royal vopak roadshow presentation q1 2012 … › system › files ›...

Roadshow presentationQ1 2012 Trading Update

Roadshow presentation Q1 2012 Trading Update

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 31 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.

2


Contents

General Introduction

Strategy update

Business environment

Growth projects

Business performance

Capital disciplined growth

Outlook

3

Vopak and storage since 1616Almost four centuries of history

Discharge of oil barrels at Charlois site Rotterdam 1900

Porter early 1600

First barrels of oil in Rotterdam 1862

Roadshow presentation Q1 2012 Trading Update 4

84 Terminals in 31 countries

And a number of terminals under construction.


Key figures and some of our customers

Employees

Terminals

Countries

Capacity

Net Revenues ‘11

EBIT* ‘11

Market capitalization**

5,901 (incl. JVs)

84

31

27.9 Million cbm

€ 1,172 Million

€ 469 Million

€ 5.2 Billion

* Excluding exceptional items.** At year-end 2011.


Tank terminalKey role in oil and chemical supply chain

CustomersOil, Gas and Chemicals companiesGovernmentsTrading companies

ServicesStorageBlendingBreak bulkMake bulkDrummingHeating / coolingWeighing

ProductsOil (derivatives)ChemicalsVegetable oilsBiofuels

Supply and transportVesselsBargesPipelinesTank trucksRail wagonsDrums

LNGLPGChemical gases


Vopak’s role in the supply chain

Feedstock Production

FeedstockGathering

Production &Refining

ProductsTransmission

Independent Storage &Transshipment

Mid-Stream& End-userDistribution

Oil, Gas and Chemical supply chain


Strategic logistic functions of tank terminals

Vital link for incoming and outgoingflows of oil and chemicals

ExampleRotterdam Europoort

Storage of products that areexported or transferred to end users

ExampleVopak Terminal London

Complete integration with theproduction process

ExampleSakra Terminal in Singapore


Logistics hub terminal

Example fuel oil Where large flows of products merge - logistics crossroad Houston, Rotterdam/Antwerp, Singapore and Fujairah


Import/Export terminal

Break or make bulk Local distribution


Industrial terminalStorage facilities integrated at chemical park

Vopak Terminals Singapore - Sakra Terminal

Exxon MobilPerstorpSumitomo ChemicalMitsui ChemicalsAir ProductsChevronAsahi Kasei ChemicalsSembCorp UtilitiesCelaneseKurarayDupont


Global mega trends drive Vopak’s markets

GDP growth in non-OECD

Increasing need transport and mobility

Increasing(sustainable) energy need

Population growth, mainly non-OECD


Non-OECD economies drive energy consumption growth,fossil fuels will remain the dominant energy provider until 2035

OECD China Rest of world

World primary energy demand by region in IEA New Policies ScenarioIn Mtoe

Source: IEA WEO 2010

World primary energy demand by fuel in IEA New Policies ScenarioIn Mtoe


Strengthening Vopak’s competitive position in a period of worldwide challenges

Socio-economic unrests (e.g. ‘Arab-spring’)

Geopolitical challenges Financial turmoil and economic uncertainties


Contents


Strategy update


Growth projects



Outlook


Customer LeadershipOperational Excellence

Our Sustainability Foundation• Excellent People• Health and Safety

Our ability to construct, operate and maintain

our terminals to deliver our service at

competitive costs

Our ability to create a relationship

with our customers

Our ability to find or identify the right location

for our terminals

Growth Leadership

• Environment Care• Responsible Partner

Focused strategy to execute

A B C


Sustainability themes within Vopak

Excellent People Health and Safety Environmental Care Responsible Partner

Have the best people and create an agile and solution driven culture

Provide a healthy and safe workplace for our employees and contractors

Be energy and water efficient and reduce emissions and waste

Be a responsible partner for our stakeholders


Personal and process safety

-15%

2011

1.1

2010

1.3

2009

1.4

2008

1.7

2007

1.4

2006

1.9

The lost time injury rate (LTIR) Total injuries leading to lost time per million hours worked by own employees and contractors

