Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — H1 2014 Earnings Presentation
43 slides from Royal Vopak Nv's earnings presentation, Aug 20, 2014
Slide 1: HY1 2014 results analyst presentation
• • • • Highlights • • Strategy • • • • • Business • • • • • Selective • • • • • •Looking • • • • Question • • •& • • Appendix • • • • divisional results • 20 Augustus HY1 2014 2014 • Analyst execution performance presentation growth • • ahead • • • • • answers • • • • • • • HY1 2014 results • • • •
Slide 2: Forward-looking statements
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Forward-looking statements This presentation contains ‘forward-looking statements’, based on currently available plans and forecasts. By their nature, forward-loo
Slide 3: Highlights HY1 2014
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Highlights HY1 2014 3 Copyright of Royal Vopak Analyst presentation HY1 2014 20 August 2014
Slide 4: Results HY1 2014
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Results HY1 2014 Stable business and focus on executing actions business review Storage capacity* Occupancy rate** EBITDA*** Cash flow**** Storage capacity grew t
Slide 5: Topics influencing results HY1 2014
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Topics influencing results HY1 2014 Capacity Currency effects Regulations expansions 5 Copyright of Royal Vopak Analyst presentation HY1 2014 20 August 2014
Slide 6: Product developments in HY1 2014
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Product developments in HY1 2014 Stable business and focus on executing actions business review Oil products Biofuels & vegoils Chemical products LNG Oil market s
Slide 7: Strategy execution
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Strategy execution 7 Copyright of Royal Vopak Analyst presentation HY1 2014 20 August 2014
Slide 8: Execution of strategy
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Execution of strategy Aligning with business review Growth Leadership Operational Excellence Customer Leadership • Vopak will sharpen its focus on increasing cash
Slide 9: Terminal portfolio criteria
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Terminal portfolio criteria Alignment of Vopak’s terminal network Acquired Haiteng * Commissioned Divestment Banyan rock cavern Brownfield under construction Cant
Slide 10: Storage capacity developments
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Storage capacity developments Split by brownfield, greenfield, acquisition and realized divestments Storage capacity developments In million cbm; commissioned and
Slide 11: Execution of its business
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Execution of its business Operational excellence is core to Vopak´s customer service offering Safety Efficiency Service improvement Ambition is to be as good as C
Slide 12: Safety
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Safety Relentless focus on improving performance Total injury rate (TIR) Lost time injury rate (LTIR) Total injuries per 200,000 hours worked by own Total injurie
Slide 13: Efficiency
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Efficiency Benefit from increased understanding and know-how Sustaining & improvement Organizational Leverage on standards capex approach productivity and procedu
Slide 14: Service improvements
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Service improvements We continue to invest in infrastructure creating value to our customers Infrastructure Processes Improved flexibility New service KPI’s Impro
Slide 15: Business performance
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Business performance 15 Copyright of Royal Vopak Analyst presentation HY1 2014 20 August 2014
Slide 16: Strategy update July 2, 2014
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Strategy update July 2, 2014 “We are taking the necessary steps in shaping our network to cater for today’s and tomorrow’s flows at the locations that matter” 200
Slide 17: Outlook 2014 and financial update 2016
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Outlook 2014 and financial update 2016 Alignment network and competitive position Growth strategy Full potential excellence “Vopak expects, Focus on the basis of
Slide 18: EBITDA development
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results EBITDA development Q2 2014 lower than Q2 2013, higher than Q1 2014 EBITDA development In EUR million HY1 2013: 385 HY2 2013: 368 HY1 2014: 367 196 196 193 192 187
Slide 19: Financial performance HY1 2014
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Financial performance HY1 2014 Revenue impacted by FX, EBITDA impacted by FX and non-recurring items Revenues Revenues (adj. for FX) In EUR million In EUR million
Slide 20: Organic EBITDA growth analysis
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Organic EBITDA growth analysis Going forward: “create more value from core assets and core capabilities” 384.5 5.6 4.8 370.1 14.4 1.2 0.3 366.5 12.2 0.6 0.3 HY1 2
Slide 21: EBITDA per division
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results EBITDA per division Organic growth Netherlands and Asia offset by FX and EMEA Netherlands EMEA EBITDA* -8% +4% 380.1 384.5 366.5 129.5 -1% -17% 119.4 123.7 69.0 6
