Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Non-Deal Roadshow (February 2015)
74 slides from Royal Vopak Nv's roadshow presentation, Feb 27, 2015
Slide 1: The world of Vopak
FY 2014 ROADSHOW PRESENTATION The world of Vopak
Slide 2: Forward-looking Statement
General Market Company strategy Business Looking Forward-looking introduction trends and execution performance ahead 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
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 6.2 billion* World’s largest independent Track record developing tank terminal op
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 (net) In EUR million In EUR million 768 753 763 660 703 619 598 636 475 513 419 449 314 370 429 308 358 232
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 2.0 billion, remaining maturity 8.9 years, average interest 4.0% 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
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 LNG as Shale gas in European refining Biofuel Energy role of export scenarios transport fuel China & pe
Slide 12: Imbalances continue to develop
HUBGeneral DEMAND Market NETWORK Company strategy QUESTIONS AND Business Looking introduction DYNAMICS DRIVERS trends ALIGNMENT and execution performance ahead ANSWERS Imbalances continue to develop 2014 2020 2014 2020 2014 2020 2014 2020 2014 2020 Refined petroleum accumulated deficits 2014 2020 20
Slide 13: Imbalances continue to develop
HUBGeneral DEMAND Market NETWORK Company strategy QUESTIONS AND Business Looking introduction DYNAMICS DRIVERS trends ALIGNMENT and execution performance ahead ANSWERS Imbalances continue to develop Source: ATEC / ICIS database and Vopak intelligence US and Middle East export; Asia and Europe import
Slide 14: Product developments 2014
General Market Company strategy Business Looking introduction trends and execution performance ahead Product developments 2014 Oil production exceeds Chemicals: North Biofuels demand is LNG trade grew with demand resulting in price America is investing in stable in mature markets more short-term con
Slide 15: Strategy execution
General Market Company strategy Business Looking introduction trends and execution performance ahead Strategy execution 15
Slide 16: Vopak's ambition
General Market Company strategy Business Looking introduction trends and execution performance ahead Vopak’s ambition Presence Safety and Strong link Value Our at prime service supply creation values locations chain Solid leadership position in the global independent tank storage market 16 Roadshow
Slide 17: Our strategic framework
General Market Company strategy Business Looking introduction trends and execution performance ahead Our strategic framework Growth Operational Customer leadership leadership leadership Our Sustainability Foundation Excellent People I Environmental Care I Health and Safety I Responsible Partner 17 R
Slide 18: Strategy execution
General Market Company strategy Business Looking introduction trends and execution performance ahead Strategy execution Strategic Divestment Reduce * Reduce * Growth Program Capex Cost base 4 15 100 30 categories terminals EUR million EUR million * Up to and including 2016 18 Roadshow presentation F
Slide 19: Selective capital discipline growth
General Market Company strategy Business Looking introduction trends and execution performance ahead Selective capital discipline growth 19
Slide 20: 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 21: 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 22: Investments and divestments
General Market Company strategy Business Looking introduction trends and execution performance ahead Investments and divestments Oil Haiteng Chemicals (Industrial terminal) Industrial 890,000 cbm Gasses Banyan rock Divestments cavern Canterm 480,000 cbm (Import terminal) Pengerang (Hub location) 509
Slide 23: 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 +5.9 39.7 0.3 +3.3 5.2 1.0 1.4 33.8 1.3 0.2 0.8 30.5 2013 2014 2019 Greenfield Greenfiel
Slide 24: Selective growth opportunities
General Market Company strategy Business Looking introduction trends and execution performance ahead Selective growth opportunities Storage capacity In million cbm +5.9 +13.9 39.7 36.6 37.6 37.6 36.7 33.8 29.9 30.5 28.3 28.8 27.8 27.1 21.8 21.8 21.8 21.8 21.8 21.6 19.9 20.2 20.4 21.2 21.7 18.1 18.3
Slide 25: 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) 2013 2014 2015 2016 2017 2017 2017 Existing terminals Brazil Aratu 100% Chemicals 8,900 Netherlands Vlis
