First Half Year 2012 Results Analyst presentation 24 August 2012

Transcription

1 First Half Year 2012 Results Analyst presentation 24 August 2012

2 Forward-looking statement This document 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 renders 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 could lead to actual results being materially different from those expected. 2 results 24 August 2012

3 Contents Achievements Business environment and strategy update Business performance Results per division Investments and financing Outlook 3 results 24 August 2012

4 Robust results in Storage capacity Occupancy rate EBITDA Worldwide capacity increased by 1.4 million cbm to 29.2 million cbm The occupancy rate was 91%, within the 90-95% range aimed for EBITDA -excluding exceptional itemsincreased 28% to EUR million 4 results 24 August 2012

5 Personal and process safety Total Injury Rate Total injuries per million hours worked by own employees The lost time injury rate (LTIR) Total injuries leading to lost time per million hours worked by own employees and contractors -11% % 0.6 HY HY Process Incidents Number of incidents -25% HY results 24 August 2012

6 Contents Achievements Business environment and strategy update Business performance Results per division Investments and financing Outlook 6 results 24 August 2012

7 Global product trends drive Vopak s markets Example of growth project Oil products LNG Chemical products Biofuels & Vegoils Global crude oil trade business Europe s gasoline surplus and deficit for middle distillates Closures of some less competitive refineries in the Atlantic Basin A globalizing natural gas market with new business models LNG growth due to imbalances, security of supply and environmental push Increasing demand in Asia and lower demand in Europe Feedstock advantage in Middle East Gulf re-emerges due to shale gas Flows between US- Brazil-Europe-Asia Market is expected to grow Impact of annual harvest and regulatory uncertainties Assets Coryton Houston Vlaardingen Small scale LNG 7 results 24 August 2012

8 Focused strategy and disciplined execution Growth Leadership Operational Excellence Customer Leadership Our ability to find or identify the right location for our terminals 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 Sustainability Foundation Excellent People Environment Care Health and Safety Responsible Partner 8 results 24 August 2012

9 Global products trends resulting in company growth through healthy demand for storage capacity Capacity developments In mln cbm +5.3** Expansions* New terminals Acquisition Expansions New terminals Acquisition * Including net change at various terminals (including decommissioning). ** Including the acquisition of the assets of the former Coryton refinery (UK) by means of a strategic consortium. 9 results 24 August 2012

10 Projects commissioned Storage capacity increased by 1.4 million cbm Tianjin Lingang (50%) 95,300 cbm; chemicals A dam Westpoort 2 (100%) 582,000 cbm; oil products Gothenburg (100%) 60,000 cbm; oil products Commissioned Commissioned (Joint Venture) Acquired Fujairah (33.3%) 611,000 cbm; oil products Zhangjiagang (100%) 55,600 cbm; chemicals Note: Above examples not representative of all projects completed in. 10 results 24 August 2012

11 Various projects under construction Total storage capacity under construction 5.3 million cbm* Under construction Under construction (Joint Venture) Acquired (Joint Venture) Eemshaven (50%) 660,000 cbm; oil products Assets Coryton (33.3%) 500,000 cbm; oil products Hainan (49%) 1,350,000 cbm; oil products Algeciras (80%) 403,000 cbm; oil products Europoort (100%) 400,000 cbm; oil products Pengerang (44%) 1,278,000 cbm; oil products * Including the acquisition of the assets of the former Coryton refinery (UK) by means of a strategic consortium. Note: Above examples not representative of all projects under construction. 11 results 24 August 2012

12 Strengthening competitive position of services to our customers Safety Efficiency 12 results 24 August 2012

13 Vopak expects to achieve its 2013 outlook of EUR million EBITDA in 2012

14 It is Vopak s ambition to realize an EBITDA of EUR 1 billion in 2016 The year of 400 years of entrepreneurship

15 Contents Achievements Business environment and strategy update Business performance Results per division Investments and financing Outlook 15 results 24 August 2012

16 Robust results in Storage capacity In mln cbm Occupancy rate In percent % EBITDA Development* In EUR mln 2010 HY HY HY HY % * Excluding exceptional items; including net result from Joint Ventures 16 results 24 August 2012

