Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Shareholder Meeting (April 2013)
49 slides from Royal Vopak Nv's shareholder meeting presentation, Apr 24, 2013
Slide 1: Annual General Meeting of Shareholders
Annual General Meeting of Shareholders 24 April 2013
Slide 2: Forward-looking statements
Forward-looking statements This document 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 fut
Slide 3: Contents
Contents Strategy update and results Growth projects Business performance 2012 Capital disciplined growth Q1 2013 Trading Update Outlook 3 AGM 2012 24 April 2013
Slide 4: Ambition of EBITDA of EUR 1 billion in 2016
It is Vopak’s ambition to realize an EBITDA of EUR 1 billion in 2016 Focused strategy and Long-term trends Aligned organization disciplined execution 4 AGM 2012 24 April 2013
Slide 5: Themes 2012
Themes 2012 Capacity Economic turmoil Iraq and tight oil Renewables Regulation expansion 5 AGM 2012 24 April 2013
Slide 6: Questions arising on the business
Questions arising on the business US oil and gas LNG as Shale gas in European refining Renewables Energy role of export scenarios transport fuel China & petrochemical scenarios Africa 6 AGM 2012 24 April 2013
Slide 7: 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 8: Sustainability foundation
Sustainability foundation The core of every decision Environmental Excellent people Safety and Health Environmental Partner care Responsible partner Have the best people Provide a healthy Be energy and water Be a responsible and create an agile and safe workplace efficient and reduce partner for our
Slide 9: Employee safety and process incidents
Employee safety and process incidents We improved our process and own employee safety results 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 -36% -30
Slide 10: Results in 2012
Results in 2012 Storage capacity*** Occupancy rate** EBITDA* Storage capacity The occupancy rate EBITDA increased 20% increased 8% to was 91% to EUR 763.6 million 29.9 million cbm Vopak achieved already in 2012 its prior 2013 outlook of EUR 725-800 million EBITDA * Excluding exceptional item
Slide 11: Contents
Contents Strategy update and results Growth projects Business performance 2012 Capital disciplined growth Q1 2013 Trading Update Outlook 11 AGM 2012 24 April 2013
Slide 12: Energy and chemical product trends
Energy and chemical product trends Drive Vopak’s worldwide growth projects Oil products LNG Chemical products Biofuels & Vegoils • Non-OECD oil • A globalizing natural • Uncertainty in • Biofuel flows between demand will gas market with new Europe US-Brazil-Europe-Asia overtake OECD business models
Slide 13: Capacity growth under construction
Capacity growth under construction Capacity developments under construction In mln cbm +5.3 35.2 0.6 3.4 +2.1 29.9 1.3 0.8 0.1 27.8 1.2 31-12- Expansions* New Acquisition 31-12- Expansions New Acquisition 31-12- 2011 terminals 2012 terminals 2015 * Including net change at various terminals (includin
Slide 14: Projects commissioned in 2012
Projects commissioned in 2012 Storage capacity increased by 2.1 million cbm A’dam Westpoort 2 (100%) Gothenburg (100%) Tianjin Lingang (50%) 582,000 cbm; oil products 60,000 cbm; oil products 95,300 cbm; chemicals Eemshaven (50%) Fujairah (33.3%) Zhangjiagang (100%) Commissioned 660,000 cbm; oil pro
Slide 15: Various projects under construction
Various projects under construction Total storage capacity under construction 4.9 million cbm 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%) 250,000 cbm; chemicals 1,284,000 cbm; oil pr
Slide 16: Ambition of EBITDA of EUR 1 billion in 2016
It is Vopak’s ambition to realize an EBITDA of EUR 1 billion in 2016 The year of 400 years of entrepreneurship In order to achieve this ambition, among other factors, the identification, approval and successful and timely execution of additional profitable expansion projects, our continued ability t
Slide 17: Contents
Contents Strategy update and results Growth projects Business performance 2012 Capital disciplined growth Q1 2013 Trading Update Outlook 17 AGM 2012 24 April 2013
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 Playing field between 90 - 95% Operational efficiency gains Capacity expansion 18 AGM 2012 24 April 2013
Slide 19: Healthy occupancy rates
Healthy occupancy rates Decreased occupancy rate mainly due to the market conditions for crude and gasoil storage in the Netherlands division Occupancy rate In percent 90-95% 96 96 95 94 95 95 95 92 94 93 93 93 93 92 92 92 93 93 94 93 90 91 90 84 ’04 ’05 ’06 ’07 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 20: Healthy EBIT(DA) margins
