Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Investor Day (June 2016)
31 slides from Royal Vopak Nv's investor day presentation, Jun 16, 2016
Slide 1: Vopak Asia's Competitive Position
VOPAK ASIA’S COMPETITIVE POSITION ROYAL VOPAK PATRICK VAN DER VOORT, PRESIDENT VOPAK ASIA 16 JUNE 2016 Operators in front of the new LPG facility following the successful start-up at the Banyan terminal
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The presentations contain ‘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: Summary: Key Topics
SUMMARY KEY TOPICS Asia’s importance for world economic growth o Regional mega trends o Impact on end-markets and product flow developments Vopak Asia’s strategic agenda Vopak Asia’s competitive position o Vopak Asia’s network o Competitive position o Regional developments Opportunities thro
Slide 4: The Rise of Asia Continues
THE RISE OF ASIA CONTINUES ASIAN ECONOMY VITAL FOR GLOBAL GROWTH Regional share of global GDP 2050 In percent China [1] 105.916 US [2] 70.913 100% India [3] 63.842 80% Indonesia [4] 15.432 Japan [5] 11.367 60% Germany [6] 11.334 40% Brazil [7] 10.334 Mexico [8] 9.826 20% UK [9] 9.812 0% France [10]
Slide 5: Sustainable Growth: Asia Economically Vibrant
SUSTAINABLE GROWTH ASIA ECONOMICALY VIBRANT Asia GDP growth (y-o-y %) Asia Absolute GDP (2015, %) Asia GDP growth (Y-o-Y %) China South Korea 100% = 15,641 bn US$ India Australia SEA region1 Japan SEA region1 8% China 8% Australia 6% 6% 36% South Korea 8% 4% 2% India 11% 0% 31% -2% Japan 20162 2012
Slide 6: Long-Term Trends
LONG-TERM TRENDS INCREASE IN ENERGY AND CHEMICAL DEMAND Geopolitical developments and global trade Changing demographics Industrialization and urbanization in emerging economies Capital Markets Days 2016 6
Slide 7: Rise of the Middle Class
RISE OF THE MIDDLE CLASS RESULTING IN MORE CONSUMPTION The number of middle class consumers is projected to rise significantly over the next 15 years mostly in Asia 8.000 7.000 ~60% 6.000 Population (in millions) 5.000 ~40% 4.000 3.000 ~25% 2.000 1.000 0 2000 2010 2020 2030 Poor Rich Middle % Share
Slide 8: World Energy Consumption
WORLD ENERGY CONSUMPTION INCREASE SUPPORTED BY NON-OECD ASIA World energy consumption Quadrillion Btu 800 Non-OECD Asia 600 400 Other Non-OECD 200 OECD 0 2012 2020 2030 2040 Source: EIA, International Energy Outlook May 2016 Capital Markets Days 2016 8
Slide 9: Automotive Business
AUTOMOTIVE BUSINESS ONE OF THE DRIVERS FOR DEMAND GROWTH Global Car Growth (China, India, U.S.) Plastic Component (Rubber, Adhesives, Transport Synthetics) Fuel (Gasoline, Diesel) Capital Markets Days 2016 9
Slide 10: Asian Oil Market Dynamics
ASIAN OIL MARKET DYNAMICS CHINA’S SHIFT TO A SERVICE-ORIENTATED ECONOMY China’s gasoline demand will grow faster than diesel China Oil Demand Change (in kb/d) SOURCE: Wood Mackenzie (2016) Capital Markets Days 2016 10
Slide 11: Growing Gas Market
GROWING GAS MARKET LPG EXPORTS WILL FLOW TO ASIA Non-OECD nations will account for 76% of the growth in natural gas consumption World natural gas consumption Traditional Emerging Trillion cubic feet LPG Demand: LPG Demand: 140 (residential & (petrochemical commercial sectors) feedstock) 120 100 80 6
Slide 12: Petrochemical Clusters
PETROCHEMICAL CLUSTERS DEVELOPMENTS DRIVEN BY END-MARKETS If all the known projects in US are built (~20 mln tons of ethylene Iran China based on ethane), the world still Iran plans to double the petrochemical 7 locations along the production to 120 million tons before coast line selected by the nee
Slide 13: Vopak Asia's Strategic Agenda
VOPAK ASIA’S STRATEGIC AGENDA Where do we play o Existing portfolio well-positioned and aligned to product flow developments o Selective growth opportunities at existing terminals and in new locations How do we win o Further improve sustainability performance o Enhance service delivery o Focus o
Slide 14: Vopak Asia in Close Up
VOPAK ASIA IN CLOSE UP Hub Terminals Ownership CBM 9 23 countries terminals Vopak Terminal Kandla Vopak Terminal Jakarta 100% 49% 254,727 251,025 Vopak Terminal Merak 95% 80,400 Distribution Vopak Terminals Korea – Ulsan 51% 274,600 Terminals Kertih Terminals 21% 395,896 Pengerang Terminal 44% 1,319
Slide 15: Asia's Competitive Positioning
ASIA’S COMPETITIVE POSITIONING A WELL-POSITIONED AND DIVERSIFIED NETWORK Three global competitors in the Asian region 9 countries 6 countries 4 countries 1 country 23 terminals 12 terminals 9 terminals 1 terminals 11.5 million cbm 1.6 million cbm 2.2 million cbm 1.2 million cbm All product groups Oi
Slide 16: Singapore Straits Oil Capacity Developments
SINGAPORE STRAITS OIL CAPACITY DEVELOPMENTS CBM 20.000.000 15.000.000 10.000.000 5.000.000 28% 15% 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Competition Vopak incl. Pengerang Capital Markets Days 2016 16
