Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Non-Deal Roadshow (November 2015)
64 slides from Royal Vopak Nv's roadshow presentation, November 2015
Slide 1: The World of Vopak: Company Update
THE WORLD OF VOPAK COMPANY UPDATE ROYAL VOPAK Q3 2015 – ROADSHOW PRESENTATION
Slide 2: Forward Looking Statements
General Market Strategy Business Looking introduction trends execution performance 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 uncertainties b
Slide 3: General Introduction
General Market Strategy Business Looking introduction trends execution performance ahead GENERAL INTRODUCTION ROYAL VOPAK Q3 2015 – ROADSHOW PRESENTATION
Slide 4: Vopak at a Glance
General Market Strategy Business Looking introduction trends execution performance ahead VOPAK AT A GLANCE Building on an impressive Listed at the Euronext AEX history of almost 400 years Market cap of EUR 5.0 billion* World’s largest independent Track record developing tank terminal operator: new t
Slide 5: Financial Development
General Market Strategy Business Looking introduction trends execution performance ahead FINANCIAL DEVELOPMENT EBITDA development Cash flow from operating activities (gross) In EUR million In EUR million 768 753 763 713 751 659 598 636 513 454 455 496 370 429 387 314 286 335 2006 2007 2008 2009 2010
Slide 6: Investment Thesis
General Market Strategy Business Looking introduction trends 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 capital structure
Slide 7: Vopak's Ambition
General Market Strategy Business Looking introduction trends 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 7 Roadshow presentation
Slide 8: Strategic Framework
General Market Strategy Business Looking introduction trends execution performance ahead STRATEGIC FRAMEWORK Growth Operational Customer leadership leadership leadership Our Sustainability Foundation Health and safety I Environmental care I Responsible partner I Excellent people 8 Roadshow presentat
Slide 9: Business Review
General Market Strategy Business Looking introduction trends execution performance ahead BUSINESS REVIEW Strategic Divestment Growth Program 4 15 categories terminals Reduce * Reduce * Capex Cost base 100 30 EUR million EUR million * Up to and including 2016 9 Roadshow presentation Q3 2015
Slide 10: Priorities for Cash
General Market Strategy Business Looking introduction trends execution performance ahead PRIORITIES FOR CASH 1 Debt servicing EUR 2.3 billion, remaining maturity 8 years, average interest 4.2% 2 Dividend EUR 0.8b paid to shareholders in the last 10 years 3 Disciplined growth Network expanded from 20
Slide 11: Business Challenges
General Market Strategy Business Looking introduction trends execution performance ahead BUSINESS CHALLENGES Strategic Operational Competitive environment People with the right skills Changing flows Expansion projects Geopolitics Capital constraints Legislation Reputation Compliance Financial 11 Roa
Slide 12: Discussions with Investors
General Market Strategy Business Looking introduction trends execution performance ahead DISCUSSIONS WITH INVESTORS Market dynamics Projects • Asia market dynamics • Projects under development • Overcapacity and pricing • Ramp-up of new capacity • Impact contango Governance Network alignment • Gover
Slide 13: Market Trends
General Market Strategy Business Looking introduction trends execution performance ahead MARKET TRENDS ROYAL VOPAK Q3 2015 – ROADSHOW PRESENTATION
Slide 14: Mega Trends Driving Storage Demand
General Market Strategy Business Looking introduction trends execution performance ahead MEGA 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 & petrochem
Slide 15: Structural Imbalances
General Market Strategy Business Looking introduction trends execution performance ahead STRUCTURAL IMBALANCES 2014 2020 2014 2020 2014 2020 2014 2020 2014 2020 Refined petroleum accumulated deficits 2014 2020 2014 2020 Refined petroleum accumulated surpluses Increasing trade expected to continue 15
Slide 16: Imbalances Continue to Develop
General Market Strategy Business Looking introduction trends execution performance ahead IMBALANCES CONTINUE TO DEVELOP Source: ATEC / ICIS database and Vopak intelligence US and Middle East export, Asia and Europe import 16 Roadshow presentation Q3 2015
Slide 17: Product Developments
General Market Strategy Business Looking introduction trends execution performance ahead PRODUCT DEVELOPMENTS Oil Chemicals Biofuels LNG Structural imbalances, A encouraging chemicals Biofuels demand coming Increase in supply product price volatility and industry, with feedstock purely from mandates
