Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Non-Deal Roadshow (2017)
72 slides from Royal Vopak Nv's roadshow presentation, 2017
Slide 1: The World of Vopak: 2016 Results
THE WORLD OF VOPAK 2016 RESULTS ROYAL VOPAK FULL YEAR 2016 ROADSHOW PRESENTATION
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains ‘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: General Introduction
GENERAL INTRODUCTION ROYAL VOPAK FULL YEAR 2016 ROADSHOW PRESENTATION 3 FY 2016 ROADSHOW PRESENTATION
Slide 4: Historical Overview
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics HISTORICAL OVERVIEW VOPAK AND ITS MAIN PRECURSORS 1616 ‘De Blaauwhoudenveem’ was founded 1967 (much later known as ‘Blaauwhoed’) Merger of Pakhuismeesteren and Blaauwhoed into 1
Slide 5: Vopak at a Glance
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics VOPAK AT A GLANCE THE WORLD’S LEADING INDEPENDENT TANK STORAGE COMPANY Listed at the Building on an Euronext AEX impressive history of Market cap. of 400 years EUR ~5.7 billion*
Slide 6: Financial Development
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics FINANCIAL DEVELOPMENT Occupancy rate EBITDA development In percent In EUR million 94 96 95 94 93 93 91 92 93 768 753 763 812 822 88 88 598 636 513 429 314 370 2006 2007 2008 200
Slide 7: Vopak's Ambition
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics VOPAK’S AMBITION TO BE THE PARTNER OF CHOICE FOR ALL OUR STAKEHOLDERS Strategic Safe, Strong and Ability to Operating efficient reliable link in innovate and according to locati
Slide 8: Five Areas of Leadership
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics FIVE AREAS OF LEADERSHIP 8 FY 2016 ROADSHOW PRESENTATION
Slide 9: Sustainability at the Core
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics SUSTAINABILITY AT THE CORE STAYING HEALTHY AND FIT FOR THE FUTURE 9 FY 2016 ROADSHOW PRESENTATION
Slide 10: Priorities for Cash
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics PRIORITIES FOR CASH 1 Debt servicing EUR 2 billion, remaining maturity 8 years, average interest 4.1% 2 Dividend EUR 0.9 billion paid to shareholders in the last 12 years 3 Disc
Slide 11: Business Challenges
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics BUSINESS CHALLENGES Strategic Operational Safety and service Competitive environment Assure 2016 Shifting energy landscape and product flows Productivity through technology Comp
Slide 12: Discussions with Investors
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics DISCUSSIONS WITH INVESTORS Economic and market dynamics Projects Slowdown emerging growth Projects under construction and business development Developments oil and Strat
Slide 13: Market Trends
MARKET TRENDS FIT FOR THE FUTURE ROYAL VOPAK FULL YEAR 2016 ROADSHOW PRESENTATION
Slide 14: Mega Trends
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics MEGA TRENDS INFLUENCING THE GLOBAL ECONOMIC EVOLUTION Industrialization and urbanization Changing demographics Disruptive technologies in emerging economies Geopolitical develop
Slide 15: Impact on End-Markets
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics IMPACT ON END-MARKETS FUTURE GROWTH IN THREE MAIN INDUSTIRES Trends Energy Manufacturing Food & Agriculture End Power generation sector to be Demand growth in the Growth d
Slide 16: Refined Products Outlook
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics REFINED PRODUCTS OUTLOOK IMBALANCES EXPECTED TO INCREASE FSU Greater Europe North America Middle East 2016 2026 2016 2026 2016 2026 2016 2026 Asia Pacific Latin America Sub-Saha
Slide 17: Chemicals Outlook
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics CHEMICALS OUTLOOK STRONG GROWTH ETHYLENE CAPACITY Ethylene Capacity Growth 250 World consumption in mln tons 200 Other 150 Europe 100 Asia & Pacific Middle East 50 North America
Slide 18: Rebalancing of the LNG Market
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics REBALANCING OF THE LNG MARKET Norway ~4% Russia ~7% North America Qatar ~23% North Africa ~14% ~5% West Africa ~7% Malaysia ~4% Indonesia ~3% LNG exported in 2015 Existing LNG f
Slide 19: Vopak's LNG Strategy
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics VOPAK’S LNG STRATEGY Mature markets Drivers Inland gas markets Hub terminal LNG trading Break bulk distribution Transport / bunkering Single-customer terminal Growth markets Dri
Slide 20: Strategy Execution
