Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — H1 2016 Earnings Presentation
40 slides from Royal Vopak Nv's earnings presentation, Aug 19, 2016
Slide 1: Half Year 2016 Results
HALF YEAR 2016 RESULTS ROYAL VOPAK ANALYST PRESENTATION – AUGUST 19, 2016
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: Eelco Hoekstra, Chairman of the Executive Board and CEO
Eelco Hoekstra CHAIRMAN OF THE EXECUTIVE BOARD AND CEO ROYAL VOPAK ANALYST PRESENTATION – AUGUST 19, 2016
Slide 4: HY1 2016 Review
HY1 2016 KEY BUSINESS MARKET STRATEGY REVIEW TOPICS HIGHLIGHTS ENVIRONMENT EXECUTION HY1 2016 REVIEW Completion of divested terminals impact financial results Revenues amounted to EUR 679.9 million, 3% lower than the first six months of 2015. Adjusted for divestments, revenue increased by 4%.
Slide 5: Topics HY1 2016
HY1 2016 KEY BUSINESS MARKET STRATEGY REVIEW TOPICS HIGHLIGHTS ENVIRONMENT EXECUTION TOPICS HY1 2016 Portfolio Geopolitical and Safety optimization economic events legislations Divestments Faded business Stringent safety circumstances and regulations mainly in Greenfield projects changing pr
Slide 6: HY1 2016 Business Highlights
HY1 2016 KEY BUSINESS MARKET STRATEGY REVIEW TOPICS HIGHLIGHTS ENVIRONMENT EXECUTION HY1 2016 BUSINESS HIGHLIGHTS SOLID FINANCIAL RESULTS, REVENUES DOWN DUE TO DIVESTMENTS Terminal network * Revenues ** In million cbm In EUR million -2% -3% 33.6 vs. FY 2015 vs. HY1 2015 680 Occupancy rate** EBITDA**
Slide 7: Key Safety Indicators
HY1 2016 KEY BUSINESS MARKET STRATEGY REVIEW TOPICS HIGHLIGHTS ENVIRONMENT EXECUTION KEY SAFETY INDICATORS Total injury rate (TIR) Lost time injury rate (LTIR) Total injuries per 200,000 hours worked by Total injuries leading to lost time per 200,000 hours own employees and contractors worked by own
Slide 8: Product Developments HY1 2016
HY1 2016 KEY BUSINESS MARKET STRATEGY REVIEW TOPICS HIGHLIGHTS ENVIRONMENT EXECUTION PRODUCT DEVELOPMENTS HY1 2016 Crude oil & oil products LNG o Volatile market dominated o Increases in LNG by uncertainty, driven by supply due to new geopolitical and plants ramping up in environmental events Austra
Slide 9: Business Environment HY1 2016
HY1 2016 KEY BUSINESS MARKET STRATEGY REVIEW TOPICS HIGHLIGHTS ENVIRONMENT EXECUTION BUSINESS ENVIRONMENT HY1 2016 Netherlands EMEA Asia Americas o Favorable market o Strong demand for road o Oversupply middle o Healthy chemicals circumstances in the fuels and stable bunker distillates persists due
Slide 10: Focus at Existing Terminals
HY1 2016 KEY BUSINESS MARKET STRATEGY REVIEW TOPICS HIGHLIGHTS ENVIRONMENT EXECUTION FOCUS AT EXISTING TERMINALS OPERATIONAL LEADERSHIP 1. Safety o Maximizing operational safety o Minimizing environmental impact 2. Effectiveness o Maximizing operational productivity o Reducing the cost of our custom
Slide 11: Focus on Business Development: Vopak's Terminal Portfolio
HY1 2016 KEY BUSINESS MARKET STRATEGY REVIEW TOPICS HIGHLIGHTS ENVIRONMENT EXECUTION FOCUS ON BUSINESS DEVELOPMENT VOPAK’S TERMINAL PORTFOLIO Major hubs New operations in Bahia Las Minas, Panama Clean petroleum products and marine fuels Operatorship: 509,000 cbm - Q3 2016 Industrial terminals
