Slide 1: Analyst Presentation 2013 Annual Results
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Achievements Strategy Business Capital Looking • ANALYST PRESENTATION 2013 2013 execution • • • performance • • • •disciplined • • growth • • • • • • ahead • • • • Annual Results • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 2: Forward-looking statements
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead 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 uncer
Slide 3: Achievements 2013
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Achievements 2013 3 Construction of ammonia tank at Banyan terminal (Singapore)
Slide 4: Results in 2013
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Results in 2013 Storage capacity* Occupancy rate** EBITDA*** Storage capacity grew to The occupancy rate was 88% EBITDA amounts to 30.5 million cbm (2012: 91%) EUR 753 million (2012: 29.9 million) (201
Slide 5: Topics influencing results 2013
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Topics influencing results 2013 Capacity Regulations Currency effects expansions and pensions 5 Annual results 2013 28 February 2014
Slide 6: Product developments in 2013
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Product developments in 2013 Oil products LNG Chemical products Biofuels & vegoils The activities at hubs are LNG trade develops with Significant changes in Biofuels demand grew robust with growth in m
Slide 7: Strategy execution
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Strategy execution 7 LPG tanks at Vopak terminal Vlissingen (Netherlands). Currently constructing 36,800 cbm additional capacity
Slide 8: Vopak's strategy
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Vopak’s strategy Disciplined execution at existing terminals and in new projects Growth Leadership Operational Excellence Customer Leadership Our ability to identify and secure the Our ability to const
Slide 9: Further alignment of Vopak's terminal network
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Further alignment of Vopak’s terminal network With markets dynamics Thames Oilport Algeciras Acquired Commissioned Divestment Tianjin Brownfield under construction Xiamen Ecuador Banyan San Antonio Pas
Slide 10: Storage capacity developments
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Storage capacity developments Split by brownfield, greenfield, acquisition, and divestment Storage capacity developments In million cbm; commissioned and under development +6.5 0.5 37.0 4.5 +0.6 0.4 0.
Slide 11: Frontline execution and competitive position
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Frontline execution and competitive position Operational excellence is core to Vopak´s customer service offering Safety Cost efficiency Service improvement Ambition is to be as good as Continuous focus
Slide 12: Safety
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Safety We improved our processes and employees’ safety Total injury rate (TIR) The lost time injury rate (LTIR) Total injuries per million hours worked by own employees Total injuries leading to lost t
Slide 13: Cost efficiency
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Cost efficiency We managed our cost base without compromising safety and service Group operational expenses per cbm per year Index 2004 = 100 140 120 100 Continuous focus on cost 80 management 60 contr
Slide 14: Service improvements
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Service improvements We invested in infrastructure that add value to our customers Upgrading jetty infrastructure Debottlenecking & pipeline connections We improved jetty capacity at our We enhanced ou
Slide 15: Vopak's focus in 2014
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Vopak’s focus in 2014 Alignment network Competitive position Terminal portfolio management Safety Effective strategic alliances Cost efficiency Capital disciplined growth Service improvement 15 Annual
Slide 16: Business performance 2013
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Business performance 2013 16 Inside view of new ammonia tank at Banyan terminal (Singapore)
Slide 17: Outlook and result 2013
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Outlook and result 2013 Vopak EBITDA of 753 million in line with outlook 2013 EBITDA outlook In EUR million 760-800 725-800 753 730-780 ~750 Capacity Currency expansions Regulations effects and pension
Slide 18: Financial performance 2013
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Financial performance 2013 EBITDA slightly lower compared to 2012 Revenues EBITDA* EBITDA (adjusted for FX)* In EUR million In EUR million In EUR million +12% -1% +21% -2% +1% 1,314 1,295 1,172 768 753
Slide 19: Financial performance 2013
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Financial performance 2013 Higher depreciation and finance cost weighed on EPS EBIT Net profit* Earnings per share* In EUR million In EUR million In EUR +21% -5% +26% -10% +26% -10% 566 536 469 347 312
Slide 20: Strategic value creation
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Strategic value creation Value creation through capital disciplined growth and strong cash flow focus Alignment network and competitive position Growth strategy Full potential excellence Focus divestme
Slide 21: Future financial performance
