Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Non-Deal Roadshow (2014)
61 slides from Royal Vopak Nv's roadshow presentation, 2014
Slide 1: The world of Vopak: Q3 2014 Roadshow Presentation
Q3 2014 ROADSHOW PRESENTATION The world of Vopak
Slide 2: Forward-looking Statement
General Market Company strategy Business Looking introduction trends and execution performance ahead 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 unce
Slide 3: General introduction
General Market Company strategy Business Looking introduction trends and execution performance ahead General introduction 3 New Pengerang terminal commissioned phase 1A and 1B in 2014
Slide 4: Vopak at a glance
General Market Company strategy Business Looking introduction trends and execution performance ahead Vopak at a glance Building on an impressive Listed at the NYSE Euronext history of almost 400 years Market cap of EUR 5.4 million** World’s largest Track record developing tank terminal operator: new
Slide 5: Financial development and indicators
General Market Company strategy Business Looking introduction trends and execution performance ahead Financial development and indicators EBITDA development Cash flow from operating activities (gross) In EUR million In EUR million 768 753 713 659 598 636 496 513 451 455 387 314 370 429 286 335 232 2
Slide 6: Investment thesis
General Market Company strategy Business Looking introduction trends and execution performance ahead Investment thesis Increasing global flows require storage infrastructure Diversified portfolio with presence at prime locations Stable margins and long-term take-or-pay contracts Strong capit
Slide 7: Priorities for cash
General Market Company strategy Business Looking introduction trends and execution performance ahead Priorities for cash 1 Debt servicing EUR 1.8 billion, remaining maturity 8.4 years, average interest 4.1% 2 Dividend EUR 0.7b paid to shareholders in the last 10 years 3 Disciplined growth Network ex
Slide 8: Business challenges
General Market Company strategy Business Looking introduction trends and execution performance ahead Business challenges Strategic Operational Increasing competition People with the right skills Changing flows Expansion projects Geopolitics Capital constraints Legislation Reputation Compliance Finan
Slide 9: Discussions from investor meetings
General Market Company strategy Business Looking introduction trends and execution performance ahead Discussions from investor meetings Market dynamics Projects • Overcapacity and pricing • Projects under development pressure • Impact contango and • Ramp-up of new capacity backwardation Governance N
Slide 10: Market trends
General Market Company strategy Business Looking introduction trends and execution performance ahead Market trends 10 LNG carrier mooring at GATE terminal Rotterdam
Slide 11: Trends driving storage demand
General Market Company strategy Business Looking introduction trends and execution performance ahead Trends driving storage demand Population GDP Energy demand 15-35% 70-170% 15-55% US oil and gas export scenarios LNG as transport fuel Shale gas in China European refining & petrochemical Renewables
Slide 12: Trends in global oil imbalances and flows
General Market Company strategy Business Looking introduction trends and execution performance ahead Trends in global oil imbalances and flows 12 Roadshow presentation Q3 2014
Slide 13: Trends in global chemical imbalances and flows
General Market Company strategy Business Looking introduction trends and execution performance ahead Trends in global chemical imbalances and flows 13 Roadshow presentation Q3 2014
Slide 14: Company strategy and execution
General Market Company strategy Business Looking introduction trends and execution performance ahead Company strategy and execution 14 Manifold infrastructure at Pengerang terminal
Slide 15: Overall strategy
General Market Company strategy Business Looking introduction trends and execution performance ahead Overall strategy Growth Leadership Operational Excellence Customer Leadership Our Sustainability Foundation Safety and Health | Environmental Care | Responsible Partner | Excellent People 15 Roadshow
Slide 16: Business objectives
General Market Company strategy Business Looking introduction trends and execution performance ahead Business objectives Terminal Portfolio Business Operations Organization Smart Growth Know-how capitalization Alignment • FOCUS ON: strategic growth in four • N°1 PRIORITY: remains SAFETY • Lean & eff
Slide 17: Selective capital disciplined growth