Slide 22: Occupancy rate developments
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Occupancy rate developments Q2 in line with Q1 and 2013 Occupancy rate In percent Full potential playing field 90-95% Current playing field 85-90% 94 96 95 94 92
Slide 23: Occupancy rate segmentation per division
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Occupancy rate Segmentation per division Netherlands EMEA -6pp +3pp 1pp -8pp Occupancy rate 90% 84% 87% 88% 89% 81% -3pp 0pp 91% 88% 88% HY1 2012 HY1 2013 HY1 201
Slide 24: Net result of joint ventures
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Net result of joint ventures Vopak E.O.S. impacted by difficult market circumstances Netherlands EMEA Joint venture divestments Net result of -23% Mejillones Term
Slide 25: EBIT
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results EBIT HY1 2013 HY1 2014 Delta In EUR million In EUR million In EUR million Group operating profit 211.0 193.6 - 17.4 Net result joint ventures 67.8 42.4 - 25.4 inc
Slide 26: Cash flow
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Cash flow Strategic update: “sharpen focus on increasing free cash flow generation” Cash flow from operating activities (gross) In EUR million 713 659 496 352 451
Slide 27: Financial ratios HY1 2014
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Financial ratio’s HY1 2014 Going forward: “focus on increasing cash flow return and improving capital efficiency” ROCE* ROE** In % In % 20.8% 19.5% 18.5% 17.3% 15
Slide 28: Non-IFRS proportionate financial information
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Non-IFRS proportionate financial information Proportionate EBITDA In EUR million 836 817 617 660 537 403 396 -4% 414 2009 2010 2011 2012 2013 HY1 2014 Cash Flow R
Slide 29: Selective growth
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Selective growth 29 Copyright of Royal Vopak Analyst presentation HY1 2014 20 August 2014
Slide 30: Vopak's selective growth opportunities
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Vopak’s selective growth opportunities Strategic update: “shaping well-diversified network according to portfolio criteria” Storage capacity In million cbm +6.3 3
Slide 31: Selective capital disciplined growth
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Selective capital disciplined growth Reduce other capex program to approx. EUR 700 million until 2016 Total investments 2008-2016 Expansion capex** In EUR million
Slide 32: Selective capital disciplined growth: net debt to EBITDA
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Selective capital disciplined growth Senior net debt : EBITDA ratio Maximum ratio under other PP programs and syndicated 5 revolving credit facility Maximum ratio
Slide 33: Vopak's capital structure
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Vopak’s capital structure Approval to repurchase and cancel preference shares Ordinary shares* Private placement Syndicated revolving Equity(-like) Programs* cred
Slide 34: Looking ahead
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Looking ahead 34 Copyright of Royal Vopak Analyst presentation HY1 2014 20 August 2014
Slide 35: Outlook assumptions
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Outlook assumptions Vopak has updated its terminal portfolio criteria ~x% Share of EBITDA* Industrial terminals Biofuels & Oil products Chemicals & other pipeline
Slide 36: Outlook
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Outlook Focus on cash flow return and EPS Vopak expects, basis of current market insights, to realize an EBITDA -excluding exceptional items- exceeding the 2012 r
Slide 37: Questions & answers
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Questions & answers Copyright of Royal Vopak Analyst presentation HY1 2014 20 August 2014 37
Slide 38: We have built our company over 400 years on trust and reliability
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead We have built answers divisional results our company over 400 years on trust and reliability • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 39: Appendix divisional results
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Appendix divisional results 39 Copyright of Royal Vopak Analyst presentation HY1 2014 20 August 2014
Slide 40: Netherlands
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Netherlands EBITDA* In EUR million 63.3 66.2 69.6 68.2 59.8 61.3 62.0 60.9 62.8 59.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2012 2013 2013 2013 2013 2014 20
Slide 41: EMEA
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results EMEA EBITDA* In EUR million 32.3 36.7 31.8 31.5 34.7 33.6 33.1 34.2 28.9 28.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 Occu
Slide 42: Asia
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results 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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 Occu
Slide 43: Americas
Highlights Strategy Business Selective Looking Question & Appendix HY1 2014 execution performance growth ahead answers divisional results Americas EBITDA* In EUR million 27.3 24.4 24.9 25.6 24.0 28.0 23.3 25.9 22.1 21.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014