17 Financial performance is fuelled by different value drivers Past Present Near Past Present/ Future > Occupancy improvements Playing field between 90-95% Operational efficiency gains Capacity expansion 17 results 24 August 2012

18 Healthy occupancy rates between 90-95% Occupancy rate In percent 90-95% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q results 24 August 2012

19 Vopak is well positioned to maintain healthy EBIT(DA) margins EBIT(DA) Margin* In percent 50 EBITDA Margin EBIT Margin Focus on logistic efficiency improvements for our clients has led to increased EBIT(DA) margins * Excluding exceptional items; excluding net result from Joint Ventures. 19 results 24 August 2012

20 Development of storage capacity Storage capacity In mln cbm Subsidiaries Joint Ventures * results 24 August HY * Including the acquisition of the assets of the former Coryton refinery (UK) by means of a strategic consortium. Note: for the Joint Ventures 100% of the storage capacity is included

21 Solid financial performance Revenues In EUR million % EBIT* In EUR million % Net profit** In EUR million % Earnings per share** In EUR % * Including net result from Joint Ventures. ** Attributable to holders of ordinary shares; including net result from Joint Ventures. Note: Excluding exceptional items. 21 results 24 August 2012

22 All regions contribute to the 16% revenue increase North America Revenues +19% +16% Netherlands Asia +20% % Latin America +11% EMEA +7% Note: Revenues in EUR millions. 22 results 24 August 2012

23 EBIT excluding exceptional items increased by 28% to EUR million In EUR mln Operating profit Net result Joint Ventures In EUR mln Delta In percent 33% -66% EBIT incl. exceptional items % Exceptional gain (loss) EBIT excl. exceptional items % Net profit excl. exceptional items* % * Attributable to holders of ordinary shares. 23 results 24 August 2012

24 Except from Latin America, all regions contribute to the 28% EBIT increase North America EBIT +17% +28% Netherlands Asia +38% % Latin America -7% EMEA % 52.3 Global LNG results 24 August 2012 Note: EBIT in EUR million; excluding exceptional items; including net result from Joint Ventures

25 Net result of Joint Ventures increases with 34%, mainly due to Global LNG North America Netherlands Asia Net result of JVs +34% %* % % Latin America +67% EMEA % 26.4 Global LNG * Due to the sale of Vopak s 20% equity stake in BORCO (Bahamas). Note: Net result Joint Ventures in EUR million; Excluding exceptional items. 25 results 24 August 2012

26 IFRS equity accounting Proportionate consolidation* Revenues Subsidiaries % Revenues % EBITDA Subsidiaries and net result from Joint Ventures % EBITDA % * Vopak consolidated including proportional consolidation of joint ventures in tank storage activities. Note: In million EUR; Excluding exceptional items. 26 results 24 August 2012

27 Net Finance costs aligned with expansion program Net finance costs * In EUR mln Interest and dividend income Finance costs Net finance costs Net finance costs In EUR mln Net interest bearing debt In EUR mln Average interest rate In percent , , , , HY * The increase was mainly attributable to the exceptional loss of EUR 5.0 million related to the sale of Vopak s 20% equity stake in BORCO (Bahamas) HY results 24 August 2012

28 Effective tax rate Tax In EUR mln % Effective Tax Rate In percent In 2011, EUR million of book gain on the sale of our 20% equity stake in BORCO (Bahamas) was exempted for tax purposes Excluding exceptional items, the effective tax rate for amounted to 18.9% 28 results 24 August 2012

29 Sources and uses of cash in Consolidated Statement of Cash Flows In EUR mln Net Cash position 1/1/2012* Gross operating cash flow Net finance costs paid Tax paid Investments Disposals Derivatives settlement Dividend paid in cash** Other financing activities FX Net Cash position 30/06/2012* * Including bank overdrafts. ** Including dividend paid in cash on financing preference shares. 29 results 24 August 2012

