Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Non-Deal Roadshow (2010)
74 slides from Royal Vopak NV's roadshow presentation, 2010
Slide 1: Roadshow Presentation Results HY1 2010
_ Roadshow Presentation Results HY1 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 HY1 2010 2
Slide 3: 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 4: 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 HY1 2010 4
Slide 5: 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 6: Vopak's challenge
Vopak’s challenge The challenge is to facilitate the current and future product flows: – – – Trading update HY1 2010 6
Slide 7: Strategic position tank terminals
Strategic position tank terminals Outgoing Logistics Downstream Chemicals – – – Trading update HY1 2010 7
Slide 8: 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 HY1 2010 8
Slide 9: Import / Export terminal
Import / Export terminal - Break or make bulk - Local distribution – – – Trading update HY1 2010 9
Slide 10: Industrial terminal
Industrial terminal Vopak Singapore – Sakra Terminal – – – Trading update HY1 2010 10
Slide 11: Vopak core businesses
Vopak core businesses Existing market Oil Chemicals New products in existing market Biofuels New market LNG – – – Trading update HY1 2010 11
Slide 12: 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 13: 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 HY1 2010 13
Slide 14: 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 HY1 2010 14
Slide 15: Worldwide LNG demand drives need for independent import terminals
Worldwide LNG demand drives need for independent import terminals – – – Trading update HY1 2010 15
Slide 16: 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 HY1 2010 16
Slide 17: 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 18: 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 19: Market share according to the definition
Market share according to the definition In mln cbm Storage market Oil Chemicals Total World Market 203 mln 50 mln 253 mln CBM Primary Competition 128 mln 44 mln 172 mln CBM Secondary Competition 74 mln 6 mln 80 mln CBM Vopak 17.3 mln 11.3 mln 28.6 mln CBM Vopak Market Share: As % of total market 9%
Slide 20: 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 28.4 mln cbm Growth % 11.2% Vopak 4.0 mln cbm Growth as % of Vopak capacity 14% – – – Trading update HY1 2010 20
Slide 21: 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 Vitol CIM SUMED terminal Dalian Port Sunoco Horizon Sinochem Magellan EAPC STS Odfjell LBC Universal SPSE -0 5 10 15 20 25 30 35 – –
Slide 22: Agenda
Agenda Achievements HY1 2010 23 Business environment 26 Growth projects 30 Business performance 39 Financing 65 Outlook 68 Details and definitions used in this presentation are derived from the HY1 2010 press release and HY1 Report, which are leading. – – – Trading update HY1 2010 22
Slide 23: Robust results in HY1 2010
Robust results in HY1 2010 Added 0.3 mln cbm storage capacity Healthy occupancy rate Strong business performance EBITDA excl. exceptionals EUR 297.3 mln 350 300 +21% 250 200 HY1 2009 HY1 2010 – – – Trading update HY1 2010 23
Slide 24: Personnel & Process Safety
Personnel & Process Safety Total Injury Rate* Lost Time Incident Rate* 8 * 3 6 6.7 2 5.5 5.3 5.2 1.7 1.7 1.7 1.8 4 3.7 1.4 1 2 0 0 FY 2006 FY 2007 FY 2008 FY 2009 H1 2010 FY 2006 FY 2007 FY 2008 FY 2009 H1 2010 * Number of accidents own personnel and contractors relative to the number of hours worke
Slide 25: Agenda
Agenda Achievements HY1 2010 23 Business environment 26 Growth projects 30 Business performance 39 Financing 65 Outlook 68 Details and definitions used in this presentation are derived from the HY1 2010 press release and HY1 Report, which are leading. – – – Trading update HY1 2010 25
Slide 26: The tank storage market continues to evolve
The tank storage market continues to evolve Drivers of structural growth in demand remain: • Increasing geographical imbalances • Countries setting individual specifications for products • Liberalization of previously closed economies • Growing demand for environmentally friendlier fuels But also: •
Slide 27: Current business environment
Current business environment Oil - Increasing geographical imbalance between demand and supply leads to robust demand - Possible permanent closure/divestments of less efficient refineries - IOC’s focussing on upstream business Chemicals - Redesign of supply chain and production facilities - Industri
Slide 28: 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 29: Agenda
Agenda Achievements HY1 2010 23 Business environment 26 Growth projects 30 Business performance 39 Financing 65 Outlook 68 Details and definitions used in this presentation are derived from the HY1 2010 press release and HY1 Report, which are leading. – – – Trading update HY1 2010 29
Slide 30: Company growth supported by healthy demand for storage capacity
Company growth supported by healthy demand for storage capacity Storage Capacity In mln cbm 32.6 28.3 28.6 27.1 21.8 20.2 20.4 21.2 +0.2 +0.8 +0.6 +5.3 +1.2 +0.3 +4.0 2004 2005 2006 2007 2008 2009 HY1 2010 2012 Occupancy Rate 85% 92% 94% 96% 95% 94% 93% – – – Trading update HY1 2010 30
Slide 31: Various projects commissioned
Various projects commissioned Total storage capacity under construction 4.0 mln cbm Vopak Zhangjigang (China) 74,500 cbm commissioned and 114,700 under construction Jakarta (Indonesia) 250,000 cbm Decommissioned Waltershof (Germany) 99,400 cbm decommissioned Alemoa (Brazil) 38,600 cbm – – – Trading
Slide 32: 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 33: New chemical terminals in China under construction
New chemical terminals in China under construction Tianjin 95,300 cbm Dongguan 153,000 cbm – – – Trading update HY1 2010 33
Slide 34: New terminal in Algeciras (Spain)
New terminal in Algeciras (Spain) • 403,000 cbm for oil products • Vopak acquired 80% of shares • Joint Venture with Wilma Oil – – – Trading update HY1 2010 34
Slide 35: Vopak's growth based on healthy demand
Vopak’s growth based on healthy demand – – – Trading update HY1 2010 35
Slide 36: Confidence in the future!
