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transcript
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Roadshow Presentation Q1 2011 Trading Update
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Q1 2011 Trading update 22
• Global market leader in independent storage of liquid bulk products
• Present in 30 countries, operating 79 terminals
• Total storage capacity of 25.3 mln cbm
• Strong focus on safety and environment
• Infrastructure service provider to many oil and chemical majors
• Many successful strategic partnerships
• Market capitalization of EUR 4.3 bln
Key facts
Vopak: A worldwide tank terminal network
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Q1 2011 Trading update 3
Vopak transformation process
"This is an infrastructure play; the
company is benefitting from the
outsourcing of this service by oil and chemical producers, which form the
bulk of its customers. It is an
under-recognized industry leader."
Canadian Investor
2007-20112005/200620042003July 2002
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Q1 2011 Trading update 4
Tank terminal:
key role in oil and chemical supply chain
Vopak Terminal Europoort – Rotterdam, the Netherlands
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Q1 2011 Trading update 5
Vopak’s role in the supply chain“Reliability and efficiency crucial throughout the supply chain”
Feedstock
Production
Feedstock
Gathering
Production &
Refining
Products
Transmission
Independent
Storage &
Transshipment
Mid-Stream &
End-user
Distribution
Oil and Chemical supply chain
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Q1 2011 Trading update 66
Vopak’s challenge
The challenge is to facilitate the current and future product flows:
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Q1 2011 Trading update 77
Downstream Chemicals
Outgoing Logistics
Strategic position tank terminals
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Q1 2011 Trading update 88
Logistic hub terminal
Where large flows of products merge – logistics crossroad
Houston, Rotterdam / Antwerp, Singapore and Fujairah
Example fuel oil
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Q1 2011 Trading update 99
Import / Export terminal
- Break or make bulk
- Local distribution
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Q1 2011 Trading update 10
Industrial terminal
Vopak Singapore – Sakra Terminal
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Q1 2011 Trading update 11
Vopak core businesses
Existing market
Oil
Chemicals
New products inexisting market
Biofuels
New market
LNG
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Q1 2011 Trading update 1212
Growing demand for Vopak’s services by
the oil industry
- Increasing product differentiation
- Increasing geographical imbalances
- Liberalization of new markets
- New giant oil players
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Q1 2011 Trading update 1313
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
World trade in major liquid chemicals
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Q1 2011 Trading update 1414
Increased interest in biofuels leading to
long-term growth in 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
- Example: EU-27 “20/20/20” mandate
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Q1 2011 Trading update 1515
Worldwide LNG demand drives need for
independent import terminals
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Q1 2011 Trading update 16
Vopak market definition
Definition
Vopak’s competitive environment is defined as non-captive
marine 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 their
own products
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Q1 2011 Trading update 1728/04/2011 17
Market share according to the definition
Storage market Oil Chemicals Total
World Market 204 mln 52 mln 256 mln CBM
Primary Competition 125 mln 45 mln 170 mln CBM
Secondary Competition 79 mln 7 mln 86 mln CBM
Vopak 14.3 mln 11.0 mln 25.3 mln CBM
Vopak Market Share:
As % of total market
As % of primary competition
7 %
12 %
21 %
24 %
10.0 %
15.0 %
In mln cbm
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Q1 2011 Trading update 1818
Terminal capacity under construction*
Demand growth in storage market
to support international trade flows
Additional Worldwide Storage Capacity*
Total
World Market, incl. Vopak 25.8 mln cbm
Growth % 10.0 %
Vopak 4.5 mln cbm
Growth as % of Vopak capacity
15.6%
* Excluding LNG capacity under construction
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Q1 2011 Trading update 19
Vopak - the global market leaderSource: company websites, including inland capacity and Joint VenturesIn mln CBM
- 5 10 15 20 25 30
SPSE
Universal
LBC
STS
EAPC
Magellan
Sinochem
Sunoco
Horizon
Dalian Port
Odfjell
SUMED terminal
CIM
Vitol
IMTT
CLH
Buckeye
NuStar
Kinder Morgan
Oiltanking
Vopak
0
Vopak
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Q1 2011 Trading update 2020
Agenda
Highlights
Business performance
Growth projects
Financing
Outlook
Details and definitions used in this presentation are derived from the Q1 2011 press release, which is leading.
