Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — FY2010 Earnings Presentation
65 slides from Royal Vopak NV's earnings presentation, Mar 11, 2011
Slide 1: Annual results 2010
_ Annual results 2010 11 March 2011 – – –
Slide 2: A worldwide network strategy
A worldwide network strategy Vopak Horizon Fujairah Vopak Terminal Europoort Vopak Singapore Vopak Houston Sebarok Terminal Deer Park Terminal – – – Annual results 2010 11 March 2011 2
Slide 3: Agenda
Agenda Achievements 2010 Business environment Growth projects Business performance Financing Outlook Details and definitions used in this presentation are derived from the FY 2010 press release and Annual Report, which are leading. – – – Annual results 2010 11 March 2011 3
Slide 4: Robust results in 2010
Robust results in 2010 Added 0.5 mln cbm storage capacity Healthy occupancy rate *Q1 2011: Adjustment of 3.4 million cbm after divestment Vopak Terminal Bahamas Strong business performance EBITDA excl. exceptionals EUR 598.2 mln 650 600 +17% 550 500 450 2009 2010 – – – Annual results 2010 11 March 2
Slide 5: Personnel & Process Safety
Personnel & Process Safety Total Injury Rate** Lost Time Injury Rate* 8 3 7,1 6 6,5 6,2 2 5,8 1,9 4 1,7 1,4 1,4 1,3 3,2 1 2 0 0 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 * Number of injuries per million hours worked by employees * Number of injuries leading to lost time per million hours wor
Slide 6: Strategic focus Vopak
Strategic focus Vopak EXCELLENT EXCELLENT ACCELERATED ACCELERATED OPERATIONAL OPERATIONAL CUSTOMER CUSTOMER COMPANY COMPANY EXCELLENCE EXCELLENCE SERVICE SERVICE GROWTH GROWTH Pursue and strengthen Attain service To be the most safe, leadership in key excellence across the sustainable and efficient
Slide 7: Focused Strategy: Customer Service
Focused Strategy: Customer Service Improved outcomes customer survey 2010 Strengthening Key Account Management Enhanced product flow knowledge “Annual world wide customer survey to further improve our customer service” – – – Annual results 2010 11 March 2011 7
Slide 8: Focused Strategy: Operational Excellence
Focused Strategy: Operational Excellence Operational efficiency improvements Preparing infrastructure for the future Focus on maintenance master plans Vopak Terminal Teesside – Infrastructure improvements to serve as fuel distribution terminal – – – Annual results 2010 11 March 2011 8
Slide 9: Focused strategy: Company growth
Focused strategy: Company growth Various new expansions announced Financing programs in place New strategic partnerships Vopak Horizon Fujairah – Expansion of 606,000 cbm under construction in key hub location – – – Annual results 2010 11 March 2011 9
Slide 10: Various projects commissioned in 2010
Various projects commissioned in 2010 Total storage capacity commissioned 0.5 mln cbm Vopak Zhangjiagang (China) 190,000 cbm commissioned Jakarta (Indonesia) 250,000 cbm Decommissioned Waltershof (Germany) 99,400 cbm decommissioned Alemoa (Brazil) 38,600 cbm – – – Annual results 2010 11 March 2011 1
Slide 11: Vopak Terminal Bahamas
Vopak Terminal Bahamas Subsequent event: Sale of 20% equity stake* in 3.4 million cbm Vopak Terminal Bahamas *Joint venture initiated in 2008 between Vopak (20%) and First Reserve Capital (80%) – – – Annual results 2010 11 March 2011 11
Slide 12: Agenda
