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2011 Earnings Call – Royal Vopak

Royal Vopak · Feb 29, 2012 · 68 slides

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Slides

  1. 2011 Earnings Call – Royal Vopak – slide 1
    Annual Results 2011 Analyst presentation 29 February 2012
  2. 2011 Earnings Call – Royal Vopak – slide 2
    Forward-looking statement This document 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 renders…
  3. 2011 Earnings Call – Royal Vopak – slide 3
    Global mega trends drive Vopaks markets Population GDP growth in Increasing Increasing need growth, mainly non-OECD (sustainable) transport and non-OECD energy need mobility 3 Annual Results 2011 29 Februari 2012
  4. 2011 Earnings Call – Royal Vopak – slide 4
    Strengthening Vopaks competitive position in a period of worldwide challenges Financial turmoil and Socio-economic unrests Geopolitical challenges economic uncertainties (e.g. Arab-spring) 4 Annual Results 2011 29 Februari 2012
  5. 2011 Earnings Call – Royal Vopak – slide 5
    Contents Achievements 2011 Business environment Growth projects Business performance Financing Outlook 5 Annual Results 2011 29 Februari 2012
  6. 2011 Earnings Call – Royal Vopak – slide 6
    Robust results in 2011 Storage capacity Occupancy rate In mln cbm In percent -1.0 90-95% 94.0 96.0 95.0 94.0 93.0 93.0 27.1 28.3 28.8 27.8 21.2 21.8 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 EBITDA…
  7. 2011 Earnings Call – Royal Vopak – slide 7
    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…
  8. 2011 Earnings Call – Royal Vopak – slide 8
    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…
  9. 2011 Earnings Call – Royal Vopak – slide 9
    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;…
  10. 2011 Earnings Call – Royal Vopak – slide 10
    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…
  11. 2011 Earnings Call – Royal Vopak – slide 11
    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…
  12. 2011 Earnings Call – Royal Vopak – slide 12
    Contents Achievements 2011 Business environment Growth projects Business performance Financing Outlook 12 Annual Results 2011 29 Februari 2012
  13. 2011 Earnings Call – Royal Vopak – slide 13
    Global energy product trends drive Vopaks 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 Europes…
  14. 2011 Earnings Call – Royal Vopak – slide 14
    Contents Achievements 2011 Business environment Growth projects Business performance Financing Outlook 14 Annual Results 2011 29 Februari 2012
  15. 2011 Earnings Call – Royal Vopak – slide 15
    Global products trends resulting in company growth through healthy demand for storage capacity Capacity developments 2010-2014 In mln cbm +6.0 -1.0 33.8 28.8 4.2 27.8 1.8 3.5 0.8 1.7 31-12-2010 Divest- Expansions New 31-12-2011…
  16. 2011 Earnings Call – Royal Vopak – slide 16
    Various projects under construction Under construction Total storage capacity under construction 6.0 million cbm Eemshaven Amsterdam Westpoort (2) Hainan 660,000 cbm; oil products 570,000 cbm; oil products 1,350,000 cbm; oil…
  17. 2011 Earnings Call – Royal Vopak – slide 17
    Vopak expects to realize an EBITDA between EUR 725-800 million in 2013 17 Annual Results 2011 29 Februari 2012
  18. 2011 Earnings Call – Royal Vopak – slide 18
    Contents Achievements 2011 Business environment Growth projects Business performance Financing Outlook 18 Annual Results 2011 29 Februari 2012
  19. 2011 Earnings Call – Royal Vopak – slide 19
    2011 Results in line with outlook Storage capacity Occupancy rate In mln cbm In percent -1.0 90-95% 94.0 96.0 95.0 94.0 93.0 93.0 27.1 28.3 28.8 27.8 21.2 21.8 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011…
  20. 2011 Earnings Call – Royal Vopak – slide 20
    2011 Financial overview 6% EBITDA growth 5% EBIT growth 4% EPS growth Proposal cash dividend of EUR 0.80 per share (+14%) Adequate funding of growth strategy secured Note: Excluding exceptional items; including net result…
  21. 2011 Earnings Call – Royal Vopak – slide 21
