Strategy in Financial Perspective: past, present, ambition 2016

Transcription

1 Strategy in Financial Perspective: past, present, ambition 2016 Capital Markets Day, 7 December 2012 Jack de Kreij, Vice-Chairman of the Executive Board and CFO

2 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 Capital Markets Day 7 December 2012

3 Contents Strategy in Financial Perspective Disciplined Capital Investments Capital Disciplined Growth Ambition Capital Markets Day 7 December 2012

4 Alignment of the right organization with long-term trends and strategic focus Long-term trends Focused strategy and disciplined execution The right organization Solid balance sheet Ongoing access to capital markets Disciplined capital evaluations 4 Capital Markets Day 7 December 2012

5 Value Creation Concepts supporting successful strategy execution Growth Leadership Operational Excellence Customer Leadership Finding right location Long-term strategic partners Full potential evaluation matrix Terminal Master Plans Fit for Purpose Approach Cost competitiveness Vopak service quality index Global / Regional / Local approach Customer focused efficiency improvements 5 Capital Markets Day 7 December 2012

6 It is Vopak s ambition to realize an EBITDA level of EUR 1 billion in 2016 EBITDA Development and outlook In EUR mln ,000 Historical results Outlook Ambition Vopak remains on track to achieve its 2013 outlook of million EBITDA in Note: Excluding exceptional items; including net result from Joint Ventures. 6 Capital Markets Day 7 December 2012

7 Healthy occupancy rates and EBIT margins Expansion projects main value driver for further EBITDA growth Past Present Near Past Present/ Future > Occupancy improvements Playing field between 90-95% Operational efficiency gains Capacity expansion * Excluding exceptional items; excluding net result from Joint Ventures. 7 Capital Markets Day 7 December 2012

8 Outlook assumptions ~x% Share of EBIT Oil products Chemicals Industrial terminals Biofuels & Vegoils LNG ~60% ~ % ~12.5% ~7.5-10% <1% ~60-65% ~ % ~7.5-10% ~5-7.5% ~2.5-5% Robust Mixed Solid Mixed Solid Note: width of the boxes do not represent actual percentages. 8 Capital Markets Day 7 December 2012

9 Growth projects Main driver in realizing EBITDA growth Coryton Commissioned Acquired Under construction Westpoort Kandla Tianjin Gate Altamira Jubail Hainan Fujairah Aratu Pengerang Banyan Note: Above examples not representative of all projects under construction. 9 Capital Markets Day 7 December 2012

10 Contents Strategy in Financial Perspective Disciplined Capital Investments Capital Disciplined Growth Ambition Capital Markets Day 7 December 2012

11 Disciplined capital investment considerations Different concepts for different purposes Type of investment Greenfield Brownfield Acquisition Different concepts for different purposes Launching Customers Contracted infrastructure No firm commercial contracts (e.g. MoU s) Full potential evaluation matrix Local WACC Pay-back period Project NPV / IRR Equity IRR Where relevant team up with joint venture partners 11 Capital Markets Day 7 December 2012

12 Disciplined capital investments Growth: examples of capital investment decisions Thames Oilport 4 3 Amsterdam Westpoort Zhangjiagang 500,000 cbm; oil; 33.3% 1,202,000 cbm; oil; 100% 455,000 cbm; chemicals; 100% 1 5 Altamira LNG terminal 300,000 cbm; LNG; 60% 6 Strategic plot of land Houston 2 Hainan 1,350,000 cbm; oil; 49% 12 Capital Markets Day 7 December 2012

13 Profitability Drivers 1 Vopak Terminal Zhangjiagang (China) Type of investment Original business case Actual situation Greenfield with future expansion opportunities Limited formal contracts Entrance to a rapidly growing market Healthy occupancy rates after 4 expansion projects Further opportunities to expand Storage capacity in cubic meters 125,000 85,000 74, ,000 56, , Q Capital Markets Day 7 December 2012

14 Profitability Drivers 2 Hainan (China) Vopak (49%) and SDIC (51%) Type of investment Business case Actual situation Greenfield with strategic partner with future expansion opportunities Limited formal contracts Entrance to a rapidly growing market First phase under construction LoI s / MoU s Storage capacity in cubic meters 1,350, ,850,000 Options for brownfields 5,200,000 Future possible capacity 14 Capital Markets Day 7 December 2012

