Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Shareholder Meeting (April 2009)
58 slides from Royal Vopak NV's shareholder meeting presentation, Apr 23, 2009
Slide 1: Annual General Meeting 2009
_ Annual General Meeting 2009 23 April 2009 – – –
Slide 2: The world of Vopak
The world of Vopak – – – Annual General Meeting 2009 23 April 2009 2
Slide 3: Agenda
Agenda Highlights 2008 Highlights Q1 2009 Vopak: A robust company Business performance 2008 Business performance Q1 09 Outlook – – – Annual General Meeting 2009 23 April 2009 3
Slide 4: 2008: Another good year for Vopak
2008: Another good year for Vopak Added 5.3 mio CBM storage capacity Improvements in safety performance TIR Number of injuries per mln hours worked 6.5 6 5.5 5 4.5 4 2007 2008 High occupancy rate Strong business performance EBIT excl. exceptionals In EUR mln 350 325 +17% 94% 96% 95% 92% 300 275 250
Slide 5: Strategic highlight: Company growth
Strategic highlight: Company growth Acquisition: Bahamas Storage capacity in mln cbm Merger: Vopak E.O.S., Tallinn Brownfield: Banyan, Singapore Greenfield: Left Bank, Antwerp – – – Annual General Meeting 2009 23 April 2009 5
Slide 6: Expansions at existing terminals
Expansions at existing terminals Galena Park, USA Barranquilla, Colombia Penjuru, Singapore Product: Chemicals Product: Chemicals Product: Chemicals Capacity: 9,500 cbm Capacity: 6,500 cbm Capacity: 22,000 cbm – – – Annual General Meeting 2009 23 April 2009 6
Slide 7: Acquisitions in 2008
Acquisitions in 2008 Nagoya, Japan Product: Chemicals Capacity: 37,300 cbm Moji, Japan Product: Chemicals Capacity: 46,400 cbm South Wilmington, USA Product: Chemicals Capacity: 49,760 cbm Merak, Indonesia Product: Chemicals Capacity: 76,900 cbm – – – Annual General Meeting 2009 23 April 2009 7
Slide 8: New terminal under construction: Gate terminal
New terminal under construction Gate terminal Launching customers: Division: LNG Start operations: 2H 2011 Capacity: 540,000 cbm Product: LNG – – – Annual General Meeting 2009 23 April 2009 8
Slide 9: The growth of Vopak: Projects in progress
The growth of Vopak: Projects in progress – – – Annual General Meeting 2009 23 April 2009 9
Slide 10: Strategic highlight: Customer excellence
Strategic highlight: Customer excellence Based on a world wide customer survey the service principles campaign was launched to further improve our customer service – – – Annual General Meeting 2009 23 April 2009 10
Slide 11: Strategic highlight: Operational efficiency
Strategic highlight: Operational efficiency Standardization: “The Vopak Way” – – – Annual General Meeting 2009 23 April 2009 11
Slide 12: Strategic highlight: Employee Survey
Strategic highlight: Employee Survey High involvement Job satisfaction Personal development On-the-job coaching Learning networks – – – Annual General Meeting 2009 23 April 2009 12
Slide 13: Accelerated strategy execution
Accelerated strategy execution EXCELLENT EXCELLENT CUSTOMER CUSTOMER MAXIMUM MAXIMUM OPERATIONAL OPERATIONAL SERVICE SERVICE EFFICIENCY EFFICIENCY •• Key Key Account Account Management Management •• Operational Operational Efficiency Efficiency •• Customer Customer Metrics Metrics Improvements Impro
Slide 14: Agenda
Agenda Highlights 2008 Vopak: A robust company Highlights Q1 2009 Business performance 2008 Business performance Q1 09 Outlook – – – Annual General Meeting 2009 23 April 2009 14
Slide 15: Vopak's challenge
Vopak’s challenge The challenge is to facilitate the current and future product flows: – – – Annual General Meeting 2009 23 April 2009 15
Slide 16: Drivers of structural growth in demand remain
Drivers of structural growth in demand remain Countries setting individual specifications for products Liberalization of previously closed economies Increasing geographical imbalances Growing demand for environmentally friendlier fuels – – – Annual General Meeting 2009 23 April 2009 16
Slide 17: Robust revenue line!