    Global mega trends resulting in a robust demand for tank terminal services Population GDP growth in Increasing Increasing need growth, mainly non-OECD (sustainable) transport and non-OECD energy need mobility 21 Annual Results…
  22. 2011 Earnings Call – Royal Vopak – slide 22
    Contribution of Vopak value drivers in the past and present Past Present Present Future 2003-06 2007-09 2010-2011 2012 Occupancy improvements Playing field between 90 - 95% Operational efficiency gains Capacity…
  23. 2011 Earnings Call – Royal Vopak – slide 23
    Focused strategy delivers results EBITDA Development 2006-2011* In mln EUR +102% Healthy occupancy rate 636.0 Improved revenue per cubic meter Effective cost management 314.1 Storage capacity growth 2006 Divestments FX…
  24. 2011 Earnings Call – Royal Vopak – slide 24
    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…
  25. 2011 Earnings Call – Royal Vopak – slide 25
    Transition year 2011 in line with outlook Revenues EBIT* In million EUR 1,171.9 In million EUR 469.4 1,106.3 +6% 445.3 +5% 2010 2011 2010 2011 Net profit* Earnings per share* In million EUR In EUR 275.4 2.16 264.8 +4% 2.08…
  26. 2011 Earnings Call – Royal Vopak – slide 26
    Revenue developments supported by robust demand for storage capacity Storage capacity Subsidiaries In mln cbm Joint ventures +6.0 +7.6 -1.0 33.8 32.1 28.8 29.9 27.1 28.3 27.8 11.3 12.6 9.6 21.2 21.8 10.2 10.5 8.2 9.6 5.4…
  27. 2011 Earnings Call – Royal Vopak – slide 27
    Healthy occupancy rates between 90-95% Occupancy rate In percent 90-95% 96 95 95 95 95 94 93 93 93 93 93 94 92 92 92 93 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010…
  28. 2011 Earnings Call – Royal Vopak – slide 28
    Except from North America, all divisions contribute to 6% revenue growth North America OEMEA Asia 308.7 278.1 298.5 272.5 +13% 138.3 137.7 +7% 0% 2010 2011 2010 2011 2010 2011 Latin America CEMEA 325.1 328.9 +1% 88.2 93.6…
  29. 2011 Earnings Call – Royal Vopak – slide 29
    EBIT excluding exceptional items increased by 5% to EUR 469.4 million 2010 2011 Delta In mln EUR In mln EUR In percent Operating profit 358.6 365.1 2% Net result Joint Ventures 83.4 220.4 164% EBIT incl. exceptional items 442.0…
  30. 2011 Earnings Call – Royal Vopak – slide 30
    63% of EBIT generated in non-euro currencies EBIT transactional currencies FX translation-effect on EBIT In percent In mln EUR USD OEMEA 0.2 Other 11% 24% CEMEA 0.4 28% SGD Asia 5.4 North America 1.6 37% EUR Latin America…
  31. 2011 Earnings Call – Royal Vopak – slide 31
    5% EBIT increase mainly driven by Asia, Global LNG, OEMEA, and Latin America North America OEMEA Asia 165.7 185.3 156.4 161.4 +12% +3% 46.0 33.8 -27% 2010 2011 2010 2011 2010 2011 Latin America CEMEA Global LNG 90.6 87.8…
  32. 2011 Earnings Call – Royal Vopak – slide 32
    Net result from Joint Ventures increases with 8% North America OEMEA Asia 46.1 48.1 +4% 29.7 29.6 0% 8.6 1.2 -86%* 2010 2011 2010 2011 2010 2011 Latin America CEMEA Global LNG 9.9 1.1 0.8 1.5 2.1 -2,0 -27% +40% 2010 2011…
  33. 2011 Earnings Call – Royal Vopak – slide 33
    IFRS equity accounting versus proportionate consolidation Revenues Revenues Subsidiaries (Equity method) Incl. proportionate consolidation JVs tank storage 1,452.0 1,171.9 1,106.3 +6% 1,365.3 +6% 2010 2011 2010 2011 EBITDA…
  34. 2011 Earnings Call – Royal Vopak – slide 34
    Further optimizing the organization structure Former situation Current situation The Netherlands OEMEA CEMEA EMEA The former divisions Vopak Chemicals The current divisions Vopak Netherlands EMEA and Vopak Oil EMEA and…
  35. 2011 Earnings Call – Royal Vopak – slide 35
    Pro forma results new division structure Netherlands and EMEA Revenues Netherlands EBIT Netherlands* Results JVs Netherlands 157.2 156.3 -1% 386.4 400.8 +4% 2.3 1.5 -35% 2010 2011 2010 2011 2010 2011 Revenues EMEA EBIT EMEA*…
  36. 2011 Earnings Call – Royal Vopak – slide 36
    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…
  37. 2011 Earnings Call – Royal Vopak – slide 37
