Analyst presentation HY1 2010 results - Vopak...HY1 results 2010 327 August 2010 3 Agenda Details...

–– –

_HY1 results 2010 27 August 2010

–– –27 August 2010HY1 results 2010 2

A worldwide network strategy

Vopak Singapore Sebarok Terminal

Vopak Terminal Europoort

Vopak Houston Deer Park Terminal

Vopak Horizon Fujairah

Vopak Terminal Bahamas


Agenda

Details and definitions used in this presentation are derived from the HY1 2010 press release and HY1 Report, which are leading.

Achievements HY1 2010

Business environment

Growth projects

Business performance

Financing

Outlook


EBITDA excl. exceptionals

200

250

300

350

HY1 2009 HY1 2010

Robust results in HY1 2010

Healthy occupancy rateAdded 0.3 mln cbm storage capacity

Strong business performance

+21%

EUR 297.3 mln


Personnel & Process Safety

* Number of accidents own personnel and contractors relative to the number of hours worked

*Total Injury Rate*

6.7

5.5 5.2 5.3

3.7

0

2

4

6

8

FY 2006 FY 2007 FY 2008 FY 2009 H1 2010

Lost Time Incident Rate*

1.7 1.7 1.71.4

1.8

0

1

2

3

FY 2006 FY 2007 FY 2008 FY 2009 H1 2010

Process Incidents

44 41

17 1617 6

0

25

50

75

100

125

H1 2009 H1 2010

Spills Fires Contaminations


Agenda



Growth projects


Financing

Outlook



The tank storage market continues to evolve

But also:

• New competitors are emerging

• Previously unavailable space being considered

• NOC’s establishing in new markets

• Oil traders expanding with own storage capacity

Drivers of structural growth in demand remain:

• Increasing geographical imbalances

• Countries setting individual specifications for products

• Liberalization of previously closed economies

• Growing demand for environmentally friendlier fuels


- Supply-side in development- Government requirements- Developing toward structural flows

Current business environment

- Increasing geographical imbalance between demand and supply leads to robust demand

- Possible permanent closure/divestments of less efficient refineries

- IOC’s focussing on upstream business

- Redesign of supply chain and production facilities- Industrial terminal: stable/robust- Remainder of chemical business:

- China - robust- Asia - encouraging- America’s - stable- Europe - improved demand

Oil

Chemicals

LNG- More focus on LNG solutions as energy source

Biofuels


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


Agenda



Growth projects


Financing

Outlook



Storage CapacityIn mln cbm

20.4 21.2 21.8

27.1

32.6

2008200720062005

+0.8 +0.6

28.3

+5.3

2009

+1.2

20.2

2004

+0.2

2012

94%95% 93%96%94%92%85%

Occupancy Rate

Company growth supported byhealthy demand for storage capacity

28.6

+0.3 +4.0

HY1 2010


Various projects commissioned

Jakarta (Indonesia) 250,000 cbm

Vopak Zhangjigang(China)

74,500 cbm commissioned

and 114,700 under construction

Total storage capacity under construction 4.0 mln cbm

Alemoa (Brazil) 38,600 cbm

Decommissioned Waltershof (Germany) 99,400 cbm decommissioned


Amsterdam Westpoort

Aerial photo of the Vopak Westpoort Terminal (Netherlands) under construction

• Total storage capacity of 1,190,000 cbm• 41 storage tanks: 7 x 50,000 cbm, 11x 40,000 cbm, 17 x 20,000 cbm

and 6 x 10,000 cbm • A facility for blending (mixing) products and components• Ten berths at two finger piers and two quay walls


New chemical terminals in China under construction

Dongguan 153,000 cbm

Tianjin 95,300 cbm


New terminal in Algeciras (Spain)

• 403,000 cbm for oil products• Vopak acquired 80% of shares• Joint Venture with Wilma Oil


Vopak’s growth based on healthy demand


“Confidence in the future!”


