Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — FY2008 Earnings Presentation
58 slides from Royal Vopak NV's earnings presentation, Mar 13, 2009
Slide 1: Annual results 2008
_ Annual results 2008 13 March 2009 – – –
Slide 2: The world of Vopak
The world of Vopak – – – Annual results 2008 13 March 2009 2
Slide 3: Agenda
Agenda Highlights 2008 Vopak: A robust company Business performance Divisions’ performance Outlook – – – Annual results 2008 13 March 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 Merger: Vopak E.O.S., Tallinn Brownfield: Banyan, Singapore Greenfield: Left Bank, Antwerp – – – Annual results 2008 13 March 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 results 2008 13 March 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 results 2008 13 March 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 results 2008 13 March 2009 8
Slide 9: The growth of Vopak: Projects in progress
The growth of Vopak: Projects in progress – – – Annual results 2008 13 March 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 results 2008 13 March 2009 10
Slide 11: Strategic highlight: Operational efficiency
Strategic highlight: Operational efficiency Standardization: “The Vopak Way” – – – Annual results 2008 13 March 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 results 2008 13 March 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! Business performance Financing Outlook – – – Annual results 2008 13 March 2009 14
Slide 15: Vopak's challenge
Vopak’s challenge The challenge is to facilitate the current and future product flows: – – – Annual results 2008 13 March 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 results 2008 13 March 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: Confidence in the future!
“Confidence in the future!” – – – Annual results 2008 13 March 2009 19
Slide 20: Agenda
Agenda Highlights 2008 Vopak: A robust company! Business performance Financing Outlook – – – Annual results 2008 13 March 2009 20
Slide 21: 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% EBITmargin* 30%
Slide 22: 2008 EBIT excl. exceptional items up 17%
2008 EBIT excl. exceptional items: up 17% to EUR 320.4 mln Net Revenues EBIT Net Profit EPS in mln EUR in mln EUR in mln EUR 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 – – – All figures are excluding 13/03/2009 22 exceptionals
Slide 23: 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 results 2008 13 March 2009 23
Slide 24: Net Profit 2008 increased by 17%
Net Profit 2008 increased by 17% In EUR mln 2007 2008 ∆% Net Revenues 853.0 923.5 8% EBIT 292.2 322.2 10% Finance Income & Expenses -42.9 -37.6 14% Tax -51.2 -54.9 7% Minority Interests -15.2 -16.5 1% Net Profit 181.1 212.0 17% attributable to holders of ordinary shares EPS 2.90 3.40 17% All figures
Slide 25: 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 results 2008 13 March 2009 25
Slide 26: Exceptional Items in 2008
Exceptional Items in 2008 In EUR mln Merger Vopak E.O.S. 5.2 Vopak Barging 4.5 Impairments & others -7.9 Exceptional Items 1.8 – – – Annual results 2008 13 March 2009 26
Slide 27: Net Finance Costs decreased
Net Finance Costs decreased In EUR mln 2007 2008 Interest and dividend income 7.0 8.5 Finance costs -49.9 -46.1 Net finance costs -42.9 -37.6 Mainly attributable to: • Lower variable interest rates • Currency effects • Higher capitalized interest on capacity expansion projects • Measurement of hedgi
Slide 28: Slightly decreased effective tax rate
Slightly decreased effective tax rate following settlement of prior-year tax positions Effective Tax Rate Incl. exceptionals 2007 2008 Tax in EUR mln -51.2 -54.9 Tax in % 20.5 % 19.3 % – – – Annual results 2008 13 March 2009 28
Slide 29: 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 mio • Increased pension contribution Dutch 82% IFRS • Estimated 2009 impact EUR 13.8 mio – – – Annual results 20
Slide 30: Sources and uses of cash
Sources and uses of cash In EUR mln 2007 2008 25.5 Net Cash Flow -133.1 1200 686.1 -660.6 937.9 -1071.0 1000 Dividends 800 Proceeds from interest-bearing Investments 600 Proceeds from Dividends loans interest-bearing 400 loans Investments Divestments Divestments 200 Operations Operations Financing F
Slide 31: Dividend: Increase with 16%
Dividend: Increase with 16% Pay-out ratio of 32% Proposed 2008 dividend amounts to EUR 1.10 per ordinary share Payable in stock unless a shareholder Proposed expressly requests payment in cash dividend +16% 1.10 0.95 0.75 0.60 0.50 2004 2005 2006 2007 2008 – – – Annual results 2008 13 March 2009 31
Slide 32: Business performance per Division
Vopak Terminal Europoort Vopak Horizon Fujairah Business performance per Division Vopak Houston Vopak Singapore Deer Park Terminal Sebarok Terminal – – – Annual results 2008 13 March 2009 32
Slide 33: 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 34: Division: Chemicals EMEA
Division: Chemicals EMEA Solid performance with opportunities for further expansion 23.1 22.8 22.1 22.2 21.7 21.7 21.9 20.3 2007 2008 Storage capacity (x 1,000 CBM) 3,961 3,984 Occupancy rate 96% 96% EBIT (in EUR mln 86.1 89.7 excl. exceptionals) 14% 2% 5% 1% Q1 Q2 Q3 Q4 2007 2008 EBIT in EUR mln, e
