Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Shareholder Meeting (April 2007)
50 slides from Royal Vopak NV's shareholder meeting presentation, Apr 26, 2007
Slide 1: Professionals in liquid bulk logistics
Professionals in liquid bulk logistics 1
Slide 2: Annual General Meeting 26 April 2007
Annual General Meeting 26 April 2007 2
Slide 3: Vopak is the global market leader for independent storage and handling
Vopak is the global market leader for the independent storage and handling of 3 liquid oil products, chemicals, vegetable oils and liquefied gases.
Slide 4: Agenda
Agenda Achievements 2006 Mission, Strategy, Future Achievements Q1 2007 Business Performance FY 2006 Business Performance Q1 2007 Outlook 4
Slide 5: 2006: A Good Year for Vopak
2006: A Good Year for Vopak EBIT 250 Net Revenues 200 800 150 700 100 2005 2006 600 500 2005 2006 EPS Net Profit 3 160 2 130 1 100 2005 2006 70 2005 2006 5
Slide 6: Commercial Excellence
Commercial Excellence Income from rendering of services core activities 400 In mln EUR 375 350 325 300 275 250 1H 2H 1H 2H 1H 2H 2004 2005 2006 Average occupancy rates 95% 90% 85% 80% 2004 2005 2006 6
Slide 7: Operational Excellence
Operational Excellence Safety (incident ratio: LTIR) 6 5 4 3 2 1 0 02 03 04 05 06 Spills (number) 120 100 80 60 40 20 0 04 05 06 7
Slide 8: Commissioned Greenfields, Expansions and Acquisitions
Commissioned Greenfields, Expansions and Acquisitions Banyan Caojing Vietnam Chile Darwin Ulsan Alemoa Barranquilla Al Jubail 2006: stopped merger process Vopak ITC 8
Slide 9: Confirmed Projects
Confirmed Projects London Amsterdam Europoort Rotterdam Biodiesel LNG (R’dam) Botlek Zhangjiagang Lanshan Antwerp Fujairah Caojing Altamira Vietnam Banyan Biodiesel Banyan Venezuela Sebarok Penjuru Sydney Announced Commissioned investigation Construction in 2007 9
Slide 10: Future Gate Terminal Viewed from the East
Future Gate Terminal Viewed from the East LNG storage & process LNG channel 10
Slide 11: EBITDA Range Reached
EBITDA Range Reached € 350 mln € 275 mln 2004 2005 2006 11
Slide 12: Agenda
Agenda Achievements 2006 Mission, Strategy, Future Achievements Q1 2007 Business Performance FY 2006 Business Performance Q1 2007 Outlook 12
Slide 13: A Challenging Environment
A Challenging Environment Organisation Profitability Market Growth + Market Position Customer Perception 13
Slide 14: Summary of Market Developments
Summary of Market Developments Oil: Chemicals: • Product differentiation • Increasing demand for storage • Increasing geographical • Build-up of new petrochemical imbalances between demand complexes in Asia and and supply Middle East • Liberalisation of new markets LNG: Bio fuels: • More focus on LN
Slide 15: Vopak's Mission
Vopak’s Mission Vopak aspires to be the world’s greatest terminal company for liquid chemicals, oil products and gasses, admired by its strategic partners for an outstanding corporate reputation. • Dedicated to our customer success by serving the storage needs of global and local clients • Continue
Slide 16: Strategic Focus Vopak
Strategic Focus Vopak Growth Leadership Customer Leadership Cost Efficient Operations Pursue and strengthen Attain service excellence leadership in key locations across the network Attain low cost position compared to key Invest in partnerships with Become preferred provider competitors strategic cu
Slide 17: Strategy Targets
Strategy Targets Cost Efficient Grow faster than Storage provider Operations the market of choice & Profitable Growth 17
Slide 18: Agenda
Agenda Achievements 2006 Mission, Strategy, Future Achievements Q1 2007 Business Performance FY 2006 Business Performance Q1 2007 Outlook 18
Slide 19: Achievements Q1 2007
LTIR (incident ratio) 2 1,5 Achievements Q1 2007 1 1,9 0,5 0,4 0 2006 Q1 07 Sydney site B Lanshan Vlaardingen Ulsan Banyan Penjuru Vietnam 19
Slide 20: Agenda