-6%

2011

3.0

2010

3.2

2009

6.5

2008

5.8

2007

6.2

2006

7.1

Process Incidents# incidents

Total Injury RateTotal injuries per million hours worked by own employees

+16%

2011

154.0

2010

133.0

2009

141.0


Various projects completed in 2011Storage capacity decreases by 1.0 million cbm

CommissionedAcquiredDivestment

Amsterdam Westpoort (1) 620,000 cbm; oil products

Kandla261,600 cbm; chemicals

Altamira

Altamira LNG terminal 300,000 cbm; LNG

Terminal Bahamas 3,400,000 cbm; oil products

Gate terminal 540,000 cbm; LNG

Note: Above examples not representative of all projects completed in 2011.

A


Projects commissioned Q1 2012Storage capacity increases by 0.5 million cbm

Amsterdam Westpoort (2a) 220,000 cbm; oil products

Tianjin Lingang95,300 cbm; chemicals

Note: Above examples not representative of all projects completed in Q1 2012.

Zhangjiagang55,600 cbm; chemicals

Map Ta Phut15,000 cbm; chemicals

Gothenburg 60,000 cbm; oil products

Commissioned

Acquired

A


Strengthening competitive position: improve safety performance and efficiency

Operational efficiency improvements Focus on master plans

EfficiencySafety

Improving safety performance Reinforce our Vopak Fundamentals

on Safety

B


Serving markets from a product perspective C

Customer segmentation Access to the right people Understand customer’s strategy

Account Management

Port Attractiveness Relevance for Network Pro-active approach

Portfolio of Terminals

Understand basic technology Understand imbalances Understand trade flow dynamics

Product strategy

Winning clients and

ports



Contents


Strategy update


Growth projects



Outlook

24

Global energy product trends drive Vopak’s marketOil products Chemical products Biofuels & Vegoils LNG

Global Crude oil trade business Europe’s gasoline

surplusEurope’s deficit for

middle distillatesAsia’s deficit for

Fuel Oil

Feedstock advantage in MERenewed Gulf

re-emerges due to shale gasRationalization in

Europe

Politics, annual harvest and demand growth will lead to increased flows between US-Brazil-Europe-Asia

A globalizing natural gas market with new business modelsLNG growth due to

imbalances, security of supply and environmental push


Vopak market definition

Vopak’s competitive environment is defined as non-captivemarine tank storage for liquid oil and chemical products

Definition

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 onlytheir own products


Market share according to the definition

Storage market (cbm) Oil Chemicals Total

World Market 211 mln 53 mln 263 mln cbm

Primary Competition 132 mln 46 mln 178 mln cbm

Secondary Competition 79 mln 7 mln 86 mln cbm

Vopak Market Share

As % of total market 7% 21% 10.2%

As % of primary competition 12% 24% 15.1%

Vopak 15.7 mln 10.9 mln 26.9 mln cbm

Note: In mln cbm per February 2012; excluding storage market for LNG. Roadshow presentation Q1 2012 Trading Update 27


Demand growth in storage marketto support international trade flows

Additional Worldwide Storage Capacity Total

World Market, incl. Vopak 28.2 mln cbm

Growth % 10.7 %

Vopak 5.6 mln cbm

Growth as % of Vopak capacity 19.8 %*

* Based on storage capacity of 28.3 million cbm. 28

Vopak: the global market leader

0 5 10 15 20 25 30

OdfjellSUMED terminal

Magellan

SunocoHorizon

Dalian Port

CIMVitol

IMTTCLH

BuckeyeNuStar

Kinder MorganOiltanking

Vopak

Storage capacity as per February 2012In mln cbm

Note: Including inland capacity and Joint Ventures.Source: Vopak; company websites.



