Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Q3 2008 Earnings Presentation
35 slides from Royal Vopak Nv's earnings presentation, Nov 5, 2008
Slide 1: Q3 2008 Trading Update
_ Q3 2008 Trading Update 5 November 2008 – – – Q3 2008 Trading Update 5 November 2008 1
Slide 2: Agenda
Agenda Financial Performance Growth Continues Financing Events After September 30 Outlook – – – Q3 2008 Trading Update 5 November 2008 2
Slide 3: Q3 2008 Summary
Q3 2008 Summary – – – Q3 2008 Trading Update 5 November 2008 3
Slide 4: EBIT excl. exceptional items rises 18% this quarter
EBIT excl. exceptional items rises 18% this quarter to EUR 80.8 mln In € mln Q3 08 Q3 07 Δ% Group operating profit incl. exceptionals 81.8 73.7 +11 Group operating profit excl. exceptionals 80.8 68.6 +18 Exceptionals Q3 2008 include among others sale of Cosco Vopak Logistics in China – – – Q3 2008 T
Slide 5: EBIT excl. exceptional items rises 14% YTD 2008
EBIT excl. exceptional items rises 14% YTD 2008 to EUR 237.6 mln In € mln YTD 08 YTD 07 Δ% Group operating profit incl. exceptionals 248,3 223,0 +11 Group operating profit excl. exceptionals 237,6 208,0 +14 Exceptionals Q3 2008 include among others sale of Cosco Vopak Logistics in China – – – Q3 200
Slide 6: EBIT 2008 Outlook reflects 21.6% increase compared to Normalized 2007
EBIT* 2008 Outlook reflects 21.6% increase compared to Normalized 2007 Results 21.6% 21.6% 9.2 8.7 Minimum 310 272.9 255.0 Actual 2007 Impact Exchange Normalized Outlook 2008 Divestments Rate 2007 EBIT *EBIT excl. exceptionals – – – Q3 2008 Trading Update 5 November 2008 6
Slide 7: All Divisions contributed to the 18% Q3 EBIT improvement
All Divisions contributed to the 18% Q3 EBIT* improvement € mln OEMEA 27.9 Asia 20.1 24.2 19.9 North America 7.7 8.4 39% 22% Q3 07 Q3 08 Q3 07 Q3 08 9% Q3 07 Q3 08 CEMEA 21.7 22.8 Latin America 5.5 5.8 Other 5% 5% Q3 07 Q3 08 Q3 07 Q3 08 Q3 07 Q3 08 22% *EBIT excl. exceptionals -6.5 -7.9 – – – Q3 20
Slide 8: Division: Chemicals EMEA
Division: Chemicals EMEA Antwerp transition completed Continued high demand for biofuels storage € mln 30 23,1 22,2 21,7 22,8 25 21,7 21,8 20,3 20 2007 15 2008 10 5 14% 2% 5% 0 Q1 Q2 Q3 Q4 EBIT excl. exceptionals – – – Q3 2008 Trading Update 5 November 2008 8
Slide 9: Division: Oil EMEA
Division: Oil EMEA Utilizing capacity additions € mln 27,9 30 26,0 25,1 25 21,9 21,9 20,1 19,1 20 2007 15 2008 10 5 19% 15% 39% 0 Q1 Q2 Q3 Q4 EBIT excl. exceptionals – – – Q3 2008 Trading Update 5 November 2008 9
Slide 10: Division: Asia
Division: Asia Continued growth by expanding capacity Strong emerging markets growth potential € mln 30 23,4 23,1 24,2 25 19,8 19,9 19,9 19,2 20 2007 15 2008 10 5 22% 17% 22% 0 Q1 Q2 Q3 Q4 EBIT excl. exceptionals – – – Q3 2008 Trading Update 5 November 2008 10
Slide 11: Division: North America
Division: North America Focus on improving results is bearing fruit € mln 30 25 20 2007 15 9,3 2008 7,5 8,3 7,7 8,4 7,9 7,2 10 5 4% 12% 9% 0 Q1 Q2 Q3 Q4 EBIT excl. exceptionals – – – Q3 2008 Trading Update 5 November 2008 11
Slide 12: Division: Latin America
Division: Latin America Continuing steady performance € mln 30 25 20 2007 15 2008 10 5,3 5,4 5,1 5,5 5,8 5,1 5,1 5 4% 6% 5% 0 Q1 Q2 Q3 Q4 EBIT excl. exceptionals – – – Q3 2008 Trading Update 5 November 2008 12
Slide 13: All Divisions contributed to the 14% YTD EBIT improvement
All Divisions contributed to the 14% YTD EBIT* improvement OEMEA € mln 79.0 63.9 Asia 70.5 58.9 North America 23.2 25.2 YTD 07 24% YTD 08 20% YTD 07 YTD 08 YTD 07 9% YTD 08 CEMEA 64.2 67.6 Latin America Other YTD 07 YTD 08 16.0 16.2 11% 1% YTD 07 5% YTD 08 -18.5 YTD 07 YTD 08 -20.5 EBIT excl. except
Slide 14: Agenda
Agenda Financial Performance Growth Continues Financing Events After September 30 Outlook – – – Q3 2008 Trading Update 5 November 2008 14
Slide 15: Growth continues with 2.6M cbm under construction
Growth continues with 2.6M cbm under construction at strategic locations YE 2007 Capacity 21.8M cbm Total net capacity increase in 1H 2008 4.6M cbm Total net capacity increase in Q3 2008 0.2M cbm Q3 2008 YTD Capacity 26.6 M cbm Remaining 2008 till 2011 (incl. LNG) 2.6M cbm Total 29.2M cbm – – – Q3 2
Slide 16: Projects completed in 1H 2008
Projects completed in 1H 2008 Additional CBM Location Ownership Type Product Consolidated JVs & Associates Rotterdam 100% Expansion Oil 200,000 Fujairah 30% Expansion Oil 380,000 Sebarok 69.5% Expansion Oil 223,000 Zhangjiagang 100% Expansion Chemicals 84,900 Bahamas 20% Acquisition Oil 3,000,000 Ta
