Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Q1 2010 Earnings Presentation
54 slides from Royal Vopak Nv's earnings presentation, 2010
Slide 1: Roadshow Presentation: Trading update Q1 2010
_ Roadshow Presentation Trading update Q1 2010 – – –
Slide 2: A worldwide network strategy
A worldwide network strategy Vopak Houston Deer Park Terminal Vopak Horizon Fujairah Vopak Terminal Europoort Vopak Terminal Bahamas Vopak Singapore Sebarok Terminal – – – Trading update Q1 2010 2
Slide 3: Agenda
Agenda Introduction Business performance Growth projects Financing Outlook Details and definitions used in this presentation are derived from the Q1 2010 press release, which is leading. – – – Trading update Q1 2010 3
Slide 4: 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 2007/2008/200
Slide 5: 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 – – – Trading update Q1 2010 5
Slide 6: 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 – – – Trading up
Slide 7: Vopak's challenge
Vopak’s challenge The challenge is to facilitate the current and future product flows: – – – Trading update Q1 2010 7
Slide 8: Strategic position tank terminals
Strategic position tank terminals Outgoing Logistics Downstream Chemicals – – – Trading update Q1 2010 8
Slide 9: Logistic hub terminal
Logistic hub terminal Where large flows of products merge – logistics crossroad Houston, Rotterdam / Antwerp, Singapore and Fujairah Example fuel oil – – – Trading update Q1 2010 9
Slide 10: Import / Export terminal
Import / Export terminal - Break or make bulk - Local distribution – – – Trading update Q1 2010 10
Slide 11: Industrial terminal
Industrial terminal Vopak Singapore – Sakra Terminal – – – Trading update Q1 2010 11
Slide 12: Vopak core businesses
Vopak core businesses Existing market Oil Chemicals New products in existing market Biofuels New market LNG – – – Trading update Q1 2010 12
Slide 13: 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 Annual growth rate = 5,5% Annual growth rate = Annual growth rate = 2,9% 0,5% Source: Wood Mackenzie – – – Trading
Slide 14: 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 Source: CMAI – – – Trading update Q1 2010 14
Slide 15: Increased interest in biofuels leading to growing storage demands
Increased interest in biofuels leading to growing 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 – – – Trading update Q1 2010 15
Slide 16: Worldwide LNG demand drives need for independent import terminals
Worldwide LNG demand drives need for independent import terminals – – – Trading update Q1 2010 16
Slide 17: Drivers of structural growth in demand
Drivers of structural growth in demand Countries setting individual specifications for products Liberalization of previously closed economies Increasing geographical imbalances Growing demand for environmentally friendlier fuels – – – Trading update Q1 2010 17
Slide 18: Accelerated Strategy Execution
Accelerated Strategy Execution Based on Reliability and Efficiency EXCELLENT EXCELLENT CUSTOMER CUSTOMER MAXIMUM MAXIMUM OPERATIONAL OPERATIONAL SERVICE SERVICE EFFICIENCY EFFICIENCY •• Operational Operational Efficiency Efficiency Improvement Improvement •• Key Key Account Account Management Manage
Slide 19: 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 20: Market share according to the definition
Market share according to the definition In mln cbm Storage market Oil Chemicals Total World Market 195 mln 50 mln 245 mln CBM Primary Competition 125 mln 44 mln 169 mln CBM Secondary Competition 70 mln 6 mln 76 mln CBM Vopak 18.7 mln 10.5 mln 28.3 mln CBM Vopak Market Share: As % of total market 9%
Slide 21: 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 24 mln cbm Growth % 8.8% Vopak 3.0 mln cbm Growth as % of Vopak capacity 10.6% – – – Trading update Q1 2010 21
Slide 22: 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 CLH IMTT CIM SUMED Vitol Sinochem Horizon EAPC STS Odfjell LBC Dalian Port Magellan Sunoco Universal SPSE -0 5 10 15 20 25 30 – – – Trading u
Slide 23: Agenda
Agenda Introduction Business performance Growth projects Financing Outlook Details and definitions used in this presentation are derived from the Q1 2010 press release, which is leading. – – – Trading update Q1 2010 23
