Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Investor Day (July 2009)
28 slides from Royal Vopak NV's investor day presentation, Jul 3, 2009
Slide 1: Jack de Kreij, Analyst Meeting 3 July 2009
_ Jack de Kreij Member of the Executive Board and Chief Financial Officer Analyst Meeting 3 July 2009 – – –
Slide 2: Sustainable Value Growth
Sustainable Value Growth Introduction Sustainable Value Growth – Status July 2009 Financing Outlook – – – Analyst Meeting 2009 3/7/2009 2
Slide 3: Results of Vopak Transformation Process
Results of Vopak Transformation Process Outlook Guidance 2004 2005 2006 2007 2008 2009 In EUR mln > 450 429.3 369.5 314.1 262.5 EBITDA** 231.8 Q1 115.6 320.4 272.9 220.9 EBIT 179.7 151.0 * Excluding exceptional items ** EBITDA includes joint ventures & associates results – – – Analyst Meeting 2009 3
Slide 4: Vopak's challenge
Vopak’s challenge The challenge is to facilitate the current and future product flows: Wide variety in required handling, level of throughput and operational automation – – – Analyst Meeting 2009 3/7/2009 4
Slide 5: Sustainable Value Growth
Sustainable Value Growth Introduction Sustainable Value Growth – Status July 2009 Financing Outlook – – – Analyst Meeting 2009 3/7/2009 5
Slide 6: The excellence mindset
“The excellence mindset” 1. Maintaining the right balance between growth and flawless execution 2. Identifying and multiplying talent 3. Closely monitoring and measuring business performance 4. Recognizing standardization and technology as a strategic asset 5. Emphasizing continuous renewal – – – An
Slide 7: Focus on: Sustainable Value Growth
Focus on: Sustainable Value Growth Stakeholder Interests a.o. Stakeholder • Safety Corporate Value Added • Client Satisfaction Objective (SVA) • Financial return • Employee Engagement • Sustainability Valuation Cash Flow Discount Debt Components Operations Rate • Value • Sales Growth • Working Capit
Slide 8: Sustainable Value Growth: Status July 2009
Sustainable Value Growth: Status July 2009 EBITDA > EUR 450 mln ROCE > 16% Sales growth Working capital Value growth Operating profit investment Cost of capital Margin Maintenance/ Income tax rate SHE capex Excellence Continuous improvement Toolbox Leadership Learning organisation Benchmarking Shari
Slide 9: The growth of storage capacity continues
The growth of storage capacity continues Storage Capacity In mln CBM 30.2 27.1 27.4 21.8 20.4 21.2 19.9 20.2 +0.3 +0.2 +0.8 +0.6 +5.3 +0.3 +2.8 2003 2004 2005 2006 2007 2008 Q1 2009 2011 – – – Analyst Meeting 2009 3/7/2009 9
Slide 10: Characteristics of remaining 2.8 mln cbm projects under construction
Characteristics of remaining 2.8 mln cbm projects under construction Year of commission Per region OEMEA 21% Asia 2011 32% 1.1 mln cbm 2009 1.5 mln cbm North America 16% 2010 CEMEA 0.2 mln cbm Per product Latin 10% LNG America Biofuels/Vegoils 19% 2% LNG 3% Chemicals 19% 12% Chemicals/ Biofuels 6% O
Slide 11: Robust sales growth and stable occupancy rates
Robust sales growth and stable occupancy rates 2008 EUR 923.5 mln In EUR mln 96% 95% 95% 1,000 94% 92% Occupancy rate 900 85% Net revenues 800 700 600 500 2004 2005 2006 2007 2008 Q1 2009 – – – Analyst Meeting 2009 3/7/2009 11
Slide 12: Stable EBIT(DA) margins
Stable EBIT(DA) margins 50% EBITDA margin* 40% EBIT margin* 30% 20% 10% * Excluding exceptionals, including net result of JV’s 0% 2004 2005 2006 2007 2008 – – – Analyst Meeting 2009 3/7/2009 12
Slide 13: Meeting different challenges