Agenda Achievements 2006 Mission, Strategy, Future Achievements Q1 2007 Business Performance FY 2006 Business Performance Q1 2007 Outlook 20
Slide 21: Summary of Market Developments
Summary of Market Developments Oil: Chemicals: • Product differentiation • Increasing demand for storage • Increasing geographical • Build-up of new petrochemical imbalances between demand complexes in Asia and and supply Middle East • Liberalisation of new markets Emerging economies in China and In
Slide 22: 2006 In Line with Ambitious Outlook
2006 In Line with Ambitious Outlook EUR (mln) FY 05 FY 06 Outlook/Guidance EBITDA* 253.5 309.8 EUR 275-350 EBIT** 179.7 220.9 around EUR 220 Net cash flow from 164.3 225.3 operating activities EPS** (EUR) 1.61 1.96 ↑ around 10% per annum ↑ 16.8% ↑ 21.7% CAPEX (EUR mln) 160.3 232 around EUR 250 Capac
Slide 23: Robust Financial Performance
Robust Financial Performance FY 2006: 27% EBIT Increase EUR (mln) FY 05 FY 06 ∆% Net Revenues 683.6 778.1 14% EBIT 170.7 216.6 27% Net Profit* 90.2 129.4 43% EPS (EUR) 1.46 2.08 42% ROCE (%) 16.5 19.4 Net Revenues 800 700 600 500 2003 2004 2005 2006 All figures are including exceptional items * attr
Slide 24: FY 2006: 41.2 mln Increase in EBIT
FY 2006: 41.2 mln Increase in EBIT* OEMEA 62.7 North America 57.6 Asia 74.9 20.6 25.5 59.9 24% 9% 05 06 05 06 25% 05 06 CEMEA 60.7 Latin America 44.6 19.9 Other 16.3 -19.3 -22.8 22% 36% 18% 05 06 05 06 05 06 *EBIT excluding exceptional items 24
Slide 25: Strong Earnings Delivery
Strong Earnings Delivery EPS: increase by 42% EUR (mln) FY 05 FY 06 ∆% EBIT** 170.7 216.6 27% Financing charges - 39.3 - 44.2 12% Tax - 25.6 - 25.5 0.4% Minority interests - 12.6 -15.0 19% Net profit*** 90.2 129.4 43% EPS** (EUR) 1.46 2.08 42% * based on Dutch GAAP ** including exceptional items 25
Slide 26: Further Decrease in Debt
Further Decrease in Debt Debt 1000 800 600 400 200 0 2002* 2003* 2004 2005 2006 Average Interest Rate 8,0% 7,5% 7,0% 6,5% 2002* 2003* 2004 2005 2006 * based on Dutch GAAP 26
Slide 27: Financing Charges and Tax
Financing Charges EUR (mln) FY 05 FY 06 ∆% Financing charges - 39.3 - 44.2 12% The increase is mainly attributable to exchange differences and hedging results. Tax EUR (mln) FY 05 FY 06 ∆% Tax - 25.6 - 25.5 0.4% Tax charge stable due to the release of a tax provision of EUR 10.4 mln. 27
Slide 28: EPS Development After Divestment of Non-core Activities
EPS Development After Divestment of Non-core Activities and Focus on Tank Terminal Operations EPS 2,5 2 1,5 1 2003* 2004 2005 2006 28
Slide 29: Currency Translation Sensitivity
Currency Translation Sensitivity EBIT per Ccy EUR/USD Impact of a +/-10 dollar cent movement: • Turnover EUR -/+12.2M • EBIT EUR -/+3M • Net Result EUR -/+2.3M USD SGD EUR Other EUR/SGD Impact of a +/-10 dollar cent movement: • Turnover EUR -/+4.8M • EBIT EUR -/+2.4M • Net Result EUR -/+1.4M 29
Slide 30: Vopak's Capacity Growth
Vopak’s Capacity Growth 24 ? ? X 1,000,000 cbm 23 ? 22 Addition 21 Capacity 20 19 2005 2006 2007 2008 2009 • Successful improvement steps on road to excellence • Further growth continues worldwide • Pipeline well-filled with potential and ongoing projects 30
Slide 31: CAPEX 2002 – 2006 & Outlook 2007
CAPEX 2002 – 2006 & Outlook 2007** (In)Tangible fixed assets 450 - 550 232 160.3 124.9 97 106.5 2002* 2003* 2004 2005 2006 2007 * based on Dutch GAAP 31 **including Maintenance and SHE CAPEX
Slide 32: CAPEX Outlook 2007: EUR 450-550M
CAPEX Outlook 2007: EUR 450-550M Banyan Sebarok Penjuru Zhangjiagang Caojing Fujairah Europoort Antwerp London 32
Slide 33: Expansion of Banyan Terminal
Expansion of Banyan Terminal Division: Asia Start of operations: Q3 2008 Capacity: expansion 320.000 cbm Product focus: gasoline, biofuels Vopak Singapore – Banyan Terminal 33
Slide 34: Expansion of Sebarok Terminal
Expansion of Sebarok Terminal Division: Asia Start of operations: Q1 2008 Capacity: expansion 216.000 cbm Product focus: oil products Vopak Singapore – Sebarok Terminal 34
