Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Investor Day (December 2014)
26 slides from Royal Vopak Nv's investor day presentation, December 2014
Slide 1: The Middle East Impact
DECEMBER 2014 CAPITAL MARKETS DAY THE MIDDLE EAST IMPACT
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: Region at a Glance
REGION AT A GLANCE Fujairah , UAE
Slide 4: Unique Geographic Position in the World
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS UNIQUE GEOGRAPHIC POSITION IN THE WORLD IN THE CENTER OF TRADE BETWEEN EAST AND WEST Geographic position Resources and Production population Balance and mix Terminal Political developments Terminal(s) at hub location Mid
Slide 5: Population Growth
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS POPULATION GROWTH DRIVING LOCAL DEMAND FOR ENERGY PRODUCTS Population reached ~180 million (2014) Overall GDP value growth at 5.9% CAGR (2014 – 2018) Population (in millions) GDP per country In trillion current USD 220 I
Slide 6: Regional Trend Towards Diversification
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS REGIONAL TREND TOWARDS DIVERSIFICATION SINCE 2004 A REMARKABLE JUMP IN NON-OIL SECTOR REVENUES Demographics of the Middle East (2014) Non-oil outpaces oil-related export growth 100+ Male Population Female (in millions) P
Slide 7: Economic Outlook & Drivers
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS ECONOMIC OUTLOOK & DRIVERS CONTINUOUS FLOW OF INVESTMENTS NOT DISTURBED BY LOCAL TENSIONS Middle East economic developments & drivers • Positive economic developments and diversification • Oil revenues • Energy and feeds
Slide 8: Political Developments & Decision-Makers
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS POLITICAL DEVELOPMENTS & DECISION-MAKERS ROYAL FAMILIES BUILT ON THE TRIBAL SYSTEM Middle East decision making • Royal families • House of Saud (KSA) • House of Nahyan (Emirates) • House of Sabah (Kuwait) • House of Khal
Slide 9: Increasing Flows
INCREASING FLOWS Fujairah, UAE
Slide 10: The Incredible Success Story
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS THE INCREDIBLE SUCCES STORY OF A REGION THAT PUT ITSELF ON THE MAP WITHIN A CENTURY Largest chemical exporter in the world? 2030 Downstream integration First 2015 independent storage terminals 2010 Chemical production 19
Slide 11: Middle East Center of Gravity
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS MIDDLE EAST CENTER OF GRAVITY WITH SIGNIFICANTLY LARGE PRODUCT RESERVES IN THE KSA AND IRAN Regional distribution of proven oil & gas reserves Global share of proven oil reserves in % MIDDLE EAST 8%2% 9% S. & CENT. AMERI
Slide 12: Middle East Refining Capacity Expanding
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS MIDDLE EAST REFINING CAPACITY EXPANDING AND UPGRADING TO MEET HIGH VALUE SPECIFICATIONS Middle East refinery market, 2014 Refining capacity per country • 46 refineries In 1,000x barrels per day (2014 - 2020) • 7.7 millio
Slide 13: Growth Capacity for Local Demand
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS GROWTH CAPACITY FOR LOCAL DEMAND YET 9% GROWTH IN EXPORT EXPECTED MAINLY IN MIDDLE DISTILLATES Middle East refined product exports Export of products to grow 9% in 2015 (in Mtons) • 129 million tons exports in 2013 180 1
Slide 14: Impact Oil Price on Budgets
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS IMPACT OIL PRICE ON BUDGETS NATIONAL BUDGETS MAY TURN DEFICIT Government budgets’ break-even oil price (2014) 140 US $ per barrel Iran 130 Bahrein DEFICIT 120 Iraq 110 100 Brent crude oil price US $ per barrel 90 Saudi A
Slide 15: Middle East Produces 136M Tons Chemicals
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS MIDDLE EAST PRODUCES 136M TONS CHEMICALS KSA HAS 55% SHARE OF MIDDLE EAST LIQUID EXPORTS IN 2014 Middle East chemical market 2014 Middle East liquid exports to grow by 32% in Ktons • 32 steam crackers • 19% global capaci
Slide 16: Key Chemical Projects Until 2020
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS KEY CHEMICAL PROJECTS UNTIL 2020 WILL MAINLY HAPPEN IN SAUDI ARABIA Middle East key chemical projects 1. Sadara, Jubail 2. Sabic Expansions, Jubail 3. Petro Rabigh II, Rabigh 4. Al Karaana, Qatar 5. Chemaweyaat, Ruwais 6
Slide 17: Middle East and Vopak
MIDDLE EAST AND VOPAK Fujairah, UAE
Slide 18: Vopak Role in the Middle East
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS VOPAK ROLE IN THE MIDDLE EAST HUB AND INDUSTRIAL TERMINALS Hub terminals Gasses Distribution terminals Industrial Cmd 2014 terminals Major hubs, Terminals facilitating Import distribution Industrial and supporting growth
Slide 19: Key Account Management
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS KEY ACCOUNT MANAGEMENT LEVERAGING THE NETWORK Vopak in the Middle East • Vopak maintains regular contact with all National Oil Companies and National Chemical Companies in the region Account management • Network connecti
Slide 20: Example: Marketing + Account Management
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS EXAMPLE: MARKETING + ACCOUNT MANAGEMENT MEG WITH MIDDLE EAST ORIGIN AT MORE THAN HALF OF OUR TERMINALS Sabtank – Al Jubail Others 114 31% Middle East Others 259KT Middle 184 69% Others East 48% 37 9% 197KT 52% Middle Eas
Slide 21: Competition in the Chemical Market
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS COMPETITION IN THE CHEMICAL MARKET IS MAINLY ESTABLISHED IN THE FREE ZONES OF THE UAE Chemical storage capacity Arabian Gulf & Oman 294kcbm of independent storage capacity in 2014 (excl Ruwais & Qatar) 400.000 Solvochem
Slide 22: Joint Venture and Partnerships
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS JOINT VENTURE AND PARTNERSHIPS WITH THREE TERMINALS ALREADY SUCCESSFULLY OPERATIONAL Vopak in KSA • Vopak and Sabic are JV partners in the operating company Sabtank Jubail and Sabtank Yanbu • Vopak and Sabic are JV partn
Slide 23: Example: PCQ2 - Industrial Terminal
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS EXAMPLE: PCQ2 - INDUSTRIAL TERMINAL LONG TERM PARTNERSHIP WITH SABIC SINCE 1995 SASREF Chemicals PCQ1 (refined products) 41 Chemicals PCQ 1 Chemicals PCQ 2 29 42 52 Sulphur Fertilizers Aramco 31 28 21 32 34 36 43 53 27 2
Slide 24: Summary
REGION INCREASING MIDDLE EAST AND QUESTIONS AND AT A GLANCE FLOWS VOPAK ANSWERS SUMMARY Job and value creation driving investments in the region • Growing population leads to increasing demand for energy and jobs • Proximity to high growth export markets • World class infrastructure and economies of
Slide 25: Questions and Answers
QUESTIONS AND ANSWERS Global SHE Day, Sabtank
Slide 26: We have built our company over 400 years on trust and reliability
We have built our company over 400 years on trust and reliability Royal Vopak I Westerlaan 10 I 3016 CK Rotterdam I The Netherlands I Tel: +31 10 400 2911 I Fax: +31 10 413 9829 I www.vopak.com