Slide 24: 2009: Another robust year for Vopak
2009: Another robust year for Vopak ROBUST ROBUST CUSTOMER CUSTOMER FOCUSED FOCUSED OCCUPANCY OCCUPANCY RATES RATES GROWTH GROWTH 27.1 28.3 92% 94% 96% 95% 94% 21.8 85% 20.4 21.2 20.2 +0.2 +0.8 +0.6 +5.3 +1.2 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 Strong Strong business business
Slide 25: 2009 EBIT excl. exceptional items: up 20% to EUR 385.3 mln
2009 EBIT excl. exceptional items: up 20% to EUR 385.3 mln Net Revenues EBIT In EUR mln In EUR mln 923.5 1,001.1 385.3 320.4 2008 +8% 2009 2008 +20% 2009 Net Profit Earnings per share In EUR mln In EUR 242.7 3.84 202.1 3.24 +20% 2009 +19% 2008 2008 2009 – – – All figures Trading excluding update Q1
Slide 26: Q1 2010 Summary
Q1 2010 Summary Q1 2010 EBIT excl. exceptional items up 28% to EUR 109.7 mln (Q1 2009 EUR 85.6 mln) Q1 2010 EBITDA excl. exceptional items increased by 26% to EUR 145.4 mln (Q1 2009 EUR 115.6 mln) Further Q1 2010 highlights: - Additional expansion of terminal under construction Amsterdam Westpoort w
Slide 27: Q1 2010 EBIT excl. exceptional items up 28% to EUR 109.7 mln
Q1 2010 EBIT excl. exceptional items up 28% to EUR 109.7 mln In EUR mln Q1 10 Q1 09 ∆ EBIT incl. exceptionals 109.6 91.2 +20% EBIT excl. exceptionals 109.7 85.6 +28% EBITDA excl. exceptionals 145.4 115.6 +26% Occupancy rate 93% 95% Storage capacity (in mln cbm) 28.4 27.4 – – – Trading update Q1 2010
Slide 28: Focus on strategic leadership delivers results
Focus on strategic (growth, customer and operational efficiency) leadership delivers results In EUR mln, - excl. exceptional items - EBITDA improvements by: 145.4 • Improved revenue per cbm EBITDA • Effective cost management • Storage capacity growth • Benefits from economies of scale 115.6 Occupanc
Slide 29: All divisions contributed to the Q1 2010 EBIT increase
All divisions contributed to the Q1 2010 EBIT increase of 28% In EUR mln, - excl. exceptional items - North America OEMEA Asia 31.5 36.6 30.6 37.7 11.4 13.3 Q1 09 17% Q1 10 Q1 09 16% Q1 10 Q1 09 23% Q1 10 Latin America CEMEA Other 17.7 25.3 6.4 7.3 -12.0 -10.5 Q1 09 Q1 10 Q1 09 Q1 10 Q1 09 Q1 10 14%
Slide 30: Chemicals EMEA
Chemicals EMEA “We notice the first signs of structural recovery in the European chemicals segment” EBIT in EUR mln, - excl. exceptional items - 26.4 25.3 24.5 22.6 17.7 43% Vopak Terminal Botlek Zuid, Rotterdam Q1 Q2 Q3 Q4 2009 2010 – – – Trading update Q1 2010 30
Slide 31: Oil EMEA
Oil EMEA “Robust demand for tank storage continues” EBIT in EUR mln, - excl. exceptional items - 36.6 35.9 33.6 34.3 31.5 Vopak Terminal Europoort, Rotterdam 16% Q1 Q2 Q3 Q4 2009 2010 – – – Trading update Q1 2010 31
Slide 32: Asia
Asia “Continued EBIT growth by expanding capacity and efficiency improvements” EBIT in EUR mln, - excl. exceptional items - 37.7 33.9 31.6 31.4 30.6 23% Vopak Terminal Sakra, Singapore Q1 Q2 Q3 Q4 2009 2010 – – – Trading update Q1 2010 32
Slide 33: North America
North America “Growth through acquisitions, effective cost management and rationalizations” EBIT in EUR mln, - excl. exceptional items - 13.3 13.0 11.4 11.2 10.5 17% Vopak Terminal Deer Park, Houston Q1 Q2 Q3 Q4 2009 2010 – – – Trading update Q1 2010 33
Slide 34: Latin America
Latin America “Continuing steady performance” EBIT in EUR mln, - excl. exceptional items - 7.3 6.4 6.2 6.2 5.5 14% Vopak Terminal Cartagena, Colombia Q1 Q2 Q3 Q4 2009 2010 – – – Trading update Q1 2010 34
Slide 35: Agenda
Agenda Introduction Business performance Growth projects Financing Outlook – – – Trading update Q1 2010 35
Slide 36: Company growth supported by healthy demand for storage capacity
Company growth supported by healthy demand for storage capacity Storage Capacity In mln cbm 32.0 28.3 28.4 27.1 21.8 20.2 20.4 21.2 +0.2 +0.8 +0.6 +5.3 +1.2 +0.1 +3.6 2004 2005 2006 2007 2008 2009 Q1 2010 2012 Occupancy Rate 85% 92% 94% 96% 95% 94% 93% – – – Trading update Q1 2010 36
Slide 37: Growth continues: Q1 2010 storage capacity increased with 0.1 mln cbm
Growth continues: Q1 2010 storage capacity increased with 0.1 mln cbm Lanshan, China Alemoa Zhangjiagang, China Product: Chemicals Product: Chemicals Product: Chemicals Capacity addition: 3,700 cbm Capacity addition: 32,700 cbm Capacity addition: 74,500 cbm In cbm YE 2009 Capacity 28.3 mln Total net
