Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — FY2009 Earnings Presentation
62 slides from Royal Vopak Nv's earnings presentation, Mar 12, 2010
Slide 1: Annual results 2009
_ Annual results 2009 12 March 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 – – – Annual results 2009 12 March 2010 2
Slide 3: Agenda
Agenda Achievements 2009 Business environment Growth projects Business performance Financing Outlook Details and definitions used in this presentation are derived from the FY 2009 press release and Annual Report, which are leading. – – – Annual results 2009 12 March 2010 3
Slide 4: Robust results in 2009
Robust results in 2009 Added 1.2 mln cbm storage capacity Robust occupancy rate 27.1 28.3 21.8 92% 94% 96% 95% 94% 20.4 21.2 20.2 85% +0.2 +0.8 +0.6 +5.3 +1.2 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 Strong business performance EBITDA excl. exceptionals EUR 513.4 mln 550 500 +20%
Slide 5: Personnel & Process Safety
Personnel & Process Safety TIR* Total number of Spills 8 * 120 7 7.1 100 105 103 6.5 97 6 6.2 90 5.8 80 5 79 71 60 4 3 40 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 * Number of accidents own personnel relative to the number of hours worked LTIR** 2 1.9 1.7 1.4 1.4 1 0 2006 2007 2008 2009 * Nu
Slide 6: Strategic highlights: Customer Service
Strategic highlights: Customer Service Key Account Management Focus on service and quality “Annual world wide customer survey to further improve our customer service” – – – Annual results 2009 12 March 2010 6
Slide 7: Strategic highlights: Operational Efficiency
Strategic highlights: Operational Efficiency Operational improvements based on Lean Preparing infrastructure for the future Global procurement Vopak Terminal Deer Park - Ship Dock project – – – Annual results 2009 12 March 2010 7
Slide 8: Strategic highlights: Company growth
Strategic highlights: Company growth Prioritizing new investments Financing programs in place Vopak Terminal Botlek Strategic partnerships 156,000 cbm Sabtank (Yanbu) Vopak E.O.S. Vopak Terminal Leftbank 125,000 cbm 111,000 cbm 40,000 cbm – – – Annual results 2009 12 March 2010 8
Slide 9: Vopak Terminal Bahamas
Vopak Terminal Bahamas Acquired in 2008 and expanded with 412,900 cbm in 2009 Strategic partnership between Vopak (20%) and First Reserve Capital (80%) – – – Annual results 2009 12 March 2010 9
Slide 10: Banyan and Penjuru, Singapore
Banyan and Penjuru, Singapore Brownfield capacity additions at Banyan and Penjuru (Singapore): 457,000 cbm commissioned – – – Annual results 2009 12 March 2010 10
Slide 11: Agenda
Agenda Achievements 2009 Business environment Growth projects Business performance Financing Outlook Details and definitions used in this presentation are derived from the FY 2009 press release and Annual Report, which are leading. – – – Annual results 2009 12 March 2010 11
Slide 12: Stable performance in 2009
Stable performance in 2009 Important differences with previous cycles Biofuel storage Industrial terminals Changed customer base and Increased contract durations role in supply chain 100% < 1yr 75% 50% 1yr < > 3yr 25% > 3yr 0% 2005 2009 Industrial terminals – – – Annual results 2009 12 March 2010 12
Slide 13: Current business environment
Current business environment Oil Chemicals - Increasing geographical imbalance - Redesign of supply chain and between demand and supply leads to production facilities robust demand - Industrial terminal: stable/robust - Possible permanent closure/divestments - Remainder of chemical business: of less
Slide 14: Drivers of structural growth in demand remain
Drivers of structural growth in demand remain Countries setting individual specifications for products Liberalization of previously closed economies Increasing geographical imbalances Growing demand for environmentally friendlier fuels – – – Annual results 2009 12 March 2010 14
Slide 15: 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 16: Agenda
Agenda Achievements 2009 Business environment Growth projects Business performance Financing Outlook Details and definitions used in this presentation are derived from the FY 2009 press release and Annual Report, which are leading. – – – Annual results 2009 12 March 2010 16
Slide 17: Company growth supported by healthy demand for storage capacity
Company growth supported by healthy demand for storage capacity Storage Capacity In mln cbm 31.3 28.3 27.1 21.8 20.4 21.2 20.2 +0.2 +0.8 +0.6 +5.3 +1.2 +3.0 2004 2005 2006 2007 2008 2009 2012 Occupancy Rate 85% 92% 94% 96% 95% 94% – – – Annual results 2009 12 March 2010 17
Slide 18: 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 19: Various projects under construction
Various projects under construction Total storage capacity under construction 3.0 mln cbm MOT, Rotterdam (Netherlands) Vopak increase in entitlement Zhangjigang with 360,000 cbm (China) 177,300 cbm Jakarta, Indonesia, 250,000 cbm – – – Annual results 2009 12 March 2010 19
Slide 20: Gate terminal progressing well
Gate terminal progressing well All 3 roofs air lifted Launching customers: Division: LNG Start operations: HY2 2011 Capacity: 540,000 cbm Product: LNG – – – Annual results 2009 12 March 2010 20
Slide 21: Vopak's growth based on healthy demand
Vopak’s growth based on healthy demand – – – Annual results 2009 12 March 2010 21
Slide 22: Confidence in the future!
