q1 2011 trading update - world’s leading independent tank storage company… · q1 2011 trading...

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Roadshow Presentation Q1 2011 Trading Update

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Q1 2011 Trading update 22

• Global market leader in independent storage of liquid bulk products

• Present in 30 countries, operating 79 terminals

• Total storage capacity of 25.3 mln cbm

• Strong focus on safety and environment

• Infrastructure service provider to many oil and chemical majors

• Many successful strategic partnerships

• Market capitalization of EUR 4.3 bln

Key facts

Vopak: A worldwide tank terminal network

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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

2007-20112005/200620042003July 2002

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Tank terminal:

key role in oil and chemical supply chain

Vopak Terminal Europoort – Rotterdam, the Netherlands

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Vopak’s role in the supply chain“Reliability and efficiency crucial throughout the supply chain”

Feedstock

Production

Feedstock

Gathering

Production &

Refining

Products

Transmission

Independent

Storage &

Transshipment

Mid-Stream &

End-user

Distribution

Oil and Chemical supply chain

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Vopak’s challenge

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

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Downstream Chemicals

Outgoing Logistics

Strategic position tank terminals

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Logistic hub terminal

Where large flows of products merge – logistics crossroad

Houston, Rotterdam / Antwerp, Singapore and Fujairah

Example fuel oil

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Import / Export terminal

- Break or make bulk

- Local distribution

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Industrial terminal

Vopak Singapore – Sakra Terminal

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Vopak core businesses

Existing market

Oil

Chemicals

New products inexisting market

Biofuels

New market

LNG

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Growing demand for Vopak’s services by

the oil industry

- Increasing product differentiation

- Increasing geographical imbalances

- Liberalization of new markets

- New giant oil players

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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

World trade in major liquid chemicals

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Increased interest in biofuels leading to

long-term growth in 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

- Example: EU-27 “20/20/20” mandate

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Worldwide LNG demand drives need for

independent import terminals

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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

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Q1 2011 Trading update 1728/04/2011 17

Market share according to the definition

Storage market Oil Chemicals Total

World Market 204 mln 52 mln 256 mln CBM

Primary Competition 125 mln 45 mln 170 mln CBM

Secondary Competition 79 mln 7 mln 86 mln CBM

Vopak 14.3 mln 11.0 mln 25.3 mln CBM

Vopak Market Share:

As % of total market

As % of primary competition

7 %

12 %

21 %

24 %

10.0 %

15.0 %

In mln cbm

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Terminal capacity under construction*

Demand growth in storage market

to support international trade flows

Additional Worldwide Storage Capacity*

Total

World Market, incl. Vopak 25.8 mln cbm

Growth % 10.0 %

Vopak 4.5 mln cbm

Growth as % of Vopak capacity

15.6%

* Excluding LNG capacity under construction

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

- 5 10 15 20 25 30

SPSE

Universal

LBC

STS

EAPC

Magellan

Sinochem

Sunoco

Horizon

Dalian Port

Odfjell

SUMED terminal

CIM

Vitol

IMTT

CLH

Buckeye

NuStar

Kinder Morgan

Oiltanking

Vopak

0

Vopak

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Agenda

Highlights

Business performance

Growth projects

Financing

Outlook

Details and definitions used in this presentation are derived from the Q1 2011 press release, which is leading.

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Vopak’s Network growth on track:25.3 mln cbm storage capacity to grow to 29.8 mln cbm by 2012

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Q1 2011 Summary

Further Q1 2011 highlights:

- Joint venture (50-50) with NEIF to build and operate a

new 660,000 cbm storage terminal in the port of

Eemshaven (the Netherlands)

- New EUR 1.2 bln senior unsecured multicurrency

revolving credit facility (RCF) closed with 15

international relationship banks

- During Q1 2011 an exceptional result of EUR 111.5

million was recognized as a result of the sale of Vopak’s

20% equity stake in Vopak Terminal Bahamas

Q1 2011 EBIT excl. exceptional items EUR 109.5 mln

(Q1 2010 EUR 109.7 mln)

