Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — FY2005 Earnings Presentation
42 slides from Royal Vopak Nv's earnings presentation, Mar 10, 2006
Slide 1: Welcome
Welcome Amsterdam March 10, 2006
Slide 2: Annual Results 2005
Annual Results 2005 March 10, 2006
Slide 3: Today’s agenda
Today’s agenda • Strategy and achievements 2005 • Business performance FY 2005 • Divisions FY 2005 • Outlook • Post Balance events 3
Slide 4: Vopak’s strategy since 2003
Vopak’s strategy since 2003 Strengthening of global market leadership Refocusing Excellence Growth the core Divestment • Fundamentals on Since 2003: non-core Safety • 1 mln cbm expansion activities • Terminal Health • From 66 to 73 € 210 mln Assessment terminals • Key • ROCE increased to accountmana
Slide 5: Excellence and Growth
Excellence and Growth CULTURE AT VOPAK CULTURE AT VOPAK Tank Terminal Plus Strategy CULTURE AT VOPAK Excellence Growth Human Resources Finance Operational Growth in ICT Commercial core activity Operational Key Account Mgt. Financial 5
Slide 6: Excellence 2005
Excellence 2005 Commercial Excellence: • Actively captured European and North American chemical market opportunities, respective growth in turnover of 8% and 16% • Key Account Programs Operational Excellence: • Operational Excellence: further decreased LTIR to 2.7 • Standards further developed and i
Slide 7: Vopak’s growth strategy
Vopak’s growth strategy Value Driver Vopak’s Response Increasing imbalances • Expansion of existing strategic locations Economic growth resulting in more • Greenfield operations demand • Industrial Terminals Diversification of products • Offering additional blending services • Bio-fuel growth strate
Slide 8: Growth 2005: added 250,000 cbm
Growth 2005: added 250,000 cbm Optimise Expansion M&A New New existing existing terminal concepts capacity terminals locations New jetty Thailand DUPEG, Darwin, Conversion of Thailand Germany Australia storage for biodiesel, North Delivered America Improve Brazil, Serlipsa, Continued LNG: Gate infra
Slide 9: Building for future growth
Building for future growth Gävle Rotterdam LNG (R’dam) Biodiesel Antwerp Zhangjiagang Vopak ITC Spain Biodiesel Coajing Qatar LNG (Asia) Biodiesel Fujairah Banyan Indonesia Argentina Darwin Sydney Under construction Under development Biodiesel 9
Slide 10: Network 2005
Network 2005 • Revitalisation senior division management • New composition of Executive Board • Global expert forums to actively share/transfer knowledge • Strengthened corporate centre for excellence 10
Slide 11: Executive Board
Executive Board John Paul Broeders Jack de Kreij Frans de Koning CEO CFO 11
Slide 12: Division presidents
Division presidents Rob Pieter Kees van Paul Eelco Nijst Bakkker Seventer Govaart Hoekstra OEMEA North America CEMEA Asia Latin America 12
Slide 13: Vopak’s financial growth objective
Vopak’s financial growth objective EBITDA EBITDA 275 275-350 -350 EBITDA EBITDA 253.5 253.5 EBITDA EBITDA 228.3 228.3 Excellence and F-X Translation Growth EBIT EBIT EBIT EBIT 170.7 170.7 Economy 147.5 147.5 2004 2005 Future 13
Slide 14: Today’s agenda
Today’s agenda • General • Business performance FY 2005 • Divisions FY 2005 • Outlook • Post Balance events 14
Slide 15: Summary of market developments
Summary of market developments Oil: Chemicals: • Product differentiation • Increasing demand for storage • Intensification of geographical • Build-up of new petrochemical imbalance between demand and complexes in Asia and supply Middle East • Liberalisation of new markets LNG: Bio fuels: • More focu
