Slide 7: Key financial data per division
Key financial data per division Net EBIT Average ROCE Quarterly EBIT development (incl. participations) Turnover Capital Empl. EUR (mln) EUR (mln) Chemicals EMEA 244.9 36.7 390.3 9.4% 20,0 Oil EMEA 117.7 44.7 123.2 36.3% Asia 93.8 56.2 283.0 19.8% 15,0 North America 104.8 21.6 178.4 12.1% 10,0 Latin
Slide 8: Vopak share in Participating interests
Vopak share in Participating interests Tankterminals pro forma on 100% basis Share Vopak in profit of participating interests 2003 2002 ∆% 2003 2002 ∆% EUR (mln) EUR (mln) Net turnover 225.9 294.3 -23.2 Tankterminals 28.6 43.3 -33.9 EBITDA 136.3 179.6 -24.1 Other result from participating operating
Slide 9: Divestments (1)
Divestments (1) • Finalised in 2003 • Gasshipping (Asian tankers and European inland shipping) • Minority interests (Dockwise, Van Ommeren Clipper, Dutch P&I, Dutch Shipping Defense) • Finalised early 2004 • Chemical tankers • Agreement to sell • Chemical warehousing (MBO) • Pending • Forwarding • V
Slide 10: Divestments (2)
Divestments (2) Financial effects • Proceeds • 2003: EUR 81.6 mln • 2004: approx. EUR 130 mln • Net book loss and impairments 2003: EUR 12.5 mln • Capital employed • 2003 balance sheet: EUR 246 mln • Employees • In non-core per end 2003 • Chemical shipping 300 • Warehousing 200 • Forwarding 150 • Ve
Slide 11: Safety Health and Environment key focus
Safety Health and Environment key focus Lost Time Injury Rate development Vopak Lost Time Injury Rate development Industry LTIR Vopak LTIR 14 14 12 12 European Industry* 10 10 8 8 USA 6 6 Industry** 4 4 2 2 0 0 2000 2001 2002 2003 1996 1997 1998 1999 2000 2001 2002 * European Chemical Industry Counc
Slide 12: Corporate Governance
Corporate Governance “Vopak attaches great importance to an equitable balance between the interests of the various stakeholders in the company. Integrity, openness, supervision, transparent reporting and accountability are the cornerstones of Vopak’s Corporate Governance policy” • Implementation of
Slide 13: Outlook 2004
Outlook 2004 • Market developments • Chemicals: recovery not expected before 2nd half of 2004 • Delayed effect on demand for Tankstorage • Oil: demand driven by imbalances • Asia maintains high level of activity • Strong market position Vopak • Fuel oil expansion Rotterdam • Outlook 2004 Barring unf
Slide 14: Strategy and future developments
Strategy and future developments 14
Slide 15: The Vopak Strategy
The Vopak Strategy Tank terminal Plus 2003 Milestones • Strategic review non-tank • Significant divestments. terminal operations • Improve net funding position • Net debt EUR 608.5 mln • Expand and optimize tank • Expansion investments: terminal network • Singapore, Fujairah, Rotterdam, Thailand, et
Slide 16: Investing now for future profitability
Investing now for future profitability 2003 2004 2005 2006 2007 2008 2009 2010 Expansion Investments Singapore Fujairah Rotterdam Tianjin Greenfield investments Shanghai Darwin Acquisitions Andes Long Beach Tianjin Minimal 33% 50% 50 / 100% 100% Contribution to EBIT 16
Slide 17: Profitability: Past, Present, Future
Profitability: Past, Present, Future* Future range EBITDA: 275 - 350 Future Present range EBITDA: 220 - 270 Present Past range EBITDA: 250 - 300 Past 100 200 300 400 EBITDA (EUR MLN) * Outlook barring any unforeseen events or currency developments 17
Slide 18: Developments per division
Developments per division 18
Slide 19: Developments per Division: Chemicals EMEA
Developments per Division: Chemicals EMEA 2003 2002 ∆% EUR (mln) Net turnover 244.9 247.1 -0.9 EBITDA 69.7 74.3 -6.2 Operating profit (EBIT) 36.7 42.0 -12.6 Average gross Capital Employed 690.6 708.1 -2.5 Average Capital Employed 390.3 414.8 -5.9 Return on Capital Employed 9.4% 10.1% • Decrease in t
Slide 20: Developments per Division: Oil EMEA
Developments per Division: Oil EMEA 2003 2002 ∆% Development Liquid Bulk cargo, Port of Tallinn* EUR (mln) MT Tons (*1.000) Net turnover 117.7 124.9 -5.8 30 000 EBITDA 57.0 69.0 -17.4 25 000 Operating profit (EBIT) 44.7 57.0 -21.6 20 000 15 000 Average gross Capital Employed 386.2 375.4 2.8 10 000 A
Slide 21: Developments per Division: Asia
Developments per Division: Asia 2003 2002 ∆% EUR (mln) Net turnover 93.8 104.1 -9.9 EBITDA 73.0 83.5 -12.6 Operating profit (EBIT) 56.2 62.6 -10.2 Average gross Capital Employed 429.1 472.3 -9.1 Average Capital Employed 283.0 320.2 -11.6 Return on Capital Employed 19.8% 19.5% • Foreign Currency expo
