Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Q1 2012 Earnings Presentation
61 slides from Royal Vopak Nv's earnings presentation, 2012
Slide 1: Roadshow presentation Q1 2012 Trading Update
Roadshow presentation Q1 2012 Trading Update
Slide 2: 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 31 countries in which Vopak provides logistics services, the company cannot guarantee the accur
Slide 3: Contents
Contents General Introduction Strategy update Business environment Growth projects Business performance Capital disciplined growth Outlook 3 Roadshow presentation Q1 2012 Trading Update
Slide 4: Vopak and storage since 1616
Vopak and storage since 1616 Almost four centuries of history Porter early 1600 Discharge of oil barrels at Charlois site Rotterdam 1900 First barrels of oil in Rotterdam 1862 4 Roadshow presentation Q1 2012 Trading Update
Slide 5: 84 Terminals in 31 countries
84 Terminals in 31 countries And a number of terminals under construction. 5 Roadshow presentation Q1 2012 Trading Update
Slide 6: Key figures and some of our customers
Key figures and some of our customers Employees 5,901 (incl. JVs) Terminals 84 Countries 31 Capacity 27.9 Million cbm Net Revenues ‘11 € 1,172 Million EBIT* ‘11 € 469 Million Market capitalization** € 5.2 Billion * Excluding exceptional items. ** At year-end 2011. 6 Roadshow presentation Q1 2012 Tra
Slide 7: Tank terminal: key role in oil and chemical supply chain
Tank terminal Key role in oil and chemical supply chain Customers Products Oil, Gas and Oil (derivatives) LNG Chemicals companies Chemicals LPG Governments Vegetable oils Chemical Trading companies Biofuels gases Services Supply and transport Storage Vessels Blending Barges Break bulk Pipelines Make
Slide 8: Vopak's role in the supply chain
Vopak’s role in the supply chain Feedstock Feedstock Production & Products Independent Mid-Stream Production Gathering Refining Transmission Storage & & End-user Transshipment Distribution Oil, Gas and Chemical supply chain 8 Roadshow presentation Q1 2012 Trading Update
Slide 9: Strategic logistic functions of tank terminals
Strategic logistic functions of tank terminals Vital link for incoming and outgoing Storage of products that are Complete integration with the flows of oil and chemicals exported or transferred to end users production process Example Example Example Rotterdam Europoort Vopak Terminal London Sakra Te
Slide 10: Logistics hub terminal
Logistics hub terminal Example fuel oil Where large flows of products merge - logistics crossroad Houston, Rotterdam/Antwerp, Singapore and Fujairah 10 Roadshow presentation Q1 2012 Trading Update
Slide 11: Import/Export terminal
Import/Export terminal Break or make bulk Local distribution 11 Roadshow presentation Q1 2012 Trading Update
Slide 12: Industrial terminal
Industrial terminal Storage facilities integrated at chemical park Exxon Mobil Perstorp Sumitomo Chemical Mitsui Chemicals Air Products Chevron Asahi Kasei Chemicals SembCorp Utilities Celanese Kuraray Dupont Vopak Terminals Singapore - Sakra Terminal 12 Roadshow presentation Q1 2012 Trading Update
Slide 13: Global mega trends drive Vopak's markets
Global mega trends drive Vopak’s markets Population GDP growth in Increasing Increasing need growth, mainly non-OECD (sustainable) transport and non-OECD energy need mobility 13 Roadshow presentation Q1 2012 Trading Update
Slide 14: Non-OECD economies drive energy consumption growth
Non-OECD economies drive energy consumption growth, fossil fuels will remain the dominant energy provider until 2035 World primary energy demand by region World primary energy demand by fuel in in IEA New Policies Scenario IEA New Policies Scenario In Mtoe In Mtoe OECD China Rest of world Source: IE
Slide 15: Strengthening Vopak's competitive position in a period of worldwide challenges