STRATEGY EXECUTION GROWTH LEADERSHIP ROYAL VOPAK FULL YEAR 2016 ROADSHOW PRESENTATION
Slide 21: Storage Capacity Developments
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics STORAGE CAPACITY DEVELOPMENTS FOCUS ON SELECTIVE DISCIPLINED GROWTH Storage capacity In million cbm +14.8 +3.8 Projects under Growing our global network through development up t
Slide 22: Growth Leadership: Terminal Portfolio Criteria
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics GROWTH LEADERSHIP TERMINAL PORTFOLIO CRITERIA Major hubs Industrial terminals Distribution terminals Gas markets Fujairah Chemtank (Jubail) Durban / Lesedi Banyan LPG (United Ar
Slide 23: Global Presence
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics GLOBAL PRESENCE Hamburg Talinn Amsterdam Rotterdam Antwerp Yangpu Ningbo Haiteng Lanshan Tianjin Zhangjiagang Tarragona Karachi Barcelona Kandla Algeciras Rayong Quebec Ho Chi M
Slide 24: Return Requirements for Investments
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics RETURN REQUIREMENTS FOR INVESTMENTS Footprint in Optimization growth emerging markets opportunities I II First-mover Option advantage value Contribution from key accounts VI III
Slide 25: Main Projects Under Construction
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics MAIN PROJECTS UNDER CONSTRUCTION Houston 138,000 cbm Jubail Panama 377,000 cbm Pengerang 360,000 cbm South Africa 1,650,000 cbm Greenfield / Acquisition Brownfield Operatorship
Slide 26: Selective Growth Opportunities
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics SELECTIVE GROWTH OPPORTUNITIES EFFECTIVE AND SOUND STRATEGIC ORIENTATION • A new 100,000 cbm • 6 large tanks and 8 truck inland terminal in the loading bays. Gauteng province (J
Slide 27: Capacity Developments
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics CAPACITY DEVELOPMENTS +3.8 3.5 38.5 +0.4 1.3 0.3 34.7 34.3 0.9 FY2015 Brownfield & Divestments FY2016 Brownfield Greenfield 2019 Greenfield Note: ‘storage capacity’ is defined a
Slide 28: Strategy Execution
STRATEGY EXECUTION ROYAL VOPAK FULL YEAR 2016 ROADSHOW PRESENTATION
Slide 29: Key Messages FY 2016
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics KEY MESSAGES FY 2016 Good improvements regarding our safety & service performance PERFORMANCE Vopak at par with high performance companies in the survey database 2016 Robu
Slide 30: Execution of the Business
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics EXECUTION OF THE BUSINESS OPERATIONAL LEADERSHIP 1. Safety Maximizing operational safety Minimizing environmental impact 2. Effectiveness Maximizing operational productivi
Slide 31: Strategic Priorities 2016
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics STRATEGIC PRIORITIES 2016 Divested 2.3 million cbm in mature markets such as Sweden, Portfolio optimization Finland and the United Kingdom Total cash proceeds from all dives
Slide 32: Commitment to Safety
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics COMMITMENT TO SAFETY Total Injury Rate (TIR) Lost Time Injury Rate (LTIR) Total injuries per 200,000 hours worked by Total injuries leading to lost time per 200,000 hours own em
Slide 33: Business Model
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics BUSINESS MODEL Blending nitrogen Adding / cooling Heating / unloading of ships / railcars / trucks Loading Excess througput fees Monthly invoicing in arrears Services Fixed rent
Slide 34: Customer Portfolio
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics CUSTOMER PORTFOLIO Global clients Regional clients Local clients Active at multiple Vopak Active in more than one Active in one Vopak locations around the Vopak location o
Slide 35: Sound Contract Durations
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics SOUND CONTRACT DURATIONS Contract position FY2014 Contract position FY2015 Contract position FY2016 In percent of revenues In percent of revenues In percent of revenues 21% 24%
Slide 36: Capital Management
CAPITAL MANAGEMENT ROYAL VOPAK FULL YEAR 2016 ROADSHOW PRESENTATION
Slide 37: Value Creation
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics VALUE CREATION WELL-POSITIONED TO TAKE SEVERAL INVESTMENT DECISIONS IN THE PERIOD 2017-2019 Total investments 2005-2019 Expansion capex** In EUR million In EUR million; 100% = E
Slide 38: Headroom
