Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — FY2016 Earnings Presentation
47 slides from Royal Vopak NV's earnings presentation, Feb 17, 2017
Slide 1: Full Year 2016 Results
FULL YEAR 2016 RESULTS ROYAL VOPAK ANALYST PRESENTATION – FEBRUARY 17, 2017
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: Eelco Hoekstra, CEO of Royal Vopak
Eelco Hoekstra Chairman of the Executive Board and CEO of Royal Vopak ANALYST PRESENTATION – FEBRUARY 17, 2017 3 Analyst presentation FY 2016 February 17, 2017
Slide 4: Key Messages
KEY PERFORMANCE STRATEGIC PRIORITIES STRATEGIC DIRECTION MESSAGES 2016 2014-2016 2017-2019 KEY MESSAGES Good improvements regarding our safety & service performance PERFORMANCE Vopak at par with high performance companies in the survey database 2016 Robust business results with variations quar
Slide 5: Safety Performance
KEY PERFORMANCE STRATEGIC PRIORITIES STRATEGIC DIRECTION MESSAGES 2016 2014-2016 2017-2019 SAFETY PERFORMANCE Total Injury Rate (TIR) Lost Time Injury Rate (LTIR) Total injuries per 200,000 hours worked by Total injuries leading to lost time per 200,000 hours own employees and contractors worked by
Slide 6: Solid Business Results in 2016
KEY PERFORMANCE STRATEGIC PRIORITIES STRATEGIC DIRECTION MESSAGES 2016 2014-2016 2017-2019 SOLID BUSINESS RESULTS IN 2016 REVENUES IMPACTED BY DIVESTMENTS, FULLY COMPENSATED ON EBITDA LEVEL THANKS TO HIGHER OCCUPANCY SUPPORTED BY HEALTHY VALUE DRIVERS Terminal network* * Revenues** ** Adj. Revenues*
Slide 7: Key Themes in 2016
KEY PERFORMANCE STRATEGIC PRIORITIES STRATEGIC DIRECTION MESSAGES 2016 2014-2016 2017-2019 KEY THEMES IN 2016 LOWER ADAPTATION COMMODITY TRANSITION GEOPOLITICAL ENERGY PRICES CHINA & INDIA UNCERTAINTY INDUSTRY Increased pressure More focus on Slowdown Continued on oil and gas capturing growth in Chi
Slide 8: Product Developments 2016
KEY PERFORMANCE STRATEGIC PRIORITIES STRATEGIC DIRECTION MESSAGES 2016 2014-2016 2017-2019 PRODUCT DEVELOPMENTS 2016 Despite uncertainty on Market remains in Crude oil sustainability of LNG balance, new volumes & oil products production cuts, demand from Australia and US and supply converge to f
Slide 9: Business Performance 2016
KEY PERFORMANCE STRATEGIC PRIORITIES STRATEGIC DIRECTION MESSAGES 2016 2014-2016 2017-2019 BUSINESS PERFORMANCE 2016 Netherlands EMEA Asia Americas Transition economy Start-up Record number of Successful divestment China operatorship VLCCs loaded UK assets Panama Large production GATE Te
Slide 10: Strategic Priorities 2014-2016
KEY PERFORMANCE STRATEGIC PRIORITIES STRATEGIC DIRECTION MESSAGES 2016 2014-2016 2017-2019 STRATEGIC PRIORTIES 2014-2016 Divested 2.3 million cbm in mature markets such Portfolio optimization as Sweden, Finland and the United Kingdom Total cash proceeds from all divestments amount to EUR 0.8 bil
Slide 11: Five Areas of Leadership
KEY PERFORMANCE STRATEGIC PRIORITIES STRATEGIC DIRECTION MESSAGES 2016 2014-2016 2017-2019 FIVE AREAS OF LEADERSHIP 11 Analyst presentation FY 2016 February 17, 2017
Slide 12: Strategic Direction 2017-2019
KEY PERFORMANCE STRATEGIC PRIORITIES STRATEGIC DIRECTION MESSAGES 2016 2014-2016 2017-2019 STRATEGIC DIRECTION 2017-2019 The Strategic direction of Vopak is set towards disciplined growth and productivity improvement Vopak is well-positioned to take several investment decisions in the 2017-2019 pe
