first half 2009 results - vopak · hy1 2009 press release and half year report, which are leading....

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Roadshow presentation 2009 First half 2009 results

–– –28 August 2009HY1 results 2009 2

The world of Vopak


Introduction

Strategy

HY1 Achievements

Reliability and Efficiency

Growth projects

Business performance

Investments

Financing

Outlook

3

Agenda

Details and definitions used in this presentation are derived from the

HY1 2009 press release and half year report, which are leading.


Vopak transformation process

"This is an infrastructure play; the

company is benefitting from the outsourcing of this service by oil and chemical producers, which form the

bulk of its customers. It is an under-recognized industry leader."

Canadian Investor

2007/2008/20092005/200620042003July 2002


Tank terminal:

key role in oil and chemical supply chain

Vopak Terminal Europoort – Rotterdam, the Netherlands


Vopak’s challenge

The challenge is to facilitate the current and future product flows:


Downstream Chemicals

Outgoing Logistics

Strategic position tank terminals


Logistic hub terminal

Where large flows of products merge – logistics crossroad

Houston, Rotterdam / Antwerp, Singapore and Fujairah

Example fuel oil


Import / Export terminal

- Break or make bulk- Local distribution


Industrial terminal

Vopak Singapore – Sakra Terminal


Vopak core businesses

Existing market

Oil

Chemicals

New products inexisting market

Biofuels

New market

LNG


Growing demand for Vopak’s services by the oil industry

- Increasing product differentiation

- Increasing geographical imbalances

- Liberalization of new markets

- New giant oil players

Annual growth rate =

0,5%


2,9%


5,1%


Growing demand for Vopak’s services by the chemicals industry

- Increasing demand for storage

- Robust growth in developing markets

- Construction of new petrochemical complexes in Asia and

Middle East


Increased interest in biofuels leading to

growing storage demands

- Interest in biofuels is soaring

- Biofuels an answer to energy security and climate change

- Increased interest in biofuels from producers due to

subsidies and governmental requirements


Worldwide LNG demand drives need for

independent import terminals


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

(Some traders, distributors, producers, state-owned companies)

Captive competition

Producers & traders using their capacity for storing only their

own products


Market share according to the definition

10 %

16 %

18.4 mln

67 mln

118 mln

185 mln

Oil

21 %

23 %

9.5 mln

5 mln

41 mln

46 mln

Chemicals

27.9 mln CBMVopak

72 mln CBMSecondary Competition

12 %

18 %

Vopak Market Share:

As % of total market

As % of primary competition

159 mln CBMPrimary Competition

231 mln CBMWorld Market

TotalStorage market

In mln cbm


Terminal capacity under construction

10%Growth as % of Vopak capacity

2.8 Million CBMVopak

7.7%Growth %

18 Million CBMWorld Market, incl. Vopak

TotalAdditional Worldwide

Storage Capacity

Demand growth in storage market

to support international trade flows


- 5 10 15 20 25 30

SPSE

Universal

Sunoco

Magellan

Dalian Port

LBC

Odf jell

STS

EAPC

Horizon

Sinochem

Vitol

SUMED

CIM

IMTT

CLH

NuStar

Kinder Morgan

Oiltanking

Vopak

0

Vopak - the global market leaderSource: company websites, including inland capacity and Joint VenturesIn mln CBM

Vopak


Introduction

Strategy

HY1 Achievements


Growth projects


Investments

Financing

Outlook

20

Agenda




Drivers of structural growth in demand

Liberalization of

previously closed economies

Countries setting individual

specifications for products

Growing demand for environmentally friendlier fuels

Increasing

geographical imbalances


COMPANY GROWTH

• Prioritizing new investments• Financing and partnerships

COMPANY GROWTH

• Prioritizing new investments• Financing and partnerships

MAXIMUM OPERATIONAL EFFICIENCY

• Operational Efficiency Improvement• Enhancing maintenance plans• Preparing infrastructure for the future• Global procurement