Q1 2011 EBITDA excl. exceptional items EUR 148.1 mln

(Q1 2010 EUR 145.4 mln)

Q1 2011 EBIT of EUR 110 mln, excl. exceptional gains of EUR 128 mln

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+2%145.4148.1EBITDA excl. exceptionals

28.425.3Storage capacity (in mln cbm)

93%92%Occupancy rate

0%109.7109.5EBIT excl. exceptionals

+117%109.6237.3EBIT incl. exceptionals

∆Q1 10Q1 11In EUR mln

Q1 2011 SummaryQ1 2011 EBIT of EUR 110 mln, excluding

exceptional gains of EUR 128 mln

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Exceptional items Q1 2011

EUR 16.3 mlnOther exceptional items

EUR 111.5 mlnDivestment Vopak Terminal Bahamas

Total proceeds of USD 271.4 million:

USD 164.6 million cash

USD 106.8 million Buckeye units:

- 620,861 Buckeye LP (common) units

- 1,095,722 Buckeye Class B units

After tax profit of USD 150.2 million

EUR 127.8 mlnTotal exceptional items Q1 2011

Mainly related to divestment Vopak Terminal Bahamas

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Result

at

Divestment

Divestment Vopak Terminal Bahamas

Proceeds of USD 271.4 mln:

� Cash USD 164.6 mln

� Shares USD 106.8 mln

After tax profit USD 150.2 mln

Accounting principles

Quarterly

Fair Value

determination

Fair value adjustment:

Q1 2011 effect EUR 0.4 mln

Dividend (no P&L effect)

Q1 2011 effect EUR 0.6 mln

Book profit / loss

at

Sale of shares

Fair value adjustment:

Future effect ?

Exceptional gain or loss: ?

I. II. III.

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Agenda

Highlights


Growth projects

Financing

Outlook

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Healthy occupancy rates in the 90-95% bandwidth

Q1 2011 Business environment:

� Improved results generated by new storage

capacity on stream last year in China and

Singapore (Asia)

� Better results in joint ventures (OEMEA)

� Rail car handling restrictions at Deer Park

(North America)

� Intensified maintenance and inspection

programs increasing the level of out of

service capacity (OEMEA / North America)

� Continued uncertainties for biofuels

(CEMEA / North America)

� Divestment Vopak Terminal Bahamas (North

America)

Occupancy rates per division:

CEMEA

OEMEA

Asia

North America

Latin America

Q1 2011

88%

93%

94%

91%

91%

Average occupancy decreased to 92% from 93%

Q1 2010

90%

95%

92%

96%

91%

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EBIT of EUR 109.5 mln mainly driven by

Asia’s increased contribution

CEMEA

Asia

Latin America

OEMEA

Other

North America29%

36.747.4

37.6 35.8

13.3 9.8

7.3 7.3

Q1 10 Q1 11

Q1 10 Q1 11

Q1 10 Q1 11Q1 10 Q1 11

In EUR mln, - excl. exceptional items -

- 26%

0%

25.320.1

Q1 10 Q1 11

-10.5 -10.9

Q1 10 Q1 11

- 5%

- 21%

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Chemicals EMEA

Vopak Terminal Botlek Zuid, Rotterdam

EBIT in EUR mln, - excl. exceptional items -

-21%

Q1 Q2 Q3 Q4

25.3

20.1

24.622.3

18.4

2010 2011

� Increased customer activity in chemicals

� Lower demand for storage and handling of biodiesel

Q1 2011 Q1 2010

Capacity (in mln cbm) 4.1 4.3

Occupancy rate 88% 90%

FX Effect (in mln EUR) +0.3

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Oil EMEA

Vopak Terminal Europoort, Rotterdam

-5%

Q1 Q2 Q3 Q4

37.6 35.839.7

42.0

37.1

2010 2011

� Intensified maintenance and inspection program

� Demolition of Waltershof terminal (Germany)