Slide 16: 2005: 16% EBIT increase
2005: 16% EBIT increase EUR (mln) 2005 2004 ∆% Net Revenues 683.6 648.1 5.5 EBIT 170.7 147.5 15.7 Net Profit* 90.2 80.7 11.8 EPS 1.46 1.36 7.4 ROCE 16.5 14.4 * attributable to holders of ordinary shareholders All figures are including exceptionals 16
Slide 17: 2005: 19% EBIT increase excl. exceptionals
2005: 19% EBIT increase excl. exceptionals EUR (mln) 2005 2004 ∆% EBIT 179.7 151.0 19.0 Net Profit* 99.5 74.6 33.4 EPS 1.61 1.26 27.8 ROCE 17.5 14.9 * attributable to holders of ordinary shareholders All figures are excluding exceptionals 17
Slide 18: Net Revenues: Consistent growth in all regions
Net Revenues: Consistent growth in all regions EUR (MLN) 2005* 2004 ∆% 683.6 648.1 5.5 Chemicals EMEA 263.9 245.4 7.5 Oil EMEA 143.7 128.4 11.9 Asia 97.5 92.2 5.7 North America 118.2 101.8 16.1 Latin America 51.9 45.9 13.1 Non-core activities 8.4 34.4 -75.6 *Excluding divestments, net revenues incre
Slide 19: 2005: € 28.7 mln increase in EBIT
2005: € 28.7 mln increase in EBIT 59.9 57.6 55.8 48.6 20.6 15.6 2004 2005 2004 2005 2004 2005 North America OEMEA Asia 44.6 Other 34.3 2004 2005 16.6 16.3 -19.9 -19.3 2004 2005 2004 2005 Latin America CEMEA EBIT excluding exceptionals 19
Slide 20: 2005: 7% growth in EPS
2005: 7% growth in EPS EUR (min) 2005 2004 ∆% EBIT 170.7 147.5 15.7 Finance charges -39.3 -46.3 -15.1 Tax -25.6 -1.0 Minority interests -12.6 -12.6 - Net result* 90.2 80.7 11.8 EPS 1.46 1.36 7.4 Excluding exceptionals, EPS increases by 28% * attributable to holders of ordinary shareholders 20
Slide 21: Summary of exceptional items
Summary of exceptional items Included in EBIT 2005 2004 Impairment and disposals -2.9 -0.5 Provisions -5.7 - Other -0.4 -3.0 Total impact on EBIT -9.0 -3.5 Tax 1.1 15.9 Finance charges -1.4 -6.3 Total impact on Net Profit -9.3 6.1 21
Slide 22: Strategic Finance: potential for growth
Strategic Finance: potential for growth Net debt : EBITDA ratio 2005 1.76 2004 2.20 2003* 2.42 2002* 2.49 0 0.5 1 1.5 2 2.5 3 3.5 4 Maximum Ratio under US PP till June 30, 2007 from then onwards 2.75 Maximum Ratio under other loans and syndicated revolving credit facility * Based on Dutch GAAP 22
Slide 23: Strategic Finance: solid equity position
Strategic Finance: solid equity position Restructuring preference shares:-50.3 IFRS adjustment:-44.7 Shareholders’ equity Net Debt 800 700 600 500 400 300 785 496 619 521 509 500 472 604 200 2002* 2003* 2004 2005 * Based on Dutch GAAP 23
Slide 24: Cash flow
Cash flow EUR (mln) 2005 2004 Net CF from operations 164.3 138.9 Cash flow from divestments 148.6 161.8 Cash flow from financing -71.6 -163.6 Total cash available 241.3 137.1 Investments -187.5 -147.0 Dividends* -9.9 -12.6 Net Cash Flow 43.9 -22.5 * Dividend paid in cash on ordinary shares and prefe
Slide 25: Outlook Cash disposition 2006
Outlook Cash disposition 2006 Operational CAPEX 156 FinPref cash flow Cash Dividend dividend + Liquidity Reduction Repayment position share LT Dept 31-12-2005 premium 0 ? 25
Slide 26: CAPEX 2002 - 2006
CAPEX 2002 - 2006 (In)Tangible fixed assets Outlook ±250 160.3 124.9 97.0 106.5 2002* 2003* 2004 2005 2006 * Dutch GAAP 26
Slide 27: Proposed 2005 dividend of € 0.60
Proposed 2005 dividend of € 0.60 Pay out ratio 50% 45% € 0.50 € 0.50 € 0.50 € 0.60 40% 35% 41% 30% 36% 25% 20% 26% 30% 15% 10% 2002 2003 2004 2005 27
Slide 28: Today’s agenda
Today’s agenda • General • Business performance FY 2005 • Divisions FY 2005 • Outlook • Post Balance events 28
Slide 29: CEMEA: “Continued market improvement”