MAXIMUM OPERATIONAL EFFICIENCY

• Operational Efficiency Improvement• Enhancing maintenance plans• Preparing infrastructure for the future• Global procurement

Accelerated Strategy Execution

EXCELLENT CUSTOMER SERVICE

• Key Account Management• Focus on service and quality

EXCELLENT CUSTOMER SERVICE

• Key Account Management• Focus on service and quality

Scenario planning

Toolbox

Based on Reliability and Efficiency


Introduction

Strategy

HY1 Achievements


Growth projects


Investments

Financing

Outlook

23

Agenda




T IR

0

5

10

HY 1 2008 HY 1 2009

Spills

30

50

70

HY1 2008 HY1 2009

EBIT

125

150

175

200

HY1 2008 HY1 2009

HY1 2009: Solid achievements

High occupancy rate

Added 0.8 mln cbm storage capacity Continuous focus on safety

Strong business performance

+17.5%

58

In EUR mln, - excluding exceptional items -

And 2.8 mln cbm under construction

44

2005 200820072006 HY1 2009

85% 92% 94% 96% 95% 95%

2004

6.77.8

Process safety Personal safety


Company growth

Expansion: Left Bank, BelgiumExpansion: Bany an, Singapore

Under construction: Bahamas

Expansion: Vopak E.O.S., Estonia

Storage capacity per end of period in mln cbm

20.421.2

21.8

27.1

2008200720062005

+0.8 +0.6

27.9

+5.3

HY1 2009

+0.8

20.2

2004

+0.2


Growth continues

0.8 mlnTotal net capacity increase in HY1 2009

2.8 mlnRemaining 2009 till 2011 (incl. LNG)

27.1 mln YE 2008 Capacity

27.9 mlnHY1 2009 YTD Capacity

30.7 mlnTotal

In mln cbm

Tallinn, EstoniaProduct: OilCapacity: 111,000 cbm

Teesside, UKProduct: Chemicals

Capacity: 40,000 cbm

Gothenburg, SwedenProduct: Oil



Strong demand for storage capacity

Occupancy rate

Capacity (in mln cbm)

27.1 27.921.821.220.420.2

85% 94%

2004 2008

92% 96% 95%

2005 2006 2007 HY1 2009

95%


Process Safety & Quality Performance

TIR

4

5

6

7

8

2006 2007 2008 HY1 2009

Spills

20

40

60

80

100

120

2004 2005 2006 2007 2008 HY1 2009

* Number of accidents relative to the number of hours worked

*


Net Revenues- excluding exceptionals -

0

200

400

600

HY1 HY2 HY1 HY2 HY1 HY2 HY1 HY2 HY1 HY2 HY1

2004 2005 2006 2007 2008 2009

Ongoing improvement in

financial performance

EBIT - excluding exceptionals -

125

150

175

200

HY1 2008 HY1 2009

EPS - excluding exceptionals -

1.5

2

HY1 2008 HY1 2009

In EUR mln

In EUR mln

In EUR

+17.5%

+15%


Introduction

Strategy

HY1 Achievements


Growth projects


Investments

Financing

Outlook

30

Agenda




Reliability and efficiency“Crucial throughout the supply chain”

The oil and chemical supply chain

Vopak core processes


Best practice maintenance and inspection planning ensure safe operations

Aligning maintenance with 24/7 operations


Standardization: Further roll out of “The Vopak Way”