Strengthening Vopak’s competitive position in a period of worldwide challenges Financial turmoil and Socio-economic unrests Geopolitical challenges economic uncertainties (e.g. ‘Arab-spring’) 15 Roadshow presentation Q1 2012 Trading Update
Slide 16: Contents
Contents General Introduction Strategy update Business environment Growth projects Business performance Capital disciplined growth Outlook 16 Roadshow presentation Q1 2012 Trading Update
Slide 17: Focused strategy to execute
Focused strategy to execute A B C Growth Leadership Operational Excellence Customer Leadership Our ability to find or Our ability to construct, Our ability to create identify the right location operate and maintain a relationship for our terminals our terminals to with our customers deliver our serv
Slide 18: Sustainability themes within Vopak
Sustainability themes within Vopak Excellent People Health and Safety Environmental Care Responsible Partner Have the best Provide a healthy Be energy and Be a responsible people and create and safe workplace water efficient and partner for our an agile and for our employees reduce emissions
Slide 19: Personal and process safety
Personal and process safety The 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 -15% -6% 1.9 1.7 7.1 6.2 5.8 6.5 1.4 1.4 1.3 1.1 3.2 3.0 2006 2007 200
Slide 20: Various projects completed in 2011
Commissioned A Various projects completed in 2011 Acquired Storage capacity decreases by 1.0 million cbm Divestment Terminal Bahamas Amsterdam Westpoort (1) Kandla 3,400,000 cbm; oil products 620,000 cbm; oil products 261,600 cbm; chemicals Altamira Altamira LNG terminal Gate terminal 300,000 cbm; L
Slide 21: Projects commissioned Q1 2012
A Projects commissioned Q1 2012 Tianjin Lingang Storage capacity increases by 0.5 million cbm 95,300 cbm; chemicals Amsterdam Westpoort (2a) Gothenburg 220,000 cbm; oil products 60,000 cbm; oil products Map Ta Phut Zhangjiagang 15,000 cbm; chemicals 55,600 cbm; chemicals Commissioned Acquired Note:
Slide 22: Strengthening competitive position: improve safety performance and efficiency
B Strengthening competitive position: improve safety performance and efficiency Safety Efficiency Improving safety performance Operational efficiency improvements Reinforce our Vopak Fundamentals Focus on master plans on Safety 22 Roadshow presentation Q1 2012 Trading Update
Slide 23: Serving markets from a product perspective
C Serving markets from a product perspective Product strategy Understand basic technology Understand imbalances Understand trade flow dynamics Winning clients and ports Account Management Portfolio of Terminals Customer segmentation Port Attractiveness Access to the right people Releva
Slide 24: Contents
Contents General Introduction Strategy update Business environment Growth projects Business performance Capital disciplined growth Outlook 24 Roadshow presentation Q1 2012 Trading Update
Slide 25: Global energy product trends drive Vopak's market
Global energy product trends drive Vopak’s market Oil products Chemical products Biofuels & Vegoils LNG Global Crude oil Feedstock Politics, annual A globalizing trade business advantage in ME harvest and natural gas market Europe’s gasoline Renewed Gulf demand growth will with new busin
Slide 26: Vopak market definition
Vopak market definition Definition Vopak’s competitive environment is defined as non-captive marine tank storage for liquid oil and chemical products Primary competition Independent competition renting only to third parties Secondary competition Partly using the capacity for storing own products (So
Slide 27: Market share according to the definition