“Confidence in the future!” – – – Annual results 2009 12 March 2010 22
Slide 23: Agenda
Agenda Achievements 2009 Business environment Growth projects Business performance Financing Outlook Details and definitions used in this presentation are derived from the full year 2009 press release and Annual Report, which are leading. – – – Annual results 2009 12 March 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% 20.2 20.4 21.2 +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 Financial overview
2009 Financial overview 20% EBITDA* growth 19% EPS* growth Proposed Cash-Dividend of EUR 1.25 per share Adequate funding of growth strategy secured – – *–Excluding exceptional items Annual results 2009 12 March 2010 25
Slide 26: Strategic leadership delivers results
Strategic (growth, customer and operational efficiency) leadership delivers results In EUR mln, - excl. exceptional items - EBITDA improvements by: 513.4 • Higher occupancy rates EBITDA • Improved revenue per cbm • Effective cost management • Storage capacity growth • Benefits from economies of scal
Slide 27: 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% +19% 2008 2009 2008 2009 – – – All figures Annual excluding results 200
Slide 28: Revenue developments supported by robust demand for storage capacity
Revenue developments supported by robust demand for storage capacity Storage Capacity In mln cbm JV’s and Associates 10.2 28.3 27.1 Group Companies 21.8 20.4 21.2 20.2 18.1 +0.2 +0.8 +0.6 +5.3 +1.2 2004 2005 2006 2007 2008 2009 Occupancy Rate 85% 92% 94% 96% 95% 94% – – – Annual results 2009 12 Marc
Slide 29: Adjusted for divestments, all divisions contribute to the revenue growth
Adjusted for divestments, all divisions contribute to the revenue growth In EUR mln North America OEMEA Asia 251.7 269.5 166.3 206.2 118.2 131.7 2008 11% 2009 2008 7% 2009 2008 24% 2009 Latin America CEMEA 313.1 312.7 69.9 77.9 Adjustment for divestments 2008 11% 2009 2008 0% 2009 – – – Annual resul
Slide 30: EBIT - excluding exceptional items - increased by 20%
EBIT - excluding exceptional items - increased by 20% In EUR mln 2009 2008 % Operating profit 330.6 283.8 16 Net result JV & Associates 60.5 38.4 58 EBIT incl. exceptional items 391.1 322.2 21 Exceptional gain -5.8 -1.8 EBIT excl. exceptional items 385.3 320.4 20 – – – Annual results 2009 12 March 2
Slide 31: 66% of EBIT generated in non-euro currencies
66% of EBIT generated in non-euro currencies Transactional currency exchange risks are limited. As a rule revenues, costs and financing are denominated in the same currency. Other USD USD 21% SGD 21% EUR 34% SGD Other 24% EUR – – – Annual results 2009 12 March 2010 31
Slide 32: All divisions contribute to the EBIT increase of 20%
All divisions contribute to the EBIT increase of 20% In EUR mln, - excl. exceptional items - North America OEMEA Asia 108.1 135.3 95.5 127.5 34.4 46.1 2008 34% 2009 2008 25% 2009 2008 34% 2009 Latin America CEMEA Other 89.7 91.2 22.0 24.3 -29.3 -39.1 2008 10% 2009 2008 2% 2009 2008 2009 – – – Annual
Slide 33: Net result from Joint Ventures and Associates increases with 44%
Net result from Joint Ventures and Associates increases with 44% In EUR mln, - excl. exceptional items - North America OEMEA Asia 13.3 32.1 27.7 28.8 2.1 3.6 2008 71% 2009 2008 141% 2009 2008 4% 2009 Latin America CEMEA Other 2.3 1.8 1.3 0.7 -0.8 -0.9 2008 46% 2009 2008 22% 2009 2008 2009 – – – Annu
Slide 34: Healthy EBIT(DA) margins
Healthy EBIT(DA) margins Supported by robust occupancy rates, improved revenue per cbm, effective cost management and economies of scale 50% EBITDA margin* 40% 30% EBIT margin* 20% 10% 0% * Excluding exceptional items, 2004 2005 2006 2007 2008 2009 excluding net result of JV’s – – – Annual results 2
