Roadshow Presentation 2008 - Vopak...Roadshow Presentation 2008 42008 Vopak transformation process...

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2008Roadshow Presentation 2008 1

Roadshow Presentation 2008

–– –2008Roadshow Presentation 2008 22

The world of Vopak


Agenda

Introduction

Strategy

Business Performance

Growth continues

Outlook


Vopak transformation process

“Vopak in 5 years has transformed from being a non-focussed slow

growth industrial conglomerate into a pure – well focussed – high growth

terminal operator. “

Analyst


Tank terminal: key role in oil and chemical supply chain

Vopak Terminal Europoort – Rotterdam, the Netherlands


Downstream Chemicals

Outgoing Logistics

Strategic position tank terminals


Logistic hub terminalWhere 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’s challengeThe challenge is to facilitate the current and future product flows:


Vopak market definition

Definition

Vopak’s competitive environment is defined as non-captivemarine 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 theirown products


Market share according to the definition

10 %15 %

16 mln

60 mln

105 mln

165 mln

Oil

24 %27 %

10.6 mln

5 mln

40 mln

45 mln

Chemicals

26.6 mln CBMVopak

65 mln CBMSecondary Competition

13 %18 %

Vopak Market Share:As % of total marketAs % of primary competition

145 mln CBMPrimary Competition

210 mln CBMWorld Market

TotalStorage market (in cbm)


Terminal capacity growth from 2008 up to 2011 Announced projects

7%Annual Growth RateAs % of Vopak capacity

7 Million CBMVopak (incl. E.O.S.)

6%Annual Growth Rate

48 Million CBMWorld Market, incl. Vopak

TotalAdditional Worldwide Storage Capacity

*Baseline: January 2008

Demand growth in storage marketto support international trade flows


Vopak - the global market leader

Vopak

in Million m³

_


Agenda

Introduction

Strategy


Growth continues

Outlook


Strategic focus Vopak

LEADERSHIP ENABLERSAlign structure with strategy and improve supply of human capital

LEADERSHIP ENABLERSAlign structure with strategy and improve supply of human capital

EXCELLENT CUSTOMER

SERVICE

EXCELLENT CUSTOMER

SERVICE

MAXIMUM OPERATIONAL

EFFICIENCY

MAXIMUM OPERATIONAL

EFFICIENCY

ACCELERATED COMPANY GROWTH

ACCELERATED COMPANY GROWTH

Pursue and strengthen leadership in key

locations

Invest in partnerships with strategic

customers

EXCELLENCESet new standards in commercial, operational and financial excellence

Attain service excellence across the

network

Become preferred provider for strategic

accounts

Attain low cost position compared to key

competitors

Develop superior ability to withstand all

economic conditions


Strategic initiatives delivering results

Key Account Management:increased revenue with KAM clients

Business Intelligence:improved market knowledge

Operational Efficiency Improvement:program will be started at 10 terminals

Branding:new visual identity to support one company brand

Repeatable Formula:standard designs result in shorter engineering time for new projects

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Agenda

Introduction

Strategy


Growth continues

Outlook


Business PerformanceYTD 2008


EBIT excl. exceptionals

220.9

272.9

EBIT

Minimum of 310

179.7151.0

2006 2007 200820052004


Vopak has now completed a successful ‘shrink to grow’ revitalization

0

1

2

3

4

5

6

1999 2000 2001 2002 2003 2004 2005 2006 20070%

10%

20%

30%

40%

50%

Revenues EBITDA margin EBIT margin ROCE

Revenues in billion EUR; all figures are excl. exceptional items and incl. joint ventures


Process Safety & Quality Performance

LTIR

0

0,5

1

1,5

2

2,5

3

2004 2005 2006 2007 1H 2008

Spills

020406080

100120140160

2004 2005 2006 2007 1H 2008


Pro forma EBIT 1H 08 vs 1H07:increased by 20%

-3.4Divestments

Pro forma EBIT

FX translation effects


Exceptionals

EBIT incl. exceptionals

12139.4156.8

-9.9-9.7

20130.7156.8

-5.3

12149.3166.5

%1H 20071H 2008


Exceptional Items in 1H 2008

4.5Vopak Barging9.7Exceptional Items

5.2Merger Vopak E.O.S.