Market share according to the definition Storage market (cbm) Oil Chemicals Total World Market 211 mln 53 mln 263 mln cbm Primary Competition 132 mln 46 mln 178 mln cbm Secondary Competition 79 mln 7 mln 86 mln cbm Vopak 15.7 mln 10.9 mln 26.9 mln cbm Vopak Market Share As % of total market 7% 21% 1
Slide 28: Demand growth in storage market to support international trade flows
Demand growth in storage market to support international trade flows Additional Worldwide Storage Capacity Total World Market, incl. Vopak 28.2 mln cbm Growth % 10.7 % Vopak 5.6 mln cbm Growth as % of Vopak capacity 19.8 %* * Based on storage capacity of 28.3 million cbm. 28 Roadshow presentation Q1
Slide 29: Vopak: the global market leader
Vopak: the global market leader Storage capacity as per February 2012 In mln cbm Vopak Oiltanking Kinder Morgan NuStar Buckeye CLH IMTT Vitol CIM Magellan SUMED terminal Odfjell Dalian Port Horizon Sunoco 0 5 10 15 20 25 30 Note: Including inland capacity and Joint Ventures. Source: Vopak; company w
Slide 30: Contents
Contents General Introduction Strategy update Business environment Growth projects Business performance Capital disciplined growth Outlook 30 Roadshow presentation Q1 2012 Trading Update
Slide 31: Capacity growth under construction
Capacity growth under construction Capacity developments In mln cbm +5.6 33.9 4.1 +0.5 1.5 28.3 27.8 0.1 0.1 0.3 31-12-2011 Expansions New Acquisition 31-3-2012 Expansions New 31-12-2014 terminals terminals Note: Including net change at various terminals (including decommissioning). 31 Roadshow pres
Slide 32: Various projects under construction
Various projects under construction Under construction Total storage capacity under construction 5.6 million cbm Eemshaven Amsterdam Westpoort (2b) Hainan 660,000 cbm; oil products 350,000 cbm; oil products 1,350,000 cbm; oil products Algeciras Europoort Fujairah Pengerang 403,000 cbm; oil products
Slide 33: Storage capacity under construction (1)
Storage capacity under construction (1) Location Ownership Product cbm 2010 2011 2012 2013 2014 Netherlands, 100% O 350,000 Westpoort (2b) Mexico, Altamira 100% C 15,800 China, Tianjin (2) 50% LPG 240,000 UAE, Fujairah 33.3% O 606,000 China, Coajing 50% C 16,000 Netherlands, 50% O 660,000 Eemshaven
Slide 34: Storage capacity under construction (2)
Storage capacity under construction (2) Location Ownership Product cbm 2010 2011 2012 2013 2014 Netherlands, 100% C 20,000 Rotterdam China, 50% C 153,000 Dongguan Singapore, 69.5% C 100,200 Banyan China, Hainan 49% O 1,350,000 Malaysia, 44% O 1,278,000 Pengerang Netherlands, 100% O 400,000 Europoort
Slide 35: Various projects under study
Various projects under study Under study Perth Amboy Fos-sur-Mer Oil products LNG Bahia Las Minas Bioko Island West-Java Oil products Oil products LPG 35 Roadshow presentation Q1 2012 Trading Update
Slide 36: Contents
Contents General Introduction Strategy update Business environment Growth projects Business performance Capital disciplined growth Outlook 36 Roadshow presentation Q1 2012 Trading Update
Slide 37: Financial performance is fuelled by different value drivers
Financial performance is fuelled by different value drivers Past Present Present Future 2003-06 2007-09 2010-2011 2012 > Occupancy improvements Playing field between 90 - 95% Operational efficiency gains Capacity expansion 37 Roadshow presentation Q1 2012 Trading Update
Slide 38: Healthy occupancy rates between 90-95%
Healthy occupancy rates between 90-95% 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 84 ’04 ’05 ’06 ’07 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009 2010 2011 2012 38 Roadshow presentation Q1 2012 Trading Update
Slide 39: Vopak is well positioned to maintain 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 Focus on logistic efficiency improvements for our clients has led to increased EBIT(DA) margins * Excluding exceptional items;