� Stronger results from joint ventures


Q1 2011 Q1 2010




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Asia

29%

Vopak Terminal Sakra, SingaporeQ1 Q2 Q3 Q4

36.7

47.4

40.1

42.7

46.2

2010 2011


� New storage capacity on stream in 2010

(China & Singapore)

� Improved occupancy rates

Q1 2011 Q1 2010




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North America

Vopak Terminal Deer Park, Houston2010 2011

Q1 Q2 Q3 Q4

13.3

9.8

12.0

10.110.6

-26%


� Uncertainties in biofuels

� Divestment Vopak Terminal Bahamas

� Rail car handling restrictions at Deer Park

Q1 2011 Q1 2010




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Latin America

Vopak Terminal Cartagena, Colombia

2010 2011

Q1 Q2 Q3 Q4

7.37.1

6.6

4.7

7.3


� Steady results

Q1 2011 Q1 2010




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Agenda

Highlights


Growth projects

Financing

Outlook

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29.8

2012

Company growth supported by

healthy demand for storage capacity

Storage CapacityIn mln cbm

21.2 21.8

27.1

28.3

2009200820072006

+0.6 +5.3 +1.2

2010

+0.5

20.4

2005

+0.8

Occupancy Rate

28.8

+4.5

25.3

-3.5

Q1 2011

93%94% 92%95%96%94%92%

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Growth continues in 2011 and 2012Divestments in Q1 2011 decrease total storage capacity with 3.5 mln cbm

In cbm

Vopak Terminal BahamasProduct: Oil productsCapacity addition: - 3,400,000 cbm

Ipswich, UKProduct: Oil productsCapacity addition: -56,000 cbm

28.3 mlnYE 2009 Capacity

+0.5 mlnTotal net capacity change 2010

-3.5 mlnTotal net capacity change Q1 2011

+4.5 mlnProjects under construction (to become operational in 2011 and 2012)

28.8 mln YE 2010 Capacity

25.3 mlnQ1 2011 Capacity

29.8 mlnTotal capacity per year end 2012

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Various projects under constructionTotal storage capacity under construction per Q1 2011: 4.5 mln cbm

MOT, Rotterdam (Netherlands)

increase in entitlement

with 360,000 cbm

Gate terminal

(Netherlands) 540,000 cbm

Algeciras (Spain) 403,000 cbm

YE2012

Remaining cash spend Vopak EUR 0.3 bln

Total investment for Vopak and partners EUR 1.9 bln

Q1 2011

Dongguan (China)153,000 cbm

Westpoort (Netherlands) 1,190,000 cbm

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Agenda

Highlights


Growth projects

Financing

Outlook

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2.18

2.63

2.42

2.20

1.76

1.61

1.71

2.54

2.23

0 0.5 1 1.5 2 2.5 3 3.5 4

2003*

2004

2005

2006

2007

2008

2009

2010

Q1 2011

Strategic financeNet Senior debt : EBITDA ratio

Maximum Ratio under current US PP programs

Maximum Ratio under other PP programs and syndicated revolving credit facility

* Based on Dutch GAAP

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Agenda

Highlights


Growth projects

Financing

Outlook

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Outlook Assumptions

Oil

~ 60.0% of EBIT

Biofuels and

vegoils~ 7.5 – 10%

of EBIT

Chemicals

~ 17.5 – 20.0%

of EBIT

Industrial

terminals

~ 12.5% of EBIT

Healthy demand for storage capacity

Contract renewals

+

Some new storage capacity commissioned

SOLIDROBUST ENCOURAGINGMIXED

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EU Biofuels market continues to face uncertainties

Clear “20/20/20” mandate

� ≥ 20% of the energy mix must come from renewable sources;

� with a 10% minimum target for the transport sector;

� by the year 2020.