Vopak is well positioned to maintain healthy EBIT(DA) margins EBIT(DA) Margin* In percent 50 EBITDA Margin 40 30 EBIT Margin 20 10 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Continued focus on logistic efficiency improvements for our clients has led to increased EBIT(DA) margins * EBIT(DA) divid
Slide 21: Strategic alliances support Vopak's growth strategy
Strategic alliances support Vopak’s growth strategy Several additional expansion opportunities currently under study to continue Vopak’s capital-disciplined growth strategy Subsidiaries Storage capacity Joint Ventures In mln cbm +5.3 +2.1 34.8 35.2 +7.6 31.3 28.8 29.9 27.1 28.3 27.8 13.1 13.4 9.6 10
Slide 22: Solid financial performance
Solid financial performance Revenues EBIT* In million EUR In million EUR 1,313.9 469.4 560.9 1,171.9 +12% +19% 2011 2012 2011 2012 Net Profit** Earnings per share** In EUR million In EUR 343.6 2.70 275.4 +25% 2.16 +25% 2011 2012 2011 2012 * Including net result from joint ventures and associates. **
Slide 23: Regions contribute to the 19% EBIT increase
Except for Latin America, all regions contribute to the 19% EBIT increase North America Netherlands Asia +23% 192.9 +17% EBIT +9% 156.3 217.0 185.3 33.8 37.0 +19% 560.9 469.4 2011 2012 2011 2012 2011 2012 Latin America EMEA Global LNG 2011 2012 +4% -2% +368% 92.9 96.8 28.2 27.6 20.6 4.4 2011 2012 20
Slide 24: 63% of EBIT generated in non-euro currencies
63% of EBIT generated in non-euro currencies Derivatives are used solely for hedging business positions 2012 EBIT transactional currencies FX translation-effect on 2012 EBIT In percent In mln EUR USD Netherlands 0.0 Other 12% 24% EMEA 2.6 27% SGD Asia 17.7 North America 2.5 37% EUR Latin America 0.0
Slide 25: Net result of Joint Ventures increases with 17%
Net result of Joint Ventures increases with 17%, mainly due to Global LNG North America Netherlands Asia Net result of JVs +11% -100%* +27% 29.6 33.0 +17% 1.2 1.5 1.9 107.2 0.0 91.7 2011 2012 2011 2012 2011 2012 Latin America EMEA Global LNG 2011 2012 -4% +156% 48.7 46.6 0% 25.3 9.9 0.8 0.8 2011 201
Slide 26: Contents
Contents Strategy update and results Growth projects Business performance 2012 Capital disciplined growth Q1 2013 Trading Update Outlook 26 AGM 2012 24 April 2013
Slide 27: Capital disciplined growth
Capital disciplined growth Stable solvency ratio Total equity and liabilities In EUR mln 4,570 4,152 3,649 Net 2,947 57% 2,585 56% liabilities* 58% 1,997 55% 1,703 61% 56% 57% Equity 44% 43% 45% 42% 43% 44% 39% 2006 2007 2008 2009 2010 2011 2012 * Cash and cash equivalents are subtracted from Liabil
Slide 28: Capital disciplined growth: total investments
Capital disciplined growth Total investments Total Investments 2007-2015 Expansion Capex** In EUR mln In EUR mln; 100% = EUR 1.9 billion 1,919 1,781 ▪ Remaining Vopak share in Capex (Group ~1,140-1,325 ~500 Capex and equity share in JVs) ~640-825 Other Capex* ~1,400 Expansion ~500 Capex** ▪ Group Ca
Slide 29: Capital disciplined growth: leverage
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
Slide 30: A new US PP Notes Program of ~USD 1 billion
A new US PP Notes Program of ~USD 1 billion - Reconfirmation of Vopak’s access to capital markets - 37 Institutional investors, of which 10 new investors - Repay outstanding debt and for other general corporate purposes A senior tranche of ~USD 900 million* Maturities ranging from 10.5 to 14.5 yea
Slide 31: Balanced debt repayment schedule
Balanced debt repayment schedule Average remaining maturity 10 years; average interest rate 4.4% Debt repayment schedule* In EUR mln RCF flexibility New US PP 2012 Asian PP New US PP 2012 (subordinated) Current US PP Other 1,200 1,100 200 100 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 32: Net finance costs aligned with growth
Net Finance costs aligned with growth The long-term financing activities completed in 2012 are expected to weigh on 2013 EPS development due to higher net financing costs Net finance costs 2011* Net finance costs 2012 In EUR mln In EUR mln Interest and dividend income 7.3 3.8 Finance costs 85.9 87.3
Slide 33: A balanced dividend policy
Capital disciplined growth A balanced dividend policy Long-term funding Disciplined investment Balanced dividend policy decisions Capital disciplined growth Effective working capital Working Capital management 33 AGM 2012 24 April 2013
Slide 34: Vopak's dividend policy