In EUR millions


-31.4 21.3% 21.5%

€1H08 1H07 %In EUR millions

Effective tax rate

Tax

Effective Tax Rate

1H08 %

0%

5%

10%

15%

20%

25%

2003 2004 2005 2006 2007 1H08


-8.391.5

-27.6-21.0 149.3423.7

1H07

166.5

106.9

Net Profit 1H 2008 increased by 17%

All figures are including exceptional items

12%

17%

1H08 ∆%In EUR millions

EBIT

Net Profit

453.9Net Revenues 7%

Finance Income & ExpensesTaxMinority Interests

-19.4 8%-31.4 14%- 8.2 1%

1.47 1.71EPS 16%


0

100

200

300

400

500

600

Sources Uses Sources Uses

Sources and uses of cash

Operations Operations

InvestmentsDivestments

Investments

Divestments

FinancingFinancing

Dividends

Dividends

1H07 1H0856.0 -138.4

EUR (mln)

Net Cash Flow

Proceeds frominterest-bearing

loansProceeds frominterest-bearing

loans

390.1 -334.1 433.0 -571.4


0

0,2

0,4

0,6

0,8

1

2003 2004 2005 2006 2007

Dividendsdividend policy: 25 - 40%

0.50 0.500.60

0.75

0.95

* *

* optional in cash or ordinary shares

In EUR


Business PerformanceQ3 2008


All Divisions contributed to the 18% Q3 EBIT* improvement

CEMEA

Asia

Latin America

OEMEA

Other

21.7 22.8

5%

North America

22%39%

19.924.220.1

27.9

7.7 8.4

5.5 5.8

Q3 07 Q3 08

Q3 07 Q3 08 Q3 07 Q3 08Q3 07 Q3 08

Q3 07 Q3 08Q3 07 Q3 08

22%

5%

9%

€ mln

*EBIT excl. exceptionals -6.5 -7.9


20,323,1 22,2 21,7 21,7

22,8 21,8

0

5

10

15

20

25

30

Q1 Q2 Q3 Q4

20072008

Division: Chemicals EMEAAntwerp transition completedContinued high demand for biofuels storage

14% 2% 5%

€ mln



21,9

26,0

21,925,1

20,1

27,9

19,1

0

5

10

15

20

25

30

Q1 Q2 Q3 Q4

20072008

Division: Oil EMEAUtilizing capacity additions

19% 15% 39%

€ mln



19,2

23,419,8

23,119,9

24,2

19,9

0

5

10

15

20

25

30

Q1 Q2 Q3 Q4

20072008

Division: AsiaContinued growth by expanding capacityStrong emerging markets growth potential

22% 17% 22%

€ mln



7,2 7,5 8,3 9,37,7 8,4 7,9

0

5

10

15

20

25

30

Q1 Q2 Q3 Q4

20072008

Division: North AmericaFocus on improving results is bearing fruit

4% 12% 9%

€ mln



5,1 5,3 5,4 5,1 5,5 5,8 5,1

0

5

10

15

20

25

30

Q1 Q2 Q3 Q4

20072008

Division: Latin AmericaContinuing steady performance

4% 6%

€ mln

5%



All Divisions contributed to the 14% YTD EBIT* improvement

Asia

5%

20%

YTD 07 YTD 08

€ mln

16.2

YTD 07 YTD 081%

Latin America

16.0

North America

23.2 25.2

YTD 07 YTD 089%CEMEA

OEMEA

64.2 67.6

24%

58.970.563.9

79.0

YTD 07 YTD 08YTD 07 YTD 08

Other

-18.5 -20.5

YTD 07 YTD 08

11%


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Agenda

Introduction

Strategy


Growth continues

Outlook


The growth of Vopak – projects in progress


Strong demand for storage capacity

85% 94%

2004 Q308 YTD

Occupancy rate

92% 96% 95%

2005 2006 2007

Capacity (in cbm)