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Q1 2011 Trading update 2121
Vopak’s Network growth on track:25.3 mln cbm storage capacity to grow to 29.8 mln cbm by 2012
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Q1 2011 Trading update 22
Q1 2011 Summary
Further Q1 2011 highlights:
- Joint venture (50-50) with NEIF to build and operate a
new 660,000 cbm storage terminal in the port of
Eemshaven (the Netherlands)
- New EUR 1.2 bln senior unsecured multicurrency
revolving credit facility (RCF) closed with 15
international relationship banks
- During Q1 2011 an exceptional result of EUR 111.5
million was recognized as a result of the sale of Vopak’s
20% equity stake in Vopak Terminal Bahamas
Q1 2011 EBIT excl. exceptional items EUR 109.5 mln
(Q1 2010 EUR 109.7 mln)
Q1 2011 EBITDA excl. exceptional items EUR 148.1 mln
(Q1 2010 EUR 145.4 mln)
Q1 2011 EBIT of EUR 110 mln, excl. exceptional gains of EUR 128 mln
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Q1 2011 Trading update 23
+2%145.4148.1EBITDA excl. exceptionals
28.425.3Storage capacity (in mln cbm)
93%92%Occupancy rate
0%109.7109.5EBIT excl. exceptionals
+117%109.6237.3EBIT incl. exceptionals
∆Q1 10Q1 11In EUR mln
Q1 2011 SummaryQ1 2011 EBIT of EUR 110 mln, excluding
exceptional gains of EUR 128 mln
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Q1 2011 Trading update 24
Exceptional items Q1 2011
EUR 16.3 mlnOther exceptional items
EUR 111.5 mlnDivestment Vopak Terminal Bahamas
Total proceeds of USD 271.4 million:
USD 164.6 million cash
USD 106.8 million Buckeye units:
- 620,861 Buckeye LP (common) units
- 1,095,722 Buckeye Class B units
After tax profit of USD 150.2 million
EUR 127.8 mlnTotal exceptional items Q1 2011
Mainly related to divestment Vopak Terminal Bahamas
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Q1 2011 Trading update 25
Result
at
Divestment
Divestment Vopak Terminal Bahamas
Proceeds of USD 271.4 mln:
� Cash USD 164.6 mln
� Shares USD 106.8 mln
After tax profit USD 150.2 mln
Accounting principles
Quarterly
Fair Value
determination
Fair value adjustment:
Q1 2011 effect EUR 0.4 mln
Dividend (no P&L effect)
Q1 2011 effect EUR 0.6 mln
Book profit / loss
at
Sale of shares
Fair value adjustment:
Future effect ?
Exceptional gain or loss: ?
I. II. III.
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Q1 2011 Trading update 2626
Agenda
Highlights
Business performance
Growth projects
Financing
Outlook
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Q1 2011 Trading update 27
Healthy occupancy rates in the 90-95% bandwidth
Q1 2011 Business environment:
� Improved results generated by new storage
capacity on stream last year in China and
Singapore (Asia)
� Better results in joint ventures (OEMEA)
� Rail car handling restrictions at Deer Park
(North America)
� Intensified maintenance and inspection
programs increasing the level of out of
service capacity (OEMEA / North America)
� Continued uncertainties for biofuels
(CEMEA / North America)
� Divestment Vopak Terminal Bahamas (North
America)
Occupancy rates per division:
CEMEA
OEMEA
Asia
North America
Latin America
Q1 2011
88%
93%
94%
91%
91%
Average occupancy decreased to 92% from 93%
Q1 2010
90%
95%
92%
96%
91%
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Q1 2011 Trading update 28
EBIT of EUR 109.5 mln mainly driven by
Asia’s increased contribution
CEMEA
Asia
Latin America
OEMEA
Other
North America29%
36.747.4
37.6 35.8
13.3 9.8
7.3 7.3
Q1 10 Q1 11
Q1 10 Q1 11
Q1 10 Q1 11Q1 10 Q1 11
In EUR mln, - excl. exceptional items -
- 26%
0%
25.320.1
Q1 10 Q1 11
-10.5 -10.9
Q1 10 Q1 11
- 5%
- 21%
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Q1 2011 Trading update 29
Chemicals EMEA
Vopak Terminal Botlek Zuid, Rotterdam
EBIT in EUR mln, - excl. exceptional items -
-21%
Q1 Q2 Q3 Q4
25.3
20.1
24.622.3
18.4
2010 2011
� Increased customer activity in chemicals
� Lower demand for storage and handling of biodiesel
Q1 2011 Q1 2010
Capacity (in mln cbm) 4.1 4.3
Occupancy rate 88% 90%
FX Effect (in mln EUR) +0.3
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Q1 2011 Trading update 30
Oil EMEA
Vopak Terminal Europoort, Rotterdam
-5%
Q1 Q2 Q3 Q4
37.6 35.839.7
42.0
37.1
2010 2011
� Intensified maintenance and inspection program
