Slide 1: The World of Vopak Q1 2016 Results
THE WORLD OF VOPAK Q1 2016 RESULTS ROYAL VOPAK Q1 2016 ROADSHOW PRESENTATION
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: General Introduction
GENERAL INTRODUCTION ROYAL VOPAK Q1 2016 ROADSHOW PRESENTATION
Slide 4: Vopak at a glance
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics VOPAK AT A GLANCE THE WORLD’S LEADING INDEPENDENT TANK STORAGE COMPANY Listed at the Building on an Euronext AEX impressive history of Market cap. of 400 years EUR ~6.1 billion*
Slide 5: Financial development
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics FINANCIAL DEVELOPMENT Occupancy rate EBITDA development In percent In EUR million 94 96 95 94 93 93 91 88 88 92 768 753 763 812 598 636 513 370 429 314 2006 2007 2008 2009 2010
Slide 6: Vopak's ambition
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics VOPAK’S AMBITION TO BE THE PARTNER OF CHOICE FOR ALL OUR STAKEHOLDERS Strategic Safe, Strong and Ability to Operating efficient reliable link in innovate and according to locati
Slide 7: Sustainability at the core
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics SUSTAINABILITY AT THE CORE STAYING HEALTHY AND FIT FOR THE FUTURE 7 Q1 2016 ROADSHOW PRESENTATION
Slide 8: Execution of the strategy
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics EXECUTION OF THE STRATEGY HIGHLIGHTS OF 2015 Optimization of the terminal Focus on safety and the Service improvement portfolio through the: prevention of incidents initia
Slide 9: Priorities for cash
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics PRIORITIES FOR CASH 1 Debt servicing EUR 2.3 billion, remaining maturity 8 years, average interest 4.2% 2 Dividend EUR 0.9b paid to shareholders in the last 12 years 3 Disciplin
Slide 10: Business challenges
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics BUSINESS CHALLENGES Strategic Operational Safety and service Competitive environment Global maintenance management Changing flows Systems and technology Geopolitics Cash flow ge
Slide 11: Discussions with investors
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics DISCUSSIONS WITH INVESTORS Market dynamics Projects Growth in China Projects under construction Pricing development New opportunities Impact contango Governance Networ
Slide 12: Market Trends
MARKET TRENDS ROYAL VOPAK Q1 2016 ROADSHOW PRESENTATION
Slide 13: Mega trends
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics MEGA TRENDS LONG-TERM STORAGE DEMAND DRIVERS Population GDP Energy demand In billion In trillion 2010$ In quadrillion BTUs 10 160 1.000 8 120 800 6 600 80 Energy consumption 4 G
Slide 14: Structural imbalances
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics STRUCTURAL IMBALANCES INCREASING TRADE EXPECTED TO CONTINUE 2015 2020 2015 2020 2015 2020 2015 2020 2015 2020 2015 2020 2015 2020 Refined petroleum accumulated deficits Refined
Slide 15: Imbalances continue to develop
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics IMBALANCES CONTINUE TO DEVELOP US AND MIDDLE EAST EXPORT, ASIA AND EUROPE IMPORT 5,0 2015 2020 0 2,5 0,0 -10 2015 2020 20 -20 60 2015 2020 10 0 40 0 -20 20 2015 2020 0 -40 2015
Slide 16: Developments per product group
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics DEVELOPMENTS PER PRODUCT GROUP OVERALL SOLID DEMAND FOR STORAGE Oil products LNG Lower oil price Increase in LNG supply environment More short-term and Oversupply refine
Slide 17: Market dynamics
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics MARKET DYNAMICS GLOBAL IMBALANCES CONTINUE TO DEVELOP Netherlands EMEA Asia Americas Favorable trading Strong demand for road Oil producing Uncertainty China dynamics su
Slide 18: Strategy Execution: Growth Leadership
STRATEGY EXECUTION GROWTH LEADERSHIP ROYAL VOPAK Q1 2016 ROADSHOW PRESENTATION
Slide 19: Storage capacity developments
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics STORAGE CAPACITY DEVELOPMENTS FOCUS ON SELECTIVE DISCIPLINED GROWTH Storage capacity In million cbm +13.8 +4.1* Projects under Growing our global network through development up
Slide 20: Global presence
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics GLOBAL PRESENCE Hamburg Talinn Amsterdam Rotterdam Antwerp Ningbo Lanshan Tianjin Zhangjiagang Tarragona Ulsan Barcelona Karachi Algeciras Nagoya Quebec Moji Hamilton Yokohama M