Slide 17: Projects completed in Q3 2008
Projects completed in Q3 2008 Additional CBM Location Ownership Type Product Consolidated JV & Associates Banyan 69.5% Expansion Oil/Chemicals 80,600 Penjuru 69.5% Expansion Chemicals 22,000 Galena Park 100% Expansion Chemicals 9,500 Columbia 100% Expansion Chemicals 6,500 Merak 95% Acquisition Chem
Slide 18: Strong demand for storage capacity
Strong demand for storage capacity Occupancy rate 2004 2005 2006 2007 Q308 YTD 85% 92% 94% 96% 95% Capacity (in cbm) 20.2M 20.4M 21.2M 21.8M 26.6M – – – Q3 2008 Trading Update 5 November 2008 18
Slide 19: Expansions: Acquisitions in Q3 2008
Expansions: Acquisitions in Q3 2008 Nagoya, Japan Product: Chemicals Capacity: 37,300 Moji, Japan Product: Chemicals Capacity: 46,400 South Wilmington, USA Product: Chemicals Capacity: 49,760 Merak, Indonesia Product: Chemicals Capacity: 76,900 – – – Q3 2008 Trading Update 5 November 2008 19
Slide 20: Expansions at the existing terminals: Banyan
Expansions at the existing terminals: Banyan Terminal (Singapore) Phase 3 capacity: 320,000 cbm 80,600 cbm operational (Q3 2008) 239,400 cbm under construction Banyan, Singapore Product: Oil/Chemicals Capacity: 80,600 371,800 cbm 165,000 cbm 320,000 cbm 397,500 cbm 1.25 M 2006 – 2007 2008 – 2009 – Q
Slide 21: Expansions at the existing terminals
Expansions at the 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 Transfer of the terminal in Hemiksem, Belgium Capacity: 103,000 cbm Product: Chemicals
Slide 22: Gate terminal
Gate terminal - Gate terminal project: well progressing - E.ON Ruhrgas - fourth customer - Financing of EUR 745 mln concluded Q4 2007 Q3 2008 ? Launching customers: Tanks 3 3 4 Jetties 1 2 2 Throughput 9 bcm 12 bcm 16 bcm Clients 3 4 ? – – – Q3 2008 Trading Update 5 November 2008 22
Slide 23: The growth of Vopak – projects in progress
The growth of Vopak – projects in progress – – – Q3 2008 Trading Update 5 November 2008 23
Slide 24: Agenda
Agenda Financial Performance Growth Continues Financing Events After September 30 Outlook – – – Q3 2008 Trading Update 5 November 2008 24
Slide 25: Total investments
? Total investments 1H 2008: € mln 375 446 268 188 146 151 2003* 2004 2005 2006 2007 2008 * Based on Dutch GAAP Remaining Vopak Share Approved & Under Construction Projects EUR 400 mln 1H08 2011 – – – Q3 2008 Trading Update 5 November 2008 25
Slide 26: 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 1B EUR 745M senior ventures project finalized USD 375M Option to increase project financing financing to EUR 1.2B
Slide 27: Overview of US PP terms and RCF
Overview of US PP terms and RCF Covenant/ Term US PP 2001 US PP 2007 New 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 USD USD EUR 396 mln 375 mln 1 bln + EUR 200 mln – –
Slide 28: Strategic finance
Strategic finance Net debt : EBITDA ratio Q3 2008 2.34 1H 2008 2.22 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 – – – Q3 2008 Trading U
Slide 29: Agenda
Agenda Financial Performance Growth Continues Financing Events After September 30 Outlook – – – Q3 2008 Trading Update 5 November 2008 29
Slide 30: Event after September 2008: Pension Fund
Event after 30 September 2008: Pension Fund • Out of all worldwide defined benefit plans within Vopak, 85% relates to (former) Dutch employees (placed with the “Stichting Vopak Penioenfonds Nederland”) • In October the “Stichting Vopak Pensioenfonds Nederland” notified the Dutch Authority that the c
Slide 31: Agenda
Agenda Division Performance Growth Continues Financing Events After September 30 Outlook – – – Q3 2008 Trading Update 5 November 2008 31
Slide 32: Reconciling Q3 2008 YTD EBIT to Outlook 2008
Reconciling Q3 2008 YTD EBIT* to Outlook 2008 requires an eye for detail… Actual Q3 08 YTD EBIT: € 237.6M + -/- * expansions * tanks out of operation * margin management * one-off revenues * pre-operating expenses * depreciation * start-up results * IFRS 3 * timing differences Outlook 2008 Minimum *
Slide 33: Outlook
Outlook* Outlook Guidance 2004 2005 2006 2007 2008 2009 / 2010 EUR (mln) 475 - 550 369.6 314.1 262.4 EBITDA** 231.9 Minimum 272.9 of 310 220.9 EBIT 179.7 151.0 Long-term * Excluding exceptional items Long-termguidance guidanceROCE ROCEofof16% 16% Bearing Bearingininmind mindsubstantial ** EBITDA inc
Slide 34: 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 35: www.vopak.com
– – – – Q3 2008 Trading Update 5 November 2008 35 www.vopak.com