New chairman of the Executive Board• Personal reason for departure: the offered challenge

• Succession planning proves its value

• Key disciplines - commercial, financial and operational –represented in the Executive Board

• Vopak is in good shape and confident in its future


Agenda



Growth projects


Financing

Outlook



Robust demand continues

EPSin EUR

1.04

0.92

EBITDAin mln EUR

297.2245.9

HY1 09 HY1 10

HY1 09 HY1 10

0.79

209.1

HY1 08

HY1 08

All figures excluding exceptional items

13%15%

21%18%


0

100

200

300

400

500

600

2004 2005 2006 2007 2008 2009 2010

Robust EBITDA developmentsResulting from a solid growth strategy

HY1

297.3HY1

245.9

21%

In EUR mln

513.4

429.3

369.5314.1

262.5231.8


Net Profit

Net Revenues EBIT

Earnings per share

In EUR mlnIn EUR mln

HY1 2010 Positive financial developments

All figures excluding exceptional items

HY1 09 HY1 10

543.9

492.1

HY1 08

453.9

11%HY1 09 HY1 10

223.0184.2

HY1 08

156.8

21%

HY1 09 HY1 10

1.040.92

HY1 08

0.79

13%HY1 09 HY1 10

132.4114.9

HY1 08

98.915% 15%16%

8% 18%

In EUR mln In EUR mln,2008/2009 restatedfor share split


All divisions contribute to the revenue growth

CEMEA

Asia

Latin America

OEMEANorth America

27%

100.2 127.3132.8 139.1

68.1 69.0

37.4 43.5

HY1 2009 HY1 2010

In EUR mln

1% 5%

16%

152.0 163.1

7%

HY1 2009 HY1 2010

HY1 2009 HY1 2010 HY1 2009 HY1 2010

HY1 2009 HY1 2010


Including net result from Joint Ventures and Associates, EBIT increased by 21%

21184.2223.0EBIT excl. exceptional items

3828.639.4Net result JV & Associates

21184.3222.9EBIT incl. exceptional items

EBITDA excl. exceptional items

Exceptional loss

Operating profit

- 0.10.1

21245.9297.3

18155.7183.5

%HY1 2009HY1 2010

In EUR mln


Supported by all divisions EBIT increased 21% to EUR 223.0 mln

CEMEA

Asia

Latin America

OEMEA

Other

North America

22%

64.5 78.765.1 75.422.6 25.3

11.9 14.4

In EUR mln, - excl. exceptional items -

12% 16%

21%

40.3 49.9-20.2 -20.7

24%

HY1 2009 HY1 2010 HY1 2009 HY1 2010

HY1 2009 HY1 2010 HY1 2009 HY1 2010

HY1 2009 HY1 2010

HY1 2009 HY1 2010


Net result from Joint Ventures and Associates increased 38% to EUR 39.4 mln

CEMEA

Asia

Latin America

OEMEA

0.8 0.5

North America15.5 16.715.9 18.1

2.1 4.6

0.5 0.3

8%119% 14%

38%40%

Other

-0.4 -0.8


HY1 2009 HY1 2010 HY1 2009 HY1 2010

HY1 2009 HY1 2010 HY1 2009 HY1 2010

HY1 2009 HY1 2010

HY1 2009 HY1 2010


USD

SGD

EUR

Other

27

59% of HY1 2010 EBIT generated in non-euro currencies

15%

22%

41%

22%

In principal revenues, costs and financing are denominated in the same currency.

