Slide 1: FY 2014 Results Analyst Presentation
FY 2014 27 FEBRUARY 2015 ANALYST PRESENTATION 2014 Results
Slide 2: Forward-looking Statements
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Forward-looking Statements This presentation contains ‘forward-looking statements’, based on currently available plans and forecasts. By their nature, forward-looking statements involv
Slide 3: Connecting flows
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Connecting flows Analyst presentation FY 2014 27 February 2015
Slide 4: Vopak's ambition
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Vopak’s ambition Presence Safety and Strong link Value Our at prime service supply creation values locations chain Solid leadership position in the global independent tank storage mark
Slide 5: Our strategic framework
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Our strategic framework Growth Operational Customer leadership leadership leadership Our Sustainability Foundation Excellent People I Environmental Care I Health and Safety I Responsib
Slide 6: Strategy execution
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Strategy execution Strategic Divestment Reduce * Reduce * Growth Program Capex Cost base 4 15 100 30 categories terminals EUR million EUR million * Up to and including 2016 6 Analyst p
Slide 7: Product developments 2014
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Product developments 2014 Oil production exceeds Chemicals: North Biofuels demand is LNG trade grew with demand resulting in price America is investing in stable in mature markets more
Slide 8: Topics influencing 2014 results
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Topics influencing 2014 results Capacity Geopolitics Oil price Currency expansions and regulation volatility effects 8 Analyst presentation FY 2014 27 February 2015
Slide 9: Results 2014
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Results 2014 Terminal EBITDA Network * Excl. ex items *** 33.8 763 In million cbm In EUR million Occupancy Cash flows Rate ** Operating **** 88% 703 Average In EUR million * Terminal n
Slide 10: Strategy in execution
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Strategy in execution 10 Analyst presentation FY 2014 27 February 2015
Slide 11: Investments and divestments
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Investments and divestments Oil Haiteng Chemicals (Industrial terminal) Industrial 890,000 cbm Gasses Banyan rock Divestments cavern Canterm 480,000 cbm (Import terminal) Pengerang (Hu
Slide 12: Storage capacity developments
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Storage capacity developments Storage capacity developments In million cbm; commissioned and under development +5.9 39.7 0.3 +3.3 5.2 1.0 1.4 33.8 1.3 0.2 0.8 30.5 Greenfield Greenfiel
Slide 13: Safety performance
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Safety performance Total injury rate (TIR) Lost time injury rate (LTIR) Total injuries per 200,000 hours worked by own Total injuries leading to lost time per 200,000 hours worked by o
Slide 14: Service improvements
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Service improvements Jetty upgrades New rail loading spots Sebarok, Singapore Savannah, US Manifold Port pipeline expansion connections Westpoort, Fujairah, Netherlands UAE Truck Vapou
Slide 15: Efficiency enhancements
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Efficiency enhancements Sustaining & Organizational Leverage on improvement productivity standards and capex enhancements procedures reduction 15 Analyst presentation FY 2014 27 Februa
Slide 16: Key topics
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Key topics • We are grateful towards our employees, customers and all stakeholders for their continued trust in our company • Our dedicated staff has delivered solid results under dyna
Slide 17: Business performance
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Business performance 17 Analyst presentation FY 2014 27 February 2015
Slide 18: Key topics
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Key topics • 2014 EBITDA ended at high-end of expectations • Strategic focus and actions on track • Encouraging business developments • Vopak well positioned to further improve risk-re
Slide 19: Outlook development 2014
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Outlook development 2014 763 753 -5% >740 >700 -10% 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 19 Analyst presentation FY 2014 27 February 2015
Slide 20: EBITDA development
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers EBITDA development Alignment network and competitive position Comprehensive scenario planning Full potential excellence Growth strategy Tank terminal strategy 768 753 763 ≥768 232 2004