Slide 13: Projects Under Construction
KEY PERFORMANCE STRATEGIC PRIORITIES STRATEGIC DIRECTION MESSAGES 2016 2014-2016 2017-2019 PROJECTS UNDER CONSTRUCTION Houston 130,000 cbm Jubail Panama 377,000 cbm Pengerang 360,000 cbm South Africa 1,650,000 cbm Acquisition / greenfield Brownfield Operatorship 230,000 cbm Note: This is only a sele
Slide 14: Vopak's Strong Foundation
KEY PERFORMANCE STRATEGIC PRIORITIES STRATEGIC DIRECTION MESSAGES 2016 2014-2016 2017-2019 VOPAK’S STRONG FOUNDATION INDEPENDENT GLOBAL STORAGE PROVIDER ACTIVE IN ALL FULL FUNNEL OF PROJECTS WITH CONTINENTS AND ALL PRODUCT SUSTAINABLE CONTRIBUTION GROUPS AVAILABLE LAND IN EMERGING OPTIONS FOR CHEMIC
Slide 15: Jack de Kreij, CFO of Royal Vopak
Jack de Kreij Vice-chairman of the Executive Board and CFO of Royal Vopak ANALYST PRESENTATION – FEBRUARY 17, 2017 15 Analyst presentation FY 2016 February 17, 2017
Slide 16: Key Topics
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS KEY TOPICS LONG-TERM Q4 2016 VALUE RESULTS CREATION CAPITAL OUTLOOK ALLOCATION 2017-2019 2016 KEY TAKE RESULTS AWAYS 16 Analyst presentation FY 2016 February 17, 2017
Slide 17: Robust Business Model
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS ROBUST BUSINESS MODEL CAPITAL DISCIPLINED STEP BY STEP EBITDA GROWTH EBITDA and Net result joint ventures and associates In EUR million 2005 - 2007 2008 - 2010 2011 - 2013 2014 - 2016 812 822 EB
Slide 18: 2016 Occupancy Rate Exceeds 90%
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS 2016 OCCUPANCY RATE EXCEEDS 90% FOR 2017, WE ARE CONFIDENT THAT VOPAK WILL AGAIN ACHIEVE AN AVERAGE OCCUPANCY RATE OF AT LEAST 90% Occupancy rate* In percent 90-95% 85-90% 92 93 94 94 93 92 88 8
Slide 19: Sound Contract Durations
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS SOUND CONTRACT DURATIONS Contract position FY2014 Contract position FY2015 Contract position FY2016 In percent of revenues In percent of revenues In percent of revenues 21% 24% 23% < 1 year 45%
Slide 20: Margin Developments
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS MARGIN DEVELOPMENTS MAINTAINING A SOLID MARGIN EBIT(DA) margin* OCCUPANCY In percent RATE 70 DEVELOPMENT 65 60 EBITDA margin 55 EBIT margin 50 45 MARGIN 40 MANAGEMENT 35 30 25 20 15 CAPACITY 10
Slide 21: 2016 Key Figures Excluding Exceptional Items
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS 2016 KEY FIGURES -EXCLUDING EXCEPTIONAL ITEMS- Revenues* EBITDA In EUR million In EUR million Full year above 90% occupancy in 1,323 1,386 1,347 positive market 763 812 822 Divestments and n
Slide 22: 2016 EBITDA Analysis
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS 2016 EBITDA ANALYSIS DESPITE MISSED CONTRIBUTIONS DIVESTMENTS HIGHER EBITDA +7% 4.4 3.7 822.3 2.7 3.5 11.1 811.5 8.6 8.3 9.4 23.2 771.2 30.9 Acquisitions/ Divestments Pre-OPEX FX-effect Greenfie
Slide 23: 2016 Outlook
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS 2016 OUTLOOK 15 12 23 31 9 812 822 FY 2015 Expansions Business Occupancy Divestments FX effect FY 2016 developments rate effect and other and operational efficiency √ Vopak expects to complete a
Slide 24: 2016 IFRS vs. Non-IFRS Proportionate Information