Vopak’s dividend policy: Barring exceptional circumstances, the intention is to pay an annual cash dividend of 25-40% of the net profit* Vopak’s current pay-out ratio and yield are lower than average AEX/AMX and MLP peers and higher than European peers In this context, Vopak’s dividend policy is
Slide 35: Proposed 2012 dividend: EUR 0.88 per share
Proposed 2012 dividend: EUR 0.88 per ordinary share (2011: EUR 0.80) EPS Dividend and EPS 2006-2012** Cash dividend In EUR 2.70 2.16 +25% 2.08 1.92 1.62 1.31 0.98 +10% 0.70 0.80 0.88 0.475 0.55 0.625 0.375 2006 2007 2008 2009 2010 2011 2012 Dividend policy: “Barring exceptional circumstances, the in
Slide 36: Impact IAS 19 changes and lower discount rate
Impact IAS 19 changes and lower discount rate Higher pension charges for 2013 in addition to effect on equity Total effect on equity In EUR mln Actuarial gains and losses 107.4 Removal 10% corridor approach at 1 January 2012 (higher volatility in net pension Adjusted administration costs and taxes
Slide 37: Contents
Contents Strategy update and results Growth projects Business performance 2012 Capital disciplined growth Q1 2013 Trading Update Outlook 37 AGM 2012 24 April 2013
Slide 38: Q1 2013 Summary
Q1 2013 Summary EBIT(DA) in line with Q1 2012 EBITDA* EBIT* In million EUR In million EUR 187.4 188.9 +1% 139.2 138.4 -1% Q1 2012 Q1 2013 Q1 2012 Q1 2013 Occupancy rate** Storage capacity*** In percent In mln cbm 93.0 89.0 28.3 30.3 -4pp +7% Q1 2012 Q1 2013 Q1 2012 Q1 2013 * Excluding exceptional it
Slide 39: Q1 2013 EBIT in line with Q1 2012
Q1 2013 EBIT in line with Q1 2012 North America Netherlands Asia +7% -10% 53.6 57.1 46.5 EBIT -12% 41.8 11.0 9.7 -1% 139.2 138.4 Q1 2012* Q1 2013 Q1 2012 Q1 2013 Q1 2012 Q1 2013 Latin America EMEA Global LNG +6% Q1 2012 Q1 2013 -30% 24.1 25.6 +48% 7.4 7.4 5.2 5.0 Q1 2012 Q1 2013 Q1 2012 Q1 2013 Q1 2
Slide 40: Capacity growth under construction
Capacity growth under construction Several additional expansion opportunities currently under study to continue Vopak’s capital-disciplined growth strategy Capacity developments under construction In mln cbm +5.3 0.4 35.2 3.5 Other Other Jubail Europoort Pengerang Hainan 1.4 Other Algeciras 2.1 Tham
Slide 41: Projects commissioned in Q1 2013
Projects commissioned in Q1 2013 Storage capacity increased by 0.4 million cbm Banyan (69.5%) 50,000 cbm; chemicals Algeciras (80%) 403,000 cbm; oil products (X%) = Ownership % Note: 100% of the storage capacity is included. 41 AGM 2012 24 April 2013
Slide 42: New projects announced in 2013
New projects announced in 2013 Storage capacity announced: 0.2 million cbm Gothenburg (100%)* 100,000 cbm; oil products Vlissingen (100%) 36,800 cbm; LPG/chemical gases Zhangjiagang (100%) 46,800 cbm; chemicals Under construction Acquired (X%) = Ownership % * Acquisition of additional rock caverns i
Slide 43: Contents
Contents Strategy update and results Growth projects Business performance 2012 Capital disciplined growth Q1 2013 Trading Update Outlook 43 AGM 2012 24 April 2013
Slide 44: Outlook assumptions 2013
Outlook assumptions 2013 No material changes in product outlook assumptions ~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* Stead
Slide 45: FX translation effect 2013
FX translation effect 2013 Negative foreign exchange developments year to date EBIT transactional currencies Average FX rates 2012 FX translation-effect on Q1 2012 EBIT* In percent; 2012 Per EUR 1.00 In mln EUR Other FX translation-effect on 2012 EBIT: EUR 24% US dollar 1.29 Netherlands EUR 22 milli
Slide 46: Expected EBITDA of EUR 760-800 million in 2013
Vopak expects to realize an EBITDA at constant currencies of between EUR 760-800 million in 2013 EBITDA development and outlook 2013 Historical results Outlook In EUR mln EBITDA outlook 2013 760-800 20% EBITDA growth in 2012 763.6 768.4 Modest capacity expansions 636.0 coming on stream in 2013 5
Slide 47: Ambition of EBITDA of EUR 1 billion in 2016
It is Vopak’s ambition to realize an EBITDA of EUR 1 billion in 2016 Historical results Outlook Ambition EBITDA development, outlook 2013* and ambition 2016 Ambition 2016 In EUR mln In order to achieve this ambition, among other 1,000 factors, the identification, approval and successful and 763.6
Slide 48: Other themes in 2013
Other themes in 2013 Satisfactory resolution Update on equity-like Expansion Vopak lawsuit Deer Park alternatives Vlissingen In April 2013, Vopak reached a As communicated in its FY On 23 April 2013, Vopak satisfactory resolution of its lawsuit 2012 results release of decided to expand its sto
Slide 49: Royal Vopak contact details
Royal Vopak Westerlaan 10 Tel: +31 10 4002911 3016 CK Rotterdam Fax: +31 10 4139829 The Netherlands www.vopak.com