Slide 35: Expansion of Europoort Terminal
Expansion of Europoort Terminal Division: OEMEA Start of operations: Q4 2007 Capacity: expansion 440.000 cbm Product focus: fuel oil, jet fuel Vopak Europoort Terminal 35
Slide 36: Expansion of Fujairah
Expansion of Fujairah Division: OEMEA Start of operations: Q3 2007 Capacity: expansion 380.000 cbm Product focus: fuel oil Vopak Horizon Fujairah Ltd. 36
Slide 37: Expansion of Vietnam Terminal
Expansion of Emerging Vietnam Terminal economies in China and India Division: Asia Start of operations: Q1 2008 Capacity: expansion 40.000 cbm Product focus: chemical products AP Petrochemical Vietnam 37
Slide 38: Strategic Finance: Solid Equity Position
Strategic Finance: Solid Equity Position Shareholders’ equity EUR (mln) Net Debt 800 700 600 500 400 300 496 785 521 618 500 509 604 472 671 504 200 2002* 2003* 2004 ** 2005 2006 * based on Dutch GAAP 38 ** Restructuring preference shares: -50.3 and IFRS adjustment: -44.7
Slide 39: Strategic Finance: Sufficient Flexibility
Strategic Finance: Sufficient Flexibility Net debt : EBITDA ratio 2007 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 3,75 4 Maximum Ratio under US PP Maximum Ratio under other loans and syndicated revolving credit facility * based on Dutch GAAP 39
Slide 40: Step Up in Dividends
Step Up in Dividends Proposed dividend in 2006 amounts to EUR 0.75 per ordinary share. This reflects 36% of EPS (2005: 41%). 1,00 Proposed 0,75 dividend 0,50 0.75 0,25 0.60 0.50 0.50 0.50 0,00 2002 2003* 2004* 2005 2006 * Optional in cash or ordinary shares 40
Slide 41: Dividend Payment
Dividend Payment Euronext Rule: Cum date Cum date Cum date + 1 business + 3 business + 4 business day days days ‘Cum’ date ‘Ex’ date Record date First possible payment date 27-04-07 4-05-07 Entitled to Not entitled Determining Dividend dividends to dividends account holders payment entitled to divid
Slide 42: Sources and Uses of Cash
Sources and Uses of Cash EUR (mln) 2005 2006 350 +43.9 -64.8 Proposed 300 Dividends Dividends 250 Divestments Divestments 200 Investments Investments 150 100 Operations Operations 50 Financing 0 Financing Sources Uses Sources Uses 42
Slide 43: Agenda
Agenda Achievements 2006 Mission, Strategy, Future Achievements Q1 2007 Business Performance FY 2006 Business Performance Q1 2007 Outlook 43
Slide 44: Q1 2007: 28% EBIT Increase excl. Exceptionals
Q1 2007: 28% EBIT Increase excl. Exceptionals EUR (mln) Q1 06 Q1 07 ∆% EBIT 52.8 67.6 28% Exceptional items - +1.4 EBIT incl. 52.8 69.0 31% exceptional items 44
Slide 45: Q1 2007: 28% Increase in EBIT
Q1 2007: 28% Increase in EBIT* OEMEA 21.3 North America 16.3 Asia 6.7 7.2 19.2 16.9 7% 31% Q1-06 Q1-07 Q1-06 Q1-07 14% Q1-06 Q1-07 CEMEA 20.9 Latin America 13.1 Other 5.4 5.1 -5.7 -6.1 6% 60% 7% Q1-06 Q1-07 Q1-06 Q1-07 Q1-06 Q1-07 *EBIT excluding exceptional items 45
Slide 46: Agenda
Agenda Achievements 2006 Mission, Strategy, Future Achievements Q1 2007 Business Performance FY 2006 Business Performance Q1 2007 Outlook 46
Slide 47: Outlook EBIT 2007
Outlook EBIT 2007 2007 (April 26, 2007) Thanks to an excellent first quarter and healthy outlook, Vopak is raising its forecast for 2007. Barring unforeseen circumstances and allowing for the expenses of implementing the strategic initiatives, Vopak expects Group operating profit excluding exception
Slide 48: Outlook Summary
Outlook Summary Guidance Outlook 5 year plan EUR (mln) FY 2005 FY 2006 FY 2007 (2011) Long-term EBITDA* 253.5 309.8 475-550 EBIT** 179.7 220.9 15-20% higher CAPEX 160.3 232 450-550 ROCE 16.5% 19.4% Around 16% Baring Baringininmind mind substantial substantialinvestments investments iningreenfield gr
Slide 49: 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 renders logistics services, the company cannot guarantee the accura
Slide 50: Thank you for your attention!
Thank you for your attention! 50