Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Q3 2013 Earnings Presentation
27 slides from Royal Vopak Nv's earnings presentation, Nov 6, 2013
Slide 1: Q3 2013 Trading Update
Q3 2013 Trading Update 6 November 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: 2013 EBITDA outlook
2013 EBITDA* outlook Vopak continues to expect to realize an EBITDA within its earlier communicated EBITDA outlook range of between EUR 730-780 million EBITDA* development and outlook 2013 Historical results In EUR mln Outlook 768.4 730-780 636.0 598.2 513.4 429.3 369.5 314.1 262.5 570.1 231.8 2004
Slide 4: Q3 2013 Summary (1)
Q3 2013 Summary (1) Recent currency developments and higher pension costs negatively affected EBIT(DA) development EBITDA EBIT In million EUR In million EUR 196.3 185.6 163.5 -5% 145.2 121.3 131.8 -9% Q3 2011 Q3 2012 Q3 2013 Q3 2011 Q3 2012 Q3 2013 EBITDA (adjusted for FX)* EBIT (adjusted for FX)* I
Slide 5: Q3 2013 Summary (2)
Q3 2013 Summary (2) Occupancy rate decreased, whereas worldwide Storage Capacity slightly increased Occupancy rate* In percent Lower demand for crude oil, 93 91 gasoil and biofuel storage in 87 -4pp Netherlands A lower storage demand in Los Angeles (U.S.) Q3 2011 Q3 2012 Q3 2013 Storage Capacity
Slide 6: Quarterly EBIT(DA) development
Quarterly EBIT(DA) development Recent currency developments and higher pension costs negatively affected EBIT(DA) development 2011 2012 2013 EBITDA per Quarter EBIT per Quarter In million EUR In million EUR +1% +2% -5% -1% -1% -9% 187.4 188.9 192.7 195.6 196.3 185.6 139.2 138.4 143.1 141.9 145.2 163
Slide 7: EBIT Q3 2013 decreased by EUR 13.4 million
EBIT Q3 2013 decreased by EUR 13.4 million Primary due to adverse translation effects (EUR 7.2 million), higher pension charges (EUR 4.3 million) and a continued challenging market situation for specific (European) product-market combinations Americas Netherlands Asia +1% -18% 56.6 57.1 51.4 EBIT -2
Slide 8: Net result of joint ventures decreased by 6%
Net result of joint ventures decreased by 6% Mainly due to a lower result from the joint venture in Estonia Americas Netherlands Asia Net result of JVs +5% 9.1 9.6 -33% 0% -6% 0.3 0.2 0.5 0.5 26.4 24.8 Q3 2012 Q3 2013 Q3 2012 Q3 2013 Q3 2012 Q3 2013 EMEA Global LNG Q3 2012 Q3 2013 -18% -3% 9.9 8.1 6
Slide 9: Occupancy rate development
Occupancy rate development Decreased occupancy rate mainly due to lower demand for crude oil, gasoil and biofuel storage in Netherlands and lower storage demand in Los Angeles (U.S.) Occupancy rate In percent Full potential playing field 90-95% Current playing field 85-90% 94 96 95 94 93 93 93 84 92
Slide 10: Netherlands
Netherlands - Higher pension costs - Lower occupancy rates in crude, gasoil and biofuel storage - Storage demand for other oil products and chemicals respectively robust and steady EBIT* In EUR million -18% 41.9 46.2 46.5 48.9 51.4 48.5 41.8 41.1 42.2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2011 2011 2012 2012 2
Slide 11: EMEA
EMEA - New oil terminal in Algeciras (Spain) was opened in Q1 2013 (start-up delay) - Lower result from the joint venture in Estonia - Negative currency translation effect of EUR 0.9 million EBIT* In EUR million -4% 23.9 23.3 24.1 28.2 22.4 22.2 25.6 22.5 21.6 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2011 2011 20
Slide 12: Asia
Asia - Additional storage capacity in Banyan (Singapore) and Tianjin (China), divestment Xiamen (China) - Healthy demand for storage services in Asia - Negative currency translation effect of EUR 4.8 million EBIT* In EUR million +1% 46.7 53.6 53.6 56.6 53.2 57.1 59.3 57.1 45.0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 13: Americas
Americas - Positive developments at the Gulf Coast (U.S.) and Venezuela - Downside in Los Angeles (U.S.) and Brazil - Negative currency translation effect of EUR 1.5 million EBIT* In EUR million -20% 15.0 16.4 18.4 16.2 16.6 18.7 14.9 14.9 12.9 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2011 2011 2012 2012 2012 201
