Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Investor Day (December 2013)
33 slides from Royal Vopak Nv's investor day presentation, Dec 10, 2013
Slide 1: Value creation through capital disciplined growth
Value creation through capital disciplined growth Capital Markets Day, 10 December 2013 Jack de Kreij, Vice Chairman of the Executive Board and CFO
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: Contents
Contents Strategic value creation and drivers Capital disciplined growth 1 Investments and risk-return profile 2 Flexible long-term funding 3 Balanced dividend policy 3 Capital Markets Day 10 December 2013
Slide 4: Expansion projects key driver for further EBITDA growth
Timeline Expansion projects key driver for further EBITDA growth Near Past Near Past Present Future Post 2016 2003-06 2007-09 2010-11 2012 2013 2014-16 >2016 Occupancy improvements Full potential playing field 85-90% Upward potential? between 90-95% Operational efficiency gains Capacity expansion ~
Slide 5: EBITDA growth in the past: main 2003-2012 global drivers
Past EBITDA growth in the past Main 2003-2012 global drivers supporting Vopak’s growth Catch-up new Liberalization Occupancy markets IV improvements I Increasing trade III Operational New efficiency gains products V to store II Capacity expansion Growing energy demand 5 Capital Markets Day 10 Decemb
Slide 6: Occupancy rate development per division
Past and present Occupancy rate development per division Reflects challenges in certain product-market segments Total 30.6 mln cbm Americas 3.3 Netherlands 9.5 Asia 7.4 94 96 95 94 93 93 93 94 93 94 94 93 94 96 98 97 95 95 94 96 98 97 94 92 91 92 93 93 93 92 94 94 95 88 90 89 84 88 84 83 ’04 ‘05 ‘06
Slide 7: EBITDA margins aligned with Vopak's business model
Past and present EBITDA margins Aligned with Vopak’s business model Occupancy rate and EBITDA margin development In percent 96 EBITDA margin* 100 92 94 95 94 93 93 91 50 84 88 80 40 60 30 Occupancy rate** 40 20 20 10 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 HY1 2013 * EBIT(DA) divided by rev
Slide 8: Storage Capacity developments
Past, present, future Storage Capacity developments Split by brownfield, greenfield, acquisition, divestment and various Storage Capacity developments In million cbm; commissioned and under construction Future: Continued balanced mix +4.3 +11.2 A mix of brownfield 34.9 and greenfield 4.3 4.4 proje
Slide 9: Storage Capacity developments per division
Past, present, future Storage Capacity developments per division Split by subsidiaries and joint ventures and associates Americas Netherlands Asia 9.5 10.0 10.6 Storage Capacity 6.5 7.4 In million cbm 3.2 3.3 3.3 3.3 34.9 30.6 19.9 2003 Q3 2015 2003 Q3 2015 2003 Q3 2015 2013 2013 2013 LNG* EMEA 2003
Slide 10: 2013 EBITDA outlook: ~EUR 750 million
Present 2013 EBITDA outlook: ~EUR 750 million Looking back 2013 EBITDA outlook In EUR million Description Q4 2010 First announcement 2013 outlook statement until and Vopak continues to be well positioned in 725-800 positive market environment Q1 2012 Average occupancy rate of around 90% and a lo
Slide 11: 2014 EBITDA development
Near future 2014 EBITDA development - Undiminished focus on executing successfully its disciplined growth strategy whilst striving for further efficiency improvements - Also for 2014, Vopak deems the market circumstances challenging to exceed the EBITDA record of financial year 2012 (EUR 768 million
Slide 12: Vopak's capital disciplined growth strategy to EBITDA ambition of EUR 1 billion
Near future Vopak’s capital disciplined growth strategy to EBITDA ambition of EUR 1 billion EBITDA* ambition It has become unlikely that x% CAGR In EUR million Vopak will reach the EBITDA ambition of EUR 1 billion +11% already in 2016 1,000 No major growth projects have +16% been approved during
Slide 13: Overview of newly approved projects during last 1.5 years
Near future Overview of newly projects approved during last 1.5 years: 338,840 cbm (net) Q4 ‘12 140,000 Jubail (Saudicbm; Arabia) chemicals 140,000 cbm; chemicals (25%) Jubail 140,000 Penjuru: 47,000 cbm (69.5%) Q4 ‘12 Caojing: 52,400 cbm (50%) Durban: 55,500 cbm (70%) Alemoa 37,000 cbm
Slide 14: EBITDA growth paths in the future
Long-term future EBITDA growth paths in the future Timing of new profitable expansion projects has become less apparent A further shift Renewables? to East? Occupancy IV Upward improvements I potential for the future? III Operational efficiency gains V II GDP growth paths? Capacity expansion Further
Slide 15: EBITDA scenarios
Future EBITDA scenarios Timing of to be approved projects remains key Historical results Outlook 2013 Ambition 2016 x CAGR 16% 1.000 768 ~750 17% 429 232 2004 2008 2012 2013 >2016 2020 Past Present Future Note: In million EUR; excluding exceptional items; including net result from joint ventures and
Slide 16: Value creation through capital disciplined growth
Future Value creation through capital disciplined Unit of measure growth Oil Industrial Biofuels/ Description products Chemicals terminals Vegoils LNG Continued focus on Service and sustainability, service, efficiency and operational delivery efficiency improvements Close monitoring of Challengi