Sharing the networks’ knowledge


Safety improvement requires constant management focus

Focus on safety awareness of employees


Contributing to the efficiency of customer key processes

Improving ship and truck turn around times


Best practice terminal design

supports expansion

Greenf ield: Left Bank, Antwerp

Greenfield Vopak Terminal Leftbank (Belgium) commissioned in 2008

and expanded with 20,000 cbm in HY1 2009


Constant dialogue with customers

Continuously improving relations with customers

(Key) account management

Improving customer service

Profound planning

Digital connections

Customer KPI’s

Monitoring customer satisfaction


0%

25%

50%

75%

100%

2007 2008

Resulting in robust performance

Robust occupancy rates Strong connection with customers

> 3yr

1yr < > 3yr

< 1yr

2005 200820072006

Increasing storage capacity

HY1 2009

20.4 21.221.8

27.1

30.7

2008200720062005

+0.8 +0.6

27.9

+5.3

HY1 2009

+2.8+0.8

20.2

2004

+0.2

2011

85% 92% 94% 96% 95% 95%

2004

Storage capacity per end of period in ml n cbm


Introduction

Strategy

HY1 Achievements


Growth projects


Investments

Financing

Outlook

39

Agenda




Banyan and Penjuru, Singapore

Brownfield capacity additions at Banyan and Penjuru (Singapore): 417,000 cbm commissioned


Vopak Jakarta Terminal, Indonesia

Tankterminal

Jetty

‘Artist impression of Vopak Jakarta Terminal’

Undersea

pipelines

Division: Asia

Start of operations: HY2 2009


Product focus: oil


Vopak Terminal Bahamas

370,000 cbm under construction


Gate terminal progressing well

Launching

customers:

Division: LNG

Start operations: HY2 2011


Product: LNG

All 3 roofs air lifted


Amsterdam Westpoort (Phase1)

• Phase 1: 620,000 cbm, potential total storage capacity of 1.1 mln cbm

• 20 above-ground storage tanks, 11 x 40,000 cbm & 9 x 20,000 cbm• A facility for blending (mixing) products and components• Seven berths at two finger piers and a quay wall

Artist impression of the Vopak Westpoort Terminal (Netherlands)


Newly announced projects add another 622,000 cbm

MOT, Rotterdam (Netherlands)increase in entitlement

with 360,000 cbm

Europoort, Rotterdam (NL) phase 8: 160,000 cbm

Vopak Zhangjigang

(China)

additional

102,000 cbm

New announcements bring the total storage capacity under construction to 2.8 mln cbm


The growth of Vopak: Projects in progress


“Confidence in the future!”


Introduction

Strategy

HY1 Achievements


Growth projects


Investments

Financing

Outlook

48

Agenda




HY1 2009: Robust demand for storage services

EBITDA margin*

EBIT margin*

* Excluding exceptional items, including net result of JV’s

2005 200820072006 HY1 2009

85% 92% 94% 96% 95% 95%

2004

Storage capacity per end of period in mln cbm

20.421.2

21.8

27.1

2008200720062005

+0.8 +0.6

27.9

+5.3

HY1 2009

+0.8

20.2

2004

+0.2

0%

10%

20%

30%

40%

50%

60%

2004 2005 2006 2007 2008 HY1

2009

> 3yr

1yr < > 3yr

< 1yr

Contract durations

STABLE OCCUPANCY RATES

STABLE OCCUPANCY RATES

CUSTOMER FOCUSED GROWTH

CUSTOMER FOCUSED GROWTH

STABLE MARGINSSTABLE MARGINS ROBUST CONTRACT PORTFOLIO

ROBUST CONTRACT PORTFOLIO


Net Profit

Net Revenues EBIT

Earnings per share

In EUR mln

492.1453.9

In EUR mln

184.2156.8

In EUR mln

114.998.9

In EUR

1.831.59

+16% +15%

+17.5%

HY1 08 HY1 09+8%

HY1 2009 EBIT excl. exceptional items:

up 17.5% to EUR 184.2 mln

HY1 08 HY1 09

HY1 08 HY1 09 HY1 08 HY1 09

All figures excluding exceptional items


Storage CapacityIn mln cbm

20.4 21.221.8

27.1

30.7

2008200720062005

+0.8 +0.6

27.9

+5.3

HY1 2009

+2.8+0.8

20.2

2004

+0.2

2011

95% 95%96%94%92%85%

Occupancy Rate

Revenue developments supported by

robust demand for storage capacity


Adjusted for divestments, all divisions

contribute to the revenue growth

Asia

Latin America

OEMEANorth America

77.6100.2

126.0 132.8

56.0 68.1

33.4 37.4

HY1 08 HY1 09

HY1 08 HY1 09 HY1 08 HY1 09

22%

12% 5%

In EUR mln

Adjustment for divestments:

-/- EUR 13.8 mln

CEMEA

159.5 152.0

29%HY1 08 HY1 09HY1 08 HY1 095%


EBIT - excluding exceptional items -

increased by 17.5%

34 21.328.6Net result JV & Associates

EBIT excl. exceptional items

Exceptional gain

Operating profit

-9.7-0.1

17.5156.8184.2

10145.2155.7

%HY1 2008HY1 2009

In EUR mln


Except for CEMEA, all divisions

contribute to the EBIT increase of 17,5%

CEMEA

Asia

Latin America

OEMEA

Other

North America

39%

46.3 64.551.1 65.1

16.8 22.6

10.4 11.9

HY1 08 HY1 09

HY1 08 HY1 09

HY1 08 HY1 09HY1 08 HY1 09

In EUR mln, - excl. exceptional items -

35% 27%

14%

44.8 40.3

HY1 08 HY1 09

-12.6 -20.2

10% HY1 08 HY1 09

Adjustment for divestments:

-/- EUR 1.1 mln


Net Result from JV’s and Associates

supported by strategic alliancesIn EUR mln, - excl. exceptional items -

2006 2007 2008 2009

21.3

24.6

34.4

16.1

17.718.417.6

HY1 HY2 HY1 HY2 HY1 HY2 HY1

HY1 2009

Net result from JV's and Ass - excluding exceptionals - 34.4

Exceptional items (non-cash impairment charges) -5.8

Net result from JV's and Ass - including exceptionals - 28.6


Net result from Joint Ventures and

Associates increases with 62%

CEMEA

Asia

Latin America

OEMEA

0.9 0.8

North America

14.0 15.55.0 15.9

1.1 2.1

0.6 0.5

HY1 08 HY1 09

HY1 08 HY1 09 HY1 08 HY1 09

HY1 08 HY 1 09HY1 08 HY1 09 11%91% 218%

11%17%

Other

-0.3 -0.4

HY1 08 HY1 09



Balance Sheet

Vopak E.O.S. Review of financial implications

Profit & LossResult of jv

(equity method)

Pakterminal

(50%)

Vopak E.O.S.

(35% > 50%)

Joint venturesand associates

100% consolidated

100% consolidatedResult of jv

(equity method)

Joint venturesand associates

Beforetransaction date E.O.S.

(100%)