Contents


Strategy update


Growth projects



Outlook

30

Capacity growth under construction

Capacity developmentsIn mln cbm

Note: Including net change at various terminals (including decommissioning).Roadshow presentation Q1 2012 Trading Update

New terminals

0.1

Expansions

27.8

31-12-2011

0.3

+5.6

+0.5

31-12-2014

33.9

New terminals

4.1

Expansions

1.5

31-3-2012

28.3

Acquisition

0.1

31

Various projects under constructionTotal storage capacity under construction 5.6 million cbm


Under construction

Amsterdam Westpoort (2b) 350,000 cbm; oil products

Pengerang1,278,000 cbm; oil products

Fujairah606,000 cbm; oil products

Europoort400,000 cbm; oil products

Eemshaven 660,000 cbm; oil products

Hainan1,350,000 cbm; oil products

Algeciras403,000 cbm; oil products

Note: Above examples not representative of all projects under construction.32

Storage capacity under construction (1)

Location Ownership Product cbm 2010 2011 2012 2013 2014

Netherlands, Westpoort (2b) 100% O 350,000

Mexico, Altamira 100% C 15,800

China, Tianjin (2) 50% LPG 240,000

UAE, Fujairah 33.3% O 606,000

China, Coajing 50% C 16,000

Netherlands, Eemshaven 50% O 660,000

Spain, Algeciras 80% O 403,000


Storage capacity under construction (2)

Location Ownership Product cbm 2010 2011 2012 2013 2014

Netherlands, Rotterdam 100% C 20,000

China, Dongguan 50% C 153,000

Singapore, Banyan 69.5% C 100,200

China, Hainan 49% O 1,350,000

Malaysia, Pengerang 44% O 1,278,000

Netherlands, Europoort 100% O 400,000

Total additional storage capacity (in million cbm) 2.2 2.2 1.7

Accumulated storage capacity (in million cbm) 27.8 30.0 32.2 33.9


Various projects under study Under study

Fos-sur-MerLNG

West-JavaLPG

Bioko IslandOil products

Bahia Las MinasOil products

Perth Amboy Oil products



Contents


Strategy update


Growth projects



Outlook

36

Financial performance is fuelled by different value drivers

Occupancy improvements

2003-06 2007-09 2010-2011 2012 >

Operational efficiency gains

Capacity expansion

PresentPresentPast Future

Playing field between 90 - 95%


Q2

93

Q1

92

Q4

92

Q3

92

Q2

93

Q1

93

Q4

93

Q3

93

Q2

95

Q1

95

Q4

95

Q3

94

Q2

95

Q1

96

’07

96

’06

94

’05

92

’04

84

Q1

93

Q4

94

Q3

93

Occupancy rateIn percent

90-95%

Healthy occupancy rates between 90-95%

2008 2009 2010 2011 2012


Vopak is well positioned to maintain healthy EBIT(DA) margins

EBIT(DA) Margin*In percent

0

10

20

30

40

50

2004 2005 2006 2007 2008 2009 2010 2011

Focus on logistic efficiency improvements for our clients has led to increased EBIT(DA) margins

* Excluding exceptional items; excluding Net result from Joint Ventures.

EBIT Margin

EBITDA Margin


Development of storage capacity

15.1

5.1

15.1

19.94.8

+8.9

2014

33.9

+6.1

21.3

12.6

2013

32.2

20.9

11.3

2012

30.0

20.4

9.6

2011

27.8

19.6

8.2

2003

20.2 21.8

16.7

5.1

2006

21.2

15.8

5.4

2005

20.4

15.5

4.9

2004 2010

28.8

18.3

10.5

2009

28.3

18.1

10.2

2008

27.1

17.5

9.6

2007

Storage capacityIn mln cbm

Subsidiaries

Joint Ventures

Note: for the Joint Ventures 100% of the storage capacity is included.Roadshow presentation Q1 2012 Trading Update 40

Contract duration portfolio did not change significantly since 2008

Contract position 2008In percent of revenues

Contract position 2011In percent of revenues

> 3 year 44%

1-3 year37%

< 1 year

19%> 3 year

39%

1-3 year

41%

< 1 year

20%


Q1 2012 Summary

EBITDA*In million EUR

+26%109.5 138.0

Q1 2012Q1 2011

EBIT*In million EUR

* Including net result from Joint Ventures; excluding exceptional items.