General Market Company strategy Business Looking introduction trends and execution performance ahead Selective capital disciplined growth 17 New LPG storage bullets for Vlissingen terminal
Slide 18: Global presence
General Market Company strategy Business Looking introduction trends and execution performance ahead Global presence Hamburg Gothenburg Malmo Sodertalje Gavle Kotka Hamina Tallinn Rotterdam Antwerp Shanghai Ningbo London Lanshan Teesside Zhangjiagang Windmill Tianjin Tarragona Ulsan Barcelona Karach
Slide 19: Return requirements for investment
General Market Company strategy Business Looking introduction trends and execution performance ahead Return requirements for investment Footprint in Optimization growth emerging markets opportunities I II First-mover Option advantage value Contribution from key accounts VI III Mitigating downward ri
Slide 20: Investments and divestments
General Market Company strategy Business Looking introduction trends and execution performance ahead Investments and divestments Oil Haiteng Chemicals Industrial 890,000 cbm Gasses Banyan rock Divestments cavern 480,000 cbm Canterm Penjuru (phase 2) 509,000 cbm 47,000 cbm Peru* Midex 180,000 cbm 400
Slide 21: Storage capacity developments
General Market Company strategy Business Looking introduction trends and execution performance ahead Storage capacity developments Storage capacity developments In million cbm; commissioned and under development +5.0 38.0 * 3.6 +2.5 1.4 33.0 1.4 0.9 0.2 30.5 0.4 Greenfield Greenfield Desinvestment B
Slide 22: Vopak's selective growth opportunities
General Market Company strategy Business Looking introduction trends and execution performance ahead Vopak’s selective growth opportunities Storage capacity In million cbm +5.0 +13.1 36.2 37.0 38.0 33.0 34.0 29.9 30.5 28.3 28.8 27.8 27.1 22.2 22.2 21.9 21.2 21.8 21.7 19.9 20.2 20.4 21.3 18.1 18.3 20
Slide 23: Storage capacity under construction
General Market Company strategy Business Looking introduction trends and execution performance ahead Storage capacity under construction Vopak's Capacity Country Terminal ownership Products (cbm) 2012 2013 2014 2015 2016 2017 Existing terminals Netherlands Europoort 100% Oil products 400.000 Brazil
Slide 24: Storage capacity under construction
General Market Company strategy Business Looking introduction trends and execution performance ahead Storage capacity under construction Vopak's Capacity Country Terminal ownership Products (cbm) 2012 2013 2014 2015 2016 2017 New terminals China Dongguan 50% Chemicals 153.000 Malaysia Pengerang 44%
Slide 25: Selective capital disciplined growth
General Market Company strategy Business Looking introduction trends and execution performance ahead Selective capital disciplined growth Total investments 2008-2016 Expansion capex** In EUR million In EUR million; 100% = EUR 1,700 million 2,012 ~200 Remaining 1,899 Vopak share Forecasted capex in c
Slide 26: Selective capital disciplined growth
General Market Company strategy Business Looking introduction trends and execution performance ahead Selective capital disciplined growth Senior net debt : EBITDA ratio Maximum ratio under other PP programs and syndicated 5 revolving credit facility Maximum ratio under 4 3.75 current US PP programs
Slide 27: Vopak's capital structure
General Market Company strategy Business Looking introduction trends and execution performance ahead Vopak’s capital structure Ordinary shares* Private placement Syndicated revolving Equity(-like) Programs* credit facility* Listed on Euronext USD: 2.0 billion EUR 1.0 billion Preference shares* Marke
Slide 28: Balanced debt repayment schedule
General Market Company strategy Business Looking introduction trends and execution performance ahead Balanced debt repayment schedule Debt repayment schedule* In EUR million RCF flexibility US PP Other Subordinated US PP Asian PP 1,150 1,100 250 200 150 100 50 0 2014 2015 2016 2017 2018 2019 2020 20
Slide 29: Customer leadership
General Market Company strategy Business Looking introduction trends and execution performance ahead Customer leadership 29 Celebration opening of Bitumen tankage at Sydney terminal
Slide 30: Global, regional and local clients
General Market Company strategy Business Looking introduction trends and execution performance ahead Global, regional and local clients Global clients Regional clients Local clients Active at multiple Vopak Active in more than one Vopak Active in one Vopak location locations around the world locatio
Slide 31: Market share according to definition