YE 2007 23 April 2008


Stable EBIT(DA) margins

EBITDA margin*

EBIT margin*

* Excluding exceptional items,

including net result of JV’s

0%

10%

20%

30%

40%

50%

60%

2004 2005 2006 2007 2008 HY1

2009


-13.3

114.9

-34.1

-22.5

184.2

34.4

HY1 09

156.8

98.9

Net Profit - excluding exceptional items -

increased by 16%

18%

16%

HY1 08 ∆%

EBIT

Net Profit attributable to holders of ordinary shares

21.3Net Result JV & Ass. 62%

Net finance costs

Tax*

Non-controlling Interests

-19.4 -16%

-31.4 -11%

- 8.2 -62%

1.83 1.59EPS 15%

492.1Net Revenues 453.9 8%

* Includes excepti onal items



Net Finance Costs aligned

with expansion program

-19.4

HY1 08HY1 09

In EUR mln

3.2Interest and dividend income

Net finance costs

Finance costs -22.6

4.0

-26.5

-22.5

505.0411.7 425.7

561.9

996.71,086.3

2004 2005 2006 2007 2008 HY1 2009

Net-interest bearing debt Average interest rate

0%

2%

4%

6%

8%

10%

2004 2005 2006 2007 2008 HY1

2009


-34.1 21.1% 21.4%

HY1 09 HY1 08 %

In EUR mln

Stable effective tax rate HY1 2009

Tax

Effective Tax Rate

HY1 09 %


Pensions

Dutch 82%

Other

18%

Vopak defined Pension obligations Impact of Dutch Pension obligations

• Year end cover ratio around 97%

Cash• One-off contribution of EUR 10 mln• Increased pension contribution

IFRS• Estimated 2009 impact EUR 13.8 mln

• Recovery plan handed in• June 2009, cover ratio around 104%

Current situation

Reported year end 2008


-150

-100

-50

0

50

100

150

200

Sources and uses of cash

Investments

Gross operating cash flow

170.4

219.7

45.93.7

37.4

53.1

-25.6-24.6

Cash position 30 June 2009

Cash position 1 Jan 2009

Interest, div idend

receiv ed

Finance costs, tax

paid

Div estments Financing cash f lows, FX and

(de)consolidation

In EUR mln


Business performanceEBIT per Division

Vopak Singapore Sebarok Terminal

Vopak Terminal Europoort

Vopak Houston Deer Park Terminal

Vopak Horizon Fujairah


23.1

17.7

21.722.6 22.8 22.1

Q1 Q2 Q3 Q4

2008 2009

Chemicals EMEA“Too early to draw positive conclusions as to the

structural recovery of the chemicals market”

4%23%

Vopak Terminal Botlek Zuid, Rotterdam

EBIT in EUR mln


26.0

31.5

25.1

33.6

27.9

29.1

Q1 Q2 Q3 Q4

2008 2009

Oil EMEA“Robust demand for tank storage”

21% 34%

Vopak Terminal Europoort, Rotterdam

EBIT in EUR mln


23.4

30.6

22.9

33.9

24.225.0

Q1 Q2 Q3 Q4

2008 2009

Asia“Continued EBIT growth by expanding

capacity and efficiency improvements”

31% 48%

Vopak Terminal Sakra, Singapore

EBIT in EUR mln


7.5

11.4

9.3

11.2

8.49.2

Q1 Q2 Q3 Q4

2008 2009

North America“Growth through acquisitions

and rationalizations”

52% 20%Vopak Terminal Deerpark, Houston

EBIT in EUR mln


5.3

6.4

5.15.5

5.8 5.8

Q1 Q2 Q3 Q4

2008 2009

Latin America“Continuing steady performance”

21% 8%

Vopak Terminal Cartagena, Colombia

EBIT in EUR mln


Introduction

Strategy

HY1 Achievements


Growth projects


Investments

Financing

Outlook

70

Agenda




Investing in growth

+

> EUR 800 mln

Annual Sustaining Capex

Group companies and joint ventures

AroundEUR 0.4 bln

EUR 100-125 mln per full year

Around EUR 1.6 bln

Vopak’s remainingcash spend

Remaining Expansion Capex HY2 2009 - 2011

Investments in HY1 2009

EUR 220 mln, including ½ year sustaining Capex

EUR 220 mln

EUR 250 – 325 mln

~ EUR 0.4 bln

Total investments 2009 - 2011


Total investments

2003* 2004 2005 2006 2007 2008

147188

446

268

800

2009-2011

> 800

HY1 2009

220

30.7

27.9

HY1 2009

+2.8

2011

In EUR mln


Construction of expansion projects

progressing well

Vopak Terminal Bahamas

370,000 cbm

Vopak Terminal Westpoort, Netherlands

620,000 cbm

Vopak Terminal Jakarta, Indonesia

250,000 cbm

Gate Terminal, Netherlands

540,000 cbm


Introduction

Strategy

HY1 Achievements


Growth projects


Investments

Financing

Outlook

74

Agenda




2009 2010 2011 2012 2013 2014 > 2014

Sufficient headroom to continue growth strategy

46.823.2

181.9

80.8

319.7406.3

Debt repayment schedule (in EUR mln)