Robust revenue line! Diverse portfolio of stored products Strong regional diversification Latin Oil America CEMEA North America Biofuels (incl. vegoils) Chemicals Asia OEMEA Various contract durations Well spread client base 100% < 1yr 75% Top 10 50% 1yr < > 3yr 29% 25% > 3yr 0% 2007 2008 – – – Annu
Slide 18: Various initiatives supporting robustness
Various initiatives supporting robustness EXCELLENT EXCELLENT CUSTOMER CUSTOMER MAXIMUM MAXIMUM OPERATIONAL OPERATIONAL SERVICE SERVICE EFFICIENCY EFFICIENCY •• Key Key Account Account Management Management •• Operational Operational Efficiency Efficiency Improvement Improvement •• Focus Focus on se
Slide 19: Agenda
Agenda Highlights 2008 Vopak: A robust company Highlights Q1 2009 Business performance 2008 Business performance Q1 09 Outlook – – – Annual General Meeting 2009 23 April 2009 19
Slide 20: Q1 2009 Highlights
Q1 2009 Highlights EBIT excl. exceptional items up 8% to EUR 85.6 mln (Q1 2008 EUR 79.2 mln) EBITDA excl. exceptional items increased by 10% to EUR 115.6 mln (Q1 2008 EUR 105.5 mln) Increase in Vopak storage capacity by 0.3 mln cbm, total capacity of 27.4 mln cbm Gate terminal: Expansion project fin
Slide 21: Growth continues
Growth continues Tallinn, Estland Gothenburg, Sweden Teesside, UK Product: Oil Product: Oil Product: Chemicals Capacity: 111,000 cbm Capacity: 60,000 cbm Capacity: 40,000 cbm In cbm YE 2008 Capacity 27.1 mln Total net capacity increase in Q1 2009 0.3 mln Q1 2009 YTD Capacity 27.4 mln Remaining 2009
Slide 22: Confidence in the future!
“Confidence in the future!” – – – Annual General Meeting 2009 23 April 2009 22
Slide 23: Agenda
Agenda Highlights 2008 Vopak: A robust company Highlights Q1 2009 Business performance 2008 Business performance Q1 09 Outlook – – – Annual General Meeting 2009 23 April 2009 23
Slide 24: 2008: Another good year for Vopak
2008: Another good year for Vopak ROBUST ROBUST CUSTOMER CUSTOMER FOCUSED FOCUSED OCCUPANCY OCCUPANCY GROWTH GROWTH 94% 96% 95% 92% 20.4 21.2 21.8 27.1 0.8 0.6 5.3 2005 2006 2007 2005 2006 2007 2008 2008 Storage capacity in mln CBM STABLE STABLE MARGINS MARGINS 50% EBITDA margin* 40% EBIT margin* 30
Slide 25: 2008 EBIT excl. exceptional items up 17% to EUR 320.4 mln
2008 EBIT excl. exceptional items: up 17% to EUR 320.4 mln Net Revenues EBIT Net Profit EPS in EUR mln in EUR mln in EUR mln in EUR 923.5 320.4 2.62 3.24 853.0 272.9 163.5 202.1 + + + + 8% 17% 24% 24% 2007 2008 2007 2008 2007 2008 2007 2008 – – – Annual General Meeting 2009 23 April 2009 25
Slide 26: Solid 4th Quarter in 2008
Solid 4th Quarter in 2008 80. 8 82. 8 79. 2 77. 6 71. 8 67. 6 68. 6 64. 9 2007 17% 8% 18% 28% 2008 Q1 Q2 Q3 Q4 EBIT in EUR mln, excl. exceptionals – – – Annual General Meeting 2009 23 April 2009 26
Slide 27: Net Profit 2008 increased by 17%
Net Profit 2008 increased by 17% In EUR mln 2008 2007 ∆% Net Revenues 923.5 853.0 8% EBIT 322.2 292.2 10% Finance Income & Expenses -37.6 -42.9 14% Tax -54.9 -51.2 7% Minority Interests -16.5 -15.2 1% Net Profit 212.0 181.1 17% attributable to holders of ordinary shares EPS 3.40 2.90 17% All figures
Slide 28: Pro forma EBIT 2008 vs 2007: increased by 25%
Pro forma EBIT 2008 vs 2007: increased by 25% In EUR mln, excl. exceptionals 63.3 320.4 272.9 - 8.5 - 7.3 EBIT 2007 Divestments Exchange rate Improvement EBIT 2008 – – – Annual General Meeting 2009 23 April 2009 28
Slide 29: Net Finance Costs decreased
Net Finance Costs decreased In EUR mln 2008 2007 Interest and dividend income 8.5 7.0 Finance costs -46.1 -49.9 Net finance costs -37.6 -42.9 Mainly attributable to: • Lower variable interest rates • Currency effects • Higher capitalized interest on capacity expansion projects • Measurement of hedgi
Slide 30: Slightly decreased effective tax rate
Slightly decreased effective tax rate following settlement of prior-year tax positions Effective Tax Rate Incl. exceptionals 2008 2007 Tax in EUR mln -54.9 -51.2 Tax in % 19.3 % 20.5 % – – – Annual General Meeting 2009 23 April 2009 30
