Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Q1 2011 Earnings Presentation
51 slides from Royal Vopak NV's earnings presentation, Apr 28, 2011
Slide 1: Roadshow Presentation Q1 2011 Trading Update
_ Roadshow Presentation Q1 2011 Trading Update – – –
Slide 2: Vopak: A worldwide tank terminal network
Vopak: A worldwide tank terminal network Key facts • Global market leader in independent storage of liquid bulk products • Present in 30 countries, operating 79 terminals • Total storage capacity of 25.3 mln cbm • Strong focus on safety and environment • Infrastructure service provider to many oil a
Slide 3: Vopak transformation process
Vopak transformation process "This is an infrastructure play; the company is benefitting from the outsourcing of this service by oil and chemical producers, which form the bulk of its customers. It is an under-recognized industry leader." Canadian Investor July 2002 2003 2004 2005/2006 2007-2011 – –
Slide 4: 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 – – – Q1 2011 Trading update 4
Slide 5: Vopak's role in the supply chain
Vopak’s role in the supply chain “Reliability and efficiency crucial throughout the supply chain” Feedstock Feedstock Production & Products Independent Mid-Stream & Production Gathering Refining Transmission Storage & End-user Transshipment Distribution Oil and Chemical supply chain – – – Q1 2011 Tr
Slide 6: Vopak's challenge
Vopak’s challenge The challenge is to facilitate the current and future product flows: – – – Q1 2011 Trading update 6
Slide 7: Strategic position tank terminals
Strategic position tank terminals Outgoing Logistics Downstream Chemicals – – – Q1 2011 Trading update 7
Slide 8: Logistic hub terminal
Logistic hub terminal Where large flows of products merge – logistics crossroad Houston, Rotterdam / Antwerp, Singapore and Fujairah Example fuel oil – – – Q1 2011 Trading update 8
Slide 9: Import / Export terminal
Import / Export terminal - Break or make bulk - Local distribution – – – Q1 2011 Trading update 9
Slide 10: Industrial terminal
Industrial terminal Vopak Singapore – Sakra Terminal – – – Q1 2011 Trading update 10
Slide 11: Vopak core businesses
Vopak core businesses Existing market Oil Chemicals New products in existing market Biofuels New market LNG – – – Q1 2011 Trading update 11
Slide 12: Growing demand for Vopak's services by the oil industry
Growing demand for Vopak’s services by the oil industry - Increasing product differentiation - Increasing geographical imbalances - Liberalization of new markets - New giant oil players – – – Q1 2011 Trading update 12
Slide 13: Growing demand for Vopak's services by the chemicals industry
Growing demand for Vopak’s services by the chemicals industry - Increasing demand for storage - Robust growth in developing markets - Construction of new petrochemical complexes in Asia and Middle East World trade in major liquid chemicals – – – Q1 2011 Trading update 13
Slide 14: Increased interest in biofuels leading to long-term growth in storage demands
Increased interest in biofuels leading to long-term growth in storage demands - Interest in biofuels is soaring - Biofuels an answer to energy security and climate change - Increased interest in biofuels from producers due to subsidies and governmental requirements - Example: EU-27 “20/20/20” mandat
Slide 15: Worldwide LNG demand drives need for independent import terminals
Worldwide LNG demand drives need for independent import terminals – – – Q1 2011 Trading update 15
