Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Q3 2015 Earnings Presentation
38 slides from Royal Vopak Nv's earnings presentation, Nov 6, 2015
Slide 1: Trading Update YTD Q3 2015 Results
TRADING UPDATE YTD Q3 2015 RESULTS ROYAL VOPAK 6 NOVEMBER 2015 – ANALYST PRESENTATION
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains ‘forward-looking statements’, based on currently available plans and forecasts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the
Slide 3: Jack de Kreij, Vice-Chairman & CFO
JACK DE KREIJ VICE-CHAIRMAN & CFO ROYAL VOPAK 6 NOVEMBER 2015 – ANALYST PRESENTATION
Slide 4: Key Topics
KEY TOPICS 1. Update strategic priorities 2. Business highlights year-to-date 3. Key figures third quarter 4. Selective growth 5. Subsequent event 6. Outlook & closing summary 7. Questions & answers 4 Analyst presentation Q3 2015 6 November 2015
Slide 5: Key Topics
KEY TOPICS 1. Update strategic priorities 2. Business highlights year-to-date 3. Key figures third quarter 4. Selective growth Construction new tanks in Fujairah (UAE) 5. Subsequent event 6. Outlook & closing summary 7. Questions & answers 5 Analyst presentation Q3 2015 6 November 2015
Slide 6: Strategic Priorities & Financial Update
STRATEGIC PRIORITIES & FINANCIAL UPDATE 2 JULY Strategic priorities for 2016 Status YTD Q3 2015 Free Cash Flow focus EUR 548.9 million (2014: 557.3 million)* Divestment program & de-risking 9 terminals (1.7 million cbm) 2 plots of land EUR 297 million** total net cash proceeds Reducing the s
Slide 7: Key Topics
KEY TOPICS 1. Update strategic priorities 2. Business highlights year-to-date 3. Key figures third quarter 4. Selective growth 5. Subsequent event Manifold of Terminal Westpoort (Netherlands) 6. Outlook & closing summary 7. Questions & answers 7 Analyst presentation Q3 2015 6 November 2015
Slide 8: Performance Update
PERFORMANCE UPDATE Our performance is aligned with the expected business developments for the second half of 2015 and the outlook as disclosed in our HY1 reporting. Vopak succeeded to improve its commercial occupancy reflecting a healthy demand for storage, even though we faced continued challenging
Slide 9: YTD Q3 2015 Business Highlights
YTD Q3 2015 BUSINESS HIGHLIGHTS Occupancy rate Revenues (in percent) (in EUR million) +3pp +5% 88 89 92 968 985 1,036 2013 2014 2015 2013 2014 2015 EBITDA* & Net Profit** Cash flow*** (in EUR million) (in EUR million) +5% +6% -1% 570 568 602 557 549 513 EBITDA Net profit 235 221 232 2013 2014 2015 2
Slide 10: YTD Q3 2015 Revenues by Geography
YTD Q3 2015 REVENUES BY GEOGRAPHY EUR 1,036 million (+5%) Netherlands EMEA +5% Americas Asia 1,036 28% 982 968 985 35% 854 19% 18% 2011 2012 2013 2014 2015 Favourable foreign currency effect due to our well-diversified, global portfolio Driven by a higher average occupancy rate as a result of a
Slide 11: Occupancy Rate Developments
OCCUPANCY RATE DEVELOPMENTS 92% commercial occupancy (+3pp) “Full potential 90-95% playing field” 85-90% 94 96 95 94 92 93 93 91 88 89 92 89 88 91 91 93 84 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ‘13 YTD YTD Q3 Q4 Q1 Q2 Q3 Q3 Q3 2014 2015 2014 2015 Healthy demand for storage in the majority of our ter
Slide 12: Occupancy Rate Developments per Division
OCCUPANCY RATE DEVELOPMENTS PER DIVISION Q3 Q4 Q1 Q2 Q3 2014 2014 2015 2015 2015 Netherlands and EMEA operate in the full potential playing field 88% 85% 92% 95% 95% Americas continue to show stable performance Netherlands Improved occupancy rate Asia 85% 89% 91% 91% 94% EMEA 95% 93% 90% 85% 8
Slide 13: YTD Q3 2015 EBITDA Development
YTD Q3 2015 EBITDA DEVELOPMENT EUR 602 million (+6%) 27 joint ventures & 3 associates (11.7 million cbm = 34% of total capacity) +6% 602 Net result (EUR 77 million) by division: 576 570 568 Netherlands 459 EMEA 32% 21% Asia 493 488 504 525 LNG 392 44% 67 83 82 64 77 2011 2012 2013 2014 2015 EBITDA*