+26%148.1186.2

Q1 2012Q1 2011


+1pp92.0 93.0

Q1 2012Q1 2011


+12%25.3 28.3

Q1 2012Q1 2011


26% EBIT increase mainly driven by capacity expansions in Netherlands, Asia and LNG

10.6 +8%

Q1 2012Q1 2011

9.8

North America

Note: EBIT in million EUR; Excluding exceptional items; including net result from Joint Ventures

Netherlands53.6

+13%

Q1 2012Q1 2011

47.4

Asia

7.4 +1%

Q1 2012Q1 2011

7.3

Latin America EMEA Global LNG

45.9+37%

Q1 2012Q1 2011

33.5

Q1 2012

5.0

Q1 2011

22.4 24.1 +8%

Q1 2012Q1 2011

-2.0


Joint Ventures are of importance in Vopak’s growth strategy

* For the Joint Ventures 100% of the storage capacity is included.** Excluding exceptional items.

Net result from Joint Ventures**In mln EUR

Storage capacity*In mln cbm

Subsidiaries

Joint ventures

2011

27.8

19.6

8.2

2010

28.8

18.3

10.5

2009

28.3

18.1

10.2

2008

27.1

17.5

9.6

2007

21.8

16.7

5.1

2012

30.0

9.6

20.4

2013

32.2

11.3

20.9

2014

33.9

12.6

21.3

26.0+24%

Q1 2012Q1 2011

21.0


EBITDAIncl. proportionate consolidation JVs tank storage

186.2+26%

Q1 2011 Q1 2012

148.1

EBITDA*Subsidiaries (Equity method)

216.5+31%

Q1 2012Q1 2011

164.9

EBITIncl. proportionate consolidation JVs tank storage

EBIT*Subsidiaries (Equity method)

Q1 2012: IFRS equity accounting versus proportionate consolidation

* Including Net result from Joint Ventures.Note: In million EUR; Excluding exceptional items.

138.0+26%

Q1 2012Q1 2011

109.5 +32%

Q1 2012

153.8

Q1 2011

116.9


45.9+37%

Q1 2012Q4 2011

46.2

Q3 2011

41.9

Q2 2011

34.7

Q1 2011

33.5

EBIT*In million EUR



93.0 +1pp

Q1 2012Q1 2011

92.0


8.5+21%

Q1 2012Q1 2011

7.0

Netherlands- New storage capacity came on stream- Higher occupancy rates


24.1 +8%

Q1 2012Q4 2011

23.3

Q3 2011

23.9

Q2 2011

23.3

Q1 2011

22.4

EBIT*In million EUR



89.0 0pp

Q1 2012Q1 2011

89.0


8.4 +2%

Q1 2012Q1 2011

8.2

EMEA- Healthy demand for storage services


53.6+13%

Q1 2012Q4 2011

46.7

Q3 2011

45.0

Q2 2011

46.2

Q1 2011

47.4

EBIT*In million EUR



95.0 +1pp

Q1 2012Q1 2011

94.0


7.3 +7%

Q1 2012Q1 2011

6.8

Asia- Continuous growth in Asia- Currency translation gain of EUR 3.0 million


10.6 +8%**

Q1 2012Q4 2011

8.9

Q3 2011

8.0

Q2 2011

7.1

Q1 2011

9.8

EBIT*In million EUR

* Including net result from Joint Ventures; excluding exceptional items.** Excluding positive result of our 20% equity stake in BORCO, Bahamas, (EUR 1.2 million) until divestment date,

EBIT increased by 23%.