Slide 21: Return requirements for investments
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics RETURN REQUIREMENTS FOR INVESTMENTS Footprint in Optimization growth emerging markets opportunities I II First-mover Option advantage value Contribution from key accounts VI III
Slide 22: Investment and divestments 2015 & YTD Q1 2016
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics INVESTMENT AND DIVESTMENTS 2015 & YTD Q1 2016 Galena park Wilmington Sweden Finland London Teeside Windmill -170,000 cbm -130,700 cbm) -1,260,700 cbm -175,400 cbm -367,400 cbm -
Slide 23: Realized divestments 2015
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics REALIZED DIVESMENTS 2015 STRENGTHENING VOPAK’S FLEXIBILITY TO EXECUTE ITS SELECTIVE CAPITAL DISCIPLINED GROWTH STRATEGY Number of Number of terminals plots of land 9 2 Total net
Slide 24: Sale of the UK assets Q1 2016
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics SALE OF THE UK ASSETS Q1 2016 STRENGTHENING VOPAK’S FLEXIBILITY TO EXECUTE ITS SELECTIVE CAPITAL DISCIPLINED GROWTH STRATEGY 3 WHOLLY-OWNED TERMINALS London, Teeside and Windm
Slide 25: Selective growth opportunities
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics SELECTIVE GROWTH OPPORTUNITIES EFFECTIVE AND SOUND STRATEGIC ORIENTATION +3.5 3.5 37.8 0.7 +0.5 0.2 1.7 0.7 0.3 34.3 33.8 1.7 Greenfield Greenfield Brownfield Divestments Brownf
Slide 26: Projects under development
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics PROJECTS UNDER DEVELOPMENT Note: ‘storage capacity’ is defined as the total available storage capacity (jointly) operated by the Group at the end of the reporting period, being
Slide 27: Strategy Execution: Operational Leadership
STRATEGY EXECUTION OPERATIONAL LEADERSHIP ROYAL VOPAK Q1 2016 ROADSHOW PRESENTATION
Slide 28: Execution of the business
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics EXECUTION OF THE BUSINESS OPERATIONAL EXCELLENCE IS CORE TO VOPAK’S SERVICE OFFERING Safety Efficiency Service improvement Committed to improving our Continuous focus on cost Al
Slide 29: Commitment to safety
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics COMMITMENT TO SAFETY Total injury rate (TIR) Lost time injury rate (LTIR) Total injuries per 200,000 hours worked by Total injuries leading to lost time per 200,000 hours own em
Slide 30: Strategy Execution: Customer Leadership
STRATEGY EXECUTION CUSTOMER LEADERSHIP ROYAL VOPAK Q1 2016 ROADSHOW PRESENTATION
Slide 31: Business model
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics BUSINESS MODEL Blending nitrogen Adding / cooling Heating / unloading of ships / railcars / trucks Loading Excess througput fees Monthly invoicing in arrears Services Fixed rent
Slide 32: Customer portfolio
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics CUSTOMER PORTFOLIO Global clients Regional clients Local clients Active at multiple Vopak Active in more than one Active in one Vopak locations around the Vopak location o
Slide 33: Sound contract durations
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics SOUND CONTRACT DURATIONS Contract position FY2013 Contract position FY2014 Contract position FY2015 In percent of revenues In percent of revenues In percent of revenues 20% 21%
Slide 34: Market share according to definition
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics MARKET SHARE ACCORDING TO DEFINITION Oil storage market Non-oil storage market* Total storage market In million cbm In million cbm In million cbm Primary competition 152.0 36.6
Slide 35: Capital Management
CAPITAL MANAGEMENT ROYAL VOPAK Q1 2016 ROADSHOW PRESENTATION
Slide 36: Disciplined growth
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics DISCIPLINED GROWTH SELECTIVE CAPITAL ALLOCATION Total investments 2004-2019 Expansion capex** In EUR million In EUR million; 100% = EUR 2,700 million 2,610 2,588 Remaining ~200
Slide 37: Disciplined capital management
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics DISCIPLINED CAPITAL MANAGEMENT MAINTAINING A SOLID FINANCIAL POSITION Senior net debt : EBITDA ratio Maximum ratio under other PP programs and syndicated revolving credit facili
Slide 38: Capital structure