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Future financial performance Occupancy rates and capacity expansion remain critical drivers Past Present Near future Post 2016 2006 – 2012 2013 2014 - 2016 >2016 Full potential Occupancy in the range U
Slide 22: Occupancy rate developments
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Occupancy rate developments 2013 below 2012 and Q4 2013 in line with Q3 2013 Occupancy rate In percent 90-95% Full potential playing field Current playing field 85-90% 94 96 95 94 92 93 93 91 93 91 88
Slide 23: Original contract duration
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Original contract duration Robust contract portfolio with 80% contracts exceeding 1 year period Contract position 2011 Contract position 2012 Contract position 2013 In percent of revenues In percent of
Slide 24: EBIT(DA) margin development
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead EBIT(DA) margin development Capital disciplined growth strategy requires strong focus on margins EBIT(DA) margin In percent 70 60 EBITDA margin 50 40 30 20 EBIT margin 10 0 2004 2005 2006 2007 2008 200
Slide 25: Vopak's growth strategy
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Vopak’s growth strategy New strategic alliances and expansions at existing locations Storage capacity Terminals as per 2013 In million cbm In # +6.5 +0.6 37.0 22 +10.0 34.7 36.5 53 77 29.9 30.5 28.3 28
Slide 26: Revenues
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Revenues Slightly lower compared to 2012 Revenues Netherlands EMEA +12% -1% 1,314 1,295 +14% -3% 1,172 +4% +5% 400.8 457.6 442.5 226.6 235.9 248.2 2011 2012 2013 2011 2012 2013 2011 2012 2013 Revenues
Slide 27: Occupancy rate
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Occupancy rate 2013 below 2012; EMEA and Asia stable Netherlands EMEA -5pp -6pp -2pp 0pp 94% 89% 90% 88% 88% 83% Occupancy rate -2pp -3pp 93% 91% 88% 2011 2012 2013 2011 2012 2013 Asia Americas 0pp 0pp
Slide 28: EBITDA
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead EBITDA Slightly lower compared to 2012 Netherlands EMEA +27% -9% 267.3 +8% +2% 210.8 242.6 EBITDA 122.9 132.3 135.6 +21% -2% 768.4 753.1 2011 2012 2013 2011 2012 2013 636.0 Asia Americas +16% +3% 273.1
Slide 29: Net result of joint ventures
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Net result of joint ventures Increasing results offset by market challenges in Estonia Netherlands EMEA -4% -23% Net result of 48.7 +27% +26% 46.6 joint ventures 35.9 1.5 1.9 2.4 +17% -2% 107.2 105.3 9
Slide 30: EBIT
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead EBIT Higher depreciation charges weighed in EBIT development 2012 2013 Delta In EUR million In EUR million In percent Operating profit 443.6 411.1 -8% Net result joint ventures 97.1 122.7 26% incl. exc
Slide 31: FX translation effects
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead FX translation effects Adverse translation effects of EUR 15.2 million in 2013 2013 EBIT transactional currencies FX translation-effect on 2012 EBIT In percent In EUR million USD Netherlands SGD EMEA E
Slide 32: EBITDA development
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead EBITDA development Value creation through capital disciplined growth and strong cash flow focus EBITDA development Proportionate EBITDA development In EUR million In EUR million 893 878 768 753 701 636
Slide 33: Cash flow
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Cash flow Capital disciplined growth results in steady increase of cash flows Cash flow from operating activities (gross) In EUR million 713 659 +8% 496 451 455 387 590 335 571 286 392 225 420 410 307
Slide 34: Strong focus on cash flow
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Strong focus on cash flow Operating cash flow important source for growth strategy Consolidated statement of cash flows In EUR million 533 478 180 90 713 120 533 436 169 59 171 Gross Sustaining Operati
Slide 35: Q4 2013 results
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Q4 2013 results 35 Lifting dome roof for Midex project at Europoort terminal (Netherlands)
Slide 36: Quarterly EBITDA development
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Quarterly EBITDA development Despite challenges Vopak maintained solid earnings profile EBITDA per quarter 2011 2012 2013 In EUR million +1% -6% +26% +31% +2% +20% +8% -5% 187 189 193 196 196 185 192 1
Slide 37: Q4 2013 summary
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Q4 2013 summary EBIT(DA) affected by lower occupancy rate EBITDA* EBIT* Main events in Q4 2013 In EUR million In EUR million Vopak divested Vopak Terminals +8% -5% Pasir Gudang (Malaysia) +6% -10% 27 N
Slide 38: Q4 2013 EBITDA
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Q4 2013 EBITDA EBITDA affected by lower occupancy rate Netherlands EMEA +8% -9% 68.3 +3% +9% 63.3 62.0 EBITDA 30.8 31.6 34.3 +8% -5% 192.0 183.0 Q4 2011 Q4 2012 Q4 2013 Q4 2011 Q4 2012 Q4 2013 177.2 As
Slide 39: Occupancy rate
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Occupancy rate Q4 2013 below Q4 2012 Netherlands EMEA -8pp -4pp -4pp -2pp 95% 87% 91% 87% 83% 85% Occupancy rate -4pp -3pp 94% 90% 87% Q4 2011 Q4 2012 Q4 2013 Q4 2011 Q4 2012 Q4 2013 Asia Americas -2pp
Slide 40: Capital disciplined growth
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Capital disciplined growth 40 The Pengerang project has 1.3 million cbm under development (Malaysia)
