Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Investor Day (December 2012)
36 slides from Royal Vopak Nv's investor day presentation, Dec 7, 2012
Slide 1: Strategy in Financial Perspective: past, present, ambition 2016
Strategy in Financial Perspective: past, present, ambition 2016 Capital Markets Day, 7 December 2012 Jack de Kreij, Vice-Chairman of the Executive Board and CFO
Slide 2: 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 31 countries in which Vopak provides logistics services, the company cannot guarantee the accur
Slide 3: Contents
Contents Strategy in Financial Perspective Disciplined Capital Investments Capital Disciplined Growth Ambition 2016 3 Capital Markets Day 7 December 2012
Slide 4: Alignment of the right organization with long-term trends and strategic focus
Alignment of the right organization with long-term trends and strategic focus Focused strategy and Long-term trends The right organization disciplined execution ▪ Solid balance sheet ▪ Ongoing access to capital markets ▪ Disciplined capital evaluations 4 Capital Markets Day 7 December 2012
Slide 5: Value Creation Concepts supporting successful strategy execution
Value Creation Concepts supporting successful strategy execution Growth Leadership Operational Excellence Customer Leadership Finding right location Terminal Master Plans Vopak service quality index Long-term strategic Fit for Purpose Approach Global / Regional / Local partners approach Full potenti
Slide 6: It is Vopak's ambition to realize an EBITDA level of EUR 1 billion in 2016
It is Vopak’s ambition to realize an EBITDA level of EUR 1 billion in 2016 Historical results Outlook EBITDA Development and outlook Ambition In EUR mln 1,000 725-800 598.2 636.0 Vopak remains 513.4 on track to 429.3 achieve its 2013 369.5 314.1 outlook of 231.8 262.5 572.8 725-800 million EBITDA in
Slide 7: Healthy occupancy rates and EBIT margins
Healthy occupancy rates and EBIT margins Expansion projects main value driver for further EBITDA growth Present Present/ Past Near Past Future 2003-06 2007-09 2010-2011 2012 > Occupancy improvements Playing field between 90 - 95% Operational efficiency gains Capacity expansion * Excluding exceptiona
Slide 8: Outlook assumptions
Outlook assumptions ~x% Share of EBIT Oil products Chemicals Industrial terminals Biofuels & Vegoils LNG 2012 ~60% ~17.5-20% ~12.5% ~7.5-10% <1% ~60-65% ~17.5-20% ~7.5-10% ~5-7.5% ~2.5-5% 2014 Robust Mixed Solid Mixed Solid Note: width of the boxes do not represent actual percentages. 8 Capital Mark
Slide 9: Growth projects
Growth projects Main driver in realizing EBITDA growth Commissioned Coryton Acquired Under construction Westpoort Tianjin Kandla Gate Hainan Altamira Jubail Fujairah Pengerang Banyan Aratu Note: Above examples not representative of all projects under construction. 9 Capital Markets Day 7 December 20
Slide 10: Contents
Contents Strategy in Financial Perspective Disciplined Capital Investments Capital Disciplined Growth Ambition 2016 10 Capital Markets Day 7 December 2012
Slide 11: Disciplined capital investment considerations
Disciplined capital investment considerations Different concepts for different purposes Type of investment Different concepts for Full potential different purposes evaluation matrix ▪ Greenfield ▪ Launching Customers ▪ Local WACC ▪ Brownfield ▪ Contracted infrastructure ▪ Pay-back period ▪ Acquisiti
Slide 12: Disciplined capital investments
Disciplined capital investments Growth: examples of capital investment decisions 4 3 1 Thames Oilport Amsterdam Westpoort Zhangjiagang 500,000 cbm; oil; 33.3% 1,202,000 cbm; oil; 100% 455,000 cbm; chemicals; 100% 5 6 2 Altamira LNG terminal Strategic plot of land Hainan 300,000 cbm; LNG; 60% Houston
