Annual Results 2011 Analyst presentation 29 February 2012

Transcription

1 Annual Results Analyst presentation 29 February 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

3 Global mega trends drive Vopak s markets Population growth, mainly GDP growth in non-oecd Increasing (sustainable) Increasing need transport and non-oecd energy need mobility 3

4 Strengthening Vopak s competitive position in a period of worldwide challenges Financial turmoil and economic uncertainties Socio-economic unrests (e.g. Arab-spring ) Geopolitical challenges 4

5 Contents Achievements Business environment Growth projects Business performance Financing Outlook 5

6 Robust results in Storage capacity In mln cbm Occupancy rate In percent % EBITDA Development* In mln EUR +6% * Excluding exceptional items; including net result from Joint Ventures 6

7 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 -15% % Process Incidents # incidents +16%

8 Focused strategy to execute A B C 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 Foundation Safety, Health and Environment Our People 8

9 A Various projects completed in Storage capacity decreases by 1.0 million cbm Commissioned Acquired Divestment Terminal Bahamas 3,400,000 cbm; oil products Amsterdam Westpoort (1) 620,000 cbm; oil products Kandla 261,600 cbm; chemicals Altamira Altamira LNG terminal 300,000 cbm; LNG Gate terminal 540,000 cbm; LNG Note: Above examples not representative of all projects completed in. 9

10 B Strengthening competitive position: improve safety performance and efficiency Safety Efficiency Improving safety performance Reinforce our Vopak Fundamentals on Safety Operational efficiency improvements Focus on master plans 10

11 C Serving markets from a product perspective Product strategy Understand basic technology Understand imbalances Understand trade flow dynamics Account Management Customer segmentation Access to the right people Understand customer s strategy Winning clients and ports Portfolio of Terminals Port Attractiveness Relevance for Network Pro-active approach 11

13 Global energy product trends drive Vopak s market Oil products Chemical products Biofuels & Vegoils LNG Global Crude oil trade business Europe s gasoline surplus Europe s deficit for middle distillates Asia s deficit for Fuel Oil Feedstock advantage in ME Renewed Gulf re-emerges due to shale gas Rationalization 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 models LNG growth due to imbalances, security of supply and environmental push 13

15 Global products trends resulting in company growth through healthy demand for storage capacity Capacity developments In mln cbm Divestments Occupancy rate In percent Expansions New terminals Expansions New terminals %

16 Various projects under construction Total storage capacity under construction 6.0 million cbm Under construction Eemshaven 660,000 cbm; oil products Amsterdam Westpoort (2) 570,000 cbm; oil products Hainan 1,350,000 cbm; oil products Algeciras 403,000 cbm; oil products Europoort 400,000 cbm; oil products Fujairah 606,000 cbm; oil products Pengerang 1,278,000 cbm; oil products Note: Above examples not representative of all projects under construction. 16

17 Vopak expects to realize an EBITDA between EUR million in

19 Results in line with outlook Storage capacity In mln cbm Occupancy rate In percent % EBITDA Development* In mln EUR +6% * Excluding exceptional items; including net result from Joint Ventures 19

20 Financial overview 6% EBITDA growth 5% EBIT growth 4% EPS growth Proposal cash dividend of EUR 0.80 per share (+14%) Adequate funding of growth strategy secured Note: Excluding exceptional items; including net result from Joint Ventures 20

21 Global mega trends resulting in a robust demand for tank terminal services Population growth, mainly GDP growth in non-oecd Increasing (sustainable) Increasing need transport and non-oecd energy need mobility 21

22 Contribution of Vopak value drivers in the past and present Past Present Present Future > Occupancy improvements Playing field between 90-95% Operational efficiency gains Capacity expansion 22

23 Focused strategy delivers results EBITDA Development 2006-* In mln EUR +102% Healthy occupancy rate Improved revenue per cubic meter Effective cost management Storage capacity growth 2006 Divestments FX result EBITDA improvements * Excluding exceptional items; including net result from Joint Ventures 23