Slide 17: Singapore Straits Oil Capacity Developments
SINGAPORE STRAITS OIL CAPACITY DEVELOPMENTS Oil Capacity Growth (2015-2020, kcbm) 1.500 Tanjung Langsat (Thousands cbm) (Malaysia) Jurong Port- Pengerang Oiltanking (Malaysia) Tanjung Bin (Malaysia) 1.000 Vopak Pengerang (PT2SB) ATB Tanjung Bin 500 Sdn Bhd Oiltanking, Horizon, Banyan, Sebarok, Tanks
Slide 18: Vopak Asia's Customers
VOPAK ASIA’S CUSTOMERS WELL-BALANCED AND DIVERSIFIED PORTFOLIO National oil Supermajors Regional / companies Chemicals Traders Private (NOC) 75% of revenues Some examples, for illustration purposes only Capital Markets Days 2016 18
Slide 19: Vopak Asia's Product Mix
VOPAK ASIA’S PRODUCT MIX A BALANCED PORTFOLIO Vopak Asia revenue by product (2012-2015) Oils o Start-up operations new terminals 6% 4% Pengerang and Hainan +4% o Contango market in second half of 2015 and high Asian refinery utilization (incentivized by attractive margins) 49% 53% Chemicals o China
Slide 20: Vopak Asia's Customers: Growth Focus
VOPAK ASIA’S CUSTOMERS GROWTH FOCUS IN CUSTOMER BASE Customer Y-o-Y growth (2012-2015) Traders o Trading activity is subdued due to Trader economic headwinds and high market volatilities Private Chemical o Asian petrochemicals producers grew Chemical in line with the cost advantage associated with l
Slide 21: Expanding the Business: Strength of Network Accounts
EXPANDING THE BUSINESS STRENGTH OF NETWORK ACCOUNTS South Korea Thailand Vietnam Malaysia Singapore Australia Indonesia Presence of multi-site customers (2012) Capital Markets Days 2016 21 Addition of multi-site customers (2015)
Slide 22: Strategic Partnerships
STRATEGIC PARTNERSHIPS ESSENTIAL PART OF VOPAK ASIA STRATEGY Why? With whom? Ports NOC’s Gateway to Local Increase in future regulatory effectiveness potential requirements and success EPC companies Local government cooperation Local Regional knowledge & Risk diversity easier market reduction Local
Slide 23: Partnerships in Asia
PARTNERSHIPS IN ASIA IN PERSPECTIVE Terminals with partnerships Subsidiaries with100% ownership 6 18 /9 /23 countries terminals 11.5m Capacity cbm EUR 289m EBITDA contribution Hub location with joint venture terminals Group subsidiaries Joint ventures with Vopak management control EUR Average capita
Slide 24: Value Creation Through Our Partnerships
VALUE CREATION THROUGH OUR PARTNERSHIPS Anchor tenant Kertih, Malaysia Specific knowledge & expertise Local content Banyan, Singapore Jakarta, Indonesia Capital Markets Days 2016 24
Slide 25: Anchor Tenant: Kertih Terminals
ANCHOR TENANT EXAMPLE: KERTIH TERMINALS 40% 30%* 30% Kertih Terminals o ~400,000 cbm storage capacity o 20 year agreement with users o Handling & storage and distribution services o 3.2 million tons throughput per year o Take or pay concept with strong anchor tenants Industrial terminal concept o Ga
Slide 26: An Extension of Successful Cooperation in Kertih
AN EXTENSION OF SUCCESSFUL COOPERATION IN KERTIH Johor 40% 25% 25% 10% State (S.S.I) Pengerang Terminal Two \ o The industrial terminal will serve the RAPID PETRONAS RAPID project o total storage capacity up to 2.1 million cubic meters, 157 acres Land Area o Physical pipeline connectivity to custome
Slide 27: Local Content: Vopak Terminal Jakarta
LOCAL CONTENT EXAMPLE: VOPAK TERMINAL JAKARTA 51% 49% Vopak Terminal Jakarta o Leading logistics & supply chain company in trading & distribution of petroleum & basic chemicals in Indonesia o One of the largest distributors in Indonesia o Strategic import and distribution terminal in the port of Jak
Slide 28: Specific Knowledge: Banyan Cavern Storage
SPECIFC KNOWLEDGE EXAMPLE: BANYAN CAVERN STORAGE 35% 45% 20% Banyan cavern storage services o International key player in underground storage for liquid, liquefied and gaseous hydrocarbons o Over 50 years in underground storage facilities from consulting, engineering to operations o Phase 1A two cav
Slide 29: Strengthening Our Network
STRENGTHENING OUR NETWORK SUPPORTED BY GROWTH OPPORTUNITIES Pengerang, Malaysia: Hainan Yangpu, - PITSB: Phase 1C China: completed in Q1 2015, with Commissioned in Q3 2015 expansion under consideration - PT2SB Project to be completed in Q3 2019 Vopak Terminal Banyan Refrigerated New Project (till 20
Slide 30: Key Take Aways
KEY TAKE AWAYS Asia still leading global economic growth as a major international hub of production, consumption and trade Vopak Asia well-positioned to further strengthen it’s competitive position Strategic direction of Asia Division fully aligned with Vopak’s strategic orientation based on g
Slide 31: Questions and Answers
QUESTIONS AND ANSWERS Capital Markets Days 2016 31