roadshow q3 2009 - vopak€¦ · q3 2009 summary further q3 2009 highlights: - new business...

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Roadshow Presentation 2009 Q3 2009 results

–– –28 August 2009HY1 results 2009 2

The world of Vopak


Agenda

Introduction

Highlights Q3 2009

Business performance

Growth projects

Financing

Outlook

Details and definitions used in this presentation are derived from the

Q3 2009 press release, which is leading.


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

2007/2008/20092005/200620042003July 2002


Tank terminal:

key role in oil and chemical supply chain

Vopak Terminal Europoort – Rotterdam, the Netherlands


Reliability and efficiency“Crucial throughout the supply chain”

The oil and chemical supply chain

Vopak core processes


Vopak’s challenge

The challenge is to facilitate the current and future product flows:


Downstream Chemicals

Outgoing Logistics

Strategic position tank terminals


Logistic hub terminal

Where 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%


5,5%

Source: Wood Mackenzie


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

Source: CMAI


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


Drivers of structural growth in demand

Liberalization of previously closed economies

Countries setting individual

specifications for products

Growing demand for

environmentally friendlier fuels

Increasing geographical imbalances


COMPANY GROWTH

• Prioritizing new investments• Financing and partnerships

COMPANY GROWTH

• Prioritizing new investments• Financing and partnerships

MAXIMUM OPERATIONAL EFFICIENCY

• Operational Efficiency Improvement• Enhancing maintenance plans• Preparing infrastructure for the future• Global procurement

MAXIMUM OPERATIONAL EFFICIENCY

• Operational Efficiency Improvement• Enhancing maintenance plans• Preparing infrastructure for the future• Global procurement

Accelerated Strategy Execution

EXCELLENT CUSTOMER SERVICE

• Key Account Management• Focus on service and quality

EXCELLENT CUSTOMER SERVICE

• Key Account Management• Focus on service and quality

Scenario planning

Toolbox

Based on Reliability and Efficiency


Process Safety & Quality Performance

* Number of accidents relative to the number of hours worked

*TIR*

2

4

6

8

10

2006 2007 2008 HY1 2009

Spills

20

40

60

80

100

120

2004 2005 2006 2007 2008 HY1 2009


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


Market share according to the definition

10 %

16 %

18.4 mln

67 mln

118 mln

185 mln

Oil

21 %

23 %

9.5 mln

5 mln

41 mln

46 mln

Chemicals

27.9 mln CBMVopak

72 mln CBMSecondary Competition

12 %

18 %

Vopak Market Share:

As % of total market

As % of primary competition

159 mln CBMPrimary Competition

231 mln CBMWorld Market

TotalStorage market

In mln cbm


Terminal capacity under construction

10%Growth as % of Vopak capacity

2.8 Million CBMVopak

7.7%Growth %

18 Million CBMWorld Market, incl. Vopak

TotalAdditional Worldwide

Storage Capacity

Demand growth in storage market

to support international trade flows


- 5 10 15 20 25 30

SPSE

Universal

Sunoco

Magellan

Dalian Port

LBC

Odfjell

STS

EAPC

Horizon

Sinochem

Vitol

SUMED

CIM

IMTT

CLH

NuStar

Kinder Morgan

Oiltanking

Vopak

0

Vopak - the global market leaderSource: company websites, including inland capacity and Joint VenturesIn mln CBM

Vopak


Agenda

Introduction

Highlights Q3 2009


Growth projects

Financing

Outlook




Q3 2009 Summary

Further Q3 2009 highlights:

- New business development opportunities announced

- Renewed cumulative financing preference shares

program of EUR 110 mln

- Concluded Asian Private Placement of SGD 210 mln

Q3 2009 EBIT excl. exceptional items up 29% to EUR 104.2 mln (Q3 2008 EUR 80.8 mln)

YTD 2009 EBIT excl. exceptional items increased by 21% to EUR 288.4 mln (YTD 2008 EUR 237.6 mln)

Events after 30 September 2009:

- Concluded US Private Placement of USD 680 mln


+27%107.6137.1EBITDA excl. exceptionals

26.628.0Storage capacity (in mln cbm)