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics CAPITAL STRUCTURE Syndicated Ordinary shares Private placement Equity(-like)* revolving program* credit facility* Listed on Euronext USD: 2.0 billion EUR 1.0 billion Subordinate
Slide 39: Debt repayment schedule
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics DEBT REPAYMENT SCHEDULE Debt repayment schedule In EUR million RCF flexibility US PP RCF drawn Asian PP Subordinated US PP Other 1,200 1,100 1,000 500 400 300 200 100 0 2015 201
Slide 40: Net finance costs
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics NET FINANCE COSTS Net finance costs 2015 Net finance costs 2014 In EUR million In EUR million Interest and dividend income 10.7 7.9 Finance costs -115.9 -97.7 Net finance costs
Slide 41: Solid financial position
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics SOLID FINANCIAL POSITION MAINTAINING A CONSISTENT SOLVENCY WHILST GROWING OUR GLOBAL NETWORK Total equity and net liabilities Net liabilities* Equity 60% 64% 64% 36% 40% 36% 200
Slide 42: Stable dividend growth
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics STABLE DIVIDEND GROWTH PROPOSED DIVIDEND INCREASED WITH 11% TO EUR 1.00 PER SHARE Barring exceptional Dividend and EPS* 2003-2015 circumstances, the In EUR intention is to pay 3
Slide 43: Business Performance FY 2015 Results
BUSINESS PERFORMANCE FY 2015 RESULTS ROYAL VOPAK Q1 2016 ROADSHOW PRESENTATION
Slide 44: Long-term value creation
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics LONG-TERM VALUE CREATION KEY ELEMENTS SUPPORTING OUR BUSINESS MODEL Focus on Strong capital risk-return structure with Stable margins and healthy Diversified and take-or-pay cas
Slide 45: FY 2015 business highlights
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics FY 2015 BUSINESS HIGHLIGHTS SOLID RESULTS SUPPORTED BY HEALTHY OCCUPANCY RATES Terminal Network * EBITDA *** 34.3 812 In million cbm In EUR million Occupancy Cash flows Rate **
Slide 46: Topics influencing 2015
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics TOPICS INFLUENCING 2015 OPERATING IN A COMPLEX ENVIRONMENT Oil price Growth Geopolitical developments in China events Note: terminals depicted above represent the global network
Slide 47: Occupancy rate developments
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics OCCUPANCY RATE DEVELOPMENTS CONTINUING TO EXCEED 90% Occupancy rate* +3pp 90-95% 85-90% 92 93 94 94 88 88 91 91 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 Q2
Slide 48: FY 2015 summary
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics FY 2015 SUMMARY SOLID RESULTS SUPPORTED BY HEALTHY OCCUPANCY RATES Revenues* EBITDA** +5% +6% In EUR million In EUR million 1,386 812 1,323 763 2014 2015 2014 2015 EBIT** Net pr
Slide 49: Robust business model
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics ROBUST BUSINESS MODEL SOUND CONTRACTS, EFFECTIVE SUPPLY CHAIN POSITIONING AND STRONG CASH FLOW FOCUS EBITDA, Net result joint ventures and associates and Cash flows In EUR milli
Slide 50: Stable margin developments
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics STABLE MARGIN DEVELOPMENTS BALANCED RISK-RETURN PROFILE AND CONTINUOUS FOCUS ON COST COMPETITIVENESS EBIT(DA) margins* In percent 60 50% 50 40 32% 30 20 10 2004 2005 2006 2007 2
Slide 51: FY 2015 return indicators
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics FY 2015 RETURN INDICATORS FOCUS ON FREE CASH FLOW AND CAPITAL EFFICIENCY ROE* Non-IFRS In percent Proportional information 21.9 CFROGA** (after tax) 18.8 In percent 16.7 17.3 11
Slide 52: FY 2015 Non-IFRS proportional information
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics FY 2015 NON-IFRS PROPORTIONAL INFORMATION Occupancy rate +4pp In percent 92 90 88 88 92 2011 2012 2013 2014 2015 Proportionate EBITDA* +10% In EUR million 836 904 817 824 660 20
Slide 53: Business Performance Q1 2016 Interim Update
BUSINESS PERFORMANCE Q1 2016 INTERIM UPDATE ROYAL VOPAK Q1 2016 ROADSHOW PRESENTATION
Slide 54: Q1 2016 key figures excluding exceptional items
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics Q1 2016 KEY FIGURES -EXCLUDING EXCEPTIONAL ITEMS- ROBUST FINANCIAL RESULTS Revenues* EBITDA** In EUR million In EUR million +4% 0% 349.5 351.2 350.4 214.7 347.9 209.4 206.2 202.