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS 2016 IFRS VS. NON-IFRS PROPORTIONATE INFORMATION IFRS BASED NON-IFRS PROPORTIONAL Occupancy rate Occupancy rate In percent In percent 88 92 93 88 92 94 2014 2015 2016 2014 2015 2016 EBITDA* EBIT
Slide 25: 2016 Return Indicators
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS 2016 RETURN INDICATORS FOCUS CASH FLOW AND PROFITABLE GROWTH NON-IFRS IFRS BASED PROPORTIONAL ROE* ROCE** CFROGA*** (after interest, after tax) (before interest, before tax) (before interest, af
Slide 26: Q4 2016 Key Figures Excluding Exceptional Items
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS Q4 2016 KEY FIGURES -EXCLUDING EXCEPTIONAL ITEMS- Revenues* EBITDA** Robust market in Q4 with high In EUR million In EUR million occupancy rate of 92% 332 328 339 206 204 198 Additional surc
Slide 27: Headroom
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS HEADROOM FINANCIAL FLEXIBILITY TO SUPPORT GROWTH Senior net debt : EBITDA ratio Strong investment grade company Maximum ratio under other PP programs and syndicated revolving credit facility Inc
Slide 28: Value Creation
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS VALUE CREATION VOPAK WELL POSITIONED TO TAKE SEVERAL INVESTMENT DECISIONS IN THE 2017-2019 PERIOD Total investments 2005-2019 Expansion capex** In EUR million In EUR million; 100% = EUR ~2,350 m
Slide 29: Further Expanding in South Africa
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS FURTHER EXPANDING IN SOUTH AFRICA GROWING DISTRIBUTION MARKET • A new 100,000 cbm • 6 large tanks and 8 inland terminal in the truck loading bays. Gauteng province (Johannesburg) connected to Vo
Slide 30: Storage Capacity Development
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS STORAGE CAPACITY DEVELOPMENT Storage capacity developments +3.8 In million cbm 3.5 38.5 +0.4 1.3 34.7 0.3 34.3 0.9 FY2015 Brownfield & Divestments FY2016 Brownfield Greenfield 2019 Greenfield No
Slide 31: Stable Dividend Growth
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS STABLE DIVIDEND GROWTH PROPOSED DIVIDEND INCREASE WITH 5% TO EUR 1.05 PER SHARE Dividend and EPS* 2003-2016 In EUR 3.0 2.56 EPS BARRING 2.5 EXCEPTIONAL 2.0 CIRCUMSTANCES, 1.5 THE INTENTION IS 1.
Slide 32: Outlook 2017
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS OUTLOOK 2017 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
Slide 33: Outlook 2017
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS OUTLOOK 2017 For 2017, we are confident that Vopak will again achieve an average occupancy rate of at least 90%. We expect to make additional investments in disciplined capacity growth, technolo
Slide 34: Looking Ahead
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS LOOKING AHEAD 2005 - 2007 2008 - 2010 2011 - 2013 2014 - 2016 2017 - 2019 812 822 763 Continue long-term 304 growth journey 88 104 124 37 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2
Slide 35: Key Take Aways
LONG-TERM CAPITAL 2016 Q4 2016 OUTLOOK KEY TAKE VALUE CREATION ALLOCATION RESULTS RESULTS 2017-2019 AWAYS KEY TAKE AWAYS 2014-2016: improved EBITDA from EUR 763 million to EUR 822 million and EPS from 2.31 to 2.56 2016: despite missed contributions divestments increased EBITDA 2016 2017-2019: well-p
Slide 36: Questions and Answers
QUESTIONS AND ANSWERS ROYAL VOPAK ANALYST PRESENTATION – FEBRUARY 17, 2017 For more information please contact: Media contact: Liesbeth Lans, Manager External Communications Telephone: +31 (0)10 400 2777, e-mail: global.communication@vopak.com Investor Relations contact: Chiel Rietvelt, Head of Inve