� Demolition of Waltershof terminal (Germany)
� Stronger results from joint ventures
EBIT in EUR mln, - excl. exceptional items -
Q1 2011 Q1 2010
Capacity (in mln cbm) 11.0 11.0
Occupancy rate 93% 95%
FX Effect (in mln EUR) +0.3
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Q1 2011 Trading update 31
Asia
29%
Vopak Terminal Sakra, SingaporeQ1 Q2 Q3 Q4
36.7
47.4
40.1
42.7
46.2
2010 2011
EBIT in EUR mln, - excl. exceptional items -
� New storage capacity on stream in 2010
(China & Singapore)
� Improved occupancy rates
Q1 2011 Q1 2010
Capacity (in mln cbm) 6.9 6.5
Occupancy rate 94% 92%
FX Effect (in mln EUR) +4.0
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Q1 2011 Trading update 32
North America
Vopak Terminal Deer Park, Houston2010 2011
Q1 Q2 Q3 Q4
13.3
9.8
12.0
10.110.6
-26%
EBIT in EUR mln, - excl. exceptional items -
� Uncertainties in biofuels
� Divestment Vopak Terminal Bahamas
� Rail car handling restrictions at Deer Park
Q1 2011 Q1 2010
Capacity (in mln cbm) 2.3 5.7
Occupancy rate 91% 96%
FX Effect (in mln EUR) +0.2
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Q1 2011 Trading update 33
Latin America
Vopak Terminal Cartagena, Colombia
2010 2011
Q1 Q2 Q3 Q4
7.37.1
6.6
4.7
7.3
EBIT in EUR mln, - excl. exceptional items -
� Steady results
Q1 2011 Q1 2010
Capacity (in mln cbm) 1.0 0.9
Occupancy rate 91% 91%
FX Effect (in mln EUR) +0.5
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Agenda
Highlights
Business performance
Growth projects
Financing
Outlook
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Q1 2011 Trading update 3535
29.8
2012
Company growth supported by
healthy demand for storage capacity
Storage CapacityIn mln cbm
21.2 21.8
27.1
28.3
2009200820072006
+0.6 +5.3 +1.2
2010
+0.5
20.4
2005
+0.8
Occupancy Rate
28.8
+4.5
25.3
-3.5
Q1 2011
93%94% 92%95%96%94%92%
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Q1 2011 Trading update 36
Growth continues in 2011 and 2012Divestments in Q1 2011 decrease total storage capacity with 3.5 mln cbm
In cbm
Vopak Terminal BahamasProduct: Oil productsCapacity addition: - 3,400,000 cbm
Ipswich, UKProduct: Oil productsCapacity addition: -56,000 cbm
28.3 mlnYE 2009 Capacity
+0.5 mlnTotal net capacity change 2010
-3.5 mlnTotal net capacity change Q1 2011
+4.5 mlnProjects under construction (to become operational in 2011 and 2012)
28.8 mln YE 2010 Capacity
25.3 mlnQ1 2011 Capacity
29.8 mlnTotal capacity per year end 2012
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Q1 2011 Trading update 37
Various projects under constructionTotal storage capacity under construction per Q1 2011: 4.5 mln cbm
MOT, Rotterdam (Netherlands)
increase in entitlement
with 360,000 cbm
Gate terminal
(Netherlands) 540,000 cbm
Algeciras (Spain) 403,000 cbm
YE2012
Remaining cash spend Vopak EUR 0.3 bln
Total investment for Vopak and partners EUR 1.9 bln
Q1 2011
Dongguan (China)153,000 cbm
Westpoort (Netherlands) 1,190,000 cbm
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Agenda
Highlights
Business performance
Growth projects
Financing
Outlook
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Q1 2011 Trading update 39
2.18
2.63
2.42
2.20
1.76
1.61
1.71
2.54
2.23
0 0.5 1 1.5 2 2.5 3 3.5 4
2003*
2004
2005
2006
2007
2008
2009
2010
Q1 2011
Strategic financeNet Senior debt : EBITDA ratio
Maximum Ratio under current US PP programs
Maximum Ratio under other PP programs and syndicated revolving credit facility
* Based on Dutch GAAP
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Q1 2011 Trading update 4040
Agenda
Highlights
Business performance
Growth projects
Financing
Outlook
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Q1 2011 Trading update 41
Outlook Assumptions
Oil
~ 60.0% of EBIT
Biofuels and
vegoils~ 7.5 – 10%
of EBIT
Chemicals
~ 17.5 – 20.0%
of EBIT
Industrial
terminals
~ 12.5% of EBIT
Healthy demand for storage capacity
Contract renewals
+
Some new storage capacity commissioned
SOLIDROBUST ENCOURAGINGMIXED
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Q1 2011 Trading update 4242
EU Biofuels market continues to face uncertainties
Clear “20/20/20” mandate
� ≥ 20% of the energy mix must come from renewable sources;
� with a 10% minimum target for the transport sector;
� by the year 2020.