15 3 Vopak Terminal Amsterdam Westpoort Type of investment Business case Actual Actual situation Situation Greenfield Step-by-step approach Phase I: 50% contracts Phase II based on 100% contracts in Phase I First and second phase in operation 100% contracted with 3-5 year contracts Storage capacity in cubic meters 620, ,000 1,202, Q Capital Markets Day 7 December 2012

16 4 Thames Oilport (UK) Vopak (33.3%), Shell (33.3%) and Greenergy (33.3%) Type of investment Business case Actual situation Actual Situation Location acquisition with strategic partners Conversion / upgrading of infrastructure Option for brownfield Long-term contracts with strategic partners for the first phase Developing current facility 100% contracted Studies for future expansion Storage capacity in cubic meters 500, ,000 Option for brownfield 1,000,000 Future possible capacity 16 Capital Markets Day 7 December 2012

17 5 LNG Terminal Altamira (Mexico) Vopak (60%) and Enagas (40%) Type of investment Business case Actual situation Actual Situation Acquisition with strategic partner with future expansions opportunities Contracted infrastructure 100% contracted Studies for future expansion opportunities (including small-scale LNG) Throughput capacity in bcm Option for brownfield Possible throughput capacity * Joint management control. 17 Capital Markets Day 7 December 2012

18 6 Houston land (USA) Type of investment Business case Actual situation Actual Situation Land acquisition: secure growth option where land is scarce Shale gas developments in US Feasibility study chemicals and/or gasses 18 Capital Markets Day 7 December 2012

19 Disciplined capital investments Existing business: Terminal Master Plan Infrastructure designed years ago Upgrading through Terminal Master Plan according to market requirements Fit for Purpose infrastructure to meet future client needs 19 Capital Markets Day 7 December 2012

20 Contents Strategy in Financial Perspective Disciplined Capital Investments Capital Disciplined Growth Ambition Capital Markets Day 7 December 2012

21 Capital disciplined growth Disciplined decisions Long-term funding Balanced dividend policy Capital disciplined growth Disciplined investment decisions Effective working capital Working management Capital 21 Capital Markets Day 7 December 2012

22 Capital disciplined consideration Stable solvency ratio Total equity and liabilities In EUR mln 3,831 4,240 4,650 1,821 60% 40% 2,133 59% 41% 2,634 62% 38% 3,136 58% 42% 60% 40% 57% 43% 59% 41% Liabilities Equity HY Capital Markets Day 7 December 2012

23 Capital disciplined growth Total investments Total Investments In EUR mln 2,108 1,514 ~900-1,100 ~ Other Capex* Expansion Capex** In EUR mln; 100% = EUR 1.5 billion ~1,100 ~400 Remaining Vopak share in Capex (Group Capex and equity share in JVs) HY ~400 Q Expansion Capex** Group Capex spend Contributed Vopak equity share in JVs Total partners equity share in JVs Total non recourse financing in JVs * Sustaining and Improvement Capex. ** Total Capex related to 4.2 mln cbm under construction; excluding Thames Oilport (UK) and new storage terminal in Jubail (SA). 23 Capital Markets Day 7 December 2012

24 Capital Disciplined Growth Strategic Finance Access to Capital Markets Net senior debt : EBITDA ratio US Private Placements (EUR million)** SGD and JPY Private Placements (SGD 435 million and JPY 20 billion) Syndicated Revolving Credit Facility (EUR 1.2 billion) * Maximum Ratio under current US PP program Q Maximum Ratio under other PP programs and syndicated revolving credit facility * Based on Dutch GAAP. **Excluding new USD 1 billion US private placement notes program. Note: Private placements and syndicated revolving credit facility per year-end Capital Markets Day 7 December 2012

25 Some examples Joint Venture Corporate External financing Milestones US PP USD 475 mln US PP USD 375 mln Fin pref. shares EUR 110 mln Asian PP SGD 210 mln US PP USD 680 mln Asian PP SGD 225 mln JPN PP JPY 20 bln RCF EUR 1.2 bln RCF* EUR 1.13 bln US PP USD 1 bln Gate Terminal LNG (I) EUR 735 mln Gate Terminal LNG (II) EUR 136 mln VH Fujairah USD 130 mln Altamira LNG USD 300 mln BORCO USD 408 mln Vopak Shanghai Logistics RMB 268 mln * Extension for 1 year. Note: Original amounts. 25 Capital Markets Day 7 December 2012