Slide 31: Pensions
Pensions Vopak defined Pension obligations Impact of Dutch Pension obligations 2008 • Pension fund cover ratio Other per year end around 97% 18% 2009 Cash • One-off contribution of EUR 10 mln • Increased pension contribution Dutch 82% IFRS • Estimated 2009 impact EUR 13.8 mln – – – Annual General Me
Slide 32: Proposed dividend
Proposed dividend Proposed 2008 dividend amounts to EUR 1.10 per ordinary share Payable in stock unless a shareholder expressly requests payment in cash Pay-out ratio Dividend Excl. exceptional items Incl. exceptional items In EUR Proposed dividend +16% 40% 1.10 0.95 0.75 25% 0.60 0.50 39% 37% 38% 3
Slide 33: Dividend Distribution
Dividend Distribution Payable in stock unless a shareholder expressly requests payment in cash Option period for cash distribution Dividend distribution 27-04-09 29-04-09 13-05-09 15-05-09 ‘Ex’ dividend date Record date Exchange First possible ratio payment date determined – – – Annual General Meeti
Slide 34: Business performance per Division
Vopak Terminal Europoort Vopak Horizon Fujairah Business performance per Division Vopak Houston Vopak Singapore Deer Park Terminal Sebarok Terminal – – – Annual General Meeting 2009 23 April 2009 34
Slide 35: All Divisions contributed to the 17% 2008 EBIT improvement
All Divisions contributed to the 17% 2008 EBIT* improvement *EBIT in EUR mln, excl. exceptionals North America OEMEA Asia 108.1 82.9 95.5 78.8 31.1 34.4 2007 11% 2008 2007 30% 2008 2007 21% 2008 Latin America CEMEA Other 86.1 89.7 2007 8% 2008 21.1 22.0 2007 4% 2008 2007 4% 2008 -27.1 -29.3 – – – An
Slide 36: Financing
Vopak Terminal Europoort Vopak Horizon Fujairah Financing Vopak Houston Vopak Singapore Deer Park Terminal Sebarok Terminal – – – Annual General Meeting 2009 23 April 2009 36
Slide 37: Solid Financial Position
Solid Financial Position Stable balance sheet and solvency • Total assets EUR 2.6 bln • Total equity EUR 1.0 bln • Solvency >35% since 2004 Financing program in place • Total facilities EUR 1.5 bln • Unused financing capacity EUR 0.7 bln – – – Annual General Meeting 2009 23 April 2009 37
Slide 38: Sufficient headroom to continue growth strategy
Sufficient headroom to continue growth strategy Debt repayment schedule (in EUR mln) • Total financing program around EUR 1.5 bln • No major debt refinancing until 2010 317.9 313.2 180.0 83.7 50.0 25.3 2009 2010 2011 2012 2013 2014 > 2014 Ample financing sources of recent date Facility Maturity In u
Slide 39: Strategic finance
Strategic finance Net debt : EBITDA ratio 2008 2.54 2007 1.71 2006 1.61 2005 1.76 2004 2.20 2003* 2.42 2002* 2.49 0 0.5 1 1.5 2 2.5 3 3.5 4 Maximum Ratio under US PP Maximum Ratio under other loans and syndicated revolving credit facility * Based on Dutch GAAP – – – Annual General Meeting 2009 23 Ap
Slide 40: Investments
Vopak Terminal Europoort Vopak Horizon Fujairah Investments Vopak Houston Vopak Singapore Deer Park Terminal Sebarok Terminal – – – Annual General Meeting 2009 23 April 2009 40
Slide 41: Strong demand for storage capacity
Strong demand for storage capacity Storage capacity (in cbm) 2004 2005 2006 2007 2008 20.2 mln 20.4 mln 21.2 mln 21.8 mln 27.1 mln Occupancy 85% 92% 94% 96% 95% – – – Annual General Meeting 2009 23 April 2009 41
Slide 42: Growth continues with 2.5 mln CBM
Growth continues with 2.5 mln CBM under construction at strategic locations YE 2007 storage capacity 21.8 mln CBM Total net capacity increase in 2008 5.3 mln CBM YE 2008 storage capacity 27.1 mln CBM Remaining 2008 till 2011 (incl. LNG) 2.5 mln CBM Total 29.6 mln CBM Storage capacity in mln CBM 20.4
Slide 43: Total investments
Total investments 800 In EUR mln 446 268 188 146 147 2003* 2004 2005 2006 2007 2008 * Based on Dutch GAAP Remaining Vopak Share Approved & Under Construction Projects EUR 200 mln YE 2008 – – 2011 – Annual General Meeting 2009 23 April 2009 43