Slide 41: Capital disciplined consideration
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Capital disciplined consideration Balanced global terminal network management Investment and Risk-return profile Balanced dividend Flexible long-term policy funding 41 Annual results 2013 28 February 2
Slide 42: Capital disciplined consideration
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Capital disciplined consideration Stable solvency ratio Total equity and liabilities In EUR million 4,644 4,386 4,152 3,649 Net 2,947 58% 2,585 56% 60% liabilities* 58% 1,997 55% 1,703 61% 56% 57% 42%
Slide 43: Capital disciplined growth
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Capital disciplined growth Total investments and approved expansion capex Total investments 2008-2016 Expansion capex** In EUR million In EUR million; 100% = EUR 1,800 million 2,012 Remaining 1,899 ~40
Slide 44: Capital disciplined growth
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Capital disciplined growth Vopak aims to retain a solid capital structure Senior net debt : EBITDA ratio 5 Maximum ratio under other PP programs and syndicated revolving credit facility 4 3.75 Maximum
Slide 45: Balanced debt repayment schedule
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Balanced debt repayment schedule Average remaining maturity 9 years; average interest rate 4.5% Debt repayment schedule* In EUR million RCF flexibility US PP Other Subordinated US PP Asian PP 1,200 1,1
Slide 46: Net Finance costs aligned with growth
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Net Finance costs aligned with growth Higher net financing costs weighed on 2013 EPS Net finance costs 2012 Net finance costs 2013 In EUR million In EUR million Interest and dividend income 3.8 3.3 Fin
Slide 47: Proposed 2013 dividend
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Proposed 2013 dividend EUR 0.90 per ordinary share (pay-out ratio: 37%) Dividend and EPS 2006-2013** In EUR 2.73 2.45 -10% Dividend policy: 2.08 2.16 1.92 Barring exceptional 1.62 circumstances, the 1.
Slide 48: Vopak's capital structure
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Vopak’s capital structure Enabling flexible access to capital markets Ordinary shares* Private placement Syndicated revolving Equity(-like) Programs* credit facility* Listed on Euronext USD: 2.0 billio
Slide 49: Vopak's capital structure
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Vopak’s capital structure Vopak continues to review various equity(-like) alternatives Equity(-like) C-shares Mandate to issue cumulative preference C-shares is given up to and including 21 March 2014.
Slide 50: Looking ahead
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Looking ahead 50 Manifold of Vopak Horizon Fujiarah terminal (UAE) connected to the port with new pipelines
Slide 51: EBITDA development
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead EBITDA development Looking back EBITDA development 2004-2013* In EUR million +12.5% CAGR 768 753 636 598 513 429 370 314 263 232 2004 2005 2006 2007 2008 2009 2010 2011 2012* 2013 (restated) Note: Due
Slide 52: Outlook assumptions
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Outlook assumptions Overall healthy demand for our storage services Industrial Biofuels & Oil products Chemicals LNG terminals vegoils ~60-65% ~17.5-20% ~7.5-10% ~5-7.5% ~2.5-5% 2012 Robust Mixed Solid
Slide 53: EBITDA outlook and ambition
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead EBITDA outlook and ambition No changes since Capital Markets Day December 2013 Year Outlook Capital Markets Day ‘Also for 2014, Vopak deems it • No significant positive market 2014 challenging to excee
Slide 54: We have built trust and reliability
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth “We have built ahead our company over 400 years on trust and reliability.” • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 55: Netherlands
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Netherlands Challenging market circumstances for certain products EBIT* In EUR million +25% -15% 195.3 +5% -16% 156.3 165.8 46.2 48.5 40.7 2011 2012 2013 Q4 2011 Q4 2012 Q4 2013 Occupancy rate** Storag
Slide 56: EMEA
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead EMEA Opening of new storage capacity in Algeciras (Spain) EBIT* In EUR million +4% -6% 96.9 -5% -4% 92.9 91.0 23.3 22.2 21.3 2011 2012 2013 Q4 2011 Q4 2012 Q4 2013 Occupancy rate** Storage capacity In
Slide 57: Asia
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Asia Continuous growth EBIT* In EUR million +17% +5% 227.5 +14% +2% 185.3 217.0 46.7 53.2 54.0 2011 2012 2013 Q4 2011 Q4 2012 Q4 2013 Occupancy rate** Storage capacity In percent In million cbm 94% 94%
Slide 58: Americas
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Americas Positive developments at US Gulf Coast with downside in Los Angeles (US) and Brazil EBIT* In EUR million +7% -11% 66.1 +1% -25% 62.0 58.9 16.4 16.6 12.4 2011 2012 2013 Q4 2011 Q4 2012 Q4 2013
Slide 59: Other topics
Achievements Strategy Business Capital Looking 2013 execution performance disciplined growth ahead Other topics Effective tax rate* In percent 19.5 18.0 17.1 2011 2012 2013 * Excluding exceptional items. Pension cover ratio In percent +6pp 106 112 118 2011 2012 2013 59 Annual results 2013 28 Februar