Slide 40: Development of storage capacity
Development of storage capacity Subsidiaries Storage capacity Joint Ventures In mln cbm +6.1 33.9 +8.9 32.2 28.8 30.0 27.1 28.3 27.8 11.3 12.6 9.6 21.2 21.8 10.2 10.5 8.2 19.9 20.2 20.4 9.6 5.4 5.1 4.8 5.1 4.9 19.6 20.4 20.9 21.3 16.7 17.5 18.1 18.3 15.1 15.1 15.5 15.8 2003 2004 2005 2006 2007 2008
Slide 41: Contract duration portfolio did not change significantly since 2008
Contract duration portfolio did not change significantly since 2008 Contract position 2008 Contract position 2011 In percent of revenues In percent of revenues < 1 year < 1 year 20% 19% > 3 year 39% > 3 year 44% 37% 41% 1-3 year 1-3 year 41 Roadshow presentation Q1 2012 Trading Update
Slide 42: Q1 2012 Summary
Q1 2012 Summary EBIT* EBITDA* In million EUR In million EUR 186.2 138.0 148.1 +26% 109.5 +26% Q1 2011 Q1 2012 Q1 2011 Q1 2012 Occupancy rate Storage capacity In percent In mln cbm 92.0 93.0 25.3 28.3 +1pp +12% Q1 2011 Q1 2012 Q1 2011 Q1 2012 * Including net result from Joint Ventures; excluding exce
Slide 43: 26% EBIT increase mainly driven by capacity expansions
26% EBIT increase mainly driven by capacity expansions in Netherlands, Asia and LNG North America Netherlands Asia 53.6 45.9 47.4 +13% 33.5 +37% 9.8 10.6 +8% Q1 2011 Q1 2012 Q1 2011 Q1 2012 Q1 2011 Q1 2012 Latin America EMEA Global LNG 22.4 24.1 7.3 7.4 +8% +1% 5.0 -2.0 Q1 2011 Q1 2012 Q1 2011 Q1 20
Slide 44: Joint Ventures are of importance in Vopak's growth strategy
Joint Ventures are of importance in Vopak’s growth strategy Storage capacity* Subsidiaries Net result from Joint Ventures** In mln cbm Joint ventures In mln EUR 32.2 33.9 30.0 27.1 28.3 28.8 27.8 11.3 12.6 21.8 9.6 9.6 10.2 10.5 8.2 5.1 26.0 21.0 +24% 19.6 20.4 20.9 21.3 16.7 17.5 18.1 18.3 2007 200
Slide 45: IFRS equity accounting versus proportionate consolidation
Q1 2012: IFRS equity accounting versus proportionate consolidation EBITDA* EBITDA Subsidiaries (Equity method) Incl. proportionate consolidation JVs tank storage 216.5 186.2 164.9 +31% 148.1 +26% Q1 2011 Q1 2012 Q1 2011 Q1 2012 EBIT* EBIT Subsidiaries (Equity method) Incl. proportionate consolidatio
Slide 46: Netherlands
Netherlands - New storage capacity came on stream - Higher occupancy rates EBIT* In million EUR 41.9 46.2 45.9 33.5 34.7 +37% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Occupancy rate Storage capacity In percent In mln cbm 92.0 93.0 +1pp 7.0 8.5 +21% Q1 2011 Q1 2012 Q1 2011 Q1 2012 * Including net resu
Slide 47: EMEA
EMEA - Healthy demand for storage services EBIT* In million EUR 22.4 23.3 23.9 23.3 24.1 +8% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Occupancy rate Storage capacity In percent In mln cbm 89.0 89.0 0pp 8.2 8.4 +2% Q1 2011 Q1 2012 Q1 2011 Q1 2012 * Including net result from Joint Ventures; excluding e
Slide 48: Asia
Asia - Continuous growth in Asia - Currency translation gain of EUR 3.0 million EBIT* In million EUR 47.4 46.2 45.0 46.7 53.6 +13% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Occupancy rate Storage capacity In percent In mln cbm 94.0 95.0 +1pp 6.8 7.3 +7% Q1 2011 Q1 2012 Q1 2011 Q1 2012 * Including net
Slide 49: North America
North America - Higher occupancy rates - Improvements in markets for biofuels and chemicals EBIT* In million EUR 9.8 8.9 10.6 7.1 8.0 +8%** Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Occupancy rate Storage capacity In percent In mln cbm 91.0 97.0 +6pp 2.3 2.3 0% Q1 2011 Q1 2012 Q1 2011 Q1 2012 * Includ
Slide 50: Latin America
Latin America - Steady results EBIT* In million EUR 7.3 6.4 7.0 7.5 7.4 +1% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Occupancy rate Storage capacity In percent In mln cbm 91.0 90.0 -1pp 1.0 1.0 0% Q1 2011 Q1 2012 Q1 2011 Q1 2012 * Including net result from Joint Ventures; excluding exceptional items.