Slide 17: Outlook assumptions
Outlook assumptions Overall healthy demand for our storage services ~x% Share of EBIT* Oil products Chemicals Industrial terminals Biofuels & Vegoils LNG ~60-65% ~17.5-20% ~7.5-10% ~5-7.5% ~2.5-5% 2012 Robust Mixed Solid Mixed Solid 2013 Robust Steady Solid Mixed Solid 2014 Robust Steady Solid Mixed
Slide 18: Contents
Contents Strategic value creation and drivers Capital disciplined growth 1 Investments and risk-return profile 2 Flexible long-term funding 3 Balanced dividend policy 18 Capital Markets Day 10 December 2013
Slide 19: Capital disciplined growth
Capital disciplined growth Balanced global terminal network management 1▪ Investments and risk-return profile 3▪ Balanced dividend 2▪ Flexible long-term policy funding 19 Capital Markets Day 10 December 2013
Slide 20: Contents
Contents Strategic value creation and drivers Capital disciplined growth 1 Investments and risk-return profile 2 Flexible long-term funding 3 Balanced dividend policy 20 Capital Markets Day 10 December 2013
Slide 21: Return requirements for investments
Return requirements for investments Important elements to consider Footprint in Optimization growth First-mover emerging markets opportunities Option advantage I II value Contribution from key accounts VI III Mitigating downward risks Growth along Strategic with key accounts alliances V IV Local WAC
Slide 22: Risk-return profile per type of investment
Risk-return profile per type of investment Vopak’s capital disciplined growth: Different concepts for different purposes High Growth projects with launching customers Greenfield Growth project in Brownfield Return emerging countries with only MoU’s Option value Contracted infrastructure (e.g. LNG an
Slide 23: Assessing value creation opportunities
Assessing value creation opportunities Project funnel Scenario Identification Selection Definition FID analysis Scenario Identify Generate, Develop the After final analysis and opportunities develop and project investment Phase product Determine select the scope, cost decision, studies f
Slide 24: Sustaining and improvement Capex to upgrade existing terminals
Sustaining and improvement Capex to upgrade existing terminals Sustaining and improvement Capex In million EUR Historical 720-920 guidance 610 415 600-800 215 120* 2004-2006 2007-2009 2010-2012 2013-2015 * Until HY1 2013. Note: Rounded figures. 24 Capital Markets Day 10 December 2013
Slide 25: Further align current global terminal network
Further align current global terminal network To ensure that services will be provided in the safest, most sustainable and efficient manner for Vopak’s customers Sustaining Capex Improvement Capex 5-year Fit for Purpose maintenance infrastructure to programs meet future client Terminal needs i
Slide 26: Contents
Contents Strategic value creation and drivers Capital disciplined growth 1 Investments and risk-return profile 2 Flexible long-term funding 3 Balanced dividend policy 26 Capital Markets Day 10 December 2013
Slide 27: Capital disciplined growth: stable solvency ratio
Capital disciplined growth Stable solvency ratio Total equity and liabilities In EUR mln 4,556 4,386 4,152 3,649 Net 2,947 60% 60% 2,585 56% liabilities* 58% 1,997 55% 1,588 1,703 61% 1,470 56% 58% 57% 62% 44% 40% 40% Equity 45% 42% 43% 44% 39% 38% 42% 2004 2005 2006 2007 2008 2009 2010 2011 2012 HY
Slide 28: Supported by a solid capital structure with balanced leverage
Nationale DenkTank 2009 Vopak’s capital disciplined growth strategy Unit of measure Supported by a solid capital structure with balanced leverage 0 6 Positioning Vopak Net debt : EBITDA ratio as reliable counterparty to clients Relatively Limited Balanced high leverage leverage leverage Positioning
Slide 29: Vopak's capital structure
Vopak’s capital structure Enabling flexible access to capital markets Existing sources to capital markets Private Placement Syndicated Revolving Ordinary Shares* Preference Shares* Programs* Credit Facility* Listed on Euronext Preference Shares 2009 USD: 2.1 billion EUR 1.0 billion Market ca
Slide 30: Contents
Contents Strategic value creation and drivers Capital disciplined growth 1 Investments and risk-return profile 2 Flexible long-term funding 3 Balanced dividend policy 30 Capital Markets Day 10 December 2013
Slide 31: Vopak's dividend: past and present
Vopak’s dividend: past and present A balanced dividend policy Dividend and EPS 2006-2012** EPS In EUR Cash dividend 2.70 +18% Dividend policy 2.08 2.16 1.92 1.62 “Barring exceptional 1.31 circumstances, the 1.28 intention is to pay an 0.98 annual cash dividend of 25-50% of the net 0.70 0.80 0.88 pro
Slide 32: Value creation through capital disciplined growth
Future Value creation through capital disciplined Unit of measure growth Oil Industrial Biofuels/ Description products Chemicals terminals Vegoils LNG Continued focus on Service and sustainability, service, efficiency and operational delivery efficiency improvements Close monitoring of Challengi
Slide 33: Royal Vopak contact details
Royal Vopak Westerlaan 10 Tel: +31 10 4002911 3016 CK Rotterdam Fax: +31 10 4139829 The Netherlands www.vopak.com