Slide 26: 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) 2013 2014 2015 2016 2017 2018 2019 New terminals Malaysia Pengerang 44.1% Oil products 413,000 China Don
Slide 27: Selective capital disciplined growth
General Market Company strategy Business Looking introduction trends and execution performance ahead Selective capital disciplined growth Total investments 2005-2019 Expansion capex** In EUR million In EUR million; 100% = EUR 3,300 million 3,284 Remaining ~500 Vopak share in capex (Group 2,235 capex
Slide 28: Senior net debt : EBITDA ratio
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 29: Vopak's capital structure
General Market Company strategy Business Looking introduction trends and execution performance ahead Vopak’s capital structure Syndicated Ordinary shares Private placement Equity(-like)* revolving program* credit facility* Listed on Euronext USD: 2.0 billion EUR 1.0 billion Subordinated loans Market
Slide 30: Debt repayment schedule
General Market Company strategy Business Looking introduction trends and execution performance ahead Debt repayment schedule Debt repayment schedule In EUR million RCF flexibility US PP RCF drawn Asian PP Subordinated US PP Other 1,200 1,000 600 400 200 0 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 31: Net finance costs
General Market Company strategy Business Looking introduction trends and execution performance ahead Net finance costs Net finance costs 2013 Net finance costs 2014 In EUR million In EUR million Interest and dividend income 3.3 7.9 Finance costs -108.6 -97.7 Net finance costs -105.3 -89.8 Net intere
Slide 32: Solvency ratio
General Market Company strategy Business Looking introduction trends and execution performance ahead Solvency ratio Total equity and liabilities In EUR million 5,226 4,644 4,386 4,152 3,649 Net 64% liabilities* 2,947 60% 58% 2,585 56% 58% 1,997 55% 1,703 61% 57% 56% 44% 40% 42% 36% Equity 45% 42% 43
Slide 33: Proposed 2014 dividend
General Market Company strategy Business Looking introduction trends and execution performance ahead Proposed 2014 dividend Dividend and EPS 2006-2014** In EUR 2.73 2.45 2.31 Dividend policy: 2.08 2.16 1.92 1.62 Barring exceptional 1.31 circumstances, the 0.98 intention is to pay an annual cash divi
Slide 34: Customer leadership
General Market Company strategy Business Looking introduction trends and execution performance ahead Customer leadership 34
Slide 35: Vopak's business model
General Market Company strategy Business Looking introduction trends and execution performance ahead Vopak’s business model Blending nitrogen Adding / cooling Heating / unloading of ships / railcars / trucks Loading Excess througput fees Monthly invoicing in arrears Services Fixed rental fees for ca
Slide 36: 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 37: 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 132.5 36.3 168.8 Secondary compet
Slide 38: EBIT(DA) margin development
General Market Company strategy Business Looking introduction trends and execution performance ahead EBIT(DA) margin development EBIT(DA) margin In percent 55 50 45 EBITDA margin 40 35 30 EBIT margin 25 20 15 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Focus on creating more value from ou
Slide 39: Operational excellence
General Market Company strategy Business Looking introduction trends and execution performance ahead Operational excellence 39
Slide 40: 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 41: Safety performance
General Market Company strategy Business Looking introduction trends and execution performance ahead Safety performance Total injury rate (TIR) Lost time injury rate (LTIR) Total injuries per 200,000 hours worked by own Total injuries leading to lost time per 200,000 hours worked by own employees an
Slide 42: Service improvements
General Market Company strategy Business Looking introduction trends and execution performance ahead Service improvements Jetty upgrades New rail loading spots Sebarok, Singapore Savannah, US Manifold Port pipeline expansion connections Westpoort, Fujairah, Netherlands UAE Truck Vapour management co
Slide 43: Efficiency enhancements
General Market Company strategy Business Looking introduction trends and execution performance ahead Efficiency enhancements Sustaining & Organizational Leverage on improvement productivity standards and capex enhancements procedures reduction 43 Roadshow presentation FY 2014
Slide 44: Business performance