Current situation
ILUC: No raw material from converted land
with high biodiversity or high carbon stock
Sustainability criteria
Ways to comply
Uncertainties
Limited appetite for storage and handling services
of previously selected feedstock and finished biodiesel products
Unclear which feedstock will qualify as a green product
� National Legislation of Member States
� International Agreements
� Voluntary Schemes
� Timing and interpretation issues with various certification schemes
� Impact on GHG calculation of land usage change is unclear (ILUC)
Green House Gas (GHG) savings > 35%
(50 % as from 2017 and 60 % for new
installations as from 2018)
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Q1 2011 Trading update 43
Vopak Biofuels – The 2011 playing field
+ Biofuels part of the long-term energy mix
+ Mandate is clear and has been introduced in many countries+ Drive to decrease dependency on oil
- New sustainability criteria remain unclear- No equal level playing field (taxes and subsidies)- Reduced blending of different feedstock, overall high
feedstock prices
� Biodiesel: Wait-and-see approach by many customers pending government regulations (EU certifications)
� Bio-ethanol: Increasing intra-EU product flows and subsidized US import routes
� Vegoils: Global growth driven by increasing population stimulates captive storage expansions
MIXED
Biofuels and vegoils~ 7.5 – 10% of EBIT
Outlook
Assumption
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Q1 2011 Trading update 44
0.75
1.00
1.25
1.50
1.75
2.00
2.25
2.50
FX
Rate
EUR/SGD
EUR/USD
EBIT(DA) impacted by volatile FX developments
FX Translation-effect on EBIT:
FY 2010 vs FY 2009 EUR +25.9 mln
Q1 2011 vs Q1 2010 EUR +5.1 mln
FX volatility makes the FY 2011 translation-effect uncertain.
Jan 2009 – March 2011
2003 2004 2005 20092006 2007 2008 2010 2011
Transactional currency exchange risks are limited.
As a rule revenues, costs and financing are denominated in the same currency.
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Q1 2011 Trading update 45
2011
“For 2011 Vopak expects Group operating
profit before depreciation and amortization
(EBITDA) between EUR 600 – 640 million,
assuming no further appreciation of the Euro
against applicable other currencies.”
2013
“Based on our growth strategy Vopak is well
positioned to realize a Group operating profit
before depreciation and amortization (EBITDA)
between EUR 725 – 800 million in 2013.”
Outlook
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Q1 2011 Trading update 46
445.3
220.9272.9
EBITDA Outlook 2013: in the EUR 725-800 mln range
* Excluding exceptional items, including net result from Joint Ventures
2006 2007 2009
EBIT*
369.5EBITDA*
314.1
Outlook
2008
179.7
262.5
2005
Guidance
429.3
320.4
513.4
385.3
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
In EUR mln
20132010
598.2
725-800
2011
Q1 148.1
600-640
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Q1 2011 Trading update 47
“Confidence in the future!”
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Q1 2011 Trading update 48
Storage capacity under construction
55,600C100%China, Zhangjiagang
95,300C50%China, Tianjin
15,800C100%Mexico, Altamira
153,000C50%China, Dongguan
155,200O50%Spain, Barcelona
360,0001O16.67%Netherlands, MOT
540,000LNG42.5%Netherlands, Gate
160,000O 100%Netherlands, Europoort
26,300C100%Brazil, Aratu
2011
30,000C50%China, Caojing
2010cbmLocation Ownership Product* 2009 2012
* O = Oil products, C = Chemicals, B = Biofuels, V = Vegetable oils, LNG = Liquefied Natural Gas
1 Given the C.V. structure of the M.O.T. terminal (in which Vopak holds a 16.67% share), the stated
capacity represents the total expansion capacity to be rented out to customers by Vopak
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Q1 2011 Trading update 49
660,000O50%Netherlands, Eemshaven
403,000O80%Spain, Algeciras
606,000O33%U.A.E., Fujairah
620,000
570,000O100%Netherlands, Westpoort
38,100V/B100%Netherlands, Vlaardingen
20112010cbmLocation Ownership Product* 2009 2012
* O = Oil products, C = Chemicals, B = Biofuels, V = Vegetable oils, LNG = Liquefied Natural Gas
Storage capacity under construction
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Q1 2011 Trading update 50
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 30 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.
Forward-looking statement
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Q1 2011 Trading update 51
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www.vopak.com