Agenda Achievements 2010 Business environment Growth projects Business performance Financing Outlook Details and definitions used in this presentation are derived from the FY 2010 press release and Annual Report, which are leading. – – – Annual results 2010 11 March 2011 12
Slide 13: Current demand for tank storage
Current demand for tank storage Oil - Increasing number of specifications and increasing geographical imbalance between demand and supply leads to robust demand - Possible permanent closure/divestments of less efficient refineries and IOC’s focussing on upstream business Chemicals - Redesign of supp
Slide 14: The tank storage market continues to evolve
The tank storage market continues to evolve Drivers of structural growth in demand remain: • Increasing geographical imbalances • Countries setting individual specifications for products • Long term growing demand for environmentally friendlier fuels • Liberalization of previously closed economies B
Slide 15: Agenda
Agenda Achievements 2010 Business environment Growth projects Business performance Financing Outlook Details and definitions used in this presentation are derived from the FY 2010 press release and Annual Report, which are leading. – – – Annual results 2010 11 March 2011 15
Slide 16: Company growth supported by healthy demand for storage capacity
Company growth supported by healthy demand for storage capacity Storage Capacity In mln cbm 28.8 29.9 28.3 27.1 25.4 21.2 21.8 20.4 +0.8 +0.6 +5.3 +1.2 +0.5 -3.4 +4.5 2005 2006 2007 2008 2009 2010 Pro forma* 2012 Occupancy Rate 92% 94% 96% 95% 94% 93% * Adjustment of 3.4 million cbm after divestment
Slide 17: Amsterdam Westpoort
Amsterdam Westpoort • Total storage capacity of 1,190,000 cbm • Phase 1 to come on stream in Q3 2011 • Full capacity available as of mid 2012 • A facility for storage and blending of oil products and components Aerial photo of the Vopak Westpoort Terminal (the Netherlands) under construction – – – A
Slide 18: Algeciras, Spain
Algeciras, Spain Strategically located greenfield capacity expansion • Total storage capacity of 403,000 cbm • To come on stream end of 2012 • Joint Venture between Vilma oil (20%) and Vopak (80%) • A facility for independent bunker storage services – – – Annual results 2010 11 March 2011 18
Slide 19: Various projects under construction
Various projects under construction Total storage capacity under construction 4.5 mln cbm MOT, Rotterdam (the Netherlands) increase in entitlement with 360,000 cbm Gate terminal (the Netherlands) 540,000 cbm Dongguan (China) 153,000 cbm – – – Annual results 2010 11 March 2011 19
Slide 20: Confidence in the future!
“Confidence in the future!” – – – Annual results 2010 11 March 2011 20
Slide 21: Agenda
Agenda Achievements 2010 Business environment Growth projects Business performance Financing Outlook Details and definitions used in this presentation are derived from the full year 2010 press release and Annual Report, which are leading. – – – Annual results 2010 11 March 2011 21
Slide 22: 2010: Another robust year for Vopak
2010: Another robust year for Vopak OCCUPANCY OCCUPANCY RATES RATES CUSTOMER CUSTOMER FOCUSED FOCUSED WITHIN WITHIN 90-95% 90-95% BANDWIDTH BANDWIDTH GROWTH GROWTH * Adjustment of 3.4 million cbm after divestment VTB Strong Strong business business performance performance HEALTHY HEALTHY MARGINS MAR
Slide 23: 2010 Financial overview
2010 Financial overview 17% EBITDA growth 16% EBIT growth 8% EPS growth Proposed cash dividend of EUR 0.70 per share Adequate funding of growth strategy secured - All figures excluding exceptional items - – – – Annual results 2010 11 March 2011 23