Slide 12: Storage Capacity Development
HY1 2016 KEY BUSINESS MARKET STRATEGY REVIEW TOPICS HIGHLIGHTS ENVIRONMENT EXECUTION STORAGE CAPACITY DEVELOPMENT NET DECREASE VS. YEAR-END DUE TO DIVESTMENT UK ASSETS AND JV NIPPON VOPAK +4.5 3.9 38.1 Storage capacity developments In million cbm -0.7 34.3 0.2 0.6 33.6 0.9 FY 2015 Brownfield Divestm
Slide 13: Jack de Kreij, Vice-Chairman and CFO
Jack de Kreij VICE-CHAIRMAN OF THE EXECUTIVE BOARD AND CFO ROYAL VOPAK ANALYST PRESENTATION – AUGUST 19, 2016
Slide 14: Key Topics
KEY OUTLOOK RESULTS CAPITAL STRATEGIC KEY TOPICS 2016 HY1 2016 ALLOCATION PRIORITIES TAKE AWAYS KEY TOPICS OUTLOOK FY 2016 KEY FIGURES HY1 2016 CAPITAL MANAGEMENT GROWTH OPPORTUNITIES STRATEGIC PRIORITIES 14 Analyst presentation HY1 2016 August 19, 2016
Slide 15: Outlook 2016
KEY OUTLOOK RESULTS CAPITAL STRATEGIC KEY TOPICS 2016 HY1 2016 ALLOCATION PRIORITIES TAKE AWAYS OUTLOOK 2016 FY 2015 Business Expansions Divestments FX effect FY 2016 developments and acquisitions and other and operational efficiency Note: for illustration purposes only “Vopak’s positive business de
Slide 16: HY1 2016 Occupancy Rate Exceeds 90%
KEY OUTLOOK RESULTS CAPITAL STRATEGIC KEY TOPICS 2016 HY1 2016 ALLOCATION PRIORITIES TAKE AWAYS HY1 2016 OCCUPANCY RATE EXCEEDS 90% FROM 91% IN HY1 2015 TO 94% IN HY1 2016 Occupancy rate* In percent +3pp 90-95% 85-90% 92 93 94 94 94 88 88 91 91 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 17: HY1 2016 Key Figures
KEY OUTLOOK RESULTS CAPITAL STRATEGIC KEY TOPICS 2016 HY1 2016 ALLOCATION PRIORITIES TAKE AWAYS HY1 2016 KEY FIGURES SOLID RESULTS SUPPORTED BY HEALTHY OCCUPANCY RATES Revenues* EBITDA** +3% In EUR million -3% In EUR million 700.7 420.9 408.4 679.9 647.2 366.5 2014 2015 2016 2014 2015 2016 EBIT** Ne
Slide 18: Impact Divestments HY1 2016 Results
KEY OUTLOOK RESULTS CAPITAL STRATEGIC KEY TOPICS 2016 HY1 2016 ALLOCATION PRIORITIES TAKE AWAYS IMPACT DIVESTMENTS HY1 2016 RESULTS PROFORMA RESULTS INCLUDING THE DIVESTMENTS Revenues** US: Galena Park and In EUR million +4% Wilmington terminals Finland UK 727.0 10-06-2015 31-05-2016 700.7 -47.1 679
Slide 19: HY1 2016 EBITDA Analysis
KEY OUTLOOK RESULTS CAPITAL STRATEGIC KEY TOPICS 2016 HY1 2016 ALLOCATION PRIORITIES TAKE AWAYS HY1 2016 EBITDA ANALYSIS WELL-DIVERSIFIED PORTFOLIO SUPPORTING EBITDA INCREASE +3% 6.8 0.7 420.9 3.0 2.3 5.8 408.4 10.8 399.0 12.2 9.4 15.1 Acquisitions/ Pre-OPEX Divestments Greenfields , HY1 FX-effect H
Slide 20: HY1 2016 Exceptional Items
KEY OUTLOOK RESULTS CAPITAL STRATEGIC KEY TOPICS 2016 HY1 2016 ALLOCATION PRIORITIES TAKE AWAYS HY1 2016 EXCEPTIONAL ITEMS Consolidated statement of income EPS Consolidated statement of income EPS -excluding exceptional items- 1.36 -including exceptional items- 3.02 In EUR million In EUR million 497
Slide 21: Q2 2016 Key Figures excluding Exceptional Items
KEY OUTLOOK RESULTS CAPITAL STRATEGIC KEY TOPICS 2016 HY1 2016 ALLOCATION PRIORITIES TAKE AWAYS Q2 2016 KEY FIGURES -EXCLUDING EXCEPTIONAL ITEMS- Revenues* EBITDA** In EUR million -5% In EUR million +2% 351.2 350.4 214.7 347.9 209.4 206.2 202.2 334.9 332.0 193.7 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2015 20