Slide 13: Profitability Drivers Vopak Terminal Zhangjiagang (China)
Profitability Drivers 1 Vopak Terminal Zhangjiagang (China) Type of investment Original business case Actual situation ▪ Greenfield with future ▪ Limited formal contracts ▪ Healthy occupancy rates expansion opportunities ▪ Entrance to a rapidly after 4 expansion growing market projects ▪ Further opp
Slide 14: Profitability Drivers Hainan (China)
Profitability Drivers 2 Hainan (China) Vopak (49%) and SDIC (51%) Type of investment Business case Actual situation ▪ Greenfield with strategic ▪ Limited formal contracts ▪ First phase under partner with future ▪ Entrance to a rapidly construction expansion opportunities growing market ▪ LoI’s / MoU
Slide 15: Vopak Terminal Amsterdam Westpoort
3 Vopak Terminal Amsterdam Westpoort Type of investment Business case Actual Actual situation Situation ▪ Greenfield ▪ Phase I: 50% contracts ▪ First and second phase ▪ Step-by-step approach ▪ Phase II based on 100% in operation contracts in Phase I ▪ 100% contracted with 3-5 year contracts Storage
Slide 16: Thames Oilport (UK)
4 Thames Oilport (UK) Vopak (33.3%), Shell (33.3%) and Greenergy (33.3%) Type of investment Business case Actual situation Actual Situation ▪ Location acquisition with ▪ Long-term contracts with ▪ Developing current strategic partners strategic partners for the facility ▪ Conversion / upgrading firs
Slide 17: LNG Terminal Altamira (Mexico)
5 LNG Terminal Altamira (Mexico) Vopak (60%) and Enagas (40%) Type of investment Business case Actual situation Actual Situation ▪ Acquisition with strategic ▪ Contracted infrastructure ▪ 100% contracted partner with future ▪ Studies for future expansions opportunities expansion opportunities (inclu
Slide 18: Houston land (USA)
6 Houston land (USA) Type of investment Business case Actual situation Actual Situation ▪ Land acquisition: secure ▪ Shale gas developments ▪ Feasibility study growth option where in US chemicals and/or gasses land is scarce 18 Capital Markets Day 7 December 2012
Slide 19: Existing business: Terminal Master Plan
Disciplined capital investments Existing business: Terminal Master Plan ▪ Infrastructure designed ▪ Upgrading through Terminal ▪ Fit for Purpose years ago Master Plan according to infrastructure to meet market requirements future client needs 19 Capital Markets Day 7 December 2012
Slide 20: Contents
Contents Strategy in Financial Perspective Disciplined Capital Investments Capital Disciplined Growth Ambition 2016 20 Capital Markets Day 7 December 2012
Slide 21: Capital disciplined growth
Capital disciplined growth Disciplined decisions Long-term funding Disciplined investment Balanced dividend policy decisions Capital disciplined growth Effective working capital Working Capital management 21 Capital Markets Day 7 December 2012
Slide 22: Capital disciplined consideration: stable solvency ratio
Capital disciplined consideration Stable solvency ratio Total equity and liabilities In EUR mln 4,650 4,240 3,831 3,136 59% Liabilities 2,634 57% 60% 2,133 58% 1,821 62% 59% 60% Equity 40% 43% 41% 38% 42% 40% 41% 2006 2007 2008 2009 2010 2011 HY1 2012 22 Capital Markets Day 7 December 2012
Slide 23: Capital disciplined growth: total investments
Capital disciplined growth Total investments Total Investments 2006-2014 Expansion Capex** In EUR mln In EUR mln; 100% = EUR 1.5 billion 2,108 ▪ Remaining Vopak share in Capex (Group 1,514 ~400 Capex and equity share in ~900-1,100 JVs) ~500-700 Other Capex* ~1,100 Expansion ~400 Capex** ▪ Group Cape
Slide 24: Capital Disciplined Growth: Strategic Finance
Capital Disciplined Growth Strategic Finance Access to Capital Markets Net senior debt : EBITDA ratio 5 US Private Placements 3.75 4 (EUR 856.7 million)** 3 SGD and JPY Private Placements 2 (SGD 435 million and 2.42 2.20 2.54 2.23 2.63 2.65 2.55 JPY 20 billion) 1 1.76 1.61 1.71 Syndicated Revo