General Market Company strategy Business Looking introduction trends and execution performance ahead Market share according to definition Oil storage market Non oil storage market* Total storage market In million cbm In million cbm In million cbm Primary competition 131.2 35.6 166.8 Secondary compet
Slide 32: Original contract duration
General Market Company strategy Business Looking introduction trends and execution performance ahead Original contract duration Contract position 2011 Contract position 2012 Contract position 2013 In percent of revenues In percent of revenues In percent of revenues 19% 18% 20% 44% 52% 52% 30% 28% 37
Slide 33: EBIT(DA) margin development
General Market Company strategy Business Looking introduction trends and execution performance ahead EBIT(DA) margin development Selective growth strategy requires strong focus on margins EBIT(DA) margin In percent 55 50 EBITDA margin 45 40 35 30 Terminal portfolio criteria EBIT margin 25 20 15 10 5
Slide 34: Operational excellence
General Market Company strategy Business Looking introduction trends and execution performance ahead Operational excellence Dedicated product pipelines at manifold Westpoort terminal 34 Roadshow presentation Q3 2014
Slide 35: Execution of its business
General Market Company strategy Business Looking introduction trends and execution performance ahead Execution of its business Operational excellence is core to Vopak´s customer service offering Safety Efficiency Service improvement Ambition is to be as good Continuous focus on cost Logistics effici
Slide 36: Cost efficiency
General Market Company strategy Business Looking introduction trends and execution performance ahead Cost efficiency Group operational expenses per cbm per year Index 2004 = 100 140 Continuous 120 focus on cost 100 management contributes 80 to healthy 60 EBIT 40 margins 20 0 2004 2005 2006 2007 2008
Slide 37: Sustainability
General Market Company strategy Business Looking introduction trends and execution performance ahead Sustainability Excellent people Safety and Health Environmental care Responsible partner Have the right people Provide a healthy Be energy and water Be a responsible and create an agile and safe work
Slide 38: Business performance
General Market Company strategy Business Looking introduction trends and execution performance ahead Business performance 38 Vopak staff at the recently acquired Haiteng terminal
Slide 39: Highlights Q3 2014 trading update
General Market Company strategy Business Looking introduction trends and execution performance ahead Highlights Q3 2014 trading update Actions business review, 2 July, in progress • Divestment program • Capex reduction plans • Sharpen business development plans • Organizational efficiency • Actions
Slide 40: Q3 2014 summary
General Market Company strategy Business Looking introduction trends and execution performance ahead Q3 2014 summary EBITDA* EBIT* On 2 July 2014, Vopak In EUR million In EUR million published the outcome of the business review. Vopak has -5% +9% updated its terminal portfolio -9% +7% criteria for e
Slide 41: Q3 YTD 2014 summary
General Market Company strategy Business Looking introduction trends and execution performance ahead Q3 YTD 2014 summary EBITDA* EBIT* In EUR million In EUR million -1% 0% -4% -5% 576.4 570.1 568.4 427.5 412.1 392.8 Q3 YTD 2012 Q3 YTD 2013 Q3 YTD 2014 Q3 YTD 2012 Q3 YTD 2013 Q3 YTD 2014 Net profit**
Slide 42: Q3 YTD 2014 EBITDA analysis
General Market Company strategy Business Looking introduction trends and execution performance ahead Q3 YTD 2014 EBITDA analysis 12.1 11.8 570.1 568.4 15.3 0.7 4.5 557.1 13.0 1.1 against FX 2014 Netherlands Asia Americas LNG FX-effect Q3 YTD 2013 Q3 YTD 2014 EMEA Q3 YTD 2013 /Divestments /Greenfield
Slide 43: Q3 YTD 2014 net result of joint ventures
General Market Company strategy Business Looking introduction trends and execution performance ahead Q3 YTD 2014 net result of joint ventures Netherlands EMEA -22% -53% 36.2 Net result of +64% +11% 28.3 joint ventures 1.8 2.0 13.3 1.1 -2% -21% Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD 83.0 81.7 2012
Slide 44: Q3 YTD 2014 EBIT
General Market Company strategy Business Looking introduction trends and execution performance ahead Q3 YTD 2014 EBIT Q3 YTD 2013 Q3 YTD 2014 Delta In EUR million In EUR million In EUR million Group operating profit 318.2 296.5 - 21.7 Net result joint ventures 92.5 48.4 - 44.1 incl. exceptional item
Slide 45: Occupancy rate developments
General Market Company strategy Business Looking introduction trends and execution performance ahead 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 93 91 88 90 90 89 88 87 87 88 88 89 84 ’04 ’05 ’06 ’07 ’
Slide 46: Non-IFRS proportionate information