Slide 35: Net Profit - excluding exceptional items - increased by 20%
Net Profit - excluding exceptional items - increased by 20% In EUR mln, - excl. exceptional items - 2009 2008 ∆% Net Revenues 1,001.1 923.5 8% EBIT 385.3 320.4 20% Net finance costs -45.7 -37.6 -22% Tax* -68.9 -54.9 -26% Net Profit attributable to holders of ordinary shares 242.7 202.1 20% EPS 3.84
Slide 36: Net Finance Costs aligned with expansion program
Net Finance Costs aligned with expansion program In EUR mln 2009 2008 Interest and dividend income 6.7 8.5 Finance costs -52.4 -46.1 Net finance costs -45.7 -37.6 Net-interest bearing debt Average interest rate 1250 10% 1000 8% 996.7 1017.7 750 6% 500 4% 561.9 505 411.7 425.7 2% 250 0% 0 2004 2005 2
Slide 37: Stable effective tax rate 2009
Stable effective tax rate 2009 In EUR mln Effective Tax Rate 2009 2009 % 2008 % Tax -68.9 19.9% 19.3% – – – Annual results 2009 12 March 2010 37
Slide 38: Solid improvements in EPS
Solid improvements in EPS 4.00 In EUR 3.84 3.00 3.24 Proposed: Share split 1:2 2.62 2.00 1.96 1.61 1.00 1.26 0.00 35% 22% 34% 24% 19% 2004 2005 2006 2007 2008 2009 – – – Annual results 2009 12 March 2010 38
Slide 39: Dividend: Increase with 14%
Dividend: Increase with 14% Proposed 2009 dividend amounts to EUR 1.25 per ordinary share Proposed dividend +14% 1.25 1.10 0.95 0.75 0.60 0.50 2004 2005 2006 2007 2008 2009 – – – Annual results 2009 12 March 2010 39
Slide 40: Sources and uses of cash
Sources and uses of cash In EUR mln Gross operating cash flow Investments 500 400 38.8 41.5 453.6 300 200 534.8 100 254.2 172.6 0 -24.6 -100 103.9 -200 Cash position Cash position Net financing Tax paid Divestments Financing costs activities 31 Dec 2009 1 Jan 2009 – – – Annual results 2009 12 March
Slide 41: Business performance
Vopak Terminal Europoort Vopak Horizon Fujairah Business performance EBIT per Division Vopak Houston Vopak Singapore Deer Park Terminal Sebarok Terminal – – – Annual results 2009 12 March 2010 41
Slide 42: Chemicals EMEA
Chemicals EMEA “Despite drop in demand of chemical products a stable operating profit was realized.” In EUR mln, - excl. exceptional items - 26.4 * 24.5 23.1 22.6 22.8 21.7 22.1 17.7 23% 4% 16% 11% Vopak Terminal Botlek Zuid, Rotterdam Q1 Q2 Q3 Q4 2008 2009 * CEMEA Q3 2009 result includes a positive
Slide 43: Oil EMEA
Oil EMEA “Increasing geographical imbalances drive demand for tank storage.” In EUR mln, - excl. exceptional items - 35.9 33.6 34.3 31.5 29.1 27.9 26.0 25.1 Vopak Terminal Europoort, Rotterdam 21% 34% 29% 18% Q1 Q2 Q3 Q4 2008 2009 – – – Annual results 2009 12 March 2010 43
Slide 44: Asia
Asia “Increasing consumption in Asia offers Vopak a splendid perspective.” In EUR mln, - excl. exceptional items - 33.9 31.6 31.4 30.6 24.2 25.0 23.4 22.9 31% 48% 31% 26% Vopak Terminal Sakra, Singapore Q1 Q2 Q3 Q4 2008 2009 – – – Annual results 2009 12 March 2010 44
Slide 45: North America
North America “Good results realized in turbulent year.” In EUR mln, - excl. exceptional items - 13.0 11.4 11.2 10.5 9.3 9.2 8.4 7.5 52% 20% 55% 14% Vopak Terminal Deerpark, Houston Q1 Q2 Q3 Q4 2008 2009 – – – Annual results 2009 12 March 2010 45
Slide 46: Latin America
Latin America “The chemicals market is growing again and we are anticipating to this.” In EUR mln, - excl. exceptional items - 6.4 6.2 6.2 5.5 5.8 5.8 5.3 5.1 21% 8% 7% 7% Vopak Terminal Cartagena, Colombia Q1 Q2 Q3 Q4 2008 2009 – – – Annual results 2009 12 March 2010 46
Slide 47: Investments