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics HEADROOM FINANCIAL FLEXIBILITY TO SUPPORT GROWTH Senior net debt : EBITDA ratio Strong investment grade company Maximum ratio under other PP programs and syndicated revolving cr
Slide 39: Capital Structure
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics CAPITAL STRUCTURE Syndicated Ordinary shares Private placement Equity(-like)* revolving program* credit facility* Listed on Euronext USD: 1.8 billion EUR 1.0 billion Subordinate
Slide 40: Debt Repayment Schedule
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics DEBT REPAYMENT SCHEDULE Debt repayment schedule RCF flexibility US PP In EUR million RCF drawn Asian PP Subordinated US PP Other 1,200 1,100 1,000 400 300 200 100 0 2017 2018 20
Slide 41: Net Finance Costs
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics NET FINANCE COSTS Net finance costs 2016 In EUR million Interest and dividend income 11.4 10.7 Finance costs -118.6 -115.9 Net finance costs -107.2 -105.2 Net interest bearing d
Slide 42: Solid Financial Position
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics SOLID FINANCIAL POSITION MAINTAINING A CONSISTENT SOLVENCY WHILST GROWING OUR GLOBAL NETWORK Total equity and net liabilities Net liabilities* Equity 54% 61% 46% 64% 39% 36% FY
Slide 43: Stable Dividend Growth
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics STABLE DIVIDEND GROWTH PROPOSED DIVIDEND INCREASE WITH 5% TO EUR 1.05 PER SHARE Dividend and EPS* 2003-2016 In EUR 3.0 2.56 EPS BARRING 2.5 EXCEPTIONAL 2.0 CIRCUMSTANCES, 1.5 TH
Slide 44: Business Performance: 2016 Results
BUSINESS PERFORMANCE 2016 RESULTS ROYAL VOPAK FULL YEAR 2016 ROADSHOW PRESENTATION
Slide 45: Long-Term Value Creation
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics LONG-TERM VALUE CREATION KEY ELEMENTS SUPPORTING OUR BUSINESS MODEL Focus on Strong capital risk-return structure with Stable margins and healthy Diversified and take-or-pay cas
Slide 46: Robust Business Model
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics ROBUST BUSINESS MODEL CAPITAL DISCIPLINED STEP BY STEP EBITDA GROWTH EBITDA and Net result joint ventures and associates In EUR million 2005 - 2007 2008 - 2010 2011 - 2013 2014
Slide 47: Solid Business Results in 2016
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics SOLID BUSINESS RESULTS IN 2016 REVENUES IMPACTED BY DIVESTMENTS, FULLY COMPENSATED ON EBITDA LEVEL THANKS TO HIGHER OCCUPANCY SUPPORTED BY HEALTHY VALUE DRIVERS Terminal network
Slide 48: Key Themes in 2016
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics KEY THEMES IN 2016 LOWER ADAPTATION COMMODITY TRANSITION GEOPOLITICAL ENERGY PRICES CHINA & INDIA UNCERTAINTY INDUSTRY Increased pressure More focus on Slowdown Continued on oil
Slide 49: Product Developments 2016
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics PRODUCT DEVELOPMENTS 2016 Despite uncertainty on Market remains in Crude oil sustainability of LNG balance, new volumes & oil products production cuts, demand from Australia
Slide 50: Business Performance 2016
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics BUSINESS PERFORMANCE 2016 Netherlands EMEA Asia Americas Start-up Record number of Successful divestment Transition economy VLCCs loaded China operatorship UK assets Pan
Slide 51: 2016 Occupancy Rate Exceeds 90%
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics 2016 OCCUPANCY RATE EXCEEDS 90% WE ARE CONFIDENT THAT VOPAK WILL ACHIEVE AN AVG. OCCUPANCY RATE OF AT LEAST 90% IN 2017 Occupancy rate* In percent 90-95% 85-90% 92 93 94 94 93 9
Slide 52: 2016 Key Figures Excluding Exceptional Items
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics 2016 KEY FIGURES -EXCLUDING EXCEPTIONAL ITEMS- Revenues* EBITDA** In EUR million In EUR million Full year above 90% occupancy in 1,323 1,386 1,347 positive market 763 812 822
Slide 53: EBITDA Analysis
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics 2016 EBITDA ANALYSIS ALL DIVISIONS CONTRIBUTED TO 2016 EBITDA PERFORMANCE +7% 4.4 3.7 822.3 2.7 3.5 11.1 811.5 8.6 8.3 9.4 23.2 771.2 30.9 Acquisitions/ Divestments Pre-OPEX FX-
Slide 54: 2016 Outlook
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics 2016 OUTLOOK 15 12 23 31 9 812 822 FY 2015 Expansions Business Occupancy Divestments FX effect FY 2016 developments rate effect and other and operational efficiency Vopak expe
Slide 55: Q4 2016 Key Figures