Slide 37: Appendix
APPENDIX ROYAL VOPAK ANALYST PRESENTATION – FEBRUARY 17, 2017
Slide 38: Occupancy Rate Developments per Division
OCCUPANCY RATE DEVELOPMENTS PER DIVISION Occupancy rates In percent 96 96 96 96 96 96 95 95 94 94 92 92 92 91 91 91 91 90 89 89 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Netherlands EMEA Asia Americas Note: occupancy rates include subsidiaries only 38 Analyst presentation FY 2016 February 17, 2017
Slide 39: 2016 Netherlands Development
2016 NETHERLANDS DEVELOPMENT Occupancy rate* In percent 94 95 89 87 83 2012 2013 2014 2015 2016 Revenues* In EUR million 487.9 496.4 Storage capacity 457.6 442.5 442.1 In million cbm 2012 2013 2014 2015 2016 9.5 9.5 9.9 9.9 10.0 EBITDA** In EUR million 278.5 286.5 267.3 242.6 252.7 2012 2013 2014 20
Slide 40: 2016 EMEA Development
2016 EMEA DEVELOPMENT Occupancy rate* In percent 93 96 88 88 84 2012 2013 2014 2015 2016 Revenues* In percent 235.9 248.2 257.6 251.5 Storage capacity 189.9 In million cbm 2012 2013 2014 2015 2016 9.6 9.7 EBITDA** In EUR million 9.0 8.6 8.5 132.3 135.6 128.1 118.3 121.1 2012 2013 2014 2015 2016 2012
Slide 41: 2016 Asia Development
2016 ASIA DEVELOPMENT Occupancy rate* In percent 94 94 95 89 91 2012 2013 2014 2015 2016 Revenues* In EUR million 379.4 385.2 Storage capacity 355.4 358.8 370.1 In million cbm 2012 2013 2014 2015 2016 11.6 11.5 EBITDA** 9.8 In EUR million 7.3 7.4 273.1 282.5 291.2 288.9 296.7 2012 2013 2014 2015 201
Slide 42: 2016 Americas Development
2016 AMERICAS DEVELOPMENT Occupancy rate* In percent 94 90 90 90 91 2012 2013 2014 2015 2016 Revenues* In EUR million 259.3 239.6 246.6 266.7 273.8 Storage capacity In million cbm 2012 2013 2014 2015 2016 3.9 EBITDA** 3.6 In EUR million 3.4 3.3 122.6 120.5 3.2 102.2 95.3 105.1 2012 2013 2014 2015 20
Slide 43: 2016 Net Result of JVs and Associates
2016 NET RESULT OF JVS AND ASSOCIATES Netherlands Americas 2.4 2.5 2.5 1.9 1.0 0.1 0.2 0.5 2013 2014 2015 2016 2013 2014 2015 2016 Net result of JVs Global LNG EMEA and associates 35.9 38.2 123.8 21.1 28.5 28.1 33.4 32.8 17.9 105.3 104.3 87.5 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 20
Slide 44: External Financing
EXTERNAL FINANCING Debt repayment schedule RCF flexibility US PP In EUR million RCF drawn Asian PP Subordinated US PP Other 1,200 1,100 1,000 400 300 200 100 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2040 44 Analyst presentation FY 2016 February 17, 2017
Slide 45: Net Finance Costs
NET FINANCE COSTS Net finance costs 2016 Net finance costs 2015 In EUR million In EUR million Interest and dividend income 11.4 10.7 Finance costs -118.6 -115.9 Net finance costs -107.2 -105.2 Net interest bearing debt Average interest rate In EUR million (after hedging) In percent 2,266 2,296 7.0%
Slide 46: Other Topics
OTHER TOPICS Effective tax rate* 2016 EBITDA* transactional currencies In percent In percent 20.9 20% 17.1 18.1 17.6 USD SGD EUR 16% 38% Other 2013 2014 2015 2016 26% Funding level Dutch pension fund FX translation-effect on 2016 EBITDA* In percent In EUR million 118 121 114 111 Global Functions 0.1
Slide 47: Full Year 2016 Results
FULL YEAR 2016 RESULTS ROYAL VOPAK ANALYST PRESENTATION – FEBRUARY 17, 2017