Slide 16: Vopak market definition
Vopak market definition Definition Vopak’s competitive environment is defined as non-captive marine tank storage for liquid oil and chemical products. Primary competition Independent competition renting only to third parties Secondary competition Partly using the capacity for storing own products (S
Slide 17: Market share according to the definition
Market share according to the definition In mln cbm Storage market Oil Chemicals Total World Market 204 mln 52 mln 256 mln CBM Primary Competition 125 mln 45 mln 170 mln CBM Secondary Competition 79 mln 7 mln 86 mln CBM Vopak 14.3 mln 11.0 mln 25.3 mln CBM Vopak Market Share: As % of total market 7%
Slide 18: Demand growth in storage market to support international trade flows
Demand growth in storage market to support international trade flows Terminal capacity under construction* Additional Worldwide Total Storage Capacity* World Market, incl. Vopak 25.8 mln cbm Growth % 10.0 % Vopak 4.5 mln cbm Growth as % of Vopak 15.6% capacity * Excluding LNG capacity under construc
Slide 19: Vopak - the global market leader
Vopak - the global market leader In mln CBM Source: company websites, including inland capacity and Joint Ventures Vopak Vopak Oiltanking Kinder Morgan NuStar Buckeye CLH IMTT Vitol CIM SUMED terminal Odfjell Dalian Port Horizon Sunoco Sinochem Magellan EAPC STS LBC Universal SPSE -0 5 10 15 20 25 3
Slide 20: Agenda
Agenda Highlights Business performance Growth projects Financing Outlook Details and definitions used in this presentation are derived from the Q1 2011 press release, which is leading. – – – Q1 2011 Trading update 20
Slide 21: Vopak's Network growth on track
Vopak’s Network growth on track: 25.3 mln cbm storage capacity to grow to 29.8 mln cbm by 2012 – – – Q1 2011 Trading update 21
Slide 22: Q1 2011 Summary
Q1 2011 Summary Q1 2011 EBIT of EUR 110 mln, excl. exceptional gains of EUR 128 mln Q1 2011 EBIT excl. exceptional items EUR 109.5 mln (Q1 2010 EUR 109.7 mln) Q1 2011 EBITDA excl. exceptional items EUR 148.1 mln (Q1 2010 EUR 145.4 mln) Further Q1 2011 highlights: - Joint venture (50-50) with NEIF to
Slide 23: Q1 2011 Summary
Q1 2011 Summary Q1 2011 EBIT of EUR 110 mln, excluding exceptional gains of EUR 128 mln In EUR mln Q1 11 Q1 10 ∆ EBIT incl. exceptionals 237.3 109.6 +117% EBIT excl. exceptionals 109.5 109.7 0% EBITDA excl. exceptionals 148.1 145.4 +2% Occupancy rate 92% 93% Storage capacity (in mln cbm) 25.3 28.4 –
Slide 24: Exceptional items Q1 2011
Exceptional items Q1 2011 Mainly related to divestment Vopak Terminal Bahamas Divestment Vopak Terminal Bahamas EUR 111.5 mln Total proceeds of USD 271.4 million: USD 164.6 million cash USD 106.8 million Buckeye units: - 620,861 Buckeye LP (common) units - 1,095,722 Buckeye Class B units After tax p
Slide 25: Divestment Vopak Terminal Bahamas
Divestment Vopak Terminal Bahamas Accounting principles I. II. III. Result Quarterly Book profit / loss at Fair Value at Divestment determination Sale of shares Proceeds of USD 271.4 mln: Fair value adjustment: Fair value adjustment: Cash USD 164.6 mln Q1 2011 effect EUR 0.4 mln Future effect ? Shar
Slide 26: Agenda
Agenda Highlights Business performance Growth projects Financing Outlook – – – Q1 2011 Trading update 26
Slide 27: Healthy occupancy rates in the 90-95% bandwidth