Slide 18: Strategy Execution: Growth Leadership
General Market Strategy Business Looking introduction trends execution performance ahead STRATEGY EXECUTION GROWTH LEADERSHIP ROYAL VOPAK Q3 2015 – ROADSHOW PRESENTATION 18
Slide 19: Global Presence
General Market Strategy Business Looking introduction trends execution performance ahead GLOBAL PRESENCE London Hamburg Talinn Amsterdam Rotterdam* Antwerp Ningbo Lanshan Tianjin Teesside Zhangjiagang Windmill Ulsan Tarragona Karachi Barcelona Nagoya Algeciras Moji Quebec Yokohama Hamilton Kobe Mont
Slide 20: Return Requirements for Investments
General Market Strategy Business Looking introduction trends execution performance ahead RETURN REQUIREMENTS FOR INVESTMENTS Footprint in Optimization growth emerging markets opportunities I II First-mover Option advantage value Contribution from key accounts VI III Mitigating downward risks Growth
Slide 21: Realized Investments and Divestments in 2015
General Market Strategy Business Looking introduction trends execution performance ahead REALIZED INVESTMENTS AND DIVESTMENTS IN 2015 Galena park Wilmington Sweden Finland (170,000 cbm) (130,700 cbm) (1,260,700 cbm) (175,400 cbm) Oil Chemicals Industrial Gasses Vlissingen Pengerang Hainan Divestment
Slide 22: Selective Growth Opportunities
General Market Strategy Business Looking introduction trends execution performance ahead SELECTIVE GROWTH OPPORTUNITIES Storage capacity developments +4.6 In million cbm 3.8 38.7 +0.3 1.8 0.8 0.2 34.1 33.8 1.7 End 2014 Brownfield Greenfield Divestments Q3 2015 Brownfield Greenfield 2019 Effective an
Slide 23: Selective Growth Opportunities
General Market Strategy Business Looking introduction trends execution performance ahead SELECTIVE GROWTH OPPORTUNITIES Storage capacity developments In million cbm +4.6 +14.2 38.7 36.6 36.6 34.7 35.6 33.8 34.1 30.5 20.4 20.4 20.4 20.3 20.4 20.1 21.7 19.9 20.8 15.1 15.0 12.9 12.9 11.7 12.1 12.9 9.9
Slide 24: Realized Divestments 2015
General Market Strategy Business Looking introduction trends execution performance ahead REALIZED DIVESTMENTS 2015 Number of Number of terminals plots of land 9 2 Total net cash Storage proceeds capacity 297 * 1.7 EUR million million cbm * Up *Excluding to and including cash outflows 2016 for tax 24
Slide 25: Projects Under Construction
General Market Strategy Business Looking introduction trends execution performance ahead PROJECTS UNDER CONSTRUCTION Vopak's Capacity Country Terminal ownership Products (cbm) 2013 2014 2015 2016 2017 2018 2019 Existing terminals South Africa Durban 70% Oil products 30.000 Belgium Antw erp (Eurotank
Slide 26: Selective Capital Disciplined Growth
General Market Strategy Business Looking introduction trends execution performance ahead SELECTIVE CAPITAL DISCIPLINED GROWTH Total investments 2005-2019 Expansion capex** In EUR million In EUR million; 100% = EUR 3,200 million 3,284 ~300 Remaining Vopak share in capex (Group 2,235 capex and equity
Slide 27: Selective Capital Disciplined Growth: Leverage
General Market Strategy Business Looking introduction trends execution performance ahead SELECTIVE CAPITAL DISCIPLINED GROWTH Maximum ratio under other PP programs and syndicated Senior net debt : EBITDA ratio revolving credit facility 5 Maximum ratio under current US PP programs 4 3.75 3.0 3 2.75 2
Slide 28: Capital Structure
General Market Strategy Business Looking introduction trends execution performance ahead 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 capitalization: SGD
Slide 29: Debt Repayment Schedule
General Market Strategy Business Looking introduction trends 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 2024 2025 2
Slide 30: Net Finance Costs
General Market Strategy Business Looking introduction trends execution performance ahead NET FINANCE COSTS Net finance costs HY1 2014 Net finance costs HY1 2015 In EUR million In EUR million Interest and dividend income 3.1 6.1 Finance costs -50.6 -53.7 Net finance costs -47.5 -47.6 Net interest bea
Slide 31: Solvency Ratio
General Market Strategy Business Looking introduction trends execution performance ahead SOLVENCY RATIO Total equity and liabilities In EUR million 5,336 5,226 4,644 4,386 4,152 3,649 Net 64% 62% 58% Liabilities* 2,947 60% 2,585 56% 58% 1,997 55% 1,703 61% 56% 57% 44% 40% 42% 36% 38% Equity 45% 42%
Slide 32: Dividend Growth
General Market Strategy Business Looking introduction trends execution performance ahead DIVIDEND GROWTH Dividend and EPS 2006-2014** In EUR 2.73 2.45 2.31 2.08 2.16 1.92 Dividend policy: 1.62 Barring exceptional 1.31 circumstances, the 0.98 intention is to pay an annual cash dividend of 25-50% 0.70