General Market Company strategy Business Looking introduction trends and execution performance ahead Business performance 44
Slide 45: Topics influencing 2014 results
General Market Company strategy Business Looking introduction trends and execution performance ahead Topics influencing 2014 results Capacity Geopolitics Oil price Currency expansions and regulation volatility effects 45 Roadshow presentation FY 2014
Slide 46: Results 2014
General Market Company strategy Business Looking introduction trends and execution performance ahead Results 2014 Terminal EBITDA Network * Excl. ex items *** 33.8 763 In million cbm In EUR million Occupancy Cash flows Rate ** Operating **** 88% 703 Average In EUR million * Terminal network is defin
Slide 47: EBITDA development
General Market Company strategy Business Looking introduction trends and execution performance ahead EBITDA development Alignment network and competitive position Comprehensive scenario planning Full potential excellence Growth strategy Tank terminal strategy 768 753 763 ≥768 232 2004 2005 2006 2007
Slide 48: EBITDA development
General Market Company strategy Business Looking introduction trends and execution performance ahead EBITDA development EBITDA development In EUR million 202 196 196 194 193 192 187 189 187 185 183 180 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 Q4 result lower than Q3 result as previously an
Slide 49: Q4 2014 summary
General Market Company strategy Business Looking introduction trends and execution performance ahead Q4 2014 summary EBITDA* EBIT* In EUR million In EUR million -5% +6% -10% +5% 192.0 183.0 194.4 138.2 124.2 130.8 Q4 2012 Q4 2013 Q4 2014 Q4 2012 Q4 2013 Q4 2014 Net profit** Occupancy rate*** In EUR
Slide 50: 2014 summary
General Market Company strategy Business Looking introduction trends and execution performance ahead 2014 summary Revenues EBITDA* EBIT* In EUR million In EUR million In EUR million -1% +2% -2% +1% 1,314 1,295 1,323 -5% -2% 768 753 763 566 536 524 2012 2013 2014 2012 2013 2014 2012 2013 2014 Net pro
Slide 51: 2014 EBITDA analysis
General Market Company strategy Business Looking introduction trends and execution performance ahead 2014 EBITDA analysis 17.2 10.9 18.8 762.8 2.4 12.3 1.3 753.1 746.2 6.9 1.3 Americas Netherlands Other Asia 2013 LNG 2014 FX-effect against FX 2014 EMEA 2013 /Divestments /Greenfields Acquisitions /Pr
Slide 52: 2014 EBIT
General Market Company strategy Business Looking introduction trends and execution performance ahead 2014 EBIT 2013 2014 In EUR million In EUR million Group operating profit 411.1 394.0 Net result joint ventures 122.7 74.5 incl. exceptional items EBIT incl. exceptional items 533.8 468.5 Exceptional
Slide 53: 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 88 88 89 88 87 87 88 88 89 88 84 ’04 ’05 ’06 ’07 ’08 ’09
Slide 54: Occupancy rate per division
General Market Company strategy Business Looking introduction trends and execution performance ahead Occupancy rate per division Netherlands EMEA -6pp +4pp 0pp -4pp 89% 83% 87% 88% 88% 84% Occupancy rate -3pp 0pp 91% 88% 88% 2012 2013 2014 2012 2013 2014 Asia Americas 2012 2013 2014 1pp 0pp -4pp +0p
Slide 55: Original contract duration
General Market Company strategy Business Looking introduction trends and execution performance ahead Original contract duration Contract position 2012 Contract position 2013 Contract position 2014 In percent of revenues In percent of revenues In percent of revenues 18% 20% 21% 52% 52% 53% 30% 28% 26
Slide 56: EBIT(DA) margin development
General Market Company strategy Business Looking introduction trends and execution performance ahead EBIT(DA) margin development EBIT(DA) margin In percent 55 50 45 EBITDA margin 40 35 30 EBIT margin 25 20 15 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Stable margins Note: Excluding excep
Slide 57: Cash flow developments
General Market Company strategy Business Looking introduction trends and execution performance ahead Cash flow developments Cash flow from operating activities (net) In EUR million 703 660 619 449 475 416 358 308 264 2006 2007 2008 2009 2010 2011 2012 2013 2014 Focus on Free cash flow generation 57
Slide 58: Financial ratio's 2014
General Market Company strategy Business Looking introduction trends and execution performance ahead Financial ratio’s 2014 Non-IFRS ROCE* ROE** Proportional information In % In % CFROGA*** 21.9% In % 18.8% 18.1% 16.7% 16.3% 14.6% 11.8% 10.9% 10.3% 2012 2013 2014 2012 2013 2014 2012 2013 2014 Focus
Slide 59: Non-IFRS proportional information