SGD

USD

EUR

Other

+1.4Latin America

+0.3North America

-0.3Non-allocated

+0.4OEMEA

+8.2Total

+5.8Asia

+0.6CEMEA

Translation effect on EBIT per division HY1 2010

In EUR mln


Sound EBIT(DA) marginsSupported by robust occupancy rates, improved revenue per cbm, effective cost management and economies of scale

EBITDA margin*

EBIT margin*

* Excluding exceptional items,

excluding net result of JV’s

0%

10%

20%

30%

40%

50%

60%

2004 2005 2006 2007 2008 2009 HY1 2010


-42.5

132.4

-30.1

223.0

HY1 2010

184.2

114.9

Net Profit - excluding exceptional items -

increased by 15%

21%

15%

HY1 2009 ∆%

EBIT

Net Profit attributable to holders of ordinary shares

Net finance costsTax*

-22.5 -34%-34.1 -25%

1.04 0.92EPS 13%

543.9Net Revenues 492.1 11%

* Includes exceptional items



Net Finance Costs aligned with expansion program

-22.5

HY1 2009HY1 2010

In EUR mln

4.0Interest and dividend income

Net finance costs

Finance costs -26.52.7

-32.8-30.1

Net-interest bearing debt Average interest rate

0%

2%

4%

6%

8%

10%

2004 2005 2006 2007 2008 2009 HY1 2010

505411,7 425,7

561,9

996,7 1017,7

1426,2

0

250

500

750

1000

1250

1500

2004 2005 2006 2007 2008 2009 HY1 2010


-42.5 22.0% 21.1%

HY1 2010 HY1 ‘09

In EUR mln

Stable effective tax rate

Tax

Effective Tax Rate

HY1 ‘10


0,00

0,50

1,00

1,50

2,00

2004 2005 2006 2007 2008 2009 HY1 2010

1.92

1.62

1.31

0.980.81

0.63

Positive EPS development

1.040.92

13%

In EUR, 2004-2009 restated for share split

HY1 2010 EPS includes impact of:

- Stock dividend (May 2009)- Financing preference shares (August 2009)- Additional expansions and debt funding programs (September and November 2009)


HY1 2010 Sources and uses of cash

InvestmentsGross operating

cash flow

181.3Financing costs and tax paid

Dividend paid in cash

In EUR mln

52.2

263.0

-159.4

54.179.6

Other

Net change in Cash and cash

equivalents


Pensions

Dutch 83%

Other

17%

Vopak defined Pension obligations Dutch Pension obligations

• Pension fund cover ratio from 108% at year end 2009 to 103% at the end of HY1 2010 (including 3.5% reservation for increased life expectancy)

• The employer’s contribution remains at the maximum of 30% for 2010

HY1 2010


Business performanceEBIT per Division

Vopak Singapore Sebarok Terminal

Vopak Terminal Europoort

Vopak Houston Deer Park Terminal

Vopak Horizon Fujairah


23.1

17.7

25.3

21.722.6

24.622.8

26.4

22.1

24.5

Q1 Q2 Q3 Q4

2008 2009 2010

Chemicals EMEA“In Europe the demand for storage of chemicals has improved”

Vopak Terminal Botlek Zuid, Rotterdam

EBIT in EUR mln, - excl. exceptional items -

43% 9%

24.625.317.7 22.6


26.0

31.5

36.6

25.1

33.638.8

27.9

35.9

29.1

34.3

Q1 Q2 Q3 Q4

2008 2009 2010

Oil EMEA“Robust demand for tank storage continues”

16%Vopak Terminal Europoort, Rotterdam


15%

38.836.631.5 33.6


23.4

30.6

37.7

22.9

33.9

41.0

24.2

31.6

25.0

31.4

Q1 Q2 Q3 Q42008 2009 2010

Asia“Continued EBIT growth by expanding capacity and efficiency improvements”

23% Vopak Terminal Sakra, Singapore


21%

41.037.730.6 33.9


7.5

11.4

13.3

9.3

11.212.0

8.4

13.0

9.210.5

Q1 Q2 Q3 Q4

2008 2009 2010

North America“Growth through acquisitions, effective cost management and rationalizations”

17%Vopak Terminal Deer Park, Houston


7%

12.013.311.4 11.2


5.3

6.4

7.3

5.15.5

7.1

5.86.2

5.86.2

Q1 Q2 Q3 Q42008 2009 2010

Latin America“Continuing steady performance”