26 Balanced debt repayment schedule Maturity profile aligned with long-term growth strategy Debt repayment schedule* In EUR mln RCF flexibility New US PP 2012 (subordinated) Current US PP Other 1,300 RCF (repaid with proceeds new US PP) New US PP 2012 Asian PP 1, * As of 30 September 2012, including new US PP. Note: The proceeds of the new US PP will be made available towards the end of Capital Markets Day 7 December 2012

27 Balanced dividend policy It is Vopak s intention to pay 25-40% dividend of the net profit* Dividend and EPS ** In EUR Cash Dividend % % * Barring exceptional circumstances; excluding exceptional items; attributable to holders of ordinary shares. ** Excluding exceptional items; historical figures adjusted for 1:2 share split effectuated May 17, Capital Markets Day 7 December 2012

28 Contents Strategy in Financial Perspective Disciplined Capital Investments Capital Disciplined Growth Ambition Capital Markets Day 7 December 2012

29 EBITDA growth Main value drivers: EBITDA margin improvement and capacity expansion EBITDA Development * In EUR mln +15% CAGR Healthy occupancy rate Improved revenue per cubic meter Effective cost management Storage capacity growth 2006 Divestments FX result EBITDA improvements 2011 * Excluding exceptional items; including net result from Joint Ventures. 29 Capital Markets Day 7 December 2012

30 Ambition 2016 Capacity expansions main value driver in EBITDA growth EBITDA Developments In EUR mln +9% CAGR 1, Capacity under construction FX impact Pension impact Approval and execution of additional projects 2016 Note: Graph is for illustration purposes only; size of the bars do not represent actual figures. 30 Capital Markets Day 7 December 2012

31 Capacity growth under construction Main value driver in achieving ambition 2016 Capacity developments In mln cbm +7.1 Other 3.3 Europoort 0.3 Jubail Other 2.1 Westpoort Fujairah Eemshaven 1.4 Other Algeciras Thames Oilport Pengerang Hainan In order to achieve ambition 2016, the approval and successful execution of additional profitable expansion projects are required FY FY Note: For the joint ventures, 100% of the storage capacity is included. 31 Capital Markets Day 7 December 2012

32 Strategic partners of increasing importance for realizing growth Net result of joint ventures in EBITDA based on IFRS equity accounting Storage capacity* In mln cbm 34.9 Subsidiaries Joint Ventures EBITDA - including net results JVs** In EUR mln % % YTD Q EST YTD Q * For the Joint Ventures 100% of the storage capacity is included; including projects under constructions for the period Q ** Excluding exceptional items. 32 Capital Markets Day 7 December 2012

33 FX translation effect on EBIT FX translation effect on EBIT In EUR mln??? YTD Q Capital Markets Day 7 December 2012

34 Consequences IAS 19 Employee Benefits Effect on comparative figures 2012 as a result of application amendment in 2013 Total effect on equity In EUR mln Actuarial gains and losses at 1 January 2012 Actuarial gains and losses in HY Total recognized directly in equity through Other comprehensive income Net result recognized through statement of income in HY Income tax 31.1 Income tax 31.7 Total effect on Equity attributable to owners of parent at 30 June Removal 10% corridor approach (higher volatility in net pension liability) Weighted average discount rate reduced from 4.68% to 4.26%* Only service and net finance cost in P&L (rest of changes in other comprehensive income) Change of discount rate for the expected returns on plan assets (generally lower rate than used under current IAS 19) * From 31 December 2011 to 30 June Capital Markets Day 7 December 2012

35 Conclusion EBITDA Development and outlook In EUR mln Historical results Outlook Ambition +9% CAGR 1,000 Vopak remains on track to achieve its 2013 outlook of million EBITDA in 2012 It is Vopak s ambition to realize an EBITDA level of EUR 1 billion in % CAGR In order to achieve ambition 2016, the approval and successful execution of additional profitable expansion projects are required FX and pension impact Implied CAGR 9% when 2016 ambition would be realized Note: Excluding exceptional items; including net result from Joint Ventures. 35 Capital Markets Day 7 December 2012

36 Royal Vopak Westerlaan 10 Tel: CK Rotterdam Fax: The Netherlands