CEMEA: “Continued market improvement” “Most terminals achieved higher occupancy rates.” EBIT* (mln) 14 12 10 8 2004 6 2005 4 8.1 10.2 8.3 10.7 8.5 12.9 9.4 10.8 2 0 Q1 Q2 Q3 Q4 * Excluding exceptionals 29
Slide 30: OEMEA: “Grow, Improve and Network”
OEMEA: “Grow, Improve and Network” “Increase in storage and throughput of fuel oil, partially for local use and partially for export to Asia.” EBIT* (mln) 18 16 14 12 10 2004 8 2005 6 10.3 13.4 11.2 14.3 13.9 15.7 13.2 14.2 4 2 0 Q1 Q2 Q3 Q4 * Excluding exceptionals 30
Slide 31: Asia: “Continuous strong with expansion in Australia and China”
Asia: “Continuous strong with expansion in Australia and China” “Greater demand for raw materials in China and expansion of the production capacity of multinational chemical and oil companies caused the demand for storage in this region to rise” EBIT* (mln) 18 16 14 12 10 2004 8 2005 6 11.7 13.8 15.
Slide 32: North America: “Market improved strongly”
North America: “Market improved strongly” “The demand for chemical storage increased, above all for intermediates” EBIT* (mln) 7 6 5 4 2004 3 2005 2 4.0 4.5 4.0 4.9 3.3 5.4 4.3 5.8 1 0 Q1 Q2 Q3 Q4 * Excluding exceptionals 32
Slide 33: Latin America: “Decisive network with good last quarter”
Latin America: “Decisive network with good last quarter” “The positive economic developments in most Latin American countries provided an impulse to the demand for storage of products” EBIT * (mln) 6 5 4 2004 3 2005 2 4.4 4.0 4.8 3.5 3.8 3.2 5.0 4.2 1 0 Q1 Q2 Q3 Q4 * Excluding exceptionals 33
Slide 34: Today’s agenda
Today’s agenda • General • Business performance FY 2005 • Divisions FY 2005 • Outlook • Post Balance events 34
Slide 35: Outlook (1)
Outlook (1) Barring unforeseen circumstances, Vopak is well positioned to realise an improvement in earnings per ordinary share of around 10% per annum on average over the coming years. The unforeseen circumstances relate to exceptional income and expenditure, unexpected economic, political and curr
Slide 36: Outlook (2)
Outlook (2) 2005 2006 and beyond EBITDA (mln) 253.5 Growth to 275-350 EBIT (mln) 170.7 EPS 1.46 an improvement of around 10% per annum on average over the coming years CAPEX (mln) 160.3 ±250 (2006) ROCE 16.5% Around 16% 36
Slide 37: Forward-looking statement
Forward-looking statement This document contains forward-looking statements. These statements are based on currently available plans and projections. In view of the dynamics of the markets and environments of our service-oriented storage and handling activities in 29 countries we cannot give represe
Slide 38: Today’s agenda
Today’s agenda • Strategy • Business performance FY 2005 • Divisions FY 2005 • Outlook • Post Balance events 38
Slide 39: Vopak ITC
Vopak ITC February 15, 2006: Mitsui & Co. (U.S.A.), Inc. (Mitsui USA) and Royal Vopak (Vopak) announced today their intention to merge their complementary tank terminal activities in the United States and Canada in a new Joint Venture, to be named Vopak ITC. Mitsui USA and Vopak will participate on
Slide 40: Vopak ITC – Main principles
Vopak ITC – Main principles • Strong and strengthened position in Houston • North American growth strategy • Integrated part of network • CEO and chairman by Vopak 40
Slide 41: Status Vopak ITC
Status Vopak ITC • Mutual due diligence • Regulatory approvals Announce Close intention Transaction 15 February 2006 Target mid 2006 • North American Strategy • Finance Joint Venture • Start Integration Process 41
Slide 42: Vopak Terminal Deer Park and ITC Houston Terminal - 2.4 million cbm
Vopak Terminal Deer Park and ITC Houston Terminal - 2.4 million cbm 42