14%Vopak Terminal Cartagena, Colombia


29%

7.17.36.4 5.5


Investments

Vopak Singapore Penjuru Terminal

Vopak Terminal Westpoort

Vopak Terminal Bahamas

Gate terminal


Growth continuesHY1 2010 storage capacity increased with 0.3 mln cbm

-0.3 mlnDivested terminal Basle (Switzerland)

-0.1 mlnDemolished site Waltershof (Germany)

1.1 mlnTotal capacity increase

4.0 mlnUnder construction 2010, 2011 and 2012 (incl. LNG)

27.9 mln End HY1 2009 Storage Capacity

28.6 mlnEnd HY1 2010 Storage Capacity

32.6 mlnTotal ultimo 2012

In cbm

Zangjiagang, ChinaProduct: ChemicalsCapacity addition: 74,500 cbm

Alemoa, BrazilProduct: ChemicalsCapacity addition: 38,600 cbm

Jakarta, IndonesiaProduct: Oil productsCapacity addition: 250,000 cbm


Total investments

146 147 188

446

268

End HY1 2010 2012

Remaining Vopak ShareApproved & Under Construction Projects

EUR 0.5 bln

In EUR mln

800

151188

268

446

800

535

263

2004 2005 2006 2007 2008 2009 HY1 2010


Investing in growth

Total CAPEX projects 2010, 2011 and 2012Approved & Under Construction Projects

Remaining Vopak share in CAPEX Spent 2010, 2011 and 2012 Approved & Under Construction

Projects

Group companiesand

joint ventures AroundEUR 0.5 bln

Yearly Sustaining Capex +/- EUR 125-150 mln

Around EUR 1.9 bln


Agenda



Growth projects


Financing

Outlook



Sufficient headroom to continue growth strategyDebt repayment schedule (in EUR mln)

Various financing sources

Total financing program around EUR 2.3 bln

EUR 62 mln (total facility EUR 1.0 bln)5 yearsRCF 2007

SGD 210 mln5 yearsAsian PP 2009

Amount outstanding HY1 2010MaturityFacility

USD 686 mln

USD 375 mln

USD 350 mln

8-20 years

8/10/12/15 years

Majority 10 years

USPP 2007

USPP 2009

USPP 2001

200

400

600

800

027

204

77 82122 110

817

2016- 2029201520142013201220112010


2.70

2.23

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

2009

HY1 2010

Strategic financeNet debt : EBITDA ratio

Maximum Ratio under US PP

Maximum Ratio under other loans and syndicated revolving credit facility

* Based on Dutch GAAP


Agenda



Growth projects


Financing

Outlook



2010“For 2010 Vopak expects a Group

operating profit before depreciation and

amortization (EBITDA) of at least EUR 585

million (previously: EUR 560 million).”

Outlook2012“Based on its growth strategy and the

positive developments in 2010 Vopak

could potentially achieve its 2012

guidance of EUR 625-700 million Group

operating profit before depreciation and

amortization one year earlier.”

2006 2007 2009

369.5

EBITDA

314.1

Outlook Guidance2008

262.5231.8

20052004

429.3

513.4

In EUR mln, excluding exceptional items, including net result from Joint Ventures & associates

2012/20112010

> 585625-700

HY1 297


Outlook Assumptions

Oil ~ 55% of EBIT

Biofuels and vegoils

~ 12.5% of EBIT

Chemicals~ 17.5% of EBIT

Industrial terminals~ 15% of EBIT

Healthy demand for storage capacity

Contract renewals

+Some new storage capacity commissioned

ROBUST/STABLEROBUST MIXEDSTABLE


“Confidence in the future supported by a focused growth strategy,attractive market developments and solid business performance”


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 forward-looking 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 couldlead to actual results being materially different from those expected.

Forward-looking statement


–

www.vopak.com

Analyst presentation HY1 2010 results - Vopak...HY1 results 2010 327 August 2010 3 Agenda Details...

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Transcript of Analyst presentation HY1 2010 results - Vopak...HY1 results 2010 327 August 2010 3 Agenda Details...