Slide 21: EBITDA development
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers EBITDA development EBITDA development In EUR million 202 196 196 194 193 192 187 189 187 185 183 180 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 Q4 result lower than Q3 result a
Slide 22: Q4 2014 summary
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Q4 2014 summary EBITDA* EBIT* In EUR million In EUR million -5% +6% -10% +5% 192.0 183.0 194.4 138.2 124.2 130.8 Q4 2012 Q4 2013 Q4 2014 Q4 2012 Q4 2013 Q4 2014 Net profit** Occupancy
Slide 23: 2014 summary
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers 2014 summary Revenues EBITDA* EBIT* In EUR million In EUR million In EUR million -1% +2% -2% +1% 1,314 1,295 1,323 -5% -2% 768 753 763 566 536 524 2012 2013 2014 2012 2013 2014 2012 20
Slide 24: 2014 EBITDA analysis
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers 2014 EBITDA analysis 17.2 10.9 18.8 762.8 2.4 12.3 1.3 753.1 746.2 6.9 1.3 Americas Netherlands Other Asia 2013 LNG 2014 FX-effect against FX 2014 EMEA 2013 /Divestments /Greenfields A
Slide 25: 2014 EBIT
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers 2014 EBIT 2013 2014 In EUR million In EUR million Group operating profit 411.1 394.0 Net result joint ventures 122.7 74.5 incl. exceptional items EBIT incl. exceptional items 533.8 468
Slide 26: Occupancy rate developments
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Occupancy rate developments Occupancy rate In percent Full potential playing field 90-95% Current playing field 85-90% 94 96 95 94 92 93 93 91 88 88 89 88 87 87 88 88 89 88 84 ’04 ’05
Slide 27: Occupancy rate per division
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Occupancy rate per division Netherlands EMEA -6pp +4pp 0pp -4pp 89% 83% 87% 88% 88% 84% Occupancy rate -3pp 0pp 91% 88% 88% 2012 2013 2014 2012 2013 2014 Asia Americas 2012 2013 2014 1
Slide 28: Original contract duration
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Original contract duration Contract position 2012 Contract position 2013 Contract position 2014 In percent of revenues In percent of revenues In percent of revenues 18% 20% 21% 52% 52%
Slide 29: EBIT(DA) margin development
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers EBIT(DA) margin development EBIT(DA) margin In percent 55 50 45 EBITDA margin 40 35 30 EBIT margin 25 20 15 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Focus on creating mor
Slide 30: Cash flow developments
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Cash flow developments Cash flow from operating activities (net) In EUR million 703 660 619 449 475 416 358 308 264 2006 2007 2008 2009 2010 2011 2012 2013 2014 Focus on Free cash flow
Slide 31: Non-IFRS proportional information
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Non-IFRS proportional information Proportionate EBITDA* In EUR million 836 817 824 617 660 537 2009 2010 2011 2012 2013 2014 Occupancy rate subsidiaries Cash Flow Return on Gross Asset
Slide 32: Financial ratios 2014
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Financial ratio’s 2014 Non-IFRS ROCE* ROE** Proportional information In % In % CFROGA*** 21.9% In % 18.8% 18.1% 16.7% 16.3% 14.6% 11.8% 10.9% 10.3% 2012 2013 2014 2012 2013 2014 2012 2
Slide 33: Selective growth
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Selective growth 33 Analyst presentation FY 2014 27 February 2015
Slide 34: Solvency ratio
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Solvency ratio Total equity and liabilities In EUR million 5,226 4,644 4,386 4,152 3,649 Net 64% liabilities* 2,947 60% 58% 2,585 56% 58% 1,997 55% 1,703 61% 57% 56% 44% 40% 42% 36% Eq
Slide 35: Selective growth opportunities
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Selective growth opportunities Storage capacity In million cbm +5.9 +13.9 39.7 36.6 37.6 37.6 36.7 33.8 29.9 30.5 28.3 28.8 27.8 27.1 21.8 21.8 21.8 21.8 21.8 21.6 19.9 20.2 20.4 21.2
Slide 36: Selective capital disciplined growth
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Selective capital disciplined growth Total investments 2005-2019 Expansion capex** In EUR million In EUR million; 100% = EUR 3,300 million 3,284 Remaining ~500 Vopak share in capex (Gr
Slide 37: Selective capital disciplined growth
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Selective capital disciplined growth Senior net debt : EBITDA ratio Maximum ratio under other PP programs and syndicated 5 revolving credit facility 4 3.75 Maximum ratio under current
Slide 38: Proposed 2014 dividend
