Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — FY2018 Earnings Presentation
29 slides from Royal Vopak Nv's earnings presentation, Feb 13, 2019
Slide 1: Storing vital products with care
Storing vital products with care Vopak Full Year 2018 financial results Analyst presentation – 13 February 2019
Slide 2: Forward-looking statement
Forward-looking statement 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, Chairman of the Executive Board and CEO
Storing vital products with care Chairman of the Executive Board Eelco and CEO of Royal Vopak Hoekstra
Slide 4: Key messages
Key messages ‘Solid results in 2018, on track for 2019 well positioned for future opportunities’ Solid financial performance, given market conditions Execution of our strategy is well on track • Portfolio transformation in line with strategic terminal types • Unique cloud-based terminal manageme
Slide 5: Key figures FY 2018
LNG import facility - Engro Elengy Terminal Pakistan Key figures FY 2018 EBITDA* CFFO (gross) In EUR million In EUR million 734 687 Occupancy rate** Terminal network In percent In million cbm 2018: 37.0 86 2019: 39.1 * Including net result from joint ventures and associates and excluding exceptional
Slide 6: Business environment update
Business environment update Diversified portfolio, well positioned for future opportunities Chemicals Focus on operational delivery Oil products Prepare for the uptick Strong underlying demand for Oil hubs: solid long-term demand chemicals drivers despite short-term weakness Positive investmen
Slide 7: Strategy execution well on track
Strategy execution well on track Strategic direction is set towards growth and productivity improvements 14 expansion projects announced in last years Capture growth New projects in Canada, Malaysia, Indonesia, Singapore, South Africa, Brazil, Pakistan and the Netherlands Spend EUR 750 million o
Slide 8: Significant capacity to be delivered in 2019
Significant capacity to be delivered in 2019 Shift towards industrial terminals and LNG, LPG and chemical gases terminals Vlissingen Deer Park German LNG 9,200 cbm RIPET Vietnam 138,000 cbm* Open season completed Botlek 96,000 cbm Mexico EETPL 20,000 cbm 63,000 cbm PT2SB 110,000 cbm 151,000 cbm* Pan
Slide 9: Key messages
Key messages ‘Solid results in 2018, on track for 2019 well positioned for future opportunities’ Solid financial performance, given market conditions Execution of our strategy is well on track • Portfolio transformation in line with strategic terminal types • Unique cloud-based terminal manageme
Slide 10: Gerard Paulides, Member of the Executive Board and CFO
Member of the Executive Board Gerard and CFO of Royal Vopak Paulides
Slide 11: Summary financial performance
Summary financial performance strategic direction FY 2018 key messages Capture growth EBITDA of EUR 734 million, adjusted for currency translation effects, EBITDA was EUR 10 million lower than prior year Spend EUR 750m on sustaining and Resilient CFFO with investment momentum (CFFI) service cape
Slide 12: 2018 vs 2017 EBITDA
2018 vs 2017 EBITDA Adjusted for currency translation effects EBITDA was EUR 10 million lower than prior year 763.2 19.2 744.0 12.4 734.3 23.2 30.8 8.0 15.4 2.5 2017 FX-effect Adjusted Europe & Asia & LNG Americas China & Global 2018 2017 Africa Middle East North Asia functions, corporate activities
Slide 13: Divisional segmentation
Divisional segmentation Europe & Africa and Asia & Middle East impacted by oil hub weakness; Americas and China & North Asia benefit from strong chemical and gas markets Europe & Africa Asia & Middle East Americas 90 86 83 86 85 88 89 86 85 85 90 90 89 89 89 85.2 80.8 74.5 77.2 70.3 66.3 66.5 64.0 5
Slide 14: Q4 2018 vs Q3 2018 EBITDA
Q4 2018 vs Q3 2018 EBITDA Net EUR 7 million one-off cost items included in Q4 2018 182.7 0.4 183.1 6.5 5.5 180.7 7.0 5.3 5.2 3.5 Q3 2018 FX-effect Adjusted Europe & Americas LNG China & Asia & Global Q4 2018 Q3 2018 Africa North Asia Middle East functions, corporate activities and others Figures in
Slide 15: Cash flow overview
Cash flow overview Investment momentum driven by growth project phasing towards 2019 2018 2017 In EUR million In EUR million 687 714 640 669 47 45 266 239 430 374 127 45 348 341 17 50 CFFO Tax & other CFFO Sustaining, FCF Growth Other Free Cash CFFO Tax & other CFFO Sustaining, FCF Growth Other Free
Slide 16: Cash flow from investments