Slide 14: EBIT(DA) Margin Development
EBIT(DA) MARGIN DEVELOPMENT 50 45 40 EBITDA 35 30 25 EBIT 20 15 10 5 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD Q3 2015 Strategic priorities are supporting the steady margin developments Vopak continues to be well-positioned in order to increase cash flow generation and meet EP
Slide 15: YTD Q3 2015 EBITDA Analysis
YTD Q3 2015 EBITDA ANALYSIS 12.2 2.9 4.0 17.7 36.3 604.7 602.1 22.7 7.8 8.9 568.4 Acquisitions/ YTD Q3 FX-effect YTD Q3 Pre-OPEX Netherlands EMEA Americas LNG Asia Other YTD Q3 Divestments, Greenfields, 2014 2014 2015 against FX 2015 Excluding FX, strong performance Netherlands, EMEA and Americas
Slide 16: YTD Q3 2015 Non-IFRS Proportional Information
YTD Q3 2015 NON-IFRS PROPORTIONAL INFORMATION Proportionate EBITDA* Large greenfields commissioned In EUR million +9% 626 619 670 Balanced risk-return profile 612 467 CFROGA (after tax) exceeding 10% 2011 2012 2013 2014 2015 Cash Flow Return on Gross Assets** In percent -0.2pp 11.7% 11.9% 11.0
Slide 17: Key Topics
KEY TOPICS 1. Update strategic priorities 2. Business highlights year-to-date 3. Key figures third quarter 4. Selective growth 5. Subsequent event 6. Outlook & closing summary Loading arms & gangway jetty Hainan (China) 7. Questions & answers 17 Analyst presentation Q3 2015 6 November 2015
Slide 18: Q3 2015 Key Figures
Q3 2015 KEY FIGURES Occupancy rate (in percent) +4pp 87 89 93 EBITDA* (in EUR million) 2013 2014 2015 -4% 186 202 194 EBIT (in EUR million) -8% 2013 2014 2015 132 142 131 2013 2014 2015 Excluding exceptional items; including net result from joint ventures and associates; ** Net profit attributable t
Slide 19: Asia Dynamics in Perspective
ASIA DYNAMICS IN PERSPECTIVE Improved occupancy rate, from 85% in Q2 to 89% in Q3, in 2015* Oil products – solid drivers in an uncertain world o High utilization rates refineries and increased crude demand for strategic storage and teapot refiners o Diesel surplus in Asian markets o Additional c
Slide 20: Key Topics
KEY TOPICS 1. Update strategic priorities 2. Business highlights year-to-date 3. Key figures third quarter 4. Selective growth 5. Subsequent event 6. Outlook & closing summary 7. Questions & answers New LPG bullet in Vlissingen (Netherlands) 20 Analyst presentation Q3 2015 6 November 2015
Slide 21: Selective Growth Opportunities
SELECTIVE GROWTH OPPORTUNITIES Storage capacity developments +4.6 In million cbm 3.8 38.7 +0.3 1.8 0.8 0.2 34.1 33.8 1.7 End 2014 Brownfield Greenfield Divestments Q3 2015 Brownfield Greenfield 2019 Effective and sound strategic orientation supported by disciplined capital allocation Note: Including
Slide 22: Selective Growth Opportunities
SELECTIVE GROWTH OPPORTUNITIES Storage capacity developments In million cbm +4.6 +14.2 38.7 36.6 36.6 34.7 35.6 33.8 34.1 30.5 20.4 20.4 20.4 20.3 20.4 20.1 21.7 19.9 20.8 15.1 15.0 12.9 12.9 11.7 12.1 12.9 9.9 8.1 3.7 1.1 1.6 2.2 2.3 2.3 2.3 3.3 3.3 3.3 2003 2013 2014 YTD Q3 FY 2016 2017 2018 2019
Slide 23: Realized Investments and Divestments in 2015
REALIZED INVESTMENTS AND DIVESTMENTS IN 2015 Galena park Wilmington Sweden Finland (170,000 cbm) (130,700 cbm) (1,260,700 cbm) (175,400 cbm) Oil Chemicals Industrial Gasses Divestments Vlissingen Pengerang Hainan 36,800 cbm 413,000 cbm 1,350,000 cbm 23 Note: This is only a selection of projects real
Slide 24: Projects Under Construction
PROJECTS UNDER CONSTRUCTION Vopak's Capacity Country Terminal ownership Products (cbm) 2013 2014 2015 2016 2017 2018 2019 Existing terminals South Africa Durban 70% Oil products 30.000 Belgium Antw erp (Eurotank) 100% Chemicals 40.000 Germany Hamburg 100% Oil products 65.000 Singapore Banyan 55.6% L
Slide 25: Selective Capital Disciplined Growth
SELECTIVE CAPITAL DISCIPLINED GROWTH Maximum ratio under other PP programs and syndicated Senior net debt : EBITDA ratio revolving credit facility 5 Maximum ratio under current US PP programs 4 3.75 3.0 3 2.75 2 2.63 2.65 2.83 2.76 2.42 2.54 2.38 2.53 1 2.20 2.23 1.76 1.61 1.71 0 2003* 2004 2005 200