Vopak Terminal Westpoort Gate terminal Investments Vopak Terminal Vopak Singapore Bahamas Penjuru Terminal – – – Annual results 2009 12 March 2010 47
Slide 48: Growth continues
Growth continues 2009 storage capacity increased with 1.2 mln cbm Vlaardingen, Netherlands Ho Chi Minh City, Vietnam Barcelona, Spain Product: Biofuels and vegoils Product: Chemicals Product: Chemicals Capacity addition: 75,000 cbm Capacity addition: 40,000 cbm Capacity addition: 5,000 cbm In cbm YE
Slide 49: Expansion projects progressing well
Expansion projects progressing well Vopak Terminal Westpoort Vopak Terminal Barcelona 1,190,000 cbm 155,200 cbm Vopak Terminal Zhangjiagang Vopak Terminal Jakarta 177,300 cbm 250,000 cbm – – – Annual results 2009 12 March 2010 49
Slide 50: Total investments
Total investments 800 800 In EUR mln 446 535 446 268 268 188 188 146 151 147 2004 2005 2006 2007 2008 2009 Remaining Vopak Share Approved & Under Construction Projects EUR 0.4 bln YE 2009 – – 2011 – Annual results 2009 12 March 2010 50
Slide 51: Investing in growth
Investing in growth Group companies and joint ventures Around EUR 0.4 bln Around EUR 1.6 bln Total CAPEX projects 2010, 2011 and 2012 Remaining Vopak share in CAPEX Spent 2010, Approved & Under Construction Projects 2011 and 2012 Approved & Under Construction Projects Yearly Sustaining Capex +/- EUR
Slide 52: Agenda
Agenda Achievements 2009 Business environment Growth projects Business performance Financing Outlook Details and definitions used in this presentation are derived from the full year 2009 press release and Annual Report, which are leading. – – – Annual results 2009 12 March 2010 52
Slide 53: 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 54: Strategic finance
Strategic finance Net debt : EBITDA ratio 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 4 Maximum Ratio under US PP Maximum Ratio under other loans and syndicated revolving credit facility * Based on Dutch GAAP – – – Annual results 2009 12
Slide 55: Balanced debt repayment schedule
Balanced debt repayment schedule Revolving Credit Facility of EUR 1.0 billion fully available 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 – – – Annual results 2009 12 March 2010 55
Slide 56: Agenda
Agenda Achievements 2009 Business environment Growth projects Business performance Financing Outlook Details and definitions used in this presentation are derived from the full year 2009 press release and Annual Report, which are leading. – – – Annual results 2009 12 March 2010 56
Slide 57: Outlook
Outlook 2010 “For 2010 Vopak expects Group operating profit before depreciation and amortization (EBITDA) to growth between 5-10%.” 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 mill
Slide 58: 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 ROBUST/STABLE STABLE MIXED Healthy demand for storage capacity Contract renewals + Some new storage capacity commissioned – – – Annual results 2009 12 March
Slide 59: 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 +5-10% 513.4 429.3 EBITDA* 369.5 314.1 262.5 231.8 385.3 320.4 272.9 220.9 179.7 Long-term EBIT* 151.0 Long-termguidance guidanceROCE ROCEofof16% 16% Bearing Bearingininmind
Slide 60: Summary
Summary • Vopak has realized a 20% EBITDA growth in 2009 (2009 EUR 513 mln: 2008 EUR 429 mln) • Vopak has realized a 19% EPS growth in 2009 (2009 EUR 3.84: 2008 EUR 3.24) • Vopak proposes a EUR 1.25 Cash-Dividend per share (2008: EUR 1.10) • Vopak continues its expansion strategy based on positive m
Slide 61: 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 62: www.vopak.com
– – – – Annual results 2009 12 March 2010 62 www.vopak.com