Slide 33: Strategy Execution: Operational Leadership
General Market Strategy Business Looking introduction trends execution performance ahead STRATEGY EXECUTION OPERATIONAL LEADERSHIP ROYAL VOPAK Q3 2015 – ROADSHOW PRESENTATION
Slide 34: Execution of the Business
General Market Strategy Business Looking introduction trends execution performance ahead EXECUTION OF THE BUSINESS Safety Efficiency Service improvement Committed to improving our Continuous focus on cost Always working on service personal and process safety management and capital improvements for o
Slide 35: Sustainability
General Market Strategy Business Looking introduction trends execution performance ahead SUSTAINABILITY Health and safety Environmental care Responsible partner Excellent people Provide a healthy Be energy and water Be a responsible Have the right people and safe workplace efficient and reduce partn
Slide 36: Safety Performance
General Market Strategy Business Looking introduction trends 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 employees and contractors worked by ow
Slide 37: Strategy Execution: Customer Leadership
General Market Strategy Business Looking introduction trends execution performance ahead STRATEGY EXECUTION CUSTOMER LEADERSHIP ROYAL VOPAK Q3 2015 – ROADSHOW PRESENTATION
Slide 38: Business Model
General Market Strategy Business Looking introduction trends execution performance ahead BUSINNES MODEL Blending nitrogen Adding / cooling Heating / unloading of ships / railcars / trucks Loading Excess througput fees Monthly invoicing in arrears Services Fixed rental fees for capacity Fixed number
Slide 39: Global, Regional and Local Clients
General Market Strategy Business Looking introduction trends 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. location on a reg
Slide 40: Market Share According to Definition
General Market Strategy Business Looking introduction trends 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 137.8 36.2 174.0 Secondary competition 90.0 1
Slide 41: EBIT(DA) Margin Development
General Market Strategy Business Looking introduction trends execution performance ahead EBIT(DA) MARGIN DEVELOPMENT 50 45 40 EBITDA 35 30 25 EBIT 20 15 10 5 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD Q3 2015 Strategic priorities are supporting the steady margin developments Vo
Slide 42: Contract Duration
General Market Strategy Business Looking introduction trends execution performance ahead 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% < 1 year 1-3 year >
Slide 43: Business Performance: Q3 2015 Update
Highlights Strategy Business Selective Looking Question & Appendix HY1 2015 execution performance growth ahead answers divisional results BUSINESS PERFORMANCE Q3 2015 UPDATE ROYAL VOPAK Q3 2015 – ROADSHOW PRESENTATION Analyst presentation HY1 2015 21 August 2015
Slide 44: YTD Q3 Business Highlights
General Market Strategy Business Looking introduction trends execution performance ahead YTD Q3 BUSINESS HIGHLIGHTS Revenues Occupancy rate (in EUR million) (in percent) +5% +3pp 968 985 1,036 88 89 92 2013 2014 2015 2013 2014 2015 EBITDA* & Net Profit** Cash flow*** (in EUR million) (in EUR million
Slide 45: YTD Q3 Revenues by Division
General Market Strategy Business Looking introduction trends execution performance ahead YTD Q3 REVENUES BY DIVISION EUR 1,036 million (+5%) Netherlands +5% EMEA 1,036 Americas 982 968 985 Asia 28% 35% 854 19% 18% 2011 2012 2013 2014 2015 Favourable foreign currency effect thanks to our well-diver
Slide 46: Occupancy Rate Developments
General Market Strategy Business Looking introduction trends execution performance ahead OCCUPANCY RATE DEVELOPMENTS 92% commercial occupancy (+3pp) “Full potential 90-95% playing field” 85-90% 94 96 95 94 92 93 93 91 88 89 92 89 88 91 91 93 84 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ‘13 YTD YTD Q3 Q4 Q
Slide 47: Occupancy Rate Developments per Division
General Market Strategy Business Looking introduction trends execution performance ahead OCCUPANCY RATE DEVELOPMENTS PER DIVISION Q3 Q4 Q1 Q2 Q3 2014 2014 2015 2015 2015 Netherlands and EMEA operate in the full potential playing field 92% 95% 95% 88% 85% Americas continue to show stable performa
Slide 48: YTD Q3 2015 EBITDA Analysis
General Market Strategy Business Looking introduction trends execution performance ahead YTD Q3 2015 EBITDA ANALYSIS 12.2 2.9 4.0 17.7 36.3 604.7 602.1 22.7 7.8 8.9 568.4 Acquisitions/ YTD Q3 FX-effect YTD Q3 Pre-OPEX Netherlands EMEA Americas LNG Asia Other YTD Q3 Divestments, Greenfields, 2014 201