Slide 22: Margin Developments
KEY OUTLOOK RESULTS CAPITAL STRATEGIC KEY TOPICS 2016 HY1 2016 ALLOCATION PRIORITIES TAKE AWAYS MARGIN DEVELOPMENTS BALANCED RISK-RETURN PROFILE AND FOCUS ON COST COMPETITIVENESS EBIT(DA) margin* In percent 60 EBITDA margin EBIT margin 45 30 15 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 201
Slide 23: HY1 2016 Return Indicators
KEY OUTLOOK RESULTS CAPITAL STRATEGIC KEY TOPICS 2016 HY1 2016 ALLOCATION PRIORITIES TAKE AWAYS HY1 2016 RETURN INDICATORS FOCUS ON FREE CASH FLOW AND PROFITABLE GROWTH NON-IFRS IFRS BASED PROPORTIONAL ROE* ROCE** CFROGA*** (after interest, after tax) (before interest, before tax) (before interest,
Slide 24: HY1 2016 IFRS vs. Non-IFRS Proportionate Information
KEY OUTLOOK RESULTS CAPITAL STRATEGIC KEY TOPICS 2016 HY1 2016 ALLOCATION PRIORITIES TAKE AWAYS HY1 2016 IFRS VS. NON-IFRS PROPORTIONATE INFORMATION IFRS BASED NON-IFRS PROPORTIONAL +3pp +4pp Occupancy rate Occupancy rate In percent In percent 94 94 91 90 88 88 2014 2015 2016 2014 2015 2016 +3% +3%
Slide 25: Disciplined Selective Growth
KEY OUTLOOK RESULTS CAPITAL STRATEGIC KEY TOPICS 2016 HY1 2016 ALLOCATION PRIORITIES TAKE AWAYS DISCIPLINED SELECTIVE GROWTH INVESTMENTS AND DIVESTMENTS Japan UK assets Jubail Panama -203,200 cbm 348,000 cbm -696,600 cbm 509,000 cbm 220,000 cbm 360,000 cbm Fuijairah Alemoa 478,000 cbm PT2SB 14,000 c
Slide 26: Value Creation
KEY OUTLOOK RESULTS CAPITAL STRATEGIC KEY TOPICS 2016 HY1 2016 ALLOCATION PRIORITIES TAKE AWAYS VALUE CREATION DISCIPLINED CAPITAL ALLOCATION Total investments 2004-2019 Expansion capex** In EUR million In EUR million; 100% = EUR 2,300 million 2,610 2,588 Remaining ~300 Vopak share in capex (Group c
Slide 27: Headroom for Growth
KEY OUTLOOK RESULTS CAPITAL STRATEGIC KEY TOPICS 2016 HY1 2016 ALLOCATION PRIORITIES TAKE AWAYS HEADROOM FOR GROWTH MAINTAINING A SOLID FINANCIAL POSITION Senior net debt : EBITDA ratio Maximum ratio under other PP programs and syndicated revolving credit facility 5 Maximum ratio under current US PP
Slide 28: Status Strategic Priorities
KEY OUTLOOK RESULTS CAPITAL STRATEGIC KEY TOPICS 2016 HY1 2016 ALLOCATION PRIORITIES TAKE AWAYS STATUS STRATEGIC PRIORITIES EXECUTION ON TRACK Strategic Reduce Enhance capital and Growth Sustaining capex organizational efficiency 4 100 Sharpen focus on free terminal types EUR million cash flow g
Slide 29: Key Take Aways
KEY OUTLOOK RESULTS CAPITAL STRATEGIC KEY TOPICS 2016 HY1 2016 ALLOCATION PRIORITIES TAKE AWAYS KEY TAKE AWAYS HY1 2016 RESULTS PROVIDE A HEALTHY BASIS FOR THE FULL YEAR 2016 PERFORMANCE ROBUST EBITDA MARGIN DEVELOPMENTS, SUPPORTED BY BALANCED RISK-RETURN PROFILE AND CONTINUOUS FOCUS ON COST COM
Slide 30: Questions and Answers
QUESTIONS AND ANSWERS ROYAL VOPAK ANALYST PRESENTATION – AUGUST 19, 2016 For more information please contact: Media contact: Liesbeth Lans, Manager External Communications Telephone: +31 (0)10 400 2777, e-mail: global.communication@vopak.com Investor Relations contact: Chiel Rietvelt, Head of Invest