Slide 24: Focused strategy delivers results
Focused (growth, customer service and operational excellence) strategy delivers results In EUR mln, - excl. exceptional items - EBITDA improvements by: 598.2 • Higher occupancy rates EBITDA • Improved revenue per cbm • Effective cost management • Storage capacity growth • Benefits from economies of
Slide 25: 2010 EBIT excl. exceptional items: up 16% to EUR 445.3 mln
2010 EBIT excl. exceptional items: up 16% to EUR 445.3 mln Revenues EBIT In EUR mln In EUR mln 1,106.3 1,001.1 445.3 923.5 385.3 320.4 2008 2009 +11% 2010 2008 2009 +16% 2010 Net Profit Earnings per share In EUR mln In EUR 1.92* 2.08 1.62* 242.7 264.8 202.1 +9% +8% 2008 2009 2010 2008 2009 2010 – –
Slide 26: Revenue developments supported by robust demand for storage capacity
Revenue developments supported by robust demand for storage capacity Storage Capacity In mln cbm Joint Ventures 28.8 28.3 10.5 27.1 25.4 Group Companies 21.2 21.8 20.4 18.3 +0.8 +0.6 +5.3 +1.2 +0.5 -3.4 2005 2006 2007 2008 2009 2010 Pro forma Occupancy Rate Adjustment for announced divestment Vopak
Slide 27: All divisions contribute to the 11% revenue growth
All divisions contribute to the 11% revenue growth In EUR mln North America OEMEA Asia 206.2 272.5 269.5 278.1 131.7 138.3 2009 5% 2010 2009 3% 2010 2009 32% 2010 Latin America CEMEA 312.7 325.1 77.9 88.2 2009 13% 2010 2009 4% 2010 – – – Annual results 2010 11 March 2011 27
Slide 28: EBIT increased by 16%
EBIT - excluding exceptional items - increased by 16% In EUR mln 2010 2009 ∆ Operating profit 358.6 330.6 8% Net result Joint Ventures 83.4 60.5 38% EBIT incl. exceptional items 442.0 391.1 13% Exceptional gain (loss) (3.3) 5.8 EBIT excl. exceptional items 445.3 385.3 16% – – – Annual results 2010 1
Slide 29: 64% of EBIT generated in non-euro currencies
64% of EBIT generated in non-euro currencies Transactional currency exchange risks are limited. As a rule revenues, costs and financing are denominated in the same currency. USD FX Translation-effect on EBIT Other per division In EUR mln USD 14% OEMEA 2.1 CEMEA 1.4 SGD 26% Asia 17.4 SGD EUR 36% Nort
Slide 30: 16% EBIT increase mainly driven by Asia and OEMEA
16% EBIT increase mainly driven by Asia and OEMEA In EUR mln, - excl. exceptional items - North America OEMEA Asia 152.2 169.9 135.3 127.5 46.1 46.0 2009 0% 2010 2009 12% 2010 2009 33% 2010 Latin America CEMEA Other 91.2 90.6 24.3 25.7 -39.1 -39.1 2009 6% 2010 2009 -1% 2010 2009 0% 2010 – – – Annual
Slide 31: Net result from Joint Ventures increases with 29%
Net result from Joint Ventures increases with 29% In EUR mln, - excl. exceptional items - North America OEMEA Asia 41.9 33.9 32.1 28.8 8.6 3.6 2009 139% 2010 2009 31% 2010 2009 18% 2010 Latin America CEMEA Other 1.8 1.5 0.7 1.1 -0.9 -2.0 2009 57% 2010 2009 -17% 2010 2009 2010 – – – Annual results 20
Slide 32: Healthy EBIT(DA) margins
Healthy EBIT(DA) margins Supported by robust occupancy rates, improved revenue per cbm, effective cost management and economies of scale 60% 50% EBITDA margin* 40% 30% EBIT margin* 20% 10% 0% 2005 2006 2007 2008 2009 2010 * Excluding exceptional items, excluding Net result of JV’s – – – Annual resul
Slide 33: Net Profit increased by 9%
Net Profit - excluding exceptional items - increased by 9% In EUR mln, - excl. exceptional items - 2010 2009 ∆ Revenues 1,106.3 1,001.1 11% EBIT 445.3 385.3 16% Net finance costs -68.4 -45.7 Tax * -72.8 -68.9 Net Profit attributable to holders of ordinary shares 264.8 242.7 9% EPS 2.08 1.92 8% * Inc