Slide 25: External financing examples and corporate milestones
External financing Milestones 2001 2007 2009 2010 2011 2012 Asian Corporate US PP US PP Fin pref. Asian US PP JPN PP RCF RCF* US PP shares PP PP USD USD EUR SGD USD SGD JPY EUR EUR USD 475 mln 375 mln 110 mln 210 mln 680 mln 225 mln 20 bln 1.2 bln 1.13 bln 1 bln 2001 2007 2009 2009 2009 2010 2010 20
Slide 26: Balanced debt repayment schedule
Balanced debt repayment schedule Maturity profile aligned with long-term growth strategy Debt repayment schedule* In EUR mln RCF flexibility New US PP 2012 (subordinated) Current US PP Other RCF (repaid with proceeds new US PP) New US PP 2012 Asian PP 1,300 1,200 200 100 0 2012 2013 2014 2015 2016 2
Slide 27: Balanced dividend policy
Balanced dividend policy It is Vopak’s intention to pay 25-40% dividend of the net profit* Dividend and EPS 2003-2011** Cash Dividend In EUR 2.08 2.16 1.92 +4% 1.62 1.31 0.98 0.81 0.63 +14% 0.70 0.80 0.475 0.55 0.625 0.25 0.30 0.375 2004 2005 2006 2007 2008 2009 2010 2011 * Barring exceptional circu
Slide 28: Contents
Contents Strategy in Financial Perspective Disciplined Capital Investments Capital Disciplined Growth Ambition 2016 28 Capital Markets Day 7 December 2012
Slide 29: EBITDA growth 2006-2011
EBITDA growth 2006-2011 Main value drivers: EBITDA margin improvement and capacity expansion EBITDA Development 2006-2011* In EUR mln +15% CAGR Healthy occupancy rate 636.0 Improved revenue per cubic meter Effective cost management 314.1 Storage capacity growth 2006 Divestments FX result EBI
Slide 30: Ambition 2016
Ambition 2016 Capacity expansions main value driver in EBITDA growth EBITDA Developments In EUR mln +9% CAGR 1,000.0 636.0 2011 Capacity under FX impact Pension impact Approval and 2016 construction execution of additional projects Note: Graph is for illustration purposes only; size of the bars do n
Slide 31: Capacity growth under construction
Capacity growth under construction Main value driver in achieving ambition 2016 Capacity developments In mln cbm +7.1 3.3 0.3 34.9 Other Jubail Europoort Pengerang In order to achieve ambition 2016, the Hainan 1.4 approval and Other successful Algeciras 2.1 Thames Oilport execution of Other addition
Slide 32: Strategic partners of increasing importance for realizing growth
Strategic partners of increasing importance for realizing growth Net result of joint ventures in EBITDA based on IFRS equity accounting Storage capacity* Subsidiaries EBITDA - including net results JVs** In mln cbm Joint Ventures In EUR mln 34.9 29.9 27.8 636.0 13.4 +153% 572.8 9.6 91.7 21.2 8.1 83.
Slide 33: FX translation effect on EBIT
FX translation effect on EBIT FX translation effect on EBIT In EUR mln ??? 25.90 17.20 1.00 1.60 2.30 2.60 -5.40 -7.30 -8.70 -18.60 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD 2013-2016 Q3 2012 33 Capital Markets Day 7 December 2012
Slide 34: Consequences IAS 19 Employee Benefits
Consequences IAS 19 Employee Benefits Effect on comparative figures 2012 as a result of application amendment in 2013 Total effect on equity In EUR mln Actuarial gains and losses 107.4 Removal 10% corridor approach at 1 January 2012 (higher volatility in net pension Income tax 31.1 liability) Actu
Slide 35: Conclusion
Conclusion EBITDA Development and outlook In EUR mln Vopak remains on track to achieve its 2013 outlook of 725-800 million EBITDA in 2012 Historical results +9% CAGR Outlook It is Vopak’s ambition to realize an Ambition 1,000 EBITDA level of EUR 1 billion in 2016 +15% CAGR 725-800 In order to
Slide 36: Royal Vopak contact details
Royal Vopak Westerlaan 10 Tel: +31 10 4002911 3016 CK Rotterdam Fax: +31 10 4139829 The Netherlands www.vopak.com