General Market Company strategy Business Looking introduction trends and execution performance ahead Non-IFRS proportionate information Proportionate Q3 EBITDA* Proportionate Q3 YTD EBITDA* In EUR million In EUR million -4% +5% -1% -1% 213 216 626 619 612 205 Q3 2012 Q3 2013 Q3 2014 Q3 2012 Q3 2013
Slide 47: Divisional results
General Market Company strategy Business Looking introduction trends and execution performance ahead Divisional results 47 New tankpit Midex at Europoort terminal
Slide 48: Netherlands
General Market Company strategy Business Looking introduction trends and execution performance ahead Netherlands EBITDA* In EUR million 63.3 66.2 69.6 68.2 59.8 61.2 62.0 60.9 62.8 68.0 59.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 Occupancy rate** Stor
Slide 49: EMEA
General Market Company strategy Business Looking introduction trends and execution performance ahead EMEA EBITDA* In EUR million 32.3 36.7 31.8 31.5 34.7 33.6 33.0 34.2 30.4 28.9 28.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 Occupancy rate** Storage cap
Slide 50: Asia
General Market Company strategy Business Looking introduction trends and execution performance ahead Asia EBITDA* In EUR million 67.3 67.3 71.0 67.5 70.7 73.2 70.6 68.0 66.4 70.0 76.9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 Occupancy rate** Storage cap
Slide 51: Americas
General Market Company strategy Business Looking introduction trends and execution performance ahead Americas EBITDA* In EUR million 27.3 24.4 24.9 25.6 24.0 28.0 23.3 25.9 26.3 22.1 21.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 Occupancy rate** Storage
Slide 52: Looking ahead
General Market Company strategy Business Looking introduction trends and execution performance ahead Looking ahead 52 Preparations for the phase VII 478,000 cbm expansion in Fujairah
Slide 53: Outlook assumptions
General Market Company strategy Business Looking introduction trends and execution performance ahead Outlook assumptions ~x% Share of EBITDA* Industrial terminals Biofuels & Oil products Chemicals & other pipeline LNG connected infra vegoils ~50% ~20% 15% - 20% 7.5% - 10% 2.5% - 5% 2013 Robust Stead
Slide 54: Outlook
General Market Company strategy Business Looking introduction trends and execution performance ahead Outlook 2014 EBITDA -excluding exceptional items- outlook In EUR million 753 -5% >740 >700 Spot Difficult Currency contracts business effects climate Europe -10% Whilst we expect our Q4 result to be
Slide 55: Financial update 2016
General Market Company strategy Business Looking introduction trends and execution performance ahead Financial update 2016 Bar size for illustration purposes only Q3 2014 Expansions Divestments Productivity and FX and Uncertainties 2016 and organizational pension costs incl. phased- acquisitions eff
Slide 56: Other topics
General Market Company strategy Business Looking introduction trends and execution performance ahead Other topics 56 Tanks under construction at Hainan terminal
Slide 57: Cash flow HY1 2014
General Market Company strategy Business Looking introduction trends and execution performance ahead Cash flow HY1 2014 Consolidated statement of cash flows In EUR million 3 43 28 367 343 127 115 2 171 142 Net cash Cash Interest / Finance Income Investing Finance Dividend Other incl. tax Net cash po
Slide 58: Cash flow HY1 2014
General Market Company strategy Business Looking introduction trends and execution performance ahead Cash flow HY1 2014 Cash flow from operating activities (gross) In EUR million 713 659 496 352 451 455 387 367 335 286 225 +2% 361 2005 2006 2007 2008 2009 2010 2011 2012 2013 HY1 2014 58 Roadshow pre
Slide 59: Financial ratio's HY1 2014
General Market Company strategy Business Looking introduction trends and execution performance ahead Financial ratio’s HY1 2014 ROCE* ROE** In % In % 20.8% 19.5% 18.5% 17.3% 15.2% 14.6% HY1 2012 HY1 2013 HY1 2014 HY1 2012 HY1 2013 HY1 2014 * ROCE is defined as EBIT excluding exceptionals as percenta
Slide 60: Other topics
General Market Company strategy Business Looking introduction trends and execution performance ahead Other topics Effective tax rate* In percent 19.5 18.0 17.1 2011 2012 2013 * Excluding exceptional items. Pension cover ratio In percent +6pp 106 112 118 2011 2012 2013 60 Roadshow presentation Q3 201
Slide 61: We have built our company over 400 years on trust and reliability
General Market Company strategy Business Looking introduction trends and execution We have built performance ahead our company over 400 years on trust and reliability • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •