Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — H1 2013 Earnings Presentation
51 slides from Royal Vopak Nv's earnings presentation, Aug 23, 2013
Slide 1: HY1 2013 results – analyst presentation
HY1 2013 results – analyst presentation 23 August 2013
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: Contents
Contents Highlights HY1 2013 Business environment and strategy execution Business performance Results per division Capital disciplined growth Looking ahead 3 HY1 2013 results 23 August 2013
Slide 4: HY1 2013 EBITDA in line with HY1 2012
HY1 2013 EBITDA in line with HY1 2012 Storage Capacity* Occupancy rate** EBITDA*** Since the end of The occupancy rate EBITDA -excluding December 2012, was 88% in HY1 2013 exceptional items- Vopak’s worldwide versus 91% in HY1 2012 increased 1% to capacity increased by EUR 384.5 million 0.5 mi
Slide 5: Safety and Health
Safety and Health We improved our process and personal safety results The Lost Time Injury Rate (LTIR) Total Injury Rate Total injuries leading to lost time per million hours worked Total injuries per million hours worked by own employees by own employees and contractors 7.5 -64% 6.2 5.8 6.5 -17% 1.
Slide 6: FY 2013 EBITDA outlook
FY 2013 EBITDA outlook Updated from EUR 760-800 million to EUR 730-780 million Start-up delay Crude and gasoil Non-renewal major fuel Uncertainty biofuel Algeciras (Spain) storage in Rotterdam oil contract in L.A. (U.S.) markets (Vlaardingen) Main reasons for updated FY 2013 EBITDA outlook Note: Exc
Slide 7: Contents
Contents Highlights HY1 2013 Business environment and strategy execution Business performance Results per division Capital disciplined growth Looking ahead 7 HY1 2013 results 23 August 2013
Slide 8: Energy and chemical product trends
Energy and chemical product trends Drivers Vopak’s worldwide growth projects Oil products LNG Chemical products Biofuels & Vegoils • In 2013 global oil • LNG trade constrained by • Steady chemicals storage • Global biofuels market demand expected to lack of liquefaction demand across the growing fur
Slide 9: Vopak’s strategy
Vopak’s strategy Disciplined execution existing business and new projects Growth Leadership Operational Excellence Customer Leadership Our ability to find or Our ability to construct, Our ability to create long- identify the right location own, operate and maintain term sustainable for our terminals
Slide 10: Execution of strategy
Execution of strategy Improving our frontline execution and our competitive position Safety Sustainability Efficiency Service Focus on Frontline Execution 10 HY1 2013 results 23 August 2013
Slide 11: Execution of strategy
Execution of strategy Further align Vopak’s terminal network with energy markets dynamics Thames Oilport Petroleumhaven Zhangjiagang Acquired Commissioned Divestment Brownfield under construction Algeciras Vlaardingen Pengerang Greenfield under Construction Upgrading existing terminal Note: This is
Slide 12: Storage Capacity growth under construction
Storage Capacity growth under construction Several additional expansion opportunities currently under study to continue Vopak’s capital-disciplined growth strategy Storage Capacity developments under construction In mln cbm +5.1 0.2 3.6 Other 35.0 Other Jubail Europoort Pengerang Hainan 1.3 Other Al
Slide 13: It is Vopak’s ambition
It is Vopak’s ambition to realize an EBITDA of EUR 1 billion in 2016 The year of 400 years of entrepreneurship Note 1: Excluding exceptional items; including net result from joint ventures and associates, at constant currencies. Note 2: In order to achieve this ambition, among other factors, the ide
Slide 14: Contents
Contents Highlights HY1 2013 Business environment and strategy execution Business performance Results per division Capital disciplined growth Looking ahead 14 HY1 2013 results 23 August 2013
Slide 15: HY1 2013 EBITDA in line with HY1 2012
HY1 2013 EBITDA in line with HY1 2012 2013 EBITDA outlook updated from EUR 760-800 million to EUR 730-780 million EBITDA development* In EUR mln 768.4 730-780 598.2 636.0 513.4 369.5 429.3 314.1 +1% 380.1 384.5 2006 2007 2008 2009 2010 2011 2012 HY1 2013 Occupancy rate** Storage Capacity In percent
Slide 16: Revenue, EBIT and Net profit developments
Revenue, EBIT and Net profit developments Revenues 1,313.9 1,106.3 1,171.9 923.5 1,001.1 778.1 853.0 648.1 683.6 648.8 0% 648.1 2004 2005 2006 2007 2008 2009 2010 2011 2012 HY1 2013 EBIT* 565.7 445.3 469.4 320.4 385.3 220.9 272.9 280.3 151.0 179.7 -1% 282.3 2004 2005 2006 2007 2008 2009 2010 2011 20
Slide 17: Energy and chemical product markets
Energy and chemical product markets Current outlook assumptions and future trends ~x% Share of EBIT* Oil products Chemicals Industrial terminals Biofuels & Vegoils LNG Current (2013) ~60-65% ~17.5-20% ~7.5-10% ~5-7.5% ~2.5-5% Robust ** Steady Solid Mixed** Solid • Non-OECD will be more • North Ameri
Slide 18: Key drivers for EBITDA growth
Key drivers for EBITDA growth Expansion projects main driver for further EBITDA growth Past Near Past Present Future 2003-06 2007-09 2010-2011 2012 2013 2014 > Occupancy improvements Well Full potential playing field between 90 - 95% 85-90 % positioned Operational efficiency gains Capacity expansion
Slide 19: Occupancy rate development
Occupancy rate development Decreased occupancy rate mainly due to challenging crude oil and gasoil storage in Rotterdam (Netherlands) Occupancy rate In percent 90-95% 94 96 95 94 92 93 93 93 91 84 90 90 89 88 ’04 ’05 ’06 ’07 ‘08 ‘09 ‘10 ‘11 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 Note: Subsidiaries only. 19 HY1
Slide 20: Vopak is well positioned to maintain healthy EBIT(DA) margins
Vopak is well positioned to maintain healthy EBIT(DA) margins EBIT(DA) margin* In percent 60 50 EBITDA margin 40 30 EBIT margin 20 10 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 HY1 2013 Continued focus on logistic efficiency improvements for our clients supports healthy EBIT(DA) margins * EBIT(D
Slide 21: Development of Storage Capacity
Development of Storage Capacity Storage Capacity Subsidiaries In mln cbm Joint Ventures +4.6 +0.5 +10.0 34.8 35.0 30.4 31.2 28.3 28.8 27.8 29.9 27.1 13.2 13.3 9.6 9.6 10.3 21.2 21.8 10.2 10.5 8.1 19.9 20.2 20.4 9.6 5.1 4.8 5.1 4.9 5.4 17.5 18.1 18.3 19.7 20.3 20.8 20.9 21.6 21.7 15.1 15.1 15.5 15.8
Slide 22: EBIT HY1 2013 in line with HY1 2012
EBIT HY1 2013 in line with HY1 2012 Q4 2012: Approximately USD 1.0 billion U.S. PP completed Revenues EBIT* In EUR million In EUR million 648.1 648.8 282.3 280.3 0% -1% HY1 2012 HY1 2013 HY1 2012 HY1 2013 Net profit** Earnings per share** In EUR million In EUR 1.34 1.28 171.1 162.5 -4% -5% HY1 2012
Slide 23: Revenue developments
Revenue developments The lower revenue contributions from the Netherlands and Americas were largely offset by revenue growth in Asia and EMEA Americas Netherlands Asia -2% 223.6 219.2 +5% Revenues -4% 174.1 182.3 130.1 124.3 0% 648.1 648.8 HY1 2012 HY1 2013 HY1 2012 HY1 2013 HY1 2012 HY1 2013 EMEA H
Slide 24: EBIT decreased by 1% to EUR 280.3 million
EBIT* decreased by 1% to EUR 280.3 million HY1 2012 HY1 2013 Delta In EUR mln In EUR mln In percent Operating profit 225.7 211.0 -7% Net result joint ventures 56.6 67.8 20% EBIT incl. exceptional items 282.3 278.8 -1% Exceptional gain (loss) 0.0 (1.5) EBIT excl. exceptional items 282.3 280.3 -1% Net
Slide 25: EBIT HY1 2013 in line with HY1 2012
EBIT HY1 2013 in line with HY1 2012 Americas Netherlands Asia +9% -13% 107.2 116.4 95.4 EBIT +1% 82.9 33.3 33.6 -1% 282.3 280.3 HY1 2012 HY1 2013 HY1 2012 HY1 2013 HY1 2012 HY1 2013 EMEA Global LNG HY1 2012 HY1 2013 -8% 52.3 48.1 +17% 10.7 12.5 HY1 2012 HY1 2013 HY1 2012 HY1 2013 Note: EBIT in EUR m
Slide 26: Net result of joint ventures increased by 1%
Net result of joint ventures increased by 1% Increase from Asia and Global LNG, decrease from EMEA Americas Netherlands Asia Net result of JVs +23% +20% +117% 19.4 15.8 +1% 0.5 0.6 0.6 1.3 56.6 56.9 HY1 2012 HY1 2013 HY1 2012 HY1 2013 HY1 2012 HY1 2013 EMEA Global LNG -23% HY1 2012 HY1 2013 +13% 26.
Slide 27: IFRS equity accounting versus proportionate consolidation
IFRS equity accounting versus proportionate consolidation IFRS equity accounting Proportionate consolidation* Revenues Revenues Subsidiaries 830.1 828.5 648.1 648.8 0% 0% HY1 2012 HY1 2013 HY1 2012 HY1 2013 EBITDA EBITDA Subsidiaries and net result from joint ventures and associates 440.6 445.5 380.
Slide 28: Net finance costs aligned with funding of growth
Net finance costs aligned with funding of growth Q4 2012: Approximately USD 1.0 billion U.S. PP completed Net finance costs HY1 2012 Net finance costs HY1 2013 In EUR mln In EUR mln Interest and dividend income 2.2 1.8 Finance costs -43.5 -54.7 Net finance costs -41.3 -52.9 Net interest bearing debt
Slide 29: Effective tax rate HY1 2013
Effective tax rate HY1 2013 Income tax expense In EUR mln 46.0 41.5 -10% HY1 2012 HY1 2013 Effective tax rate In percent 19.1 18.2 -0.9pp HY1 2012 HY1 2013 Note: Excluding exceptional items. 29 HY1 2013 results 23 August 2013
Slide 30: Sources and uses of cash in HY1 2013
Sources and uses of cash in HY1 2013 Consolidated Statement of Cash Flows In EUR mln Net Cash position 1/1/2013* 435.7 Gross operating cash flow 361.0 Net finance costs paid 44.2 Tax paid 27.1 Investments 322.6 Dividend paid in cash** 120.3 Other financing activities 83.4 Various 7.3 Net Cash positi
Slide 31: FX translation-effect on EBIT
FX translation-effect on EBIT Negative currency translation effect 2010 2011 HY1 2012 2012 HY1 2013 In EUR mln In EUR mln In EUR mln In EUR mln In EUR mln EMEA 3.5 (0.6) 0.9 2.6 (0.6) Asia 17.4 5.4 8.2 17.7 Americas 5.8 (2.3) 1.2 2.5 (1.1) Non allocated (0.8) 0.1 (0.3) (0.8) 0.1 Total 25.9 2.6 10.0
Slide 32: Contents
Contents Highlights HY1 2013 Business environment and strategy execution Business performance Results per division Investments and financing Outlook 32 HY1 2013 results 23 August 2013
Slide 33: Netherlands
Netherlands - Higher pension costs and lower occupancy rates in crude, gasoil and biofuel storage - New storage capacity for oil products in Amsterdam Westpoort and Eemshaven EBIT* In EUR million -13% 46.2 46.5 48.9 51.4 48.5 33.5 34.7 41.9 41.8 41.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2011 2011 2011
Slide 34: EMEA
EMEA - New oil terminal in Algeciras (Spain) was opened - Lower results in Estonia - Higher throughputs in the UK EBIT* In EUR million -8% 22.4 23.3 23.9 23.3 24.1 28.2 22.4 25.6 22.5 22.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 Revenues Occupancy rate** Stora
Slide 35: Asia
Asia - Additional chemical storage capacity in Banyan - Stable occupancy rate EBIT* In EUR million +9% 47.4 53.6 53.6 56.6 53.2 57.1 59.3 46.2 45.0 46.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 Revenues Occupancy rate** Storage Capacity In EUR million In percen
Slide 36: Americas
Americas - Lower revenues due to Los Angeles and Ilha Barnabé - Higher activities at the Gulf Coast terminals - Negative currency translation effect of EUR 1.1 million in EBIT EBIT* In EUR million +1% 17.1 15.0 16.4 18.4 16.2 16.6 18.7 13.5 14.9 14.9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2011 2011 2011
Slide 37: Contents
Contents Highlights HY1 2013 Business environment and strategy execution Business performance Results per division Capital disciplined growth Looking ahead 37 HY1 2013 results 23 August 2013
Slide 38: Capital disciplined growth
Capital disciplined growth - Vopak announced 19 July 2013 that it has completed its review of various potential equity-like capital raising alternatives to support its future growth plans. - Vopak proposes that its shareholders, on an EGM on 17 September 2013, vote on the issuance of a new class of
Slide 39: Vopak’s capital structure
Vopak’s capital structure Enabling flexible access to capital markets Private Placement Syndicated Revolving Ordinary Shares* Preference Shares* Programs* Credit Facility* Listed on Euronext Preference Shares 2009 USD: 2.1 billion EUR 1.0 billion Market cap: Not listed SGD: 435 million
Slide 40: Capital disciplined growth
Capital disciplined growth Total investments Total investments 2006-HY1 2013 In million EUR 800 711 643 535 565 446 ~625-860 323 268 2006 2007 2008 2009 2010 2011 2012 HY1 2013 40 HY1 2013 results 23 August 2013
Slide 41: Capital disciplined growth
Capital disciplined growth Total investments Total Investments 2007-2015 Expansion Capex** In billion EUR In billion EUR mln; 100% = EUR 1.7 billion 1.9 1.8 ▪ Remaining ~1.0-1.2 Vopak share in ~1.3 ~0.4 Capex (Group Capex and Other Capex* equity share in ~0.6-0.8 JVs) 0.3 Expansion 0.4 Capex** ▪ Gro
Slide 42: Capital disciplined growth
Capital disciplined growth Balanced leverage provides financial headroom to complete the storage capacity expansions currently under construction and to support the identification of new growth opportunities Access to Capital Markets Net senior debt : EBITDA ratio 5 US Private Placements 3.75 4 3.
Slide 43: Contents
Contents Highlights HY1 2013 Business environment and strategy execution Business performance Results per division Capital disciplined growth Looking ahead 43 HY1 2013 results 23 August 2013
Slide 44: 2013 EBITDA outlook
2013 EBITDA outlook From a historical perspective 2013 EBITDA outlook Historical EBITDA development In EUR million In EUR million Q4 2010 725-800 768.4 until Q1 2012 636.0 598.2 513.4 429.3 Q1 2013 760-800 369.5 314.1 Q2 2013 730-780 2006 2007 2008 2009 2010 2011 2012* * With an EBITDA of EUR 768.4
Slide 45: Outlook assumptions 2013
Outlook assumptions 2013 Healthy demand for our storage services ~x% Share of EBIT* Oil products Chemicals Industrial terminals Biofuels & Vegoils LNG 2012 ~60% ~17.5-20% ~10-12.5% ~7.5-10% ~2.5-5% Robust Mixed Solid Mixed Solid ~60-65% ~17.5-20% ~7.5-10% ~5-7.5% ~2.5-5% 2013 Robust ** Steady Solid
Slide 46: 2013 EBITDA outlook: EUR 730-780 million in 2013
2013 EBITDA* outlook: EUR 730-780 million in 2013 For the remainder of 2013, Vopak expects similar market circumstances as in the first half year of 2013 EBITDA* development and outlook 2013 Historical results In EUR mln Outlook 768.4 730-780 636.0 598.2 513.4 429.3 369.5 314.1 262.5 231.8 384.5 200
Slide 47: Ambition 2016
Ambition 2016 Capacity expansions main driver of EBITDA* growth ambition EBITDA* ambition 2016 In EUR mln +7% CAGR 1,000 768.4 2012 Capacity Changes FX impact Pension impact Approval and 2016 (IAS 19 restated) commissioned occupancy rates execution of / under / tariffs / costs additional constructio
Slide 48: Royal Vopak contact details
Royal Vopak Westerlaan 10 Tel: +31 10 4002911 3016 CK Rotterdam Fax: +31 10 4139829 The Netherlands www.vopak.com
Slide 49: Storage Capacity changes in HY1 2013
Storage Capacity changes in HY1 2013 Storage Capacity increased by 0.5 million cbm Gothenburg (100%) Petroleumhaven (100%) Banyan (69.5%) 100,000 cbm; oil products 75,000 cbm; oil products 102,000 cbm; chemicals (X%) = Ownership % Algeciras (80%) Terquimsa (50%) Commissioned 403,000 cbm; oil product
Slide 50: Various projects under construction
Various projects under construction 4.6 million cbm total Storage Capacity under construction Europoort (100%) Thames Oilport (33.3%) Hainan (49%) 400,000 cbm; oil products 500,000 cbm; oil products 1,350,000 cbm; oil products Jubail (25%) Pengerang (44%) 140,000 cbm; chemicals 1,284,000 cbm; oil pr
Slide 51: Royal Vopak contact details
Royal Vopak Westerlaan 10 Tel: +31 10 4002911 3016 CK Rotterdam Fax: +31 10 4139829 The Netherlands www.vopak.com