Slide 51: Contents
Contents General Introduction Strategy update Business environment Growth projects Business performance Capital disciplined growth Outlook 51 Roadshow presentation Q1 2012 Trading Update
Slide 52: Capital disciplined growth
Capital disciplined growth Total equity and liabilities In mln EUR 4,240 3,831 3,136 2,634 57% Liabilities 60% 2,133 58% 62% 59% 40% 43% Equity 38% 42% 41% 2007 2008 2009 2010 2011 52 Roadshow presentation Q1 2012 Trading Update
Slide 53: Capital disciplined growth: Total investments
Capital disciplined growth: Total investments Total Investments 2006-2014 In mln EUR 1,811 1,514 ~950-1,100 ~450-600 Sustaining Capex Expansion Capex* ~500 2006-2008 2009-2011 2012-2014 * Including remaining equity share in Joint Venture; in the first quarter of 2012 EUR 100 mln has been spent. Note
Slide 54: Capital disciplined growth: Strategic finance
Capital disciplined growth: Strategic finance Access to Capital Markets Net senior debt : EBITDA ratio Syndicated 5 Revolving Credit 3.75 4 Facility 3 Asian and JPY 2 Private 2.42 2.54 2.63 2.65 2.43 2.20 2.23 Placements 1 1.76 1.61 1.71 0 2003* 2004 2005 2006 2007 2008 2009 2010 2011 Q1 US Pr
Slide 55: 2011 Dividend amounts to EUR 0.80 per ordinary share
2011 Dividend amounts to EUR 0.80 per ordinary share Dividend and EPS 2003-2011** Cash Dividend In EUR 2.08 2.16 1.92 +4% 1.62 1.31 0.98 0.81 0.64 0.63 +14% 0.625 0.70 0.80 0.375 0.475 0.55 0.25 0.25 0.30 2003 2004 2005 2006 2007 2008 2009 2010 2011 Dividend policy: “Barring exceptional circumstance
Slide 56: Contents
Contents General Introduction Strategy update Business environment Growth projects Business performance Capital disciplined growth Outlook 56 Roadshow presentation Q1 2012 Trading Update
Slide 57: Contribution of Vopak value drivers in the future
Contribution of Vopak value drivers in the future Past Present Present Future 2003-06 2007-09 2010-2011 2012 > Occupancy improvements Playing field between 90 - 95% Operational efficiency gains Capacity expansion 57 Roadshow presentation Q1 2012 Trading Update
Slide 58: Outlook assumptions
Outlook assumptions ~x% Share of EBIT Oil products Chemicals Industrial terminals Biofuels & Vegoils LNG 2011 ~60% ~17.5-20% ~12.5% ~7.5-10% <1% Robust Encouraging Solid Mixed Solid 2013 ~60-65% ~17.5-20% ~7.5-10% ~5-7.5% ~2.5-5% Note: width of the boxes do not represent actual percentages. 58 Roads
Slide 59: Vopak expects to realize an EBITDA of between EUR 725-800 million in 2013
Vopak expects to realize an EBITDA of between EUR 725-800 million in 2013 Historical results Outlook EBITDA Development and outlook In EUR mln 725-800 636.0 598.2 513.4 429.3 369.5 The possibility 314.1 that Vopak 262.5 231.8 reaches the lower end of the 2013 outlook range in 2012 cannot be 2004 2
Slide 60: 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 61: The world of Vopak
The world of Vopak 61 61 Roadshow presentation FY Q12011 2012 Trading Update