    Proposed 2011 dividend amounts to EUR 0.80 per ordinary share Dividend share of EPS 2006-2011** Dividend share of EPS In EUR 2.08 2.16 1.92 +4% 1.62 1.31 0.98 +14% 0.625 0.70 0.80 0.375 0.475 0.55 2006 2007 2008 2009 2010…
  38. 2011 Earnings Call – Royal Vopak – slide 38
    Various other topics II Net Finance costs aligned Effective tax with expansion program. rate 2011. I III Sources and uses of cash in 2011. Vopaks Pensions. Accounting consequences: III V IAS 19 Employee Benefits effective for…
  39. 2011 Earnings Call – Royal Vopak – slide 39
    Quarterly EBIT development EBIT 2009 Solid year-on-year growth EBIT 2010 EBIT 2011 EBIT development per Quarter* In mln EUR +21% +6% -4% 0% 130.0 121.3 109.7 109.5 113.3 108.4 114.8 104.2 107.5 98.6 96.9 85.6 Q1 Q2 Q3…
  40. 2011 Earnings Call – Royal Vopak – slide 40
    Capacity developments Chemicals EMEA In mln cbm 4.22 0.06 4.33 Encouraging demand for chemical storage services 0.17 End 2010 Div. Exp. End 2011 Occupancy rate EBIT development per Quarter* FY 2010 FY 2011 EBIT 2010 89% 90% In…
  41. 2011 Earnings Call – Royal Vopak – slide 41
    Capacity developments Oil EMEA In mln cbm 11.12 0.00 12.28 1.16 Robust market conditions in the storage and handling of oil products End 2010 Div. Exp. End 2011 Occupancy rate FY 2010 FY 2011 EBIT development per Quarter* EBIT…
  42. 2011 Earnings Call – Royal Vopak – slide 42
    Capacity developments Asia In mln cbm 6.78 0.00 0.31 7.09 Continuous growth in Asia End 2010 Div. Exp. End 2011 Occupancy rate FY 2010 FY 2011 EBIT development per Quarter* EBIT 2010 92% 94% In mln EUR EBIT 2011 +29% +15%…
  43. 2011 Earnings Call – Royal Vopak – slide 43
    Capacity developments North America In mln cbm 5.73 Encouraging finish in a transition year 3.41 0.00 2.32 End 2010 Div. Exp. End 2011 Occupancy rate FY 2010 FY 2011 EBIT development per Quarter* EBIT 2010 94% 93% In mln EUR…
  44. 2011 Earnings Call – Royal Vopak – slide 44
    Capacity developments Latin America In mln cbm 0.97 0.00 0.02 0.99 Healthy demand for chemicals and palm oil End 2010 Div. Exp. End 2011 Occupancy rate EBIT development per Quarter* EBIT 2010 FY 2010 FY 2011 In mln EUR EBIT 2011…
  45. 2011 Earnings Call – Royal Vopak – slide 45
    Results in HY2 2011 fuelled by expansions Revenues EBIT* In million EUR 610.8 In million EUR 251.5 562.4 +9% 222.3 +13% HY2 2010 HY2 2011 HY2 2010 HY2 2011 Net profit* Earnings per share* In million EUR In EUR 151.9 1.19…
  46. 2011 Earnings Call – Royal Vopak – slide 46
    Capacity growth will continue in the future Capacity developments In mln cbm +6.0 33.8 4.2 -1.0 28.8 27.8 1.8 3.5 1.7 0.8 31-12-2010 Divest- Expansions New 31-12-2011 Expansions New 31-12-2014 ments* terminals terminals…
  47. 2011 Earnings Call – Royal Vopak – slide 47
    Commissioned Various projects completed in 2011 Acquired On time and within budget Divestment Terminal Bahamas Amsterdam Westpoort (1) Kandla 3,400,000 cbm; oil products 620,000 cbm; oil products 261,600 cbm; chemicals Altamira…
  48. 2011 Earnings Call – Royal Vopak – slide 48
    Expansion projects progressing well Under construction Total storage capacity under construction 6.0 million cbm Eemshaven Amsterdam Westpoort (2) Hainan 660,000 cbm; oil products 570,000 cbm; oil products 1,350,000 cbm; oil…
  49. 2011 Earnings Call – Royal Vopak – slide 49
    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 49 Annual Results 2011 29 Februari 2012
  50. 2011 Earnings Call – Royal Vopak – slide 50
    Total investments Total investments 2006-2011 Total expansion CAPEX Group companies and JVs In mln EUR In mln EUR 800 711 Remaining Vopak share in Capex 500 (Group Capex / equity share in JVs) 535 565 1400 446 Other Capex* 1,400…
  51. 2011 Earnings Call – Royal Vopak – slide 51
    Contents Achievements 2011 Business environment Growth projects Business performance Financing Outlook 51 Annual Results 2011 29 Februari 2012
  52. 2011 Earnings Call – Royal Vopak – slide 52