26.6M21.8M21.2M20.4M20.2M


Projects completed in 1H 2008

Chemicals

Chemicals

Oil

Oil

Chemicals

Oil

Oil

Oil

Product

100,000Greenfield100%Linkeroever

Location Ownership Type Consolidated JVs & Associates

Rotterdam 100% Expansion 200,000

Fujairah 30% Expansion 380,000

Sebarok 69.5% Expansion 223,000

Zhangjiagang 100% Expansion 84,900

Bahamas 20% Acquisition 3,000,000

Tallinn 50% Merger 435,000

Pasir Gudang 100% Acquisition 20,600

Other 106,000 60,000

Total added capacity 1H 2008 734,500 3,875,000

Total added capacity 1H 2008 >4.6M cbm

Additional CBM


Projects completed in Q3 2008

Chemicals

Chemicals

Chemicals

Chemicals

Chemicals

Chemicals

Chemicals

Chemicals

Oil/Chemicals

Product

49,760Acquisition100%South Wilmington

Location Ownership Type Consolidated JV & Associates

Banyan 69.5% Expansion 80,600

Penjuru 69.5% Expansion 22,000

Galena Park 100% Expansion 9,500

Columbia 100% Expansion 6,500

Merak 95% Acquisition 76,900

Moji 40% Acquisition 46,400

Nagoya 40% Acquisition 37,300

Hemiksem transfer 100% Transfer -103,000

Total added capacity Q3 2008 142,260 83,700

Total added capacity Q3 2008 >0.2M cbm

Additional CBM


Gate terminal

Clients

Throughput

Jetties

Tanks

16 bcm12 bcm9 bcm

221

?43

433

?Q3 2008Q4 2007Launching customers:

- Gate terminal project: well progressing- E.ON Ruhrgas - fourth customer- Financing of EUR 745 mln concluded


Vopak E.O.S.

Pakterminal till YE 2007

304,900Vopak50%Pakterminal

Pakterminal till 23 April 2008

Vopak100%Pakterminal

Vopak E.O.S. 23 April 2008 till August

Vopak35%

Vopak E.O.S.

304,900

740,000

Vopak E.O.S. from August 2008

Vopak50%

Vopak E.O.S. 740,000 940,000in 2009


Strategic Financing


2003* 2004 2005 2006 2007 2008

Total investments

146 151 188

446268

1H 2008:375

?

1H08 2011

Remaining Vopak ShareApproved & Under Construction Projects

* Based on Dutch GAAP

EUR 400 mln

€ mln


Financing sources

USPP 2001:Amendmentfinalized

Majority: 10 years

March 2007

Various joint ventures project financing

Gate:EUR 745M senior project financing agreement

20 years

RCF:EUR 1B Option to increaseto EUR 1.2B

5 years +1+1

USPP 2007:New Notes forUSD 375M

8/ 10/ 12/ 15 years

2007 / 2008July 2008July/Aug 2007May 2007

Effective Access to Financing Sources


2.22

1.71

1.61

1.76

2.20

2.42

2.49

2.34

0 0,5 1 1,5 2 2,5 3 3,5 4

2002*

2003*

2004

2005

2006

2007

1H 2008

Q3 2008

Strategic financeNet debt : EBITDA ratio

Maximum Ratio under US PP

Maximum Ratio under other loans and syndicated revolving credit facility

* Based on Dutch GAAP


Covenant/Term US PP 2001 US PP 2007 New RCFMaximum Net Debt / EBITDA 3.75 3.75 3.75

Additional headroomWhen financed withsubordinated debt

Up to 4.25 > 3.75

EBITDA / Net Interest Payable

> 4.0 > 3.5 > 3.5

Overview of US PP terms and RCF

Amount USD396 mln

USD 375 mln

EUR 1 bln

+ EUR 200 mln

_


Agenda

Introduction

Strategy


Growth continues

Outlook


Actual Q3 08 YTD EBIT:

€ 237.6M

+* expansions* margin management

Outlook 2008

Minimum € 310M EBIT

-/-* tanks out of operation* one-off revenues* pre-operating expenses* depreciation* start-up results* IFRS 3 * timing differences

Reconciling Q3 2008 YTD EBIT* toOutlook 2008 requires an eye for detail…

*EBIT excl. exceptionals


220.9272.9

Outlook*

* Excluding exceptional items

** EBITDA includes joint ventures & associates results

475 - 550

2006 2007 2009 / 2010EUR (mln)

EBIT

369.6

EBITDA**314.1

Outlook

Minimum of 310

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

2008

179.7

262.4

151.0

231.9

20052004Guidance


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 renders 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 couldlead to actual results being materially different from those expected.

Forward-looking statement


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Roadshow Presentation 2008 - Vopak...Roadshow Presentation 2008 42008 Vopak transformation process...

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