Current situation

ILUC: No raw material from converted land

with high biodiversity or high carbon stock

Sustainability criteria

Ways to comply

Uncertainties

Limited appetite for storage and handling services

of previously selected feedstock and finished biodiesel products

Unclear which feedstock will qualify as a green product

� National Legislation of Member States

� International Agreements

� Voluntary Schemes

� Timing and interpretation issues with various certification schemes

� Impact on GHG calculation of land usage change is unclear (ILUC)

Green House Gas (GHG) savings > 35%

(50 % as from 2017 and 60 % for new

installations as from 2018)

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Vopak Biofuels – The 2011 playing field

+ Biofuels part of the long-term energy mix

+ Mandate is clear and has been introduced in many countries+ Drive to decrease dependency on oil

- New sustainability criteria remain unclear- No equal level playing field (taxes and subsidies)- Reduced blending of different feedstock, overall high

feedstock prices

� Biodiesel: Wait-and-see approach by many customers pending government regulations (EU certifications)

� Bio-ethanol: Increasing intra-EU product flows and subsidized US import routes

� Vegoils: Global growth driven by increasing population stimulates captive storage expansions

MIXED

Biofuels and vegoils~ 7.5 – 10% of EBIT

Outlook

Assumption

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0.75

1.00

1.25

1.50

1.75

2.00

2.25

2.50

FX

Rate

EUR/SGD

EUR/USD

EBIT(DA) impacted by volatile FX developments

FX Translation-effect on EBIT:

FY 2010 vs FY 2009 EUR +25.9 mln

Q1 2011 vs Q1 2010 EUR +5.1 mln

FX volatility makes the FY 2011 translation-effect uncertain.

Jan 2009 – March 2011

2003 2004 2005 20092006 2007 2008 2010 2011

Transactional currency exchange risks are limited.

As a rule revenues, costs and financing are denominated in the same currency.

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2011

“For 2011 Vopak expects Group operating

profit before depreciation and amortization

(EBITDA) between EUR 600 – 640 million,

assuming no further appreciation of the Euro

against applicable other currencies.”

2013

“Based on our growth strategy Vopak is well

positioned to realize a Group operating profit

before depreciation and amortization (EBITDA)

between EUR 725 – 800 million in 2013.”

Outlook

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445.3

220.9272.9

EBITDA Outlook 2013: in the EUR 725-800 mln range

* Excluding exceptional items, including net result from Joint Ventures

2006 2007 2009

EBIT*

369.5EBITDA*

314.1

Outlook

2008

179.7

262.5

2005

Guidance

429.3

320.4

513.4

385.3

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

20132010

598.2

725-800

2011

Q1 148.1

600-640

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“Confidence in the future!”

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Storage capacity under construction

55,600C100%China, Zhangjiagang

95,300C50%China, Tianjin

15,800C100%Mexico, Altamira

153,000C50%China, Dongguan

155,200O50%Spain, Barcelona

360,0001O16.67%Netherlands, MOT

540,000LNG42.5%Netherlands, Gate

160,000O 100%Netherlands, Europoort

26,300C100%Brazil, Aratu

2011

30,000C50%China, Caojing

2010cbmLocation Ownership Product* 2009 2012

* O = Oil products, C = Chemicals, B = Biofuels, V = Vegetable oils, LNG = Liquefied Natural Gas

1 Given the C.V. structure of the M.O.T. terminal (in which Vopak holds a 16.67% share), the stated

capacity represents the total expansion capacity to be rented out to customers by Vopak

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660,000O50%Netherlands, Eemshaven

403,000O80%Spain, Algeciras

606,000O33%U.A.E., Fujairah

620,000

570,000O100%Netherlands, Westpoort

38,100V/B100%Netherlands, Vlaardingen

20112010cbmLocation Ownership Product* 2009 2012

* O = Oil products, C = Chemicals, B = Biofuels, V = Vegetable oils, LNG = Liquefied Natural Gas

Storage capacity under construction

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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 30 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

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www.vopak.com

q1 2011 trading update - world’s leading independent tank storage company… · q1 2011 trading...

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