Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Investor Day (June 2016)
20 slides from Royal Vopak Nv's investor day presentation, Jun 16, 2016
Slide 1: Disciplined Capital Allocation, Strategic Considerations
DISCIPLINED CAPITAL ALLOCATION STRATEGIC CONSIDERATIONS ROYAL VOPAK JACK DE KREIJ, VICE-CHAIRMAN & CFO 16 JUNE 2016 Proud Vopak employees showing the completed Fuel 2 project in Durban
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The presentations contain ‘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: Summary: Key Topics
SUMMARY KEY TOPICS Key message 2 July 2014 Status strategic priorities 2014-2016 Position today and opportunities for disciplined selective growth Strategic considerations for disciplined capital allocation Capital Markets Days 2016 3
Slide 4: Strategic Priorities 2014-2016
STRATEGIC PRIORITIES 2014 - 2016 OUTCOME OF THE BUSINESS REVIEW VOPAK SETS STRATEGIC PRIORITIES AND PROVIDES FINANCIAL UPDATE 02 July 2014 Vopak publishes today the outcome of the business review announced at the Capital Markets Day held in December 2013 and referred to in the Q1 2014 Trading Update
Slide 5: Business Environment 2014-2016
BUSINESS ENVIRONMENT 2014-2016 Changing energy and petrochemical landscape o Continuing economic shift from West to East o Oil price developments Tank storage market has been characterized by o A substantial increase of storage capacity o Legislative developments o Geopolitical developments Timing o
Slide 6: Status Priorities 2014-2016
STATUS PRIORITIES 2014 - 2016 EXECUTION ON TRACK Strategic Reduce Growth Sustaining capex Enhance capital and organizational efficiency 4 100 terminal types EUR million Sharpen focus on free Divestment Reduce cash flow generation Program Cost base 15 Reduce sustaining & 30 improvement capex te
Slide 7: Value Creation: Continued Focus on Cash Flow
VALUE CREATION CONTINUED FOCUS ON CASH FLOW 867 787 +15% 161 2003 2014 2015 NOTE: Bar sizes for illustration purposes Capital Markets Days 2016 7
Slide 8: Value Creation: Continued Focus on Earnings Per Share
VALUE CREATION CONTINUED FOCUS ON EARNINGS PER SHARE EPS* 2003-2015 Occupancy In EUR rate development 3.0 EPS 2.55 2.5 2.31 Value drivers 2.0 Margin management 1.5 1.0 0.64 Capacity 0.5 Expansions 0.0 2003 2014 2015 Note: the 2003 figures are based on Dutch GAAP. In addition, due to the retrospectiv
Slide 9: Position Today and Opportunities for Disciplined Selective Growth
POSITION TODAY AND OPPORTUNITIES FOR DISCIPLINED SELECTIVE GROWTH Trends End Markets Energy Manufacturing Food & Agriculture Hub Terminals Distribution Terminals Gas Terminals Industrial Terminals Network Organization Organizational efficiency and focus on leadership Financial performance Sustainabl
Slide 10: Position Today and Opportunities for Disciplined Selective Growth
POSITION TODAY AND OPPORTUNITIES FOR DISCIPLINED SELECTIVE GROWTH Occupancy Margin Capacity rate management Expansions development Vopak reiterates its expectation to exceed a 90% occupancy rate level in 2016. Our diversified portfolio both geographically and in different product groups (oil, chemic
Slide 11: Disciplined Capital Allocation: Strategic Considerations
DISCIPLINED CAPITAL ALLOCATION STRATEGIC CONSIDERATIONS Disciplined selective growth opportunities o Vopak is well-positioned Ordinary dividend o Barring exceptional circumstances, the intention is to pay an annual cash dividend of 25-50% of the net profit Capital optimization o Create extra financi
Slide 12: Value Creation: Disciplined Capital Allocation
VALUE CREATION DISCIPLINED CAPITAL ALLOCATION Total investments In EUR million 1,899 2,012 ~1,700 901 …??? 2005-2007 2008-2010 2011-2013 2014-2016 beyond 2016 “timing of new profitable projects has become less apparent” Capital Markets Days 2016 12
Slide 13: Shareholder Distribution
SHAREHOLDER DISTRIBUTION RETURNED EUR 1 BILLION TO SHAREHOLDERS* Total dividend ** 128 112 115 115 In million EUR 102 89 80 59 54 47 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Dividend per share** In EUR 0.90 0.90 1.00 0.80 0.88 0.63 0.70 0.48 0.55 0.38 2006 2007 2008 2009 2010 2011 2012 2013
Slide 14: Capital Management: Maintaining a Solid Financial Position
CAPITAL MANAGEMENT MAINTAINING A SOLID FINANCIAL POSITON Strong investment grade company Senior net debt : EBITDA ratio Maximum ratio under other PP programs and syndicated Increased flexibility revolving credit facility to seize investment opportunities 5 Maximum ratio under current US PP programs
Slide 15: Capital Optimization: Strategic Considerations
CAPITAL OPTIMIZATION STRATEGIC CONSIDERATIONS Net debt : EBITDA ratio ‘Vopak is well-positioned to scenario’s capture profitable selective growth opportunities’ 1.5-2.0 2.0-2.5 2.5-3.0 ‘Vopak is continuously assessing the realization and Strategic considerations timing of project portfolio Credit ra
Slide 16: Successfully Renewed Revolving Credit Facility
SUCCESFULLY RENEWED EUR 1 BILLION REVOLVING CREDIT FACILITY “We remain focused on ensuring flexible access to various capital markets and funding sources to support Vopak's capital disciplined growth strategy” Capital Markets Days 2016 16
Slide 17: External Financing: Balanced Maturity Profile
EXTERNAL FINANCING BALANCED MATURITY PROFILE Debt repayment schedule In EUR million RCF flexibility US PP RCF drawn Asian PP Subordinated US PP Other 1,200 1,100 1,000 400 300 200 100 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2040 Capital Markets Days 2016 17
Slide 18: Shareholder Distribution
SHAREHOLDER DISTRIBUTION WHEN FCF > TIMING OF NEW GROWTH PROJECTS Net debt : EBITDA ratio Share buy backs scenario’s o What would be the rationale for reducing the floating stock %? 1.5-2.0 2.0-2.5 2.5-3.0 Long-term focused peak-shaving of supplement liquidity/headroom Strategic considerations When
Slide 19: Key Take Aways
KEY TAKE AWAYS Strategic priorities 2014 on track Vopak well-positioned to continue its value creation journey through selective disciplined growth / capital allocation Scenario’s for capital allocation currently under review In case of supplement liquidity / headroom, one-off extraordinary
Slide 20: Questions and Answers
QUESTIONS AND ANSWERS Capital Markets Days 2016 20