Slide 34: Net Finance Costs aligned with expansion program
Net Finance Costs aligned with expansion program In EUR mln 2010 2009 Interest and dividend income 4.6 6.7 Finance costs -73.0 -52.4 Net finance costs -68.4 -45.7 Net-interest bearing debt Average interest rate 1500 1431.4 10% 1250 8% 1000 996.7 1017.7 6% 750 4% 500 561.9 2% 411.7 425.7 250 0% 2004
Slide 35: Effective tax rate 2010
Effective tax rate 2010 In EUR mln Effective Tax Rate 2010 2010 2009 Tax -72.8 19.5% 19.9% – – – Annual results 2010 11 March 2011 35
Slide 36: Solid improvements in EPS
Solid improvements in EPS Historical figures adjusted for 1:2 share split effectuated May 17, 2010 In EUR, - excl. exceptional items - 2.50 2.00 2.08 1.50 1.92 1.62 1.00 1.31 0.50 0.805 0.98 22% 34% 24% 19% 8% 0.00 2005 2006 2007 2008 2009 2010 – – – Annual results 2010 11 March 2011 36
Slide 37: Dividend: Increase with 12%
Dividend: Increase with 12% Historical figures adjusted for 1:2 share split effectuated May 17, 2010 Proposed 2010 dividend amounts to EUR 0.70 per ordinary share Proposed dividend +12% 0.70 0.625 0.55 0.475 0.375 0.30 2005 2006 2007 2008 2009 2010 – – – Annual results 2010 11 March 2011 37
Slide 38: Sources and uses of cash
Sources and uses of cash Gross operating In EUR mln cash flow 58.7 Investments 600 11.2 500 455.1 400 564.7 300 200 100 172.6 147.8 194.9 0 12.8 53.0 Net Net finance Tax paid Divestments Derivative Financing Net -100 costs Cash position Settlement activities Cash position 1 Jan 2010 31 Dec 2010 – –
Slide 39: Pensions
Pensions Vopak defined Pension obligations Dutch Pension obligations FY 2010 Other 17% • Pension fund cover ratio 110% (per end of February 2011) • Included additions to pension obligations due to increased life expectancy in total 7% Dutch 83% • Employer’s contribution for 2011 remains at the maxim
Slide 40: Business performance
Vopak Terminal Europoort Vopak Horizon Fujairah Business performance EBIT per Division Vopak Terminal Vopak Singapore Deerpark, Houston Sebarok Terminal – – – Annual results 2010 11 March 2011 40
Slide 41: Quarterly EBIT development
Quarterly EBIT development “Solid year-on-year growth” In EUR mln, - excl. exceptional items - 113,3 114,8 109,7 107,5 104,2 98,6 96,9 85,6 82,8 79,2 77,6 80,8 2008 2009 2010 23% 16% 9% 9% Q1 Q2 Q3 Q4 – – – Annual results 2010 11 March 2011 41
Slide 42: Chemicals EMEA
Chemicals EMEA Capacity developments In mln cbm 31-12-2008 3.98 “Increased customer activity offset by lower Divestments -0.03 Expansions 0.33 demand for storage of biofuels” 31-12-2009 4.28 Divestments -0.06 Expansions 0.00 31-12-2010 4.22 In EUR mln, - excl. exceptional items - 26.4 25.3 24.6 24.5
Slide 43: Oil EMEA
Capacity developments Oil EMEA 31-12-2008 In mln cbm 11.07 “Increasing geographical imbalances drive Divestments -0.43 Expansions 0.35 demand for tank storage” 31-12-2009 10.99 Divestments -0.12 Expansions 0.18 31-12-2010 11.04 In EUR mln, - excl. exceptional items - 41.0 38.8 36.6 35.9 35.8 33.6 34
Slide 44: Asia
Asia Capacity developments In mln cbm 31-12-2008 5.82 “Increasing consumption in Asia offers Divestments 0.00 Expansions 0.60 Vopak a robust growth perspective” 31-12-2009 6.41 Divestments -0.01 Expansions 0.45 31-12-2010 6.87 In EUR mln, - excl. exceptional items - 47.5 43.7 41.0 37.7 33.9 31.6 31.