Ample financing sources of recent date

• Total financing program

around EUR 1.5 bln

• No major debt refinancing

until 2011

ClosedIn use per June 30th 2009MaturityFacility

EUR 393 mln (total facility EUR 1.0 bln)

EUR 267 mln

EUR 283 mln

Various joint ventures project financing

5 years

8/10/12/15 years

Majority 10 years

May 2007USPP 2007

August 2007RCF

2007/2008/2009

USPP 2001

2007 / 2008 / 2009

March 2007 (amended)

2.0


2.55

2.49

2.42

2.20

1.76

1.61

1.71

2.54

0 0.5 1 1.5 2 2.5 3 3.5 4

2002*

2003*

2004

2005

2006

2007

2008

HY1 2009

Strategic financeNet debt : EBITDA ratio

Maximum Ratio under US PP

Maximum Ratio under other loans and syndicated rev olving credit facility

* Based on Dutch GAAP


Preference Shares Program supports growth Strategy

The Preference Shares continue to qualify as equity under the current financing programs and IFRS standards

Remaining: EUR 26 mln

EUR 110 mln

Current program New program

Dividend percentage 4.73%

Dividend percentage 7.45%

+ EUR 84 mln

growth capital


Pro forma: Net debt: EBITDA ratio decreases

2.55 Preference

Shares

HY1 2009 Pro forma

2.36

Creating more headroom for growth investments


Introduction

Strategy

HY1 Achievements


Growth projects


Investments

Financing

Outlook

79

Agenda




Current Outlook:

“For 2009, Vopak expects a group operating profit before depreciation and

amortization (EBITDA) of around EUR 495 million.”

Outlook

Previous Outlook:

“For 2009, Vopak expects a group operating profit before depreciation and

amortization (EBITDA) of at least EUR 450 million.”(EBITDA) of at least EUR 450 million”.

(EBITDA) of around EUR 495 million”.

Full year 2008 and Q1 2009

HY1 2009


STABLE

Outlook Assumptions

Oil

~ 50% of EBIT

Biofuels and

vegoils

~ 15% of EBIT

Chemicals

~ 20% of EBIT

ROBUST MIXED

Industrial

terminals

~ 15% of EBIT

Healthy demand for storage capacity

Contract renewals

+

New storage capacity commissioned


Reconciling HY1 with FY09 outlook

Actual HY1 2009 EBITDA*

EUR 245.9 mln

+

* expansions

* margin management

* contract renewals

* operational efficiency improvements

Outlook 2009 EBITDA

Around EUR 495 mln

-/-

* tanks out of operation

* pre-operating expenses

* start-up results

* uncertainty chemical storage

(especially in Europe)

* - excl. exceptional items -


220.9272.9

Outlook 2009: in the EUR 475-550 mln range

* Excluding exceptional items

** EBITDA includes joint ventures & associates results

2006 2007 2009

EBIT

369.5

EBITDA**

314.1

Outlook

2008

179.7

262.5

151.0

231.8

20052004

Guidance

429.3

320.4

Around 495

HY1 245.9

HY1 184.2

Long-term guidance ROCE of 16%

Bearing in mind substantial

investments in green field projects/ expansions

Long-term guidance ROCE of 16%

Bearing in mind substantial

investments in green field projects/ expansions

In EUR mln


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 provides logistics

services, the company cannot guarantee the accuracy and completeness of

such statements.

Unforeseen circumstances include, but are not limited to, exceptional income

and expense items, unexpected economic, political and foreign exchange

developments, and possible changes to IFRS reporting rules.

Statements of a forward-looking nature issued by the company must always

be assessed in the context of the events, risks and uncertainties of the

markets and environments in which Vopak operates. These factors could

lead to actual results being materially different from those expected.

Forward-looking statement


–

www.vopak.com

first half 2009 results - vopak · hy1 2009 press release and half year report, which are leading....

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