24 Contract duration portfolio did not change significantly since 2008 Contract position 2008 In percent of revenues Contract position In percent of revenues 20% < 1 year 19% < 1 year > 3 year 39% > 3 year 44% 41% 1-3 year 37% 1-3 year 24

25 Transition year in line with outlook Revenues In million EUR 1, , % EBIT* In million EUR % Net profit* In million EUR % Earnings per share* In EUR % * Including net result from Joint Ventures. Note: Excluding exceptional items. 25

26 Revenue developments supported by robust demand for storage capacity Storage capacity In mln cbm Subsidiaries Joint ventures

27 Healthy occupancy rates between 90-95% Occupancy rate In percent 90-95% Q Q Q Q Q Q Q Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 27

28 Except from North America, all divisions contribute to 6% revenue growth North America OEMEA Asia % % % Latin America CEMEA % % Note: Revenues in million EUR. 28

29 EBIT excluding exceptional items increased by 5% to EUR million In mln EUR In mln EUR Delta In percent Operating profit % Net result Joint Ventures % EBIT incl. exceptional items % Exceptional gain (loss) (3.3) EBIT excl. exceptional items % Net profit % 29

30 63% of EBIT generated in non-euro currencies EBIT transactional currencies In percent Other 24% USD 11% FX translation-effect on EBIT In mln EUR OEMEA 0.2 CEMEA 0.4 EUR 37% 28% SGD Transactional currency exchange risks are limited As a rule revenues, costs and financing are denominated in the same currency Asia 5.4 North America 1.6 Latin America 0.7 Non allocated 0.1 Total 2.6 Note: Excluding exceptional items. 30

31 5% EBIT increase mainly driven by Asia, Global LNG, OEMEA, and Latin America North America OEMEA Asia % % % Latin America CEMEA Global LNG % % Note: EBIT in million EUR; Excluding exceptional items; including net result from Joint Ventures 31

32 Net result from Joint Ventures increases with 8% North America OEMEA Asia %* % % Latin America CEMEA Global LNG % % -2,0 9.9 * Due to the sale of Vopak s 20% equity stake in BORCO (Bahamas). Note: Results JVs in million EUR; Excluding exceptional items. 32

33 IFRS equity accounting versus proportionate consolidation Revenues Subsidiaries (Equity method) 1, , % Revenues Incl. proportionate consolidation JVs tank storage 1, , % EBITDA Subsidiaries* (Equity method) EBITDA Incl. proportionate consolidation JVs tank storage % % * Including net result from Joint Ventures. Note: In million EUR; Excluding exceptional items. 33

34 Further optimizing the organization structure Former situation Current situation CEMEA OEMEA The Netherlands EMEA The former divisions Vopak Chemicals EMEA and Vopak Oil EMEA The current divisions Vopak Netherlands and Vopak EMEA as of 1 January

35 Pro forma results new division structure Netherlands and EMEA Revenues Netherlands EBIT Netherlands* Results JVs Netherlands % % % Revenues EMEA EBIT EMEA* Results JVs EMEA % % % * Including net result from Joint Ventures. Note: In million EUR; Excluding exceptional items. 35

36 Vopak is well positioned to maintain healthy EBIT(DA) margins EBIT(DA) Margin* In percent 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. 36

37 Proposed dividend amounts to EUR 0.80 per ordinary share Dividend share of EPS 2006-** In EUR Dividend share of EPS % % * Excluding exceptional items; attributable to holders of ordinary shares. ** Excluding exceptional items; historical figures adjusted for 1:2 share split effectuated May 17,. 37 Dividend policy: Barring exceptional circumstances, the intention is to pay an annual cash dividend of 25-40% of the net profit*

38 Various other topics Net Finance costs aligned with expansion program. I III See appendix for further details Vopak s Pensions. Effective tax rate. Sources and uses of cash in. Accounting consequences: IAS 19 Employee Benefits II effective for V III 38

39 Quarterly EBIT development Solid year-on-year growth EBIT 2009 EBIT EBIT EBIT development per Quarter* In mln EUR % % % % Q1 Q2 Q3 Q4 * Excluding exceptional items. 39