Slide 45: North America
Capacity developments North America 31-12-2008 In mln cbm 5.32 Divestments 0.00 “Healthy results in turbulent year” Expansions 0.43 31-12-2009 5.74 Divestments -0.01 Expansions 0.00 31-12-2010 5.73 In EUR mln, - excl. exceptional items - 13.3 13.0 12.0 11.4 11.2 10.5 10.6 10.1 17% 7% -22% 1% Q1 Q2 Q
Slide 46: Latin America
Capacity developments Latin America 31-12-2008 In mln cbm 0.88 “Continuing steady performance” Divestments 0.00 Expansions 0.03 31-12-2009 0.92 Divestments -0.01 Expansions 0.05 31-12-2010 0.95 In EUR mln, - excl. exceptional items - 7.3 7.1 6.6 6.4 6.2 6.2 5.5 4.7 14% 29% 6% -24% Q1 Q2 Q3 Q4 Vopak
Slide 47: Investments
Vopak Terminal Westpoort Gate terminal Investments Vopak Terminal Vopak Singapore Deerpark, Houston Penjuru Terminal – – – Annual results 2010 11 March 2011 47
Slide 48: Growth continues
Growth continues 2010 storage capacity increased with 0.5 mln cbm Tallinn, Estonia Zhangjiagang, China Ningbo, China Product: Oil products Product: Chemicals Product: Chemicals Capacity addition: 75,000 cbm Capacity addition: 190,000 cbm Capacity addition: 5,500 cbm In cbm YE 2009 Capacity 28.3 mln
Slide 49: Expansion projects progressing well
Expansion projects progressing well Vopak Terminal Westpoort Vopak Terminal Barcelona 1,190,000 cbm 155,200 cbm Gate terminal Rotterdam Vopak Terminal Fujairah 540,000 cbm 606,000 cbm – – – Annual results 2010 11 March 2011 49
Slide 50: Total investments
Total investments 800 In EUR mln 800 446 565 535 446 268 268 188 146188 147 2005 2006 2007 2008 2009 2010 Remaining Vopak Share Approved & Under Construction Projects EUR 0.4 bln YE 2010 – – 2012 – Annual results 2010 11 March 2011 50
Slide 51: Investing in 4.5 mln cbm storage capacity growth
Investing in 4.5 mln cbm storage capacity growth Total investments up to and including 2012 Group companies and joint ventures Around EUR 0.4 bln Around EUR 1.9 bln Total CAPEX projects 2011 and 2012 Remaining Vopak share in CAPEX Spend 2011 Approved & Under Construction Projects and 2012 Approved &
Slide 52: Agenda
Agenda Achievements 2010 Business environment Growth projects Business performance Financing Outlook Details and definitions used in this presentation are derived from the full year 2010 press release and Annual Report, which are leading. – – – Annual results 2010 11 March 2011 52
Slide 53: Debt funding program further strengthened
Debt funding program further strengthened Total program around EUR 2.8 bln Second Asian PP - November 2010 SGD 225 mln Asian private placement notes 7.2 years bullet maturity EUR 1,200,000,000 Syndicated Revolving Credit Facility Bookrunning Mandated Lead Arrangers Third Asian PP - December 2010 JPY
Slide 54: Maturity of debt funding further enhanced
Maturity of debt funding further enhanced Current Revolving Credit Facility of EUR 1.2 billion fully available Covenant US PP Asian PP RCF Term 2001 2007 2009 SGD2009 SGD2010 JPY PP EUR 1.2 bln Maximum Net Senior Debt/ 3.75 3.75 3.75 EBITDA Additional headroom when financed with - Up to 4.25 > 3.75
Slide 55: Strategic finance