“Confidence in the future!” – – – Trading update HY1 2010 36
Slide 37: New chairman of the Executive Board
New chairman of the Executive Board • Personal reason for departure: the offered challenge • Succession planning proves its value • Key disciplines - commercial, financial and operational – represented in the Executive Board • Vopak is in good shape and confident in its future – – – Trading update H
Slide 38: Agenda
Agenda Achievements HY1 2010 23 Business environment 26 Growth projects 30 Business performance 39 Financing 65 Outlook 68 Details and definitions used in this presentation are derived from the HY1 2010 press release and HY1 Report, which are leading. – – – Trading update HY1 2010 38
Slide 39: Robust demand continues
Robust demand continues EBITDA in mln EUR 297.2 245.9 209.1 18% 21% HY1 08 HY1 09 HY1 10 EPS in EUR 1.04 0.92 0.79 15% 13% HY1 08 HY1 09 HY1 10 – – – All figures Trading excluding update HY1 2010 39 exceptional items
Slide 40: Robust EBITDA developments
Robust EBITDA developments Resulting from a solid growth strategy In EUR mln 600 500 513.4 400 429.3 369.5 300 314.1 HY1 262.5 HY1 200 231.8 297.3 245.9 100 0 21% 2004 2005 2006 2007 2008 2009 2010 – – – Trading update HY1 2010 40
Slide 41: HY1 2010 Positive financial developments
HY1 2010 Positive financial developments Net Revenues EBIT In EUR mln In EUR mln 543.9 492.1 453.9 223.0 184.2 156.8 8% 11% 18% 21% HY1 08 HY1 09 HY1 10 HY1 08 HY1 09 HY1 10 Net Profit Earnings per share In EUR mln In EUR mln, 2008/2009 restated for share split 132.4 1.04 114.9 0.92 0.79 98.9 16% 15
Slide 42: All divisions contribute to the revenue growth
All divisions contribute to the revenue growth In EUR mln North America OEMEA Asia 132.8 139.1 100.2 127.3 68.1 69.0 1% HY1 2009 5% HY1 2010 27% HY1 2009 HY1 2010 HY1 2009 HY1 2010 Latin America CEMEA 152.0 163.1 37.4 43.5 HY1 2009 16% HY1 2010 HY1 2009 7% HY1 2010 – – – Trading update HY1 2010 42
Slide 43: Including net result from JVs and Associates, EBIT increased by 21%
Including net result from Joint Ventures and Associates, EBIT increased by 21% In EUR mln HY1 2010 HY1 2009 % Operating profit 183.5 155.7 18 Net result JV & Associates 39.4 28.6 38 EBIT incl. exceptional items 222.9 184.3 21 Exceptional loss 0.1 - 0.1 EBIT excl. exceptional items 223.0 184.2 21 EBI
Slide 44: Supported by all divisions EBIT increased 21% to EUR 223.0 mln
Supported by all divisions EBIT increased 21% to EUR 223.0 mln In EUR mln, - excl. exceptional items - North America OEMEA Asia 65.1 75.4 64.5 78.7 22.6 25.3 HY1 2009 12% HY1 2010 HY1 2009 16% HY1 2010 HY1 2009 22% HY1 2010 Latin America CEMEA Other 40.3 49.9 11.9 14.4 -20.2 -20.7 HY1 2009 21% HY1 2
Slide 45: Net result from Joint Ventures and Associates increased 38%
Net result from Joint Ventures and Associates increased 38% to EUR 39.4 mln In EUR mln, - excl. exceptional items - North America OEMEA Asia 15.9 18.1 15.5 16.7 2.1 4.6 HY1 2009 119% HY1 2010 HY1 2009 14% HY1 2010 HY1 2009 8% HY1 2010 Latin America CEMEA Other 0.8 0.5 0.5 0.3 -0.4 -0.8 HY1 2009 40%
Slide 46: 59% of HY1 2010 EBIT generated in non-euro currencies
59% of HY1 2010 EBIT generated in non-euro currencies In principal revenues, costs and financing are denominated in the same currency. In EUR mln Translation effect on EBIT per division HY1 2010 CEMEA Other USD USD 15% +0.6 OEMEA +0.4 SGD 22% Asia +5.8 EUR 41% North America +0.3 EUR SGD Other 22% La
Slide 47: Sound EBIT(DA) margins