Healthy occupancy rates in the 90-95% bandwidth Average occupancy decreased to 92% from 93% Q1 2011 Business environment: Improved results generated by new storage capacity on stream last year in China and Singapore (Asia) Better results in joint ventures (OEMEA) Occupancy rates per division: Rail c
Slide 28: EBIT of EUR 109.5 mln mainly driven by Asia's increased contribution
EBIT of EUR 109.5 mln mainly driven by Asia’s increased contribution In EUR mln, - excl. exceptional items - North America OEMEA Asia - 26% - 5% 29% 47.4 37.6 35.8 36.7 13.3 9.8 Q1 10 Q1 11 Q1 10 Q1 11 Q1 10 Q1 11 Latin America CEMEA Other 0% - 21% 25.3 20.1 7.3 7.3 -10.5 -10.9 Q1 10 Q1 11 Q1 10 Q1
Slide 29: Chemicals EMEA
Q1 2011 Q1 2010 Chemicals EMEA Capacity (in mln cbm) Occupancy rate 4.1 88% 4.3 90% FX Effect (in mln EUR) +0.3 Increased customer activity in chemicals Lower demand for storage and handling of biodiesel EBIT in EUR mln, - excl. exceptional items - 25.3 24.6 22.3 20.1 18.4 -21% Vopak Terminal Botlek
Slide 30: Oil EMEA
Q1 2011 Q1 2010 Oil EMEA Capacity (in mln cbm) Occupancy rate 11.0 93% 11.0 95% FX Effect (in mln EUR) +0.3 Intensified maintenance and inspection program Demolition of Waltershof terminal (Germany) Stronger results from joint ventures EBIT in EUR mln, - excl. exceptional items - 42.0 39.7 37.6 35.8
Slide 31: Asia
Q1 2011 Q1 2010 Asia Capacity (in mln cbm) Occupancy rate 6.9 94% 6.5 92% FX Effect (in mln EUR) +4.0 New storage capacity on stream in 2010 (China & Singapore) Improved occupancy rates EBIT in EUR mln, - excl. exceptional items - 46.2 47.4 42.7 40.1 36.7 29% Q1 Q2 Q3 Q4 Vopak Terminal Sakra, Singap
Slide 32: North America
Q1 2011 Q1 2010 North America Capacity (in mln cbm) Occupancy rate 2.3 91% 5.7 96% FX Effect (in mln EUR) +0.2 Uncertainties in biofuels Divestment Vopak Terminal Bahamas Rail car handling restrictions at Deer Park EBIT in EUR mln, - excl. exceptional items - 13.3 12.0 10.6 9.8 10.1 -26% Q1 Q2 Q3 Q4
Slide 33: Latin America
Q1 2011 Q1 2010 Latin America Capacity (in mln cbm) Occupancy rate 1.0 91% 0.9 91% FX Effect (in mln EUR) +0.5 Steady results EBIT in EUR mln, - excl. exceptional items - 7.3 7.3 7.1 6.6 4.7 Q1 Q2 Q3 Q4 Vopak Terminal Cartagena, Colombia – 2010 2011 – – Q1 2011 Trading update 33
Slide 34: Agenda
Agenda Highlights Business performance Growth projects Financing Outlook – – – Q1 2011 Trading update 34
Slide 35: Company growth supported by healthy demand for storage capacity
Company growth supported by healthy demand for storage capacity Storage Capacity In mln cbm 29.8 28.8 28.3 27.1 25.3 21.2 21.8 20.4 +0.8 +0.6 +5.3 +1.2 +0.5 -3.5 +4.5 2005 2006 2007 2008 2009 2010 Q1 2011 2012 Occupancy Rate 92% 94% 96% 95% 94% 93% 92% – – – Q1 2011 Trading update 35
Slide 36: Growth continues in 2011 and 2012
Growth continues in 2011 and 2012 Divestments in Q1 2011 decrease total storage capacity with 3.5 mln cbm Vopak Terminal Bahamas Ipswich, UK Product: Oil products Product: Oil products Capacity addition: - 3,400,000 cbm Capacity addition: -56,000 cbm YE 2009 Capacity 28.3 mln In cbm Total net capaci
Slide 37: Various projects under construction
Various projects under construction Total storage capacity under construction per Q1 2011: 4.5 mln cbm Algeciras (Spain) Dongguan (China) 403,000 cbm 153,000 cbm Gate terminal (Netherlands) 540,000 cbm Westpoort (Netherlands) 1,190,000 cbm MOT, Rotterdam (Netherlands) increase in entitlement with 36
Slide 38: Agenda
Agenda Highlights Business performance Growth projects Financing Outlook – – – Q1 2011 Trading update 38
Slide 39: Strategic finance