Strategic finance Net Senior debt : EBITDA ratio 2010 2.63 2009 2.23 2008 2.54 2007 1.71 2006 1.61 2005 1.76 2004 2.20 2003* 2.42 2002* 2.49 0 0.5 1 1.5 2 2.5 3 3.5 4 Maximum Ratio under current US PP programs Maximum Ratio under other PP programs and syndicated revolving credit facility * Based on
Slide 56: Balanced debt repayment schedule
Balanced debt repayment schedule 2010 Overall weighted average interest rate 5.2% In EUR mln 250 200 150 100 50 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2029 2040 – – – Annual results 2010 11 March 2011 56
Slide 57: Agenda
Agenda Achievements 2010 Business environment Growth projects Business performance Financing Outlook Details and definitions used in this presentation are derived from the full year 2010 press release and Annual Report, which are leading. – – – Annual results 2010 11 March 2011 57
Slide 58: Subsequent Event: Sale of 20% equity stake Vopak Terminal Bahamas
Subsequent Event: Sale of 20% equity stake Vopak Terminal Bahamas In February 2011 Vopak decided to sell its 20% equity stake in Vopak Terminal Bahamas Expected after tax profit of over USD 150 million, to be recognized in Q1 2011 Proceeds of sale consist of: Over USD 168 million in cash Approximate
Slide 59: Outlook Assumptions
Outlook Assumptions Oil Industrial Biofuels and Chemicals terminals vegoils ~ 17.5 – 20.0% ~ 60.0% of EBIT ~ 7.5 – 10% ~ 12.5% of EBIT of EBIT of EBIT ROBUST SOLID MIXED MIXED Healthy demand for storage capacity Contract renewals + Some new storage capacity commissioned – – – Annual results 2010 11
Slide 60: Reconciling FY10 with FY11 outlook
Reconciling FY10 with FY11 outlook Actual 2010 EBITDA EUR 598.2 mln + -/- Expansions to be Tanks out-of-operation commissioned in HY2 Pre-operating expenses Contract renewals Continued uncertainty in Operational efficiency biofuels storage improvements / margin Divestment VTB managemen
Slide 61: Outlook update
Outlook update Q3 2010 Updated 2010 2010 “For 2010 Vopak expects a EBITDA of “Realized EBITDA of EUR 598.3 million” at least EUR 585 million.” 2012 2011 “Based on its growth strategy and the “For 2011 Vopak expects EBITDA to grow by around 5%.” positive developments in 2010 Vopak could potentially a
Slide 62: EBITDA Outlook 2013: in the EUR 725-800 mln range
EBITDA Outlook 2013: in the EUR 725-800 mln range Outlook Guidance In EUR mln 2005 2006 2007 2008 2009 2010 2011 2013 725-800 +5% 598.2 513.4 429.3 EBITDA* 369.5 314.1 262.5 445.3 385.3 320.4 272.9 EBIT* 220.9 Long-term Long-termguidance guidanceROCE ROCEofof16% 16% 179.7 Bearing Bearingininmind min
Slide 63: Summary
Summary 17% EBITDA growth in 2010 • Vopak has realized a 16% (2010 EUR 598 mln: 2009 EUR 513 mln) • Vopak has realized a 8% EPS growth in 2010 (2010 EUR 2.08: 2009 EUR 1.92*) • Vopak proposes aa EUR EUR 1.25 0.70 Cash-Dividend Cash-Dividend per per share share (2009: EUR 0.625) • Vopak continues its
Slide 64: Forward-looking statement
Forward-looking statement This presentation contains statements of a forward-looking nature, based on currently available plans and forecasts. Given the dynamics of the markets and the environments of the 30 countries in which Vopak provides logistics services, the company cannot guarantee the accur
Slide 65: www.vopak.com
– – – – Annual results 2010 11 March 2011 65 www.vopak.com