Sound EBIT(DA) margins Supported by robust occupancy rates, improved revenue per cbm, effective cost management and economies of scale 60% 50% EBITDA margin* 40% 30% EBIT margin* 20% 10% 0% 2004 2005 2006 2007 2008 2009 HY1 2010 * Excluding exceptional items, excluding net result of JV’s – – – Tradi
Slide 48: Net Profit - excluding exceptional items - increased by 15%
Net Profit - excluding exceptional items - increased by 15% In EUR mln, - excl. exceptional items - HY1 2010 HY1 2009 ∆% Net Revenues 543.9 492.1 11% EBIT 223.0 184.2 21% Net finance costs -30.1 -22.5 -34% Tax* -42.5 -34.1 -25% Net Profit attributable to holders of ordinary shares 132.4 114.9 15% EP
Slide 49: Net Finance Costs aligned with expansion program
Net Finance Costs aligned with expansion program In EUR mln HY1 2010 HY1 2009 Interest and dividend income 2.7 4.0 Finance costs -32.8 -26.5 Net finance costs -30.1 -22.5 Net-interest bearing debt Average interest rate 1500 10% 1426,2 1250 8% 1000 996,7 1017,7 6% 750 4% 500 561,9 505 411,7 425,7 2%
Slide 50: Stable effective tax rate
Stable effective tax rate In EUR mln Effective Tax Rate HY1 2010 HY1 ‘10 % HY1 ‘09 % Tax -42.5 22.0% 21.1% – – – Trading update HY1 2010 50
Slide 51: Positive EPS development
Positive EPS development In EUR, 2004-2009 restated for share split 2,00 1.92 1,50 1.62 1.31 1,00 1.04 0.98 0.92 0.81 0,50 0.63 0,00 13% 2004 2005 2006 2007 2008 2009 HY1 2010 HY1 2010 EPS includes impact of: - Stock dividend (May 2009) - Financing preference shares (August 2009) - Additional expans
Slide 52: HY1 2010 Sources and uses of cash
HY1 2010 Sources and uses of cash In EUR mln Gross operating cash flow Investments 52.2 181.3 Net change in Cash and cash Financing costs and equivalents tax paid 263.0 -159.4 79.6 54.1 Dividend Other – paid in– cash – Trading update HY1 2010 52
Slide 53: Pensions
Pensions Vopak defined Pension obligations Dutch Pension obligations HY1 2010 Other • Pension fund cover ratio 17% from 108% at year end 2009 to 103% at the end of HY1 2010 (including 3.5% reservation for increased life expectancy) • The employer’s contribution remains at the maximum of 30% for 2010
Slide 54: Business performance
Vopak Terminal Europoort Vopak Horizon Fujairah Business performance EBIT per Division Vopak Houston Vopak Singapore Deer Park Terminal Sebarok Terminal – – – Trading update HY1 2010 54
Slide 55: Chemicals EMEA
Chemicals EMEA “In Europe the demand for storage of chemicals has improved” EBIT in EUR mln, - excl. exceptional items - 26.4 17.7 25.3 25.3 22.6 24.6 24.6 24.5 23.1 22.6 22.8 21.7 22.1 17.7 43% 9% Vopak Terminal Botlek Zuid, Rotterdam Q1 Q2 Q3 Q4 2008 2009 2010 – – – Trading update HY1 2010 55
Slide 56: Oil EMEA
Oil EMEA “Robust demand for tank storage continues” EBIT in EUR mln, - excl. exceptional items - 31.5 36.6 36.6 33.6 38.8 38.8 35.9 33.6 34.3 31.5 29.1 27.9 26.0 25.1 Vopak Terminal Europoort, Rotterdam 16% 15% Q1 Q2 Q3 Q4 2008 2009 2010 – – – Trading update HY1 2010 56
Slide 57: Asia
Asia “Continued EBIT growth by expanding capacity and efficiency improvements” EBIT in EUR mln, - excl. exceptional items - 30.6 37.7 37.7 33.9 41.0 41.0 33.9 31.6 31.4 30.6 25.0 24.2 23.4 22.9 Vopak Terminal Sakra, Singapore 23% 21% Q1 Q2 Q3 Q4 2008 2009 2010 – – – Trading update HY1 2010 57
Slide 58: North America
North America “Growth through acquisitions, effective cost management and rationalizations” EBIT in EUR mln, - excl. exceptional items - 11.4 13.3 13.3 11.2 12.0 13.0 12.0 11.4 11.2 10.5 9.3 9.2 8.4 7.5 17% 7% Vopak Terminal Deer Park, Houston Q1 Q2 Q3 Q4 2008 2009 2010 – – – Trading update HY1 2010