30 FX translation-effect on EBIT 2009 In EUR mln 2010 In EUR mln 2011 In EUR mln In EUR mln EMEA (1.7) 3.5 (0.6) 0.9 Asia North America (1.6) 1.1 Latin America (0.7) 0.1 Non allocated 0.0 (0.8) 0.1 (0.3) Total results 24 August 2012

31 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 Total recognized directly in equity through Other comprehensive income Net result recognized through statement of income in Income tax 31.1 Income tax 31.7 Total effect on Equity attributable to owners of parent at 30 June * From 31 December 2011 to 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) 31 results 24 August 2012

32 Contents Achievements Business environment and strategy update Business performance Results per division Investments and financing Outlook 32 results 24 August 2012

33 Netherlands - New oil storage capacity came on stream in Amsterdam Westpoort - Lower occupancy rates in crude and gasoil storage EBIT* In EUR million +38% Q Q Q Q Q Q Revenues In EUR million Occupancy rate In percent Storage capacity In mln cbm % pp % * Including net result from Joint Ventures; excluding exceptional items. 33 results 24 August 2012

34 EMEA - New oil storage capacity came on stream in Fujairah - Lower occupancy rates at chemical terminals in Belgium EBIT* In EUR million +14% Q Q Q Q Q Q Revenues In EUR million Occupancy rate In percent Storage capacity In mln cbm % pp % * Including net result from Joint Ventures; excluding exceptional items. 34 results 24 August 2012

35 Asia - Continuous growth in Asia - Currency translation gain of EUR 8.2 million on EBIT EBIT* In EUR million +15% Q Q Q Q Q Q Revenues In EUR million Occupancy rate In percent Storage capacity In mln cbm % pp % * Including net result from Joint Ventures; excluding exceptional items. 35 results 24 August 2012

36 North America - Higher occupancy rates - Improvements in markets for biofuels and chemicals EBIT* In EUR million +17% Q Q Q Q Q Q Revenues In EUR million Occupancy rate In percent Storage capacity In mln cbm % pp % * Including net result from Joint Ventures; excluding exceptional items. 36 results 24 August 2012

37 Latin America - New chemical storage capacity came on stream in Mexico - Lower occupancy rates in Brazil EBIT* In EUR million -7% Q Q Q Q Q Q Revenues In EUR million Occupancy rate In percent Storage capacity In mln cbm % pp % * Including net result from Joint Ventures; excluding exceptional items. 37 results 24 August 2012

38 Contents Achievements Business environment and strategy update Business performance Results per division Investments and financing Outlook 38 results 24 August 2012

39 Capital disciplined growth: Total investments Total investments In million EUR Total Investments In million EUR 2, , ~ ~ Sustaining Capex** ~400 Expansion Capex* HY HY * Yearly sustaining Capex is EUR million. ** Including remaining equity share in Joint Ventures; excluding our part of Capex related to the upgrading of the assets of the former Coryton refinery (UK). Note: Total Capex related to 4.8 mln cbm under construction is ~EUR 1.5 bln. results 24 August 2012

40 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) * * Based on Dutch GAAP. Note: Private placements and syndicated revolving credit facility per year-end Maximum Ratio under current US PP program Maximum Ratio under other PP programs and syndicated revolving credit facility HY results 24 August 2012

41 Contents Achievements Business environment and strategy update Business performance Results per division Investments and financing Outlook 41 results 24 August 2012

42 Outlook assumptions ~x% Share of EBIT Oil products Chemicals Industrial terminals Biofuels & Vegoils LNG 2011 ~60% ~ % ~12.5% ~7.5-10% <1% Robust Steady Solid Mixed Solid 2013 ~60-65% ~ % ~7.5-10% ~5-7.5% ~2.5-5% Note: width of the boxes do not represent actual percentages. 42 results 24 August 2012

43 Vopak expects to achieve its 2013 outlook of EUR million EBITDA in 2012 EBITDA Development and outlook In EUR million Historical results Outlook Note: Excluding exceptional items; including net result from Joint Ventures 43 results 24 August 2012

44 It is Vopak s ambition to realize an EBITDA of EUR 1 billion in 2016 The year of 400 years of entrepreneurship

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