Cash flow from investments Balanced approach for growth, sustaining, service improvement and IT investments Investments 2008-2019 Investments 2017-2019 Investments In EUR million In EUR million 2,012 Growth investments with clear New 1,899 projects* return criteria based on future 1,729 cash flow
Slide 17: EBITDA to Net profit overview
EBITDA to Net profit overview Increase in Earning per Share 2018 2017 In EUR million In EUR million EBITDA 734.3 763.2 Depreciation and amortization 271.0 272.8 EBIT 463.3 490.4 Net finance costs 82.4 98.5 Income tax 55.4 64.7 Non-controlling interests 36.0 39.8 Net profit to holders 289.5 287.4 of
Slide 18: Increase in dividend to EUR 1.10 per share
Increase in dividend to EUR 1.10 per share Continued rising cash dividends Dividend and EPS Dividend policy: In EUR 2.55 2.56 2.31 2.25 2.27 Annual stable to rising cash dividend in balance with a management view on a payout ratio of 1.10 25-75% of net profit and subject to market 1.00 1.05 1.05 0.9
Slide 19: Portfolio events
Portfolio events Acquisitions Expansions & conversions On 22 December 2018, Vopak completed the On 13 February 2019, Vopak announced that it acquisition of an initial 29% share in the will expand its Vietnam terminal with 20,000 cbm LNG import facility Engro Elengy Terminal for the storage and h
Slide 20: Non-IFRS proportionate information
Non-IFRS proportionate information Occupancy rate EBITDA Maintenance, Service In percent In EUR million & IT Capex IFRS BASED In EUR million 822 763 93 90 86 734 258 239 266 Non-IFRS proportionate information provides 2016 2017 2018 2016 2017 2018 2016 2017 2018 transparency in Vopak’s Occupancy rat
Slide 21: Summary financial performance
Summary financial performance strategic direction FY 2018 key messages Capture growth EBITDA of EUR 734 million, adjusted for currency translation effects, EBITDA was EUR 10 million lower than prior year Spend EUR 750m on sustaining and Resilient CFFO with investment momentum (CFFI) service cape
Slide 22: Looking ahead
Looking ahead Given our 3.2 million cbm expansion program over 2018 and 2019, with high commercial coverage, in conjunction with the cost efficiency program, Vopak has the potential to significantly improve the 2019 EBITDA, subject to market conditions and currency exchange movements. At the end o
Slide 23: Questions & Answers
Storing vital products with care Vopak Full Year 2018 Questions & financial results Answers
Slide 24: Full Year 2018 financial results
For more information please contact: Upcoming events: Investor Relations contact: Publication of Q1 2019 interim update Laurens de Graaf, Head of Investor Relations 17 April 2019 Telephone: +31 (0)10 400 2776 e-mail: investor.relations@vopak.com Annual General Meeting 17 April 2019 Media contact: Li
Slide 25: Europe & Africa developments
Europe & Africa developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million Total Q4 2018 90 86 86 85 165.8 158.9 155.8 158.2 2.3 83 153.2 13.7 million cbm Subsidiaries 11.4 Joint ventures & associates Operatorship Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2017 2018 2018 201
Slide 26: Asia & Middle East developments
Asia & Middle East developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million Total Q4 2018 88 89 86 85 85 81.8 80.2 77.2 79.1 76.4 3.3 4.2 14.1 million cbm Subsidiaries 6.6 Joint ventures & associates Operatorship Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2017 2018 2018 20
Slide 27: China & North Asia developments
China & North Asia developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million Total Q4 2018 77 79 0.7 70 73 73 4.2 million cbm 8.4 8.6 7.9 8.3 7.2 Subsidiaries 3.5 Joint ventures & associates Operatorship Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2017 2018 2018 2018 2018 20
Slide 28: Americas developments
Americas developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million 0.1 0.6 Total Q4 2018 89 90 90 89 89 69.3 68.4 71.5 70.3 71.1 4.0 million cbm Subsidiaries 3.3 Joint ventures & associates Operatorship Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2017 2018 2018 2018 2018 201
Slide 29: JVs & associates developments
JVs & associates developments Net result JVs and associates* Europe & Africa* Asia & Middle East* In EUR million In EUR million In EUR million 36.6 26.9 12.4 23.8 25.4 25.0 9.6 10.7 7.7 6.6 0.9 0.7 0.5 0.6 -0.1 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2017 2018 2018 2018 2018 2017 2018 2018 2018