Slide 26: Key Topics
KEY TOPICS 1. Update strategic priorities 2. Business highlights year-to-date 3. Key figures third quarter 4. Selective growth 5. Subsequent event SabTank, Al Jubail (Saudi Arabia) 6. Outlook & closing summary 7. Questions & answers 26 Analyst presentation Q3 2015 6 November 2015
Slide 27: Investment PCQ2 Fully Aligned to Strategy
INVESTMENT PCQ2 FULLY ALIGNED TO STRATEGY New industrial terminal for world scale chemical complex in Saudi Arabia As per 30 November 2015 Hub Industrial USD 470 million total investment terminals terminals 348.000 cbm capacity* 25% Ownership Distribution Gas terminals markets Storage agre
Slide 28: Key Topics
KEY TOPICS 1. Update strategic priorities 2. Business highlights year-to-date 3. Key figures third quarter 4. Selective growth 5. Subsequent event 6. Outlook & closing summary Jetty infrastructure of Pengerang 7. Questions & answers 28 Analyst presentation Q3 2015 6 November 2015
Slide 29: 2015 Outlook Assumptions
2015 OUTLOOK ASSUMPTIONS Oil Chemical Industrial & Vegoils & Gas products products pipeline connected biofuels products Share of EBITDA* 45-50% 20-25% 20-25% 5-7.5% 2.5-5% Contract duration ~0 - 5 years ~1 - 5 years ~5 - 15 years ~0 - 3 years ~10 - 20 years Different 2014 Steady Solid Mixed Solid de
Slide 30: 2015 EBITDA Outlook
2015 EBITDA OUTLOOK The financial effects of the The initial negative financial Cautious on the supply and demand realized divestments contribution from the start up of scenarios for specific terminals new terminals supporting the Chinese distribution market We expect Q4 EBITDA -excluding exceptiona
Slide 31: Closing Summary
CLOSING SUMMARY Q3 performance fully aligned with HY1 reporting o Characterized by continued slow growth in advanced economies while dynamics in emerging-markets further weakened and contango in the oil markets persisted. Ability to absorb swing factors and market developments o Healthy demand f
Slide 32: Key Topics
KEY TOPICS 1. Update strategic priorities 2. Business highlights year-to-date 3. Key figures third quarter 4. Selective growth 5. Subsequent event 6. Outlook & closing summary 7. Questions & answers 32 Analyst presentation Q3 2015 6 November 2015
Slide 33: Trading Update YTD Q3 2015 Results
TRADING UPDATE YTD Q3 2015 RESULTS ROYAL VOPAK 6 NOVEMBER 2015 – ANALYST PRESENTATION
Slide 34: Appendix: Divisional Results
APPENDIX DIVISIONAL RESULTS
Slide 35: YTD Q3 2015 Netherlands Development
YTD Q3 2015 NETHERLANDS DEVELOPMENT EBITDA* In EUR million 199 181 192 209 147 2011 2012 2013 2014 2015 Occupancy rate** In percent 94% 90% 83% 87% 94% 2011 2012 2013 2014 2015 Storage capacity High demand for storage in oil market In million cbm 9.5 9.5 9.5 10.0 7.6 Commissioning bullets Vlissi
Slide 36: YTD Q3 2015 EMEA Development
YTD Q3 2015 EMEA DEVELOPMENT EBITDA* In EUR million 92 101 101 87 94 2011 2012 2013 2014 2015 Occupancy rate** In percent 90% 88% 89% 83% 92% 2011 2012 2013 2014 2015 Storage capacity Increased activity level in all products In million cbm 9.0 9.6 9.7 8.4 8.3 Divestments fully reflected 2011 201
Slide 37: YTD Q3 2015 Asia Development
YTD Q3 2015 ASIA DEVELOPMENT EBITDA* In EUR million 175 206 214 213 215 2011 2012 2013 2014 2015 Occupancy rate** In percent 94% 95% 95% 95% 88% 2011 2012 2013 2014 2015 Storage capacity Positive FX effects In million cbm 11.6 7.1 7.3 7.4 9.4 Start-up costs fully reflected Demand and supply im
Slide 38: YTD Q3 2015 Americas Development
YTD Q3 2015 AMERICAS DEVELOPMENT EBITDA* In EUR million 77 74 76 87 67 2011 2012 2013 2014 2015 Occupancy rate** In percent 91% 94% 90% 90% 90% 2011 2012 2013 2014 2015 Storage capacity High activity level in North Americas In million cbm 3.6 3.4 3.3 3.3 3.3 Brazil market continued to be volatil