Slide 22: Developments per Division: North-America
Developments per Division: North-America 2003 2002 ∆% EUR (mln) Net turnover 104.8 118.0 -11.2 EBITDA 33.5 39.4 -15.0 Operating profit (EBIT) 21.6 26.8 -19.4 Average gross Capital Employed 320.5 365.6 -12.3 Average Capital Employed 178.4 206.6 -13.6 Return on Capital Employed 12.1% 13.0% • Growth in
Slide 23: Developments per Division: Latin-America
Developments per Division: Latin-America 2003 2002 ∆% EUR (mln) Net turnover 40.1 38.1 5.2 EBITDA 18.1 19.4 -6.7 Operating profit (EBIT) 14.1 15.1 -6.6 Average gross Capital Employed 107.8 96.9 11.2 Average Capital Employed 89.5 81.1 10.4 Return on Capital Employed 15.8% 18.7% • Acquired Andean Term
Slide 24: Developments after year-end
Developments after year-end • Agreement to build terminal in Darwin, Australia • Joint oil industry terminal • First in Australia • Investment EUR 33 mln • Long term contracts • Closure of sale of Chemical tankers • Sold to Chempool partner Essberger • EUR 102 mln in fixed assets • 300 employees 24
Slide 25: Annexe
= Vopak Annexe
Slide 26: Key figures
Key figures In million EUR 2003 2002* ∆% Net turnover 749.6 796.2 -5.9 Profit of participating interests 42.5 77.3 -45.0 EBITDA 307.2 334.2 -8.1 Group operating profit (EBIT) 192.2 213.0 -9.8 Net profit 104.5 111.3 -6.1 Net profit for holders of ordinary 97.6 104.4 -6.5 shares Earnings per share €1.
Slide 27: Breakdown by geographical area
Breakdown by geographical area in million euro NL Other Asia North Latin Total EMEA & America America Australia Net turnover 316.5 191.5 96.7 104.8 40.1 749.6 Profit of participating 11.4 15.0 13.7 - 2.4 42.5 interests Group operating profit 58.3 48.8 49.7 19.0 16.4 192.2 Capital employed 477.4 253.
Slide 28: Breakdown by activity
Breakdown by activity in million euro Tank Other Discontinuation Total terminals activities of operating activities Net turnover 548.0 54.1 147.5 749.6 Profit of participating 29.4 2.1 11.0 42.5 interests Group operating profit 167.7 - 13.7 38.2 192.2 (EBIT) Capital employed 955.3 233.8 169.8 1,358.
Slide 29: Exceptional results in EBIT
Exceptional results in EBIT • Release of guarantee given to Univar EUR 33.2 million • Impairments EUR-/- 15.1 • Result on sale of non-consolidated participating interests EUR 5.3 • Damages (Insurance payments) EUR 4.5 •Adjustment for 2002 pension calculations EUR 3.0 • Result on sale of group compan
Slide 30: Contract position
Contract position* 3 years or longer 1 to 3 years Less than 1 year Chemicals EMEA 20% 34% 46% Oil EMEA 25% 28% 47% Asia 37% 20% 43% North America 18% 50% 34% Latin America 13% 29% 58% Total 23% 33% 44% * excluding participating interests 30
Slide 31: Occupancy rate
Occupancy rate 2003 2002 Chemicals EMEA 87% 87% Oil EMEA 88% 85% Asia 96% 96% North America 91% 91% Latin America 89% 87% Total 89% 88% 31
Slide 32: Employee overview
Employee overview Average for the year 2003 2002 The Netherlands 1.829 1.885 Other Europe, Middle East & Afrika 1.269 1.317 Asia 335 343 North America 474 471 Latin America 455 399 Total 4.362 4.415 * average for the year including temporary staff 32
Slide 33: Vopak in EMEA – Chemicals
Vopak in EMEA – Chemicals Great Britain Finland Sweden Benelux 2003 (EUR mln) Germany Net turnover 245 EBIT 37 Inv. Capital 390 Spain ROCE 9.4% Occupancy 87% Employees 1,348 South Africa Saudi Arabia 33
Slide 34: Vopak in EMEA – Oil
Vopak in EMEA – Oil Sweden Great Britain Germany Estonia 2003 (EUR mln) Net turnover 118 Switserland EBIT 45 Inv. Capital 123 TheBenelux Netherlands & ROCE 36.3% Belgium Occupancy 88% Employees 446 United Arab Emirates 34
Slide 35: Vopak in Asia
Vopak in Asia 2003 (EUR mln) Ulsan, Net tunover 94 Korea EBIT 56 Inv. Capital 283 ROCE 19.8% Kawasaki, Occupancy 96% Japan Pakistan Employees 329 Tianjin, China Thailand Malaysia Sydney, Singapore Australia 35
Slide 36: Vopak in North America
Vopak in North America 2003 (EUR mln) Hamilton, Canada Net turnover 105 EBIT 22 Inv. Capital 178 ROCE 12,1% Los Angeles, USA Occupancy 91% Employees 470 Wilmington, USA Deer Park, USA 36
Slide 37: Vopak in Latin-America
Vopak in Latin-America Coatzacoalcos, Puerto Cabello, Mexico Venezuela Barranquilla, 2003 (EUR mln) Colombia Net turnover 40 Guayaquil, Ecuador EBIT 14 Inv. Capital 89 Callao, Peru ROCE 15.8% Occupancy 89% Employees 466 San Antonio, Chili Ilha Barnabé, Brazil 37