Slide 14: 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 +5.0 0.2 4.0 Other 34.9 Other Jubail Europoort Thames Oilport Pengerang Hain
Slide 15: Storage Capacity changes in Q3 2013
Storage Capacity changes in Q3 2013 Tianjin (phase 2) (50%) 240,000 cbm; LPG Xiamen (40%) (X%) = Ownership % -/- 206,500 cbm; oil products Commissioned Divested 15 Q3 Trading Update 6 November 2013
Slide 16: Various projects under construction
Various projects under construction 4.3 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 17: New projects announced in 2013
New projects announced in 2013 Storage Capacity announced: 0.2 million cbm Q1 Gothenburg (100%)* Q1 Vlissingen (100%) 36,800 cbm; LPG/chemical gases 100,000 cbm; oil products Q1 Zhangjiagang (100%) Under construction 46,800 cbm; chemicals Under construction (joint venture) Acquired (X%) = Ownership
Slide 18: Capital disciplined growth
Capital disciplined growth Total investments Total Investments 2007-2015 Expansion Capex** In billion EUR In billion EUR mln; 100% = EUR 1.5 billion 1.9 1.8 ▪ Remaining ~0.9-1.1 Vopak share in ~1.2 ~0.3 Capex (Group Capex and equity share in ~0.6-0.8 Other Capex* JVs) 0.3 Expansion 0.3 Capex** ▪ Gro
Slide 19: Capital disciplined growth
Capital disciplined growth Vopak aims to retain a solid capital structure, with a healthy balance between equity and debt funding sources and a robust cashflow generation Access to Capital Markets Net senior debt : EBITDA ratio 5 US Private Placements 3.75 4 3.0 3 2.75 SGD and JPY Private Placem
Slide 20: Update on cumulative preference C-shares
Update on cumulative preference C-shares - In the EGM of 17 September 2013, the shareholders authorized Vopak’s Executive Board, subject to approval of the Supervisory Board, to launch the offering of the cumulative preference C-shares. The authorization is given up to and including 21 March 2014. -
Slide 21: Outlook assumptions 2013
Outlook assumptions 2013 Overall 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 ** Stead
Slide 22: 2013 EBITDA outlook
2013 EBITDA outlook From a historical perspective 2013 EBITDA outlook In EUR million Rationale for update First announcement 2013 outlook Q4 2010 statement and Vopak continues to be well until 725-800 positioned in positive market environment Q1 2012 Expected average occupancy rate of around 90%
Slide 23: 2013 EBITDA outlook
2013 EBITDA* outlook Vopak continues to expect to realize an EBITDA within its earlier communicated EBITDA outlook range of between EUR 730-780 million EBITDA* development and outlook 2013 Historical results In EUR mln Outlook As a result of amongst others continued 768.4 730-780 adverse currency
Slide 24: EBITDA ambition 2016
EBITDA* ambition 2016 Capacity expansions main driver of EBITDA* growth ambition EBITDA* ambition 2016 x% CAGR In EUR mln +7% +11% 1,000 +16% 768.4 369.5 231.8 2003** 2007 2012 Capacity Changes FX impact Pension Approval and 2016 (restated) commissioned occupancy impact execution of / under rates /
Slide 25: Vopak Capital Markets Day 10 December 2013
Vopak Capital Markets Day 10 December 2013 Time Topic Description Speaker 9:00 Registration Capital Markets Day Openbare Beurs, NYSE Euronext Amsterdam (Netherlands) 9:30 Welcome Mercury room, NYSE Euronext Amsterdam (Netherlands) 9:40 Strategy and main developments Vopak’s global terminal net
Slide 26: 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 27: Appendix
Appendix Pro-forma IFRS Q3 2013 EBIT results reported in Q3 Trading Update press release Q3 EBIT YTD EBIT 145.2 131.8 427.5 412.1 -9% -4% Q3 2012 Q3 2013 YTD 2012 YTD 2013 Q3 EBIT YTD EBIT adjusted for FX (EUR 7.2 million)* adjusted for FX (EUR 8.7 million)* 145.2 139.0 427.5 420.8 -4% -2% Q3 2012 Q