Slide 49: YTD Q3 2015 EBITDA Development
General Market Strategy Business Looking introduction trends execution performance ahead YTD Q3 2015 EBITDA DEVELOPMENT EUR 602 million (+6%) 27 joint ventures & 3 associates (11.7 million cbm = 34% of total capacity) +6% 602 Net result (EUR 77 million) by division: 576 570 568 Netherlands 459 EMEA
Slide 50: YTD Q3 2015 Non-IFRS Proportional Information
General Market Strategy Business Looking introduction trends execution performance ahead YTD Q3 2015 NON-IFRS PROPORTIONAL INFORMATION Proportionate EBITDA* Large greenfields commissioned In EUR million +9% 626 619 670 Balanced risk-return profile 612 467 CFROGA (after tax) exceeding 10% 2011
Slide 51: Q3 Asia Dynamics in Perspective
General Market Strategy Business Looking introduction trends execution performance ahead Q3 ASIA DYNAMICS IN PERSPECTIVE Improved occupancy rate, from 85% in Q2 to 89% in Q3, in 2015* Oil products – solid drivers in an uncertain world o High utilization rates refineries and increased crude deman
Slide 52: Cash Flow Development
General Market Strategy Business Looking introduction trends execution performance ahead CASH FLOW DEVELOPMENT Cash flow from operating activities (gross) In EUR million 751 713 659 496 451 455 387 335 286 513 557 549 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q3 2015 Undiminished focus on free ca
Slide 53: Business Performance: Divisional Results
General Market Strategy Business Looking introduction trends execution performance ahead BUSINESS PERFORMANCE DIVISIONAL RESULTS ROYAL VOPAK Q3 2015 – ROADSHOW PRESENTATION
Slide 54: YTD Q3 2015 Netherlands Development
General Market Strategy Business Looking introduction trends execution performance ahead YTD Q3 2015 NETHERLANDS DEVELOPMENT EBITDA* In EUR million 199 181 192 209 147 2011 2012 2013 2014 2015 Occupancy rate** In percent 94% 90% 83% 87% 94% 2011 2012 2013 2014 2015 Storage capacity High demand for
Slide 55: YTD Q3 2015 EMEA Development
General Market Strategy Business Looking introduction trends execution performance ahead YTD Q3 2015 EMEA DEVELOPMENT EBITDA* In EUR million 92 101 101 87 94 2011 2012 2013 2014 2015 Occupancy rate** In percent 90% 88% 89% 83% 92% 2011 2012 2013 2014 2015 Storage capacity Increased activity level
Slide 56: YTD Q3 2015 Asia Development
General Market Strategy Business Looking introduction trends execution performance ahead YTD Q3 2015 ASIA DEVELOPMENT EBITDA* In EUR million 175 206 214 213 215 2011 2012 2013 2014 2015 Occupancy rate** In percent 94% 95% 95% 95% 88% 2011 2012 2013 2014 2015 Positive FX effects Storage capacity In
Slide 57: YTD Q3 2015 Americas Development
General Market Strategy Business Looking introduction trends execution performance ahead YTD Q3 2015 AMERICAS DEVELOPMENT EBITDA* In EUR million 77 74 76 87 67 2011 2012 2013 2014 2015 Occupancy rate** In percent 91% 94% 90% 90% 90% 2011 2012 2013 2014 2015 High activity level in North Americas St
Slide 58: Looking Ahead
Highlights Strategy Business Selective Looking Question & Appendix HY1 2015 execution performance growth ahead answers LOOKING AHEAD ROYAL VOPAK Q3 2015 – ROADSHOW PRESENTATION Analyst presentation HY1 2015 21 August 2015
Slide 59: 2015 Outlook Assumptions
General Market Strategy Business Looking introduction trends execution performance ahead 2015 OUTLOOK ASSUMPTIONS 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 ~0 - 5 years ~1 - 5 y
Slide 60: 2015 EBITDA Outlook
General Market Strategy Business Looking introduction trends execution performance ahead 2015 EBITDA OUTLOOK The financial effects of the The initial negative financial Cautious on the supply and demand realized divestments contribution from the start up of scenarios for specific terminals new termi
Slide 61: Other Topics
Highlights Strategy Business Selective Looking Question & Appendix HY1 2015 execution performance growth ahead answers OTHER TOPICS ROYAL VOPAK Q3 2015 – ROADSHOW PRESENTATION Analyst presentation HY1 2015 21 August 2015
Slide 62: FX Translation Effects
General Market Strategy Business Looking introduction trends execution performance ahead FX TRANSLATION EFFECTS YTD Q3 2015 EBITDA transactional currencies FX translation-effect on YTD Q3 2015 EBITDA In percent In EUR million USD SGD 22% Netherlands EUR Other EMEA 5.4 Asia 27.0 39% 16% Americas 3.0
Slide 63: Other Topics
General Market Strategy Business Looking introduction trends 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 63 Roadshow presentation Q3 2015
Slide 64: The World of Vopak
THE WORLD OF VOPAK COMPANY UPDATE ROYAL VOPAK Q3 2015 – ROADSHOW PRESENTATION