Slide 38: Amsterdam Westpoort
Amsterdam Westpoort • Total storage capacity of 1,190,000 cbm • 41 storage tanks: 7 x 50,000 cbm, 11x 40,000 cbm, 17 x 20,000 cbm and 6 x 10,000 cbm • A facility for blending (mixing) products and components • Ten berths at two finger piers and two quay walls Aerial photo of the Vopak Westpoort Term
Slide 39: Various projects under construction
Various projects under construction Total storage capacity under construction per Q1 2010: 3.6 mln cbm Jakarta (Indonesia) 250,800 cbm Fujairah (U.A.E.) Officially opened 12 April 2010 606,000 cbm Gate terminal (Netherlands) 540,000 cbm MOT, Rotterdam (Netherlands) increase in entitlement with 360,0
Slide 40: Investing in growth
Investing in growth Group companies and joint ventures Around EUR 0.3 bln Around EUR 1.7 bln Total CAPEX projects 2010, 2011 and 2012 Remaining Vopak share in CAPEX Spend Approved & Under Construction Projects 2010, 2011 and 2012 Approved & Under Construction Projects Yearly Sustaining Capex +/- EUR
Slide 41: Vopak's growth based on healthy demand
Vopak’s growth based on healthy demand – – – Trading update Q1 2010 41
Slide 42: Agenda
Agenda Introduction Business performance Growth projects Financing Outlook – – – Trading update Q1 2010 42
Slide 43: Strategic finance
Strategic finance Net debt : EBITDA ratio Q1 2010 2.19 2009 2.23 2008 2.54 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 – – – Tradi
Slide 44: Maturity of debt funding further enhanced
Maturity of debt funding further enhanced Total program around EUR 2.0 bln Covenant RCF US PP 2001 US PP 2007 Asian PP US PP 2009 Term EUR 1 bln Maximum Net Senior Debt/ 3.75 3.75 3.75 3.75 3.75 EBITDA Additional headroom When financed with Up to 4.25 > 3.75 > 3.75 > 3.75 subordinated debt Minimum E
Slide 45: Balanced debt repayment schedule
Balanced debt repayment schedule Revolving Credit Facility of EUR 1.0 billion fully available Debt repayment schedule per year-end 2009 In EUR mln 220 200 180 160 140 120 100 80 60 40 20 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2029 – – – Trading update Q1 2010 45
Slide 46: Agenda
Agenda Introduction Business performance Growth projects Financing Outlook – – – Trading update Q1 2010 46
Slide 47: Outlook
Outlook 2010 “For 2010 Vopak expects Group operating profit before depreciation and amortization (EBITDA) of at least EUR 560 million.” 2012 “Based on our growth strategy Vopak is well positioned to realize a Group operating profit before depreciation and amortization (EBITDA) between EUR 625 – 700
Slide 48: Outlook Assumptions
Outlook Assumptions Oil Industrial Biofuels and Chemicals terminals vegoils ~ 17.5% of EBIT ~ 55% of EBIT ~ 15% of EBIT ~ 12.5% of EBIT ROBUST STABLE MIXED Healthy demand for storage capacity Contract renewals + New storage capacity commissioned – – – Trading update Q1 2010 48
Slide 49: EBITDA Outlook 2012: in the EUR 625-700 mln range
EBITDA Outlook 2012: in the EUR 625-700 mln range Outlook Guidance In EUR mln 2004 2005 2006 2007 2008 2009 2010 2012 625-700 >560 513.4 429.3 EBITDA* 369.5 314.1 262.5 231.8 Q1 145.4 385.3 320.4 272.9 220.9 EBIT* 179.7 Long-term Long-termguidance guidanceROCE ROCEofof16% 16% 151.0 Bearing in mind s
Slide 50: Confidence in the future!
“Confidence in the future!” – – – Trading update Q1 2010 50
Slide 51: Q1 2010 approved projects
Q1 2010 approved projects * O = Oil products, C = Chemicals, B = Biofuels, V = Vegetable oils, LNG = Liquefied Natural Gas Location Ownership Product* cbm 2009 2010 2011 2012 Indonesia, Jakarta 49% O 250,000 Singapore, Banyan 69.5% C 7,500 China, Zhangjiagang 100% C 114,700 Mexico, Coatzacoales 100%
Slide 52: Q1 2010 approved projects (II)
Q1 2010 approved projects (II) * O = Oil products, C = Chemicals, B = Biofuels, V = Vegetable oils, LNG = Liquefied Natural Gas Location Ownership Product* cbm 2009 2010 2011 2012 Netherlands, MOT 100% O 360,000 Netherlands, Gate 40% LNG 540,000 U.A.E., Fujairah 33% O 606,000 620,000 Netherlands, We
Slide 53: 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 54: www.vopak.com
– – – – Trading update Q1 2010 54 www.vopak.com