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics Q4 2016 KEY FIGURES -EXCLUDING EXCEPTIONAL ITEMS- Revenues* EBITDA** Robust market in Q4 with high In EUR million In EUR million occupancy rate of 92% 332 328 339 206 204 198
Slide 56: Margin Developments
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics MARGIN DEVELOPMENTS MAINTAINING A SOLID MARGIN EBIT(DA) margin* OCCUPANCY In percent RATE 70 DEVELOPMENT 65 60 EBITDA margin 55 EBIT margin 50 MARGIN 45 MANAGEMENT 40 35 30 25 2
Slide 57: 2016 Return Indicators
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics 2016 RETURN INDICATORS FOCUS CASH FLOW AND PROFITABLE GROWTH NON-IFRS IFRS BASED PROPORTIONAL ROE* ROCE** CFROGA*** (after interest, after tax) (before interest, before tax) (be
Slide 58: 2016 IFRS vs. Non-IFRS Proportionate Information
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics 2016 IFRS VS. NON-IFRS PROPORTIONATE INFORMATION IFRS BASED NON-IFRS PROPORTIONAL Occupancy rate Occupancy rate In percent In percent 88 92 93 88 92 94 2014 2015 2016 2014 2015
Slide 59: Business Performance: Segmentation
BUSINESS PERFORMANCE SEGMENTATION ROYAL VOPAK FULL YEAR 2016 ROADSHOW PRESENTATION
Slide 60: Occupancy Rate Developments per Division
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics OCCUPANCY RATE DEVELOPMENTS PER DIVISION Occupancy rates In percent 96 96 96 96 96 96 95 95 94 94 92 92 92 91 91 91 91 90 89 89 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Netherlan
Slide 61: 2016 Netherlands Development
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics 2016 NETHERLANDS DEVELOPMENT Occupancy rate* In percent 94 95 89 87 83 2012 2013 2014 2015 2016 Revenues* In EUR million 487.9 496.4 Storage capacity 457.6 442.5 442.1 In millio
Slide 62: 2016 EMEA Development
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics 2016 EMEA DEVELOPMENT Occupancy rate* In percent 93 96 88 88 84 2012 2013 2014 2015 2016 Revenues* In percent 235.9 248.2 257.6 251.5 Storage capacity 189.9 In million cbm 2012
Slide 63: 2016 Asia Development
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics 2016 ASIA DEVELOPMENT Occupancy rate* In percent 94 94 95 89 91 2012 2013 2014 2015 2016 Revenues* In EUR million 379.4 385.2 Storage capacity 355.4 358.8 370.1 In million cbm 2
Slide 64: 2016 Americas Development
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics 2016 AMERICAS DEVELOPMENT Occupancy rate* In percent 94 90 90 90 91 2012 2013 2014 2015 2016 Revenues* In EUR million 259.3 239.6 246.6 266.7 273.8 Storage capacity In million c
Slide 65: 2016 Net Result of JVs and Associates
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics 2016 NET RESULT OF JVS AND ASSOCIATES Netherlands Americas 2.4 2.5 2.5 1.9 1.0 0.1 0.2 0.5 2013 2014 2015 2016 2013 2014 2015 2016 Net result of JVs Global LNG EMEA and associat
Slide 66: Looking Ahead & Other Topics
LOOKING AHEAD & OTHER TOPICS ROYAL VOPAK FULL YEAR 2016 ROADSHOW PRESENTATION
Slide 67: Vopak's Strong Foundation
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics VOPAK’S STRONG FOUNDATION INDEPENDENT GLOBAL STORAGE PROVIDER ACTIVE IN ALL FULL FUNNEL OF PROJECTS WITH CONTINENTS AND ALL PRODUCT SUSTAINABLE CONTRIBUTION GROUPS AVAILABLE LAN
Slide 68: Strategic Direction 2017-2019
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics STRATEGIC DIRECTION 2017-2019 The strategic direction of Vopak is set towards disciplined growth and productivity improvement Vopak is well-positioned to take several investme
Slide 69: Outlook 2017
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics OUTLOOK 2017 Oil Chemical Industrial & Vegoils & Gas products products pipeline connected biofuels products Share of EBITDA* 45-50% 20-25% 20-25% 5-7.5% 2.5-5% Contract duration
Slide 70: Outlook 2017
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics OUTLOOK 2017 For 2017, we are confident that Vopak will again achieve an average occupancy rate of at least 90%. We expect to make additional investments in disciplined capacity
Slide 71: Looking Ahead
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics LOOKING AHEAD 2005 - 2007 2008 - 2010 2011 - 2013 2014 - 2016 2017 - 2019 812 822 763 Continue long-term 304 growth journey 88 104 124 37 2003 2004 2005 2006 2007 2008 2009 2010
Slide 72: Other Topics
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics OTHER TOPICS Effective tax rate* 2016 EBITDA* transactional currencies In percent In percent 20.9 20% 17.1 18.1 17.6 USD SGD EUR 16% Other 38% 2013 2014 2015 2016 26% Funding le