Slide 31: Appendix
APPENDIX ROYAL VOPAK ANALYST PRESENTATION – AUGUST 19, 2016
Slide 32: Occupancy Rate Developments per Division
OCCUPANCY RATE DEVELOPMENTS PER DIVISION Occupancy rates In percent 96 96 96 96 95 95 95 95 94 92 92 92 91 91 91 91 91 90 89 Q2 2015 85 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Netherlands EMEA Asia Americas Note: occupancy rates include subsidiaries only 32 Analyst presentation HY1 2016 August 19, 2016
Slide 33: Netherlands Development
HY1 2016 NETHERLANDS DEVELOPMENT Occupancy rate* In percent +3pp 93 96 90 87 84 2012 2013 2014 2015 2016 Revenues* In percent +6% 251.9 Storage capacity 223.6 219.2 220.0 237.4 In million cbm +1% 2012 2013 2014 2015 2016 9.9 10.0 EBITDA** In EUR million 9.4 9.5 +8% 148.0 8.8 129.5 137.2 119.4 123.7
Slide 34: EMEA Development
HY1 2016 EMEA DEVELOPMENT Occupancy rate* In percent +4pp 91 95 88 89 81 2012 2013 2014 2015 2016 Revenues* In percent -25% 126.9 135.1 Storage capacity 117.8 119.8 101.5 In million cbm 2012 2013 2014 2015 2016 9.5 9.6 EBITDA** 9.0 -7% In EUR million 8.5 -4% 69.0 68.4 65.1 7.9 62.7 57.0 2012 2013 20
Slide 35: Asia Development
HY1 2016 ASIA DEVELOPMENT Occupancy rate* In percent +4pp 95 95 95 92 88 2012 2013 2014 2015 2016 Revenues* In percent -1% 193.0 191.9 Storage capacity 174.1 182.3 177.6 In million cbm +13% 2012 2013 2014 2015 2016 11.5 EBITDA** 10.2 In EUR million +1% 8.5 7.4 148.7 150.2 7.3 143.9 134.7 136.4 2012
Slide 36: Americas Development
HY1 2016 AMERICAS DEVELOPMENT Occupancy rate* In percent +2pp 94 91 92 90 90 2012 2013 2014 2015 2016 Revenues* In percent 130.1 134.4 134.1 Storage capacity 124.3 119.4 In million cbm 2012 2013 2014 2015 2016 3.7 EBITDA** +3% In EUR million +4% 3.4 59.4 61.9 3.3 3.3 3.3 51.7 52.0 49.2 2012 2013 201
Slide 37: Net Result of JVs and Associates
HY1 2016 NET RESULT OF JVS AND ASSOCIATES Netherlands Americas -38% 1.3 1.2 1.3 0.8 0.6 0.2 0.1 0.1 2013 2014 2015 2016 2013 2014 2015 2016 Net result of JVs Global LNG EMEA and associates +65% +13% 20.2 -2% 18.7 62.7 11.3 15.2 14.0 16.9 16.5 9.6 56.9 55.4 42.4 2013 2014 2015 2016 2013 2014 2015 201
Slide 38: External Financing
EXTERNAL FINANCING Debt repayment schedule RCF flexibility US PP In EUR million RCF drawn Asian PP Subordinated US PP Other 1,200 1,100 1,000 400 300 200 100 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2040 38 Analyst presentation HY1 2016 August 19, 2016
Slide 39: Net Finance Costs
NET FINANCE COSTS Net finance costs HY 2016 Net finance costs HY 2015 In EUR million In EUR million Interest and dividend income 6.0 6.1 Finance costs -61.9 -53.7 Net finance costs -55.9 -47.6 Net interest bearing debt Average interest rate In EUR million (after hedging) In percent 2,266 2,296 7.0%
Slide 40: Other Topics
OTHER TOPICS Effective tax rate* HY 2016 EBITDA* transactional currencies In percent In percent 21.0 21.2 21% 18.2 16.5 USD SGD EUR 15% 39% Other HY 2013 HY 2014 HY 2015 HY 2016 25% Funding level Dutch pension fund FX translation-effect on HY 2016 EBITDA* In percent In EUR million 112 118 121 117 Ne