    Strategic finance Net senior debt : EBITDA ratio 5 3.75 4 3 2 2.42 2.54 2.63 2.65 1 2.20 2.23 1.76 1.61 1.71 0 2003* 2004 2005 2006 2007 2008 2009 2010 2011 Maximum Ratio under current US PP program Maximum Ratio under other PP…
  53. 2011 Earnings Call – Royal Vopak – slide 53
    Various other financing topics Debt funding program further strengthened VII during 2011. Maturity of debt VI funding further enhanced. VIII Balanced debt See appendix for further details repayment schedule. 53 Annual…
  54. 2011 Earnings Call – Royal Vopak – slide 54
    Contents Achievements 2011 Business environment Growth projects Business performance Financing Outlook 54 Annual Results 2011 29 Februari 2012
  55. 2011 Earnings Call – Royal Vopak – slide 55
    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 55…
  56. 2011 Earnings Call – Royal Vopak – slide 56
    Outlook assumptions x% Share of EBIT Oil products Chemicals Industrial terminals Biofuels & Vegoils LNG 2011 60% 17.5-20% 12.5%…
  57. 2011 Earnings Call – Royal Vopak – slide 57
    Vopak expects to realize an EBITDA of between EUR 725-800 million in 2013 Historical results Guidance/Outlook EBITDA Development and guidance In EUR mln 725-800 636.0 598.2 513.4 429.3 369.5 314.1 262.5 Long-term 231.8…
  58. 2011 Earnings Call – Royal Vopak – slide 58
    Vopak expects to realize an EBITDA of between EUR 725-800 million in 2013 6% EBITDA growth 5% EBIT growth 4% EPS growth Proposal cash dividend of EUR 0.80 per share (+14%) Adequate funding of growth strategy secured Note:…
  59. 2011 Earnings Call – Royal Vopak – slide 59
    Forward-looking statement This document 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 renders…
  60. 2011 Earnings Call – Royal Vopak – slide 60
    Royal Vopak Westerlaan 10 Tel: +31 10 4002911 3016 CK Rotterdam Fax: +31 10 4139829 The Netherlands www.vopak.com
  61. 2011 Earnings Call – Royal Vopak – slide 61
    I Net Finance costs aligned with expansion program Net finance costs 2010 Net finance costs 2011* In mln EUR In mln EUR Interest and dividend income 4.6 7.3 Finance costs 73.0 85.9 Net finance costs -68.4 -78.6 Net interest…
  62. 2011 Earnings Call – Royal Vopak – slide 62
    II Effective tax rate 2011 Tax In mln EUR 72.8 71.3 -2% 2010 2011 Effective Tax Rate EUR 108.5 million of book gain on the In percent sale of our 20% equity stake in BORCO 19.5 19.5 0.0 (Bahamas) is exempted for tax…
  63. 2011 Earnings Call – Royal Vopak – slide 63
    III Sources and uses of cash in 2011 Consolidated Statement of Cash Flows In mln EUR 61.3 28.1 495.8 147.8 710.9 13.1 181.4 281.3 2.9 -67.0 Net Cash Gross Net finance Tax paid Invest- Divest- Derivative Financing FX / Net…
  64. 2011 Earnings Call – Royal Vopak – slide 64
    IV Vopaks Pensions Vopaks Pension obligations Dutch Pension Fund In percent Highlights Dutch 83% Cover ratio ultimo 2011 Other 17% is 106% Return was 5% in 2011 Other Pension contribution to remain at the same, 20% 80% maximum…
  65. 2011 Earnings Call – Royal Vopak – slide 65
    V Accounting consequences: IAS 19 Employee Benefits effective for 2013 Higher volatility in net pension liability Immediate recognition of Removal the unrecognized actuarial 10% corridor gains and losses through approach equity,…
  66. 2011 Earnings Call – Royal Vopak – slide 66
    VI Debt funding program further strengthened during 2011 Renewal RCF 2 February 2011 EUR 1.2 bln revolving credit facility (RCF) Maturity 5 + 1 + 1 years Extension with 1 year Renewal RCF 2 February 2012 EUR 1.1 bln revolving…
  67. 2011 Earnings Call – Royal Vopak – slide 67
    VII Maturity of debt funding further enhanced Covenant US PP Asian PP RCF Term 2001 2007 2009 SGD2009 SGD2010 JPY PP EUR 1.2 bln Maximum Net Senior Debt/ 3.75 3.75 3.75 EBITDA Additional headroom when financed with - Up to 4.25…
  68. 2011 Earnings Call – Royal Vopak – slide 68
    VIII Balanced debt repayment schedule 2011 Overall weighted average interest rate 4.7% Debt repayment schedule In mln EUR 250 200 150 100 50 0 2012 2013 2014 2015 2016* 2017 2018 2019 2020 2021 2022 2023 2024 2029 2040…

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