Slide 35: Division: Oil EMEA
Division: Oil EMEA Pro-active response to global imbalances 29.1 27.9 26.0 25.1 21.9 21.9 2007 2008 20.1 19.0 Storage capacity (x 1,000 CBM) 9,960 11,067 Occupancy rate 97% 95% EBIT (in EUR mln 82.9 108.1 excl. exceptionals) 19% 15% 39% 52% Q1 Q2 Q3 Q4 2007 2008 EBIT in EUR mln, excl. exceptionals –
Slide 36: Division: Asia
Division: Asia Expanding tank terminal network delivers results 25.0 24.2 23.4 22.9 19.8 19.9 19.9 2007 2008 19.2 Storage capacity (x 1,000 CBM) 4,818 5,819 Occupancy rate 97% 94% EBIT (in EUR mln 78.8 95.5 excl. exceptionals) 22% 17% 22% 25% Q1 Q2 Q3 Q4 2007 2008 EBIT in EUR mln, excl. exceptionals
Slide 37: Division: North America
Division: North America Focus on tank storage improves results 9.3 9.2 8.3 8.4 7.5 7.7 7.9 7.2 2007 2008 Storage capacity (x 1,000 CBM) 2,258 5,315 Occupancy rate 96% 95% EBIT (in EUR mln 31.1 34.4 excl. exceptionals) 4% 12% 9% 16% Q1 Q2 Q3 Q4 2007 2008 EBIT in EUR mln, excl. exceptionals – – – Annu
Slide 38: Division: Latin America
Division: Latin America Continuation of robust performance 5.8 5.8 5.3 5.4 5.5 2007 2008 5.1 5.1 5.1 Storage capacity (x 1,000 CBM) 837 882 Occupancy rate 86% 91% EBIT (in EUR mln 21.1 22 excl. exceptionals) 4% 6% 5% 14% Q1 Q2 Q3 Q4 2007 2008 EBIT in EUR mln, excl. exceptionals – – – Annual results
Slide 39: Agenda
Agenda Highlights 2008 Vopak: A robust company! Business performance Financing Outlook – – – Annual results 2008 13 March 2009 39
Slide 40: A stable balance sheet
A stable balance sheet Solvency remains stable 60% 50% 40% 30% 20% 2004 2005 2006 2007 2008 – – – Annual results 2008 13 March 2009 40
Slide 41: Financing sources
Financing sources Effective Access to Financing Sources March 2007 May 2007 July/Aug 2007 July 2008 2007 / 2008 USPP 2001: USPP 2007: RCF: Gate: Various joint Amendment New Notes for EUR 1 bln EUR 745 mln senior ventures project finalized USD 375 mln Option to increase project financing financing to
Slide 42: Overview of US PP terms and RCF
Overview of US PP terms and RCF Total program around EUR 1.5 bln Covenant Term US PP 2001 US PP 2007 RCF Maximum Net Debt / EBITDA 3.75 3.75 3.75 Additional headroom Up to 4.25 > 3.75 When financed with subordinated debt EBITDA / Net Interest > 4.0 > 3.5 > 3.5 Payable Amount EUR EUR EUR 282.1 mln 26
Slide 43: 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 results 2008 13 March 2009
Slide 44: Debt: no major debt refinancing until 2010
Debt: no major debt refinancing untill 2010 Vopak debt repayment schedule In EUR mln 313.2 317.9 180 83.7 50.0 25.3 2009 2010 2011 2012 2013 2014 > 2014 – – – Annual results 2008 13 March 2009 44
Slide 45: Investments
Vopak Terminal Europoort Vopak Horizon Fujairah Investments Vopak Houston Vopak Singapore Deer Park Terminal Sebarok Terminal – – – Annual results 2008 13 March 2009 45
Slide 46: Strong demand for storage capacity
Strong demand for storage capacity Occupancy rate 2004 2005 2006 2007 2008 85% 92% 94% 96% 95% Capacity (in cbm) 20.2M 20.4M 21.2M 21.8M 27.1M – – – Annual results 2008 13 March 2009 46
Slide 47: 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 48: 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 results 2008 13 March 2009 48
Slide 49: 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 50: 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 results 2008 13 March 2009 50
Slide 51: 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 results 2008 13 March 2009 51
Slide 52: Many projects under construction
Many projects under construction Location Ownership Product CBM 2009 2010 2011 Tallinn 50% O 111,000 Gothenburg 100% O 60,000 Teesside 100% C/B 40,000 San Antonio 100% C 9,200 Houston 100% C/B 4,500 Banyan 69.5% O/C 398,000 Rotterdam 100% C/B 155,980 Vlaardingen 100% B/V 75,000 Ho Chi Minh City 100%
Slide 53: Many projects under construction
Many projects under construction Location Ownership Product CBM 2009 2010 2011 Alemoa 100% O/C 37,200 Savannah 100% O 30,000 Cartagena 100% C 17,750 Jakarta 49% 0 250,000 Penjuru 69.5% C 65,000 Tarragona 50% C 19,200 Zhanjiagang 100% C 75,000 Banyan 69.5% C 19,200 Sydney 100% C 75,000 LNG 100% O 540
Slide 54: Agenda
Agenda Highlights 2008 Vopak: A robust company! Business performance Financing Outlook – – – Annual results 2008 13 March 2009 54
Slide 55: 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 results 2008 13 March 2009 55
Slide 56: Outlook
Outlook Outlook Guidance 2004 2005 2006 2007 2008 2009 In EUR mln > 450 429.3 369.5 314.1 262.5 EBITDA** 231.8 320.4 272.9 220.9 EBIT 179.7 151.0 Long-term Long-termguidance guidanceROCE ROCEofof16% 16% * Excluding exceptional items Bearing Bearingininmind mindsubstantial substantial investments inv
Slide 57: 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 renders logistics services, the company cannot guarantee the accura
Slide 58: www.vopak.com
– – – – Annual results 2008 13 March 2009 58 www.vopak.com