40 Chemicals EMEA Encouraging demand for chemical storage services Capacity developments In mln cbm EBIT development per Quarter* In mln EUR EBIT EBIT End Div. Exp. End Occupancy rate FY FY 89% 90% % % % % 22.2 Q1 Q2 Q3 Q4 * Excluding exceptional items. 40

41 Oil EMEA Robust market conditions in the storage and handling of oil products EBIT development per Quarter* In mln EUR EBIT EBIT Capacity developments In mln cbm End 0.00 Div Exp End Occupancy rate FY FY 95% 94% % % % % 47.3 Q1 * Excluding exceptional items. Q2 Q3 Q4 41

42 Asia Continuous growth in Asia Capacity developments In mln cbm EBIT development per Quarter* In mln EUR EBIT EBIT End Div. Exp. End Occupancy rate FY FY 92% 94% +29% +15% +5% +1% Q1 Q2 Q3 Q4 * Excluding exceptional items. 42

43 North America Encouraging finish in a transition year Capacity developments In mln cbm EBIT development per Quarter* In mln EUR EBIT EBIT End Div. Exp. End Occupancy rate FY FY 94% 93% % % % % 8.9 Q1 * Excluding exceptional items. Q2 Q3 Q4 43

44 Latin America Healthy demand for chemicals and palm oil Capacity developments In mln cbm End Div. Exp. End EBIT development per Quarter* In mln EUR EBIT EBIT Occupancy rate FY FY 90% 89% 0% -10% +6% +60% Q1 Q2 Q3 Q4 * Excluding exceptional items. 44

45 Results in HY2 fuelled by expansions Revenues In million EUR % EBIT* In million EUR % HY2 HY2 HY2 HY2 Net profit* Earnings per share* In million EUR In EUR % +14% HY2 45 HY2 * Including net result from Joint Ventures. Note: Excluding exceptional items. HY2 HY2

46 Capacity growth will continue in the future Capacity developments In mln cbm Divestments* Expansions New terminals Expansions New terminals * Including net change at various terminals (including decommissioning). 46

47 Various projects completed in On time and within budget Commissioned Acquired Divestment Terminal Bahamas 3,400,000 cbm; oil products Amsterdam Westpoort (1) 620,000 cbm; oil products Kandla 261,600 cbm; chemicals Altamira LNG terminal 300,000 cbm; LNG Gate terminal 540,000 cbm; LNG Note: Above examples not representative of all projects completed in. 47

48 Expansion projects progressing well Total storage capacity under construction 6.0 million cbm Under construction Eemshaven 660,000 cbm; oil products Amsterdam Westpoort (2) 570,000 cbm; oil products Hainan 1,350,000 cbm; oil products Algeciras 403,000 cbm; oil products Europoort 400,000 cbm; oil products Fujairah 606,000 cbm; oil products Pengerang 1,278,000 cbm; oil products Note: Above examples not representative of all projects under construction. 48

49 Various projects under study Under study Perth Amboy Oil products Fos-sur-Mer LNG Bahia Las Minas Oil products Bioko Island Oil products West-Java LPG 49

50 Total investments Total investments In mln EUR Total expansion CAPEX Group companies and JVs In mln EUR Remaining Vopak share in Capex (Group Capex / equity share in JVs) ~1400 ~500 Other Capex* ~1,400 ~ Total Capex (6.0 mln cbm under construction) ~1, Average yearly Sustaining Capex ~EUR mln * Group Capex spend; contributed Vopak equity share in JVs; total partners equity share in JVs; total non recourse financing in JVs. 50

52 5 Strategic finance Net senior debt : EBITDA ratio * Maximum Ratio under current US PP program Maximum Ratio under other PP programs and syndicated revolving credit facility * Based on Dutch GAAP. 52

53 Various other financing topics VI Debt funding program further strengthened during. Maturity of debt funding further enhanced. VII See appendix for further details Balanced debt repayment schedule. VIII 53