Meeting different challenges EBITDA Margins (excluding Joint Ventures and Associates) 70% 60% Asia 50% OEMEA 40% CEMEA Latin America 30% North America 20% 10% 0% 2004 2005 2006 2007 2008 – – – Analyst Meeting 2009 3/7/2009 13
Slide 14: Strong focus on: Working Capital management
Strong focus on: Working Capital management In EUR mln In days 1,000 70 900 60 DSO: 800 From around 60 700 50 in 2002 600 to around 30 40 in 2008 500 30 400 300 20 200 10 100 Income from rendering of services DSO - - 2002 * 2003 * 2004 2005 2006 2007 2008 * Based on Dutch GAAP – – – Analyst Meeting
Slide 15: Average interest rate decreased
Average interest rate decreased Average interest rate 10% 8% 6% 4% 2% 0% 2004 2005 2006 2007 2008 – – – Analyst Meeting 2009 3/7/2009 15
Slide 16: Average Capital Employed increasing
Average Capital Employed increasing In EUR mln Average capital employed Return On Capital Employed (ROCE) 2,500 30% 25% 2,000 20% 1,500 15% 1,000 10% 500 5% 0 0% 2004 2005 2006 2007 2008 EST 2009 – – – Analyst Meeting 2009 3/7/2009 16
Slide 17: EBITDA developments
EBITDA developments EBITDA Development In EUR mln > EUR 450 mln 500 Results of joint ventures & associates using the equity method 450 Operating profit consolidated companies 400 350 300 250 200 150 100 50 0 2004 2005 2006 2007 2008 2009 – – – Analyst Meeting 2009 3/7/2009 17
Slide 18: Sustainable strategic alliances
Sustainable strategic alliances < 5 yrs 10 – 25 yrs GATE Terquimsa Eemshaven LNG Vopak EOS Vopak Horizon Vopak Terminal Bahamas Sabtank PT Jakarta Tank Terminal Xiamen Paktank Terminal Ningbo Thai Tank Terminal Engro Vopak Vopak Terminals Korea Uniao - Vopak Brasterminais 5 – 10 yrs Vopak Terminal T
Slide 19: Sustainable Value Growth
Sustainable Value Growth Introduction Sustainable Value Growth – Status July 2009 Financing Outlook – – – Analyst Meeting 2009 3/7/2009 19
Slide 20: Total investments
Total investments In EUR mln 800 > 750 446 268 147 188 146 2003* 2004 2005 2006 2007 2008 2009-2011 * Based on Dutch GAAP – – – Analyst Meeting 2009 3/7/2009 20
Slide 21: 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 – – – Analyst Meeting 2009 3/7/2009 21
Slide 22: Sufficient headroom to continue growth strategy
Sufficient headroom to continue growth strategy Debt repayment schedule (in EUR mln) • Total financing program around EUR 1.5 bln • No major debt refinancing until 2012 317.9 313.2 180.0 83.7 50.0 25.3 2009 2010 2011 2012 2013 2014 > 2014 Ample financing sources of recent date Facility Maturity In u
Slide 23: Sustainable Value Growth
Sustainable Value Growth Introduction Sustainable Value Growth – Status July 2009 Financing Outlook – – – Analyst Meeting 2009 3/7/2009 23
Slide 24: Outlook
Outlook Different treatment of net result from JV’s and Associates In EUR mln 480 460 440 420 400 380 Bloomberg consensus Vopak Guidance – – – Analyst Meeting 2009 3/7/2009 24
Slide 25: Reconciling Q1 with FY09 outlook
Reconciling Q1 with FY09 outlook Actual Q1 2009 EBITDA EUR 115.6 mln + -/- * expansions * tanks out of operation * margin management * pre-operating expenses * contract renewals * start-up results * operational efficiency improvements * uncertainty chemical storage (especially in Europe) Outlook 200
Slide 26: Outlook Assumptions
Outlook Assumptions Oil Biofuels and Industrial Chemicals vegoils terminals ~ 20% of EBIT ~ 50% of EBIT ~ 15% of EBIT ~ 15% of EBIT ROBUST STABLE MIXED Healthy demand for storage capacity Contract renewals + New storage capacity commissioned – – – Analyst Meeting 2009 3/7/2009 26
Slide 27: 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 28: www.vopak.com
– – – – Analyst Meeting 2009 3/7/2009 28 www.vopak.com