Strategic finance Net Senior debt : EBITDA ratio Q1 2011 2.18 2010 2.63 2009 2.23 2008 2.54 2007 1.71 2006 1.61 2005 1.76 2004 2.20 2003* 2.42 0 0.5 1 1.5 2 2.5 3 3.5 4 Maximum Ratio under current US PP programs Maximum Ratio under other PP programs and syndicated revolving credit facility * Based o
Slide 40: Agenda
Agenda Highlights Business performance Growth projects Financing Outlook – – – Q1 2011 Trading update 40
Slide 41: Outlook Assumptions
Outlook Assumptions Oil Industrial Biofuels and Chemicals terminals vegoils ~ 17.5 – 20.0% ~ 60.0% of EBIT ~ 7.5 – 10% ~ 12.5% of EBIT of EBIT of EBIT ROBUST SOLID MIXED ENCOURAGING Healthy demand for storage capacity Contract renewals + Some new storage capacity commissioned – – – Q1 2011 Trading u
Slide 42: EU Biofuels market continues to face uncertainties
EU Biofuels market continues to face uncertainties Current situation Clear “20/20/20” mandate ≥ 20% of the energy mix must come from renewable sources; with a 10% minimum target for the transport sector; by the year 2020. Sustainability Green House Gas (GHG) savings > 35% ILUC: No raw material from
Slide 43: Vopak Biofuels – The 2011 playing field
Vopak Biofuels – The 2011 playing field + Biofuels part of the long-term energy mix + Mandate is clear and has been introduced in many countries + Drive to decrease dependency on oil - New sustainability criteria remain unclear - No equal level playing field (taxes and subsidies) - Reduced blending
Slide 44: EBIT(DA) impacted by volatile FX developments
EBIT(DA) impacted by volatile FX developments Transactional currency exchange risks are limited. As a rule revenues, costs and financing are denominated in the same currency. 2.50 FX Translation-effect on EBIT: 2.25 EUR/SGD FY 2010 vs FY 2009 EUR +25.9 mln 2.00 Q1 2011 vs Q1 2010 EUR +5.1 mln 1.75 F
Slide 45: Outlook
Outlook 2011 “For 2011 Vopak expects Group operating profit before depreciation and amortization (EBITDA) between EUR 600 – 640 million, assuming no further appreciation of the Euro against applicable other currencies.” 2013 “Based on our growth strategy Vopak is well positioned to realize a Group o
Slide 46: EBITDA Outlook 2013: in the EUR 725-800 mln range
EBITDA Outlook 2013: in the EUR 725-800 mln range Outlook Guidance In EUR mln 2005 2006 2007 2008 2009 2010 2011 2013 725-800 600-640 598.2 513.4 429.3 EBITDA* 369.5 314.1 262.5 Q1 148.1 445.3 385.3 320.4 272.9 Long-term EBIT* 220.9 Long-termguidance guidanceROCE ROCEofof16% 16% 179.7 Bearing in min
Slide 47: Confidence in the future!
“Confidence in the future!” – – – Q1 2011 Trading update 47
Slide 48: Storage capacity under construction
Storage capacity under construction Location Ownership Product* cbm 2009 2010 2011 2012 China, Caojing 50% C 30,000 Brazil, Aratu 100% C 26,300 Netherlands, Europoort 100% O 160,000 Spain, Barcelona 50% O 155,200 Netherlands, MOT 16.67% O 360,0001 Netherlands, Gate 42.5% LNG 540,000 China, Tianjin 5
Slide 49: Storage capacity under construction
Storage capacity under construction * O = Oil products, C = Chemicals, B = Biofuels, V = Vegetable oils, LNG = Liquefied Natural Gas Location Ownership Product* cbm 2009 2010 2011 2012 U.A.E., Fujairah 33% O 606,000 Netherlands, Vlaardingen 100% V/B 38,100 620,000 Netherlands, Westpoort 100% O 570,0
Slide 50: 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 provides logistics services, the company cannot guarantee the accur
Slide 51: www.vopak.com
– – – – Q1 2011 Trading update 51 www.vopak.com