55 Contribution of Vopak value drivers in the future Past Present Present Future > Occupancy improvements Playing field between 90-95% Operational efficiency gains Capacity expansion 55

56 Outlook assumptions ~x% Share of EBIT Oil products Chemicals Industrial terminals Biofuels & Vegoils LNG ~60% ~ % ~12.5% ~7.5-10% <1% Robust Encouraging 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. 56

57 Vopak expects to realize an EBITDA of between EUR million in 2013 EBITDA Development and guidance In EUR mln Historical results Guidance/Outlook Long-term guidance ROCE average 16% Note: Excluding exceptional items; including Net result from Joint Ventures 57

58 Vopak expects to realize an EBITDA of between EUR million in % EBITDA growth 5% EBIT growth 4% EPS growth Proposal cash dividend of EUR 0.80 per share (+14%) Adequate funding of growth strategy secured Note: Excluding exceptional items; including net result from Joint Ventures 58

59 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. 59

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

61 I Net Finance costs aligned with expansion program Net finance costs In mln EUR Net finance costs * In mln EUR Interest and dividend income 4.6 Finance costs Net finance costs Net interest bearing debt In mln EUR Average interest rate In percent , , , * The increase is mainly attributable to the exceptional loss of EUR 5.0 million related to the sale of Vopak s 20% equity stake in BORCO (Bahamas). 61

62 II Effective tax rate Tax In mln EUR % Effective Tax Rate In percent EUR million of book gain on the sale of our 20% equity stake in BORCO (Bahamas) is exempted for tax purposes Excluding exceptional items, the effective tax rate for amounted to 19.5% 62

63 III Sources and uses of cash in Consolidated Statement of Cash Flows In mln EUR Net Cash position 1/1/* Gross operating cash flow Net finance costs Tax paid Divestments Investments Derivative Settlement Financing activities FX / (de)consolidation Net Cash position 31/12/* * Including bank overdrafts. 63

64 IV Vopak s Pensions Vopak s Pension obligations In percent Other 20% Dutch 83% Cover ratio ultimo Other 17% is 106% 80% Dutch Dutch Pension Fund Highlights Return was 5% in Pension contribution to remain at the same, maximum level of 30% An additional contribution of EUR 50 million in 64

65 V Accounting consequences: IAS 19 Employee Benefits effective for 2013 Removal 10% corridor approach Only service and net finance cost in P&L Higher volatility in net pension liability Rest of changes (i.e. remeasurements) in other comprehensive income, including the first time recognition of the 10% corridor (EUR million) Immediate recognition of the unrecognized actuarial gains and losses through equity, which amounted to EUR million at 1 January 2012 for the financial statements 2013 (comparable figures 2012)* Discount rate expected return plan assets The discount rate used to measure the defined benefit obligation will also be used for the expected returns on plan assets, which generally is a lower rate than used under current IAS 19 * See page 90 Annual Report. Note: Effectively at 1 January

66 VI Debt funding program further strengthened during Renewal RCF 2 February EUR 1.2 bln revolving credit facility (RCF) Maturity years Extension with 1 year Renewal RCF 2 February 2012 EUR 1.1 bln revolving credit facility (RCF) Maturity years 66

67 VII Maturity of debt funding further enhanced Covenant US PP Asian PP RCF Term Maximum Net Senior Debt/ EBITDA SGD2009 SGD JPY PP EUR 1.2 bln Additional headroom when financed with subordinated debt Minimum EBITDA / Net Interest Payable - Up to 4.25 > > 3.75 > Amount outstanding USD USD USD 65 mln 375 mln 674 mln SGD SGD JPY 210 mln 225 mln 20 bln EUR 100 mln Redemption payment * * On 2 February 2012, extension of the facility with one additional year (EUR 1.1 billion). Note: PP = Private Placement and RCF = Revolving Credit Facility 67

68 VIII Balanced debt repayment schedule Overall weighted average interest rate 4.7% 50 Debt repayment schedule In mln EUR * * On 2 February 2012, revolving credit facility extension with one additional year (EUR 1.1 billion). 68