Slide 59: Latin America
Latin America “Continuing steady performance” EBIT in EUR mln, - excl. exceptional items - 6.4 7.3 7.3 5.5 7.1 7.1 6.4 6.2 6.2 5.5 5.8 5.8 5.3 5.1 14% 29% Vopak Terminal Cartagena, Colombia Q1 Q2 Q3 Q4 2008 2009 2010 – – – Trading update HY1 2010 59
Slide 60: Investments
Vopak Terminal Westpoort Gate terminal Investments Vopak Terminal Vopak Singapore Bahamas Penjuru Terminal – – – Trading update HY1 2010 60
Slide 61: Growth continues
Growth continues HY1 2010 storage capacity increased with 0.3 mln cbm Zangjiagang, China Alemoa, Brazil Jakarta, Indonesia Product: Chemicals Product: Chemicals Product: Oil products Capacity addition: 74,500 cbm Capacity addition: 38,600 cbm Capacity addition: 250,000 cbm In cbm End HY1 2009 Storag
Slide 62: Total investments
Total investments 800 800 In EUR mln 446 535 446 268 268 263 188 146 188 147 151 2004 2005 2006 2007 2008 2009 HY1 2010 Remaining Vopak Share Approved & Under Construction Projects EUR 0.5 bln End HY1 2010 2012 – – – Trading update HY1 2010 62
Slide 63: Investing in growth
Investing in growth Group companies and joint ventures Around EUR 0.5 bln Around EUR 1.9 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 64: Agenda
Agenda Achievements HY1 2010 23 Business environment 26 Growth projects 30 Business performance 39 Financing 65 Outlook 68 Details and definitions used in this presentation are derived from the HY1 2010 press release and HY1 Report, which are leading. – – – Trading update HY1 2010 64
Slide 65: Sufficient headroom to continue growth strategy
Sufficient headroom to continue growth strategy Debt repayment schedule (in EUR mln) Total financing program around EUR 2.3 bln 800 817 600 400 200 204 27 122 110 77 82 0 2010 2011 2012 2013 2014 2015 2016- 2029 Various financing sources Facility Maturity Amount outstanding HY1 2010 USPP 2001 Majori
Slide 66: Strategic finance
Strategic finance Net debt : EBITDA ratio HY1 2010 2.70 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 – – – Trading u
Slide 67: Agenda
Agenda Achievements HY1 2010 23 Business environment 26 Growth projects 30 Business performance 39 Financing 65 Outlook 68 Details and definitions used in this presentation are derived from the HY1 2010 press release and HY1 Report, which are leading. – – – Trading update HY1 2010 67
Slide 68: Outlook
Outlook 2010 2012 “For 2010 Vopak expects a Group “Based on its growth strategy and the operating profit before depreciation and positive developments in 2010 Vopak amortization (EBITDA) of at least EUR 585 could potentially achieve its 2012 million (previously: EUR 560 million).” guidance of EUR 62
Slide 69: 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 – – – Trading update HY1 2010 69
Slide 70: Confidence in the future supported by a focused growth strategy
“Confidence in the future supported by a focused growth strategy, attractive market developments and solid business performance” – – – Trading update HY1 2010 70
Slide 71: HY1 2010 approved projects
HY1 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 China, Zhangjiagang 100% C 114,700 Mexico, Coatzacoalcos 100% C 8,400 China, Ningbo 37.5% C 5,500 Chili, Mejilones 50% C 10,
Slide 72: HY1 2010 approved projects (II)
HY1 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, Gate 40% LNG 540,000 China, Dongguan 50% C 153,000 China, Tianjin 50% C 95,300 Spain, Algeciras 80% O 403,
Slide 73: 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 74: www.vopak.com
– – – – Trading update HY1 2010 74 www.vopak.com