Slide 44: Investing in growth
Investing in growth Group companies and joint ventures Around EUR 200 mln Around EUR 1.5 bln Total CAPEX projects 2009-2011 Remaining Vopak share in CAPEX Spent 2009- Approved & Under Construction Projects 2011 Approved & Under Construction Projects Yearly Sustaining Capex +/- EUR 100-125 mln – – –
Slide 45: Expansion projects progressing well
Expansion projects progressing well Vopak Terminal Botlek Vopak Singapore – Banyan 156,000 cbm 398,000 cbm Vopak Terminal Bahamas Vopak Terminal Jakarta 429,000 cbm 250,000 cbm – – – Annual General Meeting 2009 23 April 2009 45
Slide 46: Gate terminal
Gate terminal Gate terminal project: well progressing E.ON Ruhrgas - fourth customer Financing of EUR 745 mln concluded 2007 2008 ? Launching customers: Tanks 3 3 4 Jetties 1 2 2 Throughput 9 bcm 12 bcm 16 bcm Clients 3 4 ? – – – Annual General Meeting 2009 23 April 2009 46
Slide 47: Agenda
Agenda Highlights 2008 Vopak: A robust company Highlights Q1 2009 Business performance 2008 Business performance Q1 09 Outlook – – – Annual General Meeting 2009 23 April 2009 47
Slide 48: Q1 2009 EBIT excl. exceptional items up 8% to EUR 85.6 mln
Q1 2009 EBIT excl. exceptional items up 8% to EUR 85.6 mln In EUR mln Q1 09 Q1 08 ∆ EBIT incl. exceptionals 91.2 79.2 +15% EBIT excl. exceptionals 85.6 79.2 +8% EBITDA 115.6 105.5 +10% Exceptional items Q1 2009 mainly relate to gains on divestments – – – Annual General Meeting 2009 23 April 2009 48
Slide 49: Except for CEMEA, all divisions contribute to the EBIT increase
Except for CEMEA, all divisions contribute to the EBIT* increase of 8% in Q1 2009 *EBIT in EUR mln, excl. exceptional items North America OEMEA Asia 26.0 31.5 23.4 30.6 7.5 11.4 Q1 08 52% Q1 09 Q1 08 21% Q1 09 Q1 08 31% Q1 09 Latin America CEMEA Other 23.1 17.7 5.3 6.4 -6.1 -12.0 Q1 08 21% Q1 09 Q1
Slide 50: Strong demand for storage capacity
Strong demand for storage capacity Occupancy rate 2005 2006 2007 2008 Q1 2009 Q1 2008 96% 95% 95% 95% 20.4 mln 21.2 mln 21.8 mln 27.1 mln 27.4 mln 22.6 mln Capacity (in cbm) 92% 94% 96% 95% 95% 96% – – – Annual General Meeting 2009 23 April 2009 50
Slide 51: Growth continues
Growth continues Vopak Singapore – Banyan Vopak Terminal Teesside 30,300 cbm 40,000 cbm Vopak Terminal Gothenburg V.E.O.S. – Estland 60,000 cbm 111,000 cbm – – – Annual General Meeting 2009 23 April 2009 51
Slide 52: Gate Terminal: Project financing in place
Gate Terminal: Project financing in place July 2008 Gate (9 bcm): EUR 745 mln senior project financing agreement 20 years March 2009 Gate (12 bcm): Additional EUR 136 mln senior project financing agreement 20 years – – – Annual General Meeting 2009 23 April 2009 52
Slide 53: Agenda
Agenda Highlights 2008 Vopak: A robust company Highlights Q1 2009 Business performance 2008 Business performance Q1 09 Outlook – – – Annual General Meeting 2009 23 April 2009 53
Slide 54: Outlook
Outlook “For 2009, Vopak expects a group operating profit before depreciation and amortization (EBITDA) of at least EUR 450 million, in line with the earlier indicated outlook.” – – – Annual General Meeting 2009 23 April 2009 54
Slide 55: Outlook
Outlook Outlook Guidance 2004 2005 2006 2007 2008 2009 In EUR mln > 450 429.3 369.5 314.1 262.5 EBITDA** 231.8 Q1 115.6 320.4 272.9 220.9 EBIT 179.7 151.0 Long-term Long-termguidance guidanceROCE ROCEofof16% 16% * Excluding exceptional items Bearing Bearingininmind mindsubstantial substantial invest
Slide 56: 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 32 countries in which Vopak provides logistics services, the company cannot guarantee the accur
Slide 57: www.vopak.com
– – – – Annual General Meeting 2009 23 April 2009 57 www.vopak.com
Slide 58: Appointment of a member of the Supervisory Board
13. Appointment of a member of the Supervisory Board R.G.M. Zwitserloot 25 August 1949 (59) Dutch CEO of Wintershall AG – – – Annual General Meeting 2009 23 April 2009 58