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Proposed 2014 dividend Dividend and EPS 2006-2014** In EUR 2.73 2.45 2.31 Dividend policy: 2.08 2.16 1.92 1.62 Barring exceptional 1.31 circumstances, the 0.98 intention is to pay an a
Slide 39: Vopak's capital structure
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Vopak’s capital structure Syndicated Ordinary shares Private placement Equity(-like)* revolving program* credit facility* Listed on Euronext USD: 2.0 billion EUR 1.0 billion Subordinat
Slide 40: Looking ahead
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Looking ahead 40 Analyst presentation FY 2014 27 February 2015
Slide 41: Results FY 2014
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Results FY 2014 Terminal EBITDA Network * Excl. ex items *** 33.8 763 In million cbm In EUR million Occupancy Cash flows Rate ** Operating **** 88% 703 Average In EUR million * Termina
Slide 42: Outlook assumptions
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Outlook assumptions ~x% Share of EBITDA* Industrial terminals Biofuels & LNG Oil products Chemicals & other pipeline vegoils connected infra ~50% ~20% 15% - 20% 7.5% - 10% 2.5% - 5% Co
Slide 43: Outlook elements
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Outlook elements 2014 Expansions Divestments Productivity and Fx and Uncertainties incl. 2015 and organisations pension costs phased build-up acquisitions efficiency enhancements Follo
Slide 44: Questions & answers
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Questions answers Analyst presentation FY 2014 27 February 2015 44
Slide 45: We have built our company over 400 years on trust and reliability
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead We have built answers our company over 400 years on trust and reliability • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 46: Appendix
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Appendix 46 Analyst presentation FY 2014 27 February 2015
Slide 47: 2014 Revenues per division
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers 2014 Revenues per division Netherlands EMEA -3% 0% Revenues 457.6 +5% +4% 442.5 442.1 235.9 248.2 257.6 -1% +2% 1,314 1,295 1,323 2012 2013 2014 2012 2013 2014 Asia Americas 2012 2013
Slide 48: 2014 EBITDA per division
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers 2014 EBITDA per division Netherlands EMEA -9% +4% EBITDA* 267.3 +2% -13% 242.6 252.7 132.3 135.6 118.3 -2% +1% 768.4 753.1 762.8 2012 2013 2014 2012 2013 2014 Asia Americas Non-allocat
Slide 49: 2014 net result of joint ventures
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers 2014 net result of joint ventures Netherlands EMEA -23% -50% 46.6 Net result of +26% +4% 35.9 joint ventures 2.4 2.5 17.9 1.9 -2% -17% 2012 2013 2014 2012 2013 2014 107.2 105.3 87.5 As
Slide 50: Netherlands
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Netherlands EBITDA* In EUR million 59.8 59.5 61.3 62.0 60.9 62.8 68.0 61.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2013 2013 2013 2014 2014 2014 2014 Occupancy rate** Storage capacity In percent
Slide 51: EMEA
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers EMEA EBITDA* In EUR million 34.7 33.6 33.1 34.2 28.9 30.4 30.9 28.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2013 2013 2013 2014 2014 2014 2014 Occupancy rate** Storage capacity In percent In mill
Slide 52: Asia
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Asia EBITDA* In EUR million 70.7 73.2 70.6 68.0 66.4 70.0 76.9 77.9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2013 2013 2013 2014 2014 2014 2014 Occupancy rate** Storage capacity In percent In mill
Slide 53: Americas
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Americas EBITDA* In EUR million 28.0 25.9 26.3 29.5 24.0 22.1 21.2 23.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2013 2013 2013 2014 2014 2014 2014 Occupancy rate** Storage capacity In percent In
Slide 54: FX translation effects
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers FX translation effects 2014 EBITDA transactional currencies FX translation-effect on 2013 EBITDA In percent In EUR million USD Netherlands SGD EMEA EUR Asia Americas Other 22% Non allo
Slide 55: Debt repayment schedule
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Debt repayment schedule Debt repayment schedule In EUR million RCF flexibility US PP RCF drawn Asian PP Subordinated US PP Other 1,200 1,000 600 400 200 0 2015 2016 2017 2018 2019 2020
Slide 56: Net finance costs
Connecting Strategy Business Selective Looking Question & Appendix flows execution performance growth ahead answers Net finance costs Net finance costs 2013 Net finance costs 2014 In EUR million In EUR million Interest and dividend income 3.3 7.9 Finance costs -108.6 -97.7 Net finance costs -105.3 -