General Market Company strategy Business Looking introduction trends and execution performance ahead Non-IFRS proportional information Proportionate EBITDA* In EUR million 836 817 824 617 660 537 2009 2010 2011 2012 2013 2014 Occupancy rate subsidiaries Cash Flow Return on Gross Assets and joint ven
Slide 60: Divisional results
General Market Company strategy Business Looking introduction trends and execution performance ahead Divisional results 60
Slide 61: 2014 Revenues per division
General Market Company strategy Business Looking introduction trends and execution performance ahead 2014 Revenues per division Netherlands EMEA -3% 0% Revenues 457.6 +5% +4% 442.5 442.1 235.9 248.2 257.6 -1% +2% 1,314 1,295 1,323 2012 2013 2014 2012 2013 2014 Asia Americas 2012 2013 2014 +1% +3% -8
Slide 62: 2014 EBITDA per division
General Market Company strategy Business Looking introduction trends and execution performance ahead 2014 EBITDA per division Netherlands EMEA -9% +4% EBITDA* 267.3 +2% -13% 242.6 252.7 132.3 135.6 118.3 -2% +1% 768.4 753.1 762.8 2012 2013 2014 2012 2013 2014 Asia Americas Non-allocated 2012 2013 20
Slide 63: 2014 net result of joint ventures
General Market Company strategy Business Looking introduction trends and execution performance ahead 2014 net result of joint ventures Netherlands EMEA -23% -50% 46.6 Net result of +26% +4% 35.9 joint ventures 2.4 2.5 17.9 1.9 -2% -17% 2012 2013 2014 2012 2013 2014 107.2 105.3 87.5 Asia Americas Glo
Slide 64: Netherlands
General Market Company strategy Business Looking introduction trends and execution performance ahead Netherlands EBITDA* In EUR million 59.8 59.5 61.3 62.0 60.9 62.8 68.0 61.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2013 2013 2013 2014 2014 2014 2014 Occupancy rate** Storage capacity In percent In million cbm
Slide 65: EMEA
General Market Company strategy Business Looking introduction trends and execution performance ahead EMEA EBITDA* In EUR million 34.7 33.6 33.1 34.2 28.9 30.4 30.9 28.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2013 2013 2013 2014 2014 2014 2014 Occupancy rate** Storage capacity In percent In million cbm 89% 90%
Slide 66: Asia
General Market Company strategy Business Looking introduction trends and execution performance ahead Asia EBITDA* In EUR million 70.7 73.2 70.6 68.0 66.4 70.0 76.9 77.9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2013 2013 2013 2014 2014 2014 2014 Occupancy rate** Storage capacity In percent In million cbm 95% 95%
Slide 67: Americas
General Market Company strategy Business Looking introduction trends and execution performance ahead Americas EBITDA* In EUR million 28.0 25.9 26.3 29.5 24.0 22.1 21.2 23.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2013 2013 2013 2014 2014 2014 2014 Occupancy rate** Storage capacity In percent In million cbm 91%
Slide 68: Looking ahead
General Market Company strategy Business Looking introduction trends and execution performance ahead Looking ahead 68
Slide 69: Outlook assumptions
General Market Company strategy Business Looking introduction trends and execution performance ahead Outlook assumptions ~x% Share of EBITDA* Oil products Chemicals Industrial terminals Biofuels & LNG & other pipeline vegoils connected infra ~50% ~20% 15% - 20% 7.5% - 10% 2.5% - 5% Contract duration
Slide 70: Outlook elements
General Market Company strategy Business Looking introduction trends and execution performance ahead Outlook elements 2014 Expansions Divestments Productivity and Fx and Uncertainties incl. 2015 and organizational pension costs phased build-up acquisitions efficiency enhancements Following Vopak’s 2
Slide 71: Other topics
General Market Company strategy Business Looking introduction trends and execution performance ahead Other topics 71
Slide 72: FX translation effects
General Market Company strategy Business Looking introduction trends and execution performance ahead FX translation effects 2014 EBITDA transactional currencies FX translation-effect on 2013 EBITDA In percent In EUR million USD Netherlands SGD EMEA EUR Asia Americas Other 22% Non allocated Total -20
Slide 73: Other topics
General Market Company strategy Business Looking introduction trends and execution performance ahead Other topics Effective tax rate* In percent 18.0 20.9 17.1 2012 2013 2014 * Excluding exceptional items. Pension cover ratio In percent 112 118 118 2012 2013 2014 73 Roadshow presentation FY 2014
Slide 74: 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 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •