Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Q3 2004 Earnings Presentation
22 slides from Royal Vopak NV's earnings presentation, November 2004
Slide 1: Presentation Third quarter 2004
Presentation Third quarter 2004 Q3, 2004
Slide 2: Profile
Profile Professionals in liquid bulk logistics • Storage and handling of oil and chemical products • Related logistic services (supporting the Tankterminal activities) • Worldwide network • Five regional divisions • Chemicals Europe, Middle East & Africa • Oil Europe, Middle East & Africa • Asia • N
Slide 3: Past, present and future of Vopak
Past, present and future of Vopak Van Ommeren Pakhoed Pakhoed November 1999: Tank Tank Chemical Terminals Terminals distribution Merger Vopak July 2002: Split-off Vopak: Tank Terminals Univar Chemical distribution 2004 Tank Terminal Plus strategy 3
Slide 4: Functions of a tankterminal
Functions of a tankterminal Services Storage Blending Break bulk Make bulk Drumming Additives Temperature control Delivery / redelivery Ships Customers Products Barges Oil and Chemical majors Oil Pipe lines Governments Chemicals Tanktrucks Traders Vegetable Oil Rail Drums 4
Slide 5: The world of Vopak
The world of Vopak Different terminal concepts for different purposes 13.4 mln cbm 2.4 mln cbm 3.4 mln cbm 0.8 mln cbm 72 terminals – 20 mln cbm – 29 countries – 3,473 employees * * Ultimo June 2004 and excluding employees at participations. 5
Slide 6: Strategic position terminals
Strategic position terminals Industrial Terminals Import / Export Logistic hub Raw Materials chemicals Incoming Logistics Textile Plastics Outgoing Logistics Downstream Chemicals Electronics Complete integration with Storage of products that Key link for incoming and the production process are expor
Slide 7: Competition overview
Competition overview Global competition Competitors present on more than 2 continents market share market share 40% 40% 35% 35% 30% 30% 25% 25% 19% 19% 20% 20% 15% 10% 15% 10% 8% 10% 6% 10% 4% 4% 5% 5% 2% 2% 2% 2% 1% 1% 0% 0% ng ll es n g ui k TT n s k ay n C je n se lu pa pa la ga its LB ic ki ki I
Slide 8: Financial developments first half 2004
Financial developments first half 2004 Results H1 2004 Results H1 2003 Results FY 2003 EUR millions Net turnover 318.9 371.1 749.6 EBITDA 113.6 126.6 307.2 EBIT Core activities 72.7 68.1 150.1 Net Profit 34.0 31.3 EPS 0.58 0.54 ROCE 13.0% 11.4% 8
Slide 9: Strategy results in EBITDA growth target
Strategy results in EBITDA growth target EBITDA 275 - 350 EBITDA 230 EBIT* 150 EBITDA Currency Economy Growth Future EBITDA Tankterminals investments *EBIT core activities excl. Exceptionals per 31/12/2003 9
Slide 10: Continuous improvement of Safety Health and Environment is strategic success factor
Continuous improvement of Safety Health and Environment is strategic success factor LTIR Development (per million hrs worked) 14 12 10 8 6 4 2 3.1 0 1999 2000 2001 2002 2003 2004-YTD • All terminals comply to ISPS safety standard per 1 July 2004 • Vopak fundamentals on safety fully implemented 10
Slide 11: Third quarter developments
Third quarter developments 11
Slide 12: Third quarter operating profit on core activities in line with 2003
Third quarter operating profit on core activities in line with 2003 EBIT* (EUR mln) 45 40 39.5 35 38.6 40.3 30 34.1 32.9 35.2 2003 25 2004 20 15 10 5 0 Q1 Q2 Q3 *EBIT core activities excl. Exceptionals 12
Slide 13: Developments per division: Chemicals EMEA
Developments per division: Chemicals EMEA EBIT* (EUR mln) 12 10 10.3 8 9.6 8.9 2003 8.8 8.4 8.1 2004 6 4 2 0 Q1 Q2 Q3 *EBIT core activities excl. Exceptionals • Turnover has increased at all terminals compared to Q3 2003 • Partly owing to one-off contracts on the spot market, demand for chemicals st
Slide 14: Developments per division: Oil EMEA
Developments per division: Oil EMEA EBIT* (EUR mln) 16 14 12 14.0 10 11.6 11.2 8 10.4 9.3 6 8.2 4 2 0 Q1 Q2 Q3 Q1 Q2 Q3 2003 2004 • Imbalances in the oil markets continue to have a positive effect *EBIT core activities excl. Exceptionals on the demand for storage capacity • Europoort investment conc
Slide 15: Developments per Division: Asia
Developments per Division: Asia EBIT* (EUR mln) 18 16 14 15.5 12 14.1 14.1 13.6 2003 10 12.0 12.4 2004 8 6 4 2 0 Q1 Q2 Q3 • Demand for storage of oils and chemicals in Singapore is main *EBIT core activities excl. Exceptionals reason for increase of results • Vopak strengthened its position in China
Slide 16: Developments per division: North America
Developments per division: North America EBIT* (EUR mln) 7 6 5 6.2 5.3 2003 4 5.0 2004 3 3.8 3.9 3.3 2 1 0 Q1 Q2 Q3 • Small increase in the demand for storage capacity and *EBIT core activities excl. Exceptionals throughput at the North American chemical hub terminal • Increase in turnover expressed
Slide 17: Developments per division: Latin America
Developments per division: Latin America EBIT* (EUR mln) 6 5 4 4.4 4.8 2003 4.1 4.2 2004 3 3.3 3.1 2 1 0 Q1 Q2 Q3 *EBIT core activities excl. Exceptionals • Q3 improvement is witnessed all across the continent • Growth still outweighs currency developments 17
Slide 18: Debt development and Effects of IFRS
Debt development and Effects of IFRS 18
Slide 19: Development net debt
Development net debt Net Debt remains well below EUR 700 mln target EUR (mln) 1000 800 Target 600 783 609 400 496 200 0 2002 2003 Q3 2004 19
Slide 20: IFRS only influences equity position Vopak
IFRS only influences equity position Vopak Influence IFRS IFRS Standard Impact Financial IAS 32 and IAS Vopak will opt for exemption and apply these instruments 39 standards as from 1 January 2005. No impact on shareholders equity at 1 January 2004 Pensions IAS 19 Since 2002 adopted by Vopak. Net Ac
Slide 21: Tank-Terminal Plus strengthened world-wide
Tank-Terminal Plus strengthened world-wide • First phase of Shanghai terminal successfully started operations • Fuel Oil investment Europoort Rotterdam completed • Small improvements enhance profitability, e.g. • Ethanol expansion Long Beach Terminal, North America • 17,000 cbm addition to Santos Te
Slide 22: Outlook 2004
Outlook 2004 “Barring unforeseen circumstances Vopak expects to achieve an operating profit on core activities excluding exceptional items for the whole of 2004 of around EUR 150 million” 22