97.0 +6pp

Q1 2012Q1 2011

91.0


2.3 0%

Q1 2012Q1 2011

2.3

North America- Higher occupancy rates - Improvements in markets for biofuels and chemicals


7.4 +1%

Q1 2012Q4 2011

7.5

Q3 2011

7.0

Q2 2011

6.4

Q1 2011

7.3

EBIT*In million EUR



90.0 -1pp

Q1 2012Q1 2011

91.0


1.0 0%

Q1 2012Q1 2011

1.0

Latin America- Steady results



Contents


Strategy update


Growth projects



Outlook

51


4,240

20112010

3,831

2009

3,136

2008

2,634

2007

2,133

59%62%

58%60%

57%

41% 38% 42% 40% 43%

Total equity and liabilitiesIn mln EUR

Liabilities

Equity


Capital disciplined growth: Total investments

1,514

2012-2014

~950-1,100

~500

2009-2011

1,811

2006-2008

Total Investments 2006-2014In mln EUR

Sustaining Capex

* Including remaining equity share in Joint Venture; in the first quarter of 2012 EUR 100 mln has been spent. Note: Total Capex related to 5.6 mln cbm under construction is ~EUR 1.6 bln.

Expansion Capex*

~450-600


Capital disciplined growth: Strategic finance

0

1

2

3

4

5

2011

2.65

2010

3.75

2.63

2009

2.23

2008

2.54

2007

1.71

2006

1.61

2005

1.76

2004

2.20

2003*

2.42

Q1 2012

2.43

Net senior debt : EBITDA ratio

* Based on Dutch GAAP.

Maximum Ratio under current US PP program

Maximum Ratio under other PP programs and syndicated revolving credit facility

Access to Capital Markets

Syndicated Revolving Credit Facility

Asian and JPY Private Placements

US Private Placement


2011 Dividend amounts to EUR 0.80 per ordinary share

2.16+4%

+14%

2011

0.80

2010

2.08

0.70

2009

1.92

0.625

2008

1.62

0.55

2007

1.31

0.475

2006

0.98

0.375

2003 2004 2005

0.64 0.630.81

0.25 0.25 0.30

Dividend and EPS 2003-2011**In EUR

* Excluding exceptional items; attributable to holders of ordinary shares.** Excluding exceptional items; historical figures adjusted for 1:2 share split effectuated May 17, 2010.

Cash Dividend

Dividend policy: “Barring exceptional circumstances, the intention is to pay an annual cash dividend of 25-40% of the net profit*”



Contents


Strategy update


Growth projects



Outlook

56

Contribution of Vopak value drivers in the future

Occupancy improvements

2003-06 2007-09 2010-2011 2012 >

Operational efficiency gains

Capacity expansion

PresentPresentPast Future

Playing field between 90 - 95%


Solid

Outlook assumptions

Oil products Chemicals Biofuels & Vegoils LNG

Robust

~60%

Encouraging Solid

<1%

Mixed

~17.5-20%

Industrial terminals

~12.5% ~7.5-10%

2011

~60-65% ~2.5-5%~17.5-20% ~7.5-10% ~5-7.5%

2013

Note: width of the boxes do not represent actual percentages.

~x% Share of EBIT


Vopak expects to realize an EBITDA of between EUR 725-800 million in 2013

2013

725-800

2011

636.0

2010

598.2

2009

513.4

2008

429.3

2007

369.5

2006

314.1

2005

262.5

2004

231.8

EBITDA Development and outlookIn EUR mln

Note: Excluding exceptional items; including Net result from Joint Ventures

Historical results

Outlook

The possibility that Vopak reaches the lower end of the 2013 outlook range in 2012 cannot be excluded


Royal VopakWesterlaan 10 Tel: +31 10 4002911

3016 CK Rotterdam Fax: +31 10 4139829

The Netherlands www.vopak.com

The world of Vopak

Roadshow presentation FY 2011 61 Roadshow presentation Q1 2012 Trading Update 61

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