Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Investor Day (December 2017)
19 slides from Royal Vopak Nv's investor day presentation, Dec 12, 2017
Slide 1: Chemicals & LPG market update
Chemicals & LPG market update • Steady growth path continues globally Royal Vopak – Analyst Day 2017 Ismail Mahmud, Global Chemicals Director 12 December 2017
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: Vopak's well-balanced global portfolio
Vopak’s well-balanced global portfolio Oil Chemical Industrial Vegoils Gas products products terminals & biofuels products Typical contract 0-5 years 0-5 years 5-20 years 0-3 years 10-20 years duration per product / terminal category Share of 40-45% 20-25% 20-25% 5-7.5% 3-5% 2016 EBITDA* Netherlands
Slide 4: Growth in all three end markets
Growth in all three end markets Looking forward, five mega trends will impact the end markets that Vopak serves via its four strategic terminal types Trends Urbanization Disruptive Changing Geopolitical Sustainability technologies demographics developments & Trade & Climate End Markets Energy Manufa
Slide 5: Urbanization example of China
Urbanization example of China From the five megatrends, urbanization has the biggest influence on the Manufacturing sector China Urbanization rate will grow from 54% today to 67% in 2030 Urbanization in China is going fast 100% Number of years to realize a 50% 75% urbanization rate: 50% ▪ China: 35
Slide 6: Manufacturing sector will double in the next 20 years
Manufacturing sector will double in the next 20 years Construction is the largest segment of the USD 22 trillion manufacturing sector Segment Growth Key sub- Segment Growth Key sub- Manufacturing sector 2015-2035 segments 2015-2035 segments Construction Real estate Textiles Synthetic USD trillio
Slide 7: Asia dominates growth of manufacturing
Asia dominates growth of manufacturing Largest increase in chemical demand is expected in Asia driven by the need for plastics Regions Materials Above GDP growth is foreseen in emerging regions, Plastics and Synthetic Fibers are amongst the highest growing whereby Southeast Asia is growing fastest a
Slide 8: Increasing chemical trade flows
Increasing chemical trade flows Regional imbalances of chemicals will continue to increase Greater Europe FSU North America -8.5 3.9 22.5 -13.6 0.8 0.9 -7.9 2.2 3.0 10.9 Middle East -16.5 -10.5 -1.4 7.4 65.6 2016 2025 North East -24.1 Asia 5.1 11.5 2.3 2016 2025 3.0 0.8 2016 2025 47.3 28.1 -23.6 18.
Slide 9: Ethylene production increase
Ethylene production increase The world needs another 50 crackers in the next two decades if global Ethylene demand is to be met Global Ethylene consumption by region Global Ethylene production capacity m tons m tons 50 8 2 3 250 61 232 32 30 2000 2015 2030 22 22 24 200 FSU 38 200 44 169 20 26 150 14
Slide 10: Developments of industrial complexes
Developments of industrial complexes New complexes are expected to arise in feedstock advantaged regions (US & ME) or close to growing end markets (Asia) For illustrative purposes Locations with feedstock advantage Locations close to end markets 12 December 2017 – Analyst Day 10
Slide 11: Leading independent operator of Industrial Terminals
Leading independent operator of Industrial Terminals Vopak has more than 40 years of experience in industrial terminalling Tarragona Engro Kertih Lingang (Spain) (Pakistan) (Malaysia) (China) Teesside Thai Tank Chemiehaven Al Jubail Windmill Caojing Banyan Haiteng Gulei Pengerang (UK) (Thailand) (Ne
Slide 12: Factors of successful development of industrial terminals
Factors of successful development of industrial terminals • Lead of the development: A major chemicals producer or a regulator? • As markets opened, more cooperation has been seen by IOCs that bring in technical knowhow • Governments/port operators attracted investors, offering a coordinated approac
Slide 13: Key messages
Key messages Steady growth path continues globally Chemical demand in the manufacturing sector will double in the next 20 years driven by five megatrends of which urbanization will have the biggest impact Asia will dominate the growth in chemical demand driven by the need for plastics Opportun
Slide 14: Global LPG supply will modestly increase
Global LPG supply will modestly increase US and ME remain global suppliers North American shale gas developments will boost LPG Supply increase from the past years will stabilize supply whereas European supply is declining m tons m tons NGL Supply North America FSU Sub-Saharan Africa 350 +0,4% 120 R
Slide 15: Growth in petrochemical demand for LPG
Growth in petrochemical demand for LPG Half of global LPG demand will be in Asia in 2030, Petchem shows strongest growth Domestic demand will remain a stable LPG driver, but Asia Pacific, including China, will see biggest demand petrochemical demand will grow significantly growth in the next 15 year
Slide 16: Increasing need for LPG infrastructure
Increasing need for LPG infrastructure Growing imbalances will result in increasing trade flows 2015: global LPG trade 84 mln tons 2030: Global LPG trade 110 mln tons • The strong increase in global LPG trade will result in the need for more infrastructure in demand regions, as well as supply region
Slide 17: LPG market requiring additional infrastructure
LPG market requiring additional infrastructure Different value drivers for LPG infrastructure exist Export Petrochemical feedstock Domestic LPG • Canada • ARA • India • South Africa • US • Singapore • China • Brazil • Middle East • China • SEA • Egypt 12 December 2017 – Analyst Day 17
Slide 18: Key messages
Key messages Increasing global trade from growing LPG imbalances LPG oversupply makes it an attractive feedstock for petrochemicals and replacement of traditional fuels for household consumption Growing LPG imbalances will result in increasing global trade and require infrastructure supporting e
Slide 19: Questions & Answers
Questions & Answers• Steady growth path continues globally Royal Vopak – Analyst Day 2017 Ismail Mahmud, Global Chemicals Director 12 December 2017