Slide 55: Q1 2016 key figures including exceptional items
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics Q1 2016 KEY FIGURES -INCLUDING EXCEPTIONAL ITEMS- SUPPORTED BY THE DIVESTMENT OF THE UK ASSETS EBITDA* Net profit** In EUR million +87% In EUR million +212% 496.7 378.1 265.3 12
Slide 56: Q1 2016 EBITDA analysis
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics Q1 2016 EBITDA ANALYSIS INCREASE SUPPORTED BY HEALTHY OCCUPANCY RATES, WHILST THE DIVESTMENTS HAD A DOWNWARD EFFECT +4% 0.6 0.6 4.5 214.7 1.5 1.5 7.2 206.2 202.6 4.3 3.6 5.1 Acq
Slide 57: Business Performance Segmentation
BUSINESS PERFORMANCE SEGMENTATION ROYAL VOPAK Q1 2016 ROADSHOW PRESENTATION
Slide 58: Occupancy rate developments per division
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics OCCUPANCY RATE DEVELOPMENTS PER DIVISION HEALTHY OCCUPANCY LEVELS IN ALL DIVISIONS Occupancy rates In percent 96 96 96 95 95 95 94 92 92 92 91 91 91 91 91 90 90 89 89 Q1 2015 85
Slide 59: Q1 2016 Netherlands development
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics Q1 2016 NETHERLANDS DEVELOPMENT Occupancy rate* +4pp In percent 93 96 92 85 88 2012 2013 2014 2015 2016 EBITDA** +11% In EUR million 75.5 68.2 63.3 59.8 60.9 2012 2013 2014 2015
Slide 60: Q1 2016 EMEA development
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics Q1 2016 EMEA DEVELOPMENT Occupancy rate* +5pp In percent 96 89 89 91 80 2012 2013 2014 2015 2016 EBITDA** +2% In EUR million 34.7 34.6 34.0 32.3 28.9 2012 2013 2014 2015 2016 St
Slide 61: Q1 2016 Asia development
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics Q1 2016 ASIA DEVELOPMENT Occupancy rate* In percent +2pp 95 95 95 92 90 2012 2013 2014 2015 2016 -1% EBITDA** In EUR million 75.4 74.6 70.7 67.3 66.4 2012 2013 2014 2015 2016 St
Slide 62: Q1 2016 Americas development
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics Q1 2016 AMERICAS DEVELOPMENT Occupancy rate* +3pp In percent 95 91 91 92 89 2012 2013 2014 2015 2016 EBITDA** +7% In EUR million 31.4 27.3 29.4 24.0 23.3 2012 2013 2014 2015 201
Slide 63: Q1 2016 net result joint ventures & associates
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics Q1 2016 NET RESULT JOINT VENTURES & ASSOCIATES Net result joint ventures & associates +10% Asia +4% 31.7 30.2 28.9 13.5 14.1 26.0 9.5 8.2 22.0 7.3 2012 2013 2014 2015 2016 2012
Slide 64: Looking Ahead & Other Topics
LOOKING AHEAD & OTHER TOPICS ROYAL VOPAK Q1 2016 ROADSHOW PRESENTATION
Slide 65: Priorities for 2016
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics PRIORITIES FOR 2016 EXECUTION OF THE BUSINESS REVIEW VOPAK SETS STRATEGIC PRIORITIES AND PROVIDES FINANCIAL UPDATE 02 July 2014 Vopak publishes today the outcome of the business
Slide 66: Outlook 2016
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics OUTLOOK 2016 2015 Expansions Productivity and Divestments FX effect (and 2016 organisational pension costs) efficiency enhancements We reiterate our outlook for 2016 and expect
Slide 67: Outlook assumptions
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics OUTLOOK ASSUMPTIONS Oil Chemical Industrial & Vegoils & Gas products products pipeline connected biofuels products Share of EBITDA* 45-50% 20-25% 20-25% 5-7.5% 2.5-5% Contract d
Slide 68: Other topics
General Market Strategy Capital Business Looking ahead introduction trends execution management performance & other topics OTHER TOPICS Effective tax rate* FY 2015 EBITDA* transactional currencies In percent In percent 20.9 24% 18.0 17.1 18.1 USD SGD EUR 37% 16% Other 2012 2013 2014 2015 23% Funding