94%93%Occupancy rate

+29%80.8104.2EBIT excl. exceptionals

+28%81.8104.3EBIT incl. exceptionals

∆Q3 08Q3 09In EUR mln

Q3 2009 EBIT excl. exceptional items

up 29% to EUR 104 mln


+21%237.6288.4EBIT excl. exceptionals

+21%316.7382.9EBITDA excl. exceptionals

+16%248.3288.6EBIT incl. exceptionals

∆YTD 08YTD 09In EUR mln

YTD 2009 EBIT excl. exceptional items

up 21% to EUR 288 mln


Agenda

Introduction

Highlights


Growth projects

Financing

Outlook




All divisions contributed to the

Q3 EBIT increase of 29%

CEMEA

Asia

Latin America

OEMEA

Other

North America

31%

24.2 31.627.9 35.9

8.4 13.0

5.8 6.2

Q3 08 Q3 09

Q3 08 Q3 09

Q3 08 Q3 09Q3 08 Q3 09

In EUR mln, - excl. exceptional items -

55% 29%

7%

22.8 26.4*

Q3 08 Q3 09

-8.3 -8.9

Q3 08 Q3 0916%

* CEMEA Q3 2009 result includes a positive one-off of EUR 2.6 mln


23.1

17.7

21.722.6 22.8

26.4

22.1

Q1 Q2 Q3 Q4

2008 2009

Chemicals EMEA“We consider it too early, especially for Europe, to

conclude whether the recovery of the chemicals

market is sustainable or not.”

4%23%Vopak Terminal Botlek Zuid, Rotterdam

16%


* CEMEA Q3 2009 result includes a positive one-off of EUR 2.6 mln

*


26.0

31.5

25.1

33.6

27.9

35.9

29.1

Q1 Q2 Q3 Q4

2008 2009

Oil EMEA“Robust demand for tank storage continues”

21% 34%Vopak Terminal Europoort, Rotterdam29%



23.4

30.6

22.9

33.9

24.2

31.6

25.0

Q1 Q2 Q3 Q4

2008 2009

Asia“Continued EBIT growth by expanding

capacity and efficiency improvements”

31% 48%

Vopak Terminal Sakra, Singapore

31%



7.5

11.4

9.3

11.2

8.4

13.0

9.2

Q1 Q2 Q3 Q4

2008 2009

North America“Growth through acquisitions, effective cost

management and rationalizations”

52% 20%Vopak Terminal Deerpark, Houston

55%



5.3

6.4

5.15.5 5.8

6.25.8

Q1 Q2 Q3 Q4

2008 2009

Latin America“Continuing steady performance”

21% 8%

Vopak Terminal Cartagena, Colombia

7%



Except for CEMEA, all divisions contributed to

the YTD EBIT increase of 21%

CEMEA

Asia

Latin America

OEMEA

Other

North America

36%

70.5 96.179.0 101.0

25.2 35.6

16.2 18.1

YTD 08 YTD 09

YTD 08 YTD 09

YTD 08 YTD 09YTD 08 YTD 09


41% 28%

12%

67.6 66.7

YTD 08 YTD 09

-20.9 -29.1

1% YTD 08 YTD 09


Agenda

Introduction

Highlights


Growth projects

Financing

Outlook




Storage CapacityIn mln cbm

20.4 21.221.8

27.1

30.9

2008200720062005

+0.8 +0.6

28.0

+5.3

YTD Q3 2009

+2.9+0.9

20.2

2004

+0.2

2011

95% 94%96%94%92%85%

Occupancy Rate

Company growth supported by

healthy demand for storage capacity


Growth continues: Q3 2009 storage capacity

increased with 0.1 mln cbm

0.8 mln

0.1 mln

Total net capacity increase HY1 2009

Total net capacity increase Q3 2009

2.8 mln

-0.1 mln

0.2 mln

2.9 mln

Capacity under construction as per HY1 2009

Capacity commisioned in Q3 2009

Newly announced capacity additions Q3 2009

Remaining 2009 till 2011 (incl. LNG)

27.1 mln YE 2008 Capacity

28.0 mlnQ3 2009 Capacity

30.9 mlnTotal

In cbm

Vlaardingen, NetherlandsProduct: Biofuels and vegoils

Capacity addition: 54,000 cbm

Ho Chi Minh City, VietnamProduct: Chemicals


Barcelona, SpainProduct: Chemicals



Under construction: 2.9 mln cbm

Grand Bahamas, Bahamas

443,000 cbm

Penjuru, Singapore

40,000 cbm

Tarragona, Spain

14,000 cbm

Lanshan, China

4,000 cbm

Jakarta, Indonesia

250,000 cbm

Alemoa, Brazil

37,000 cbm

Banyan, Singapore

7,000 cbm

Sydney, Australia

75,000 cbm

Zhangjiagang, China

177,000 cbm

Caojin, China

16,000 cbm

Europoort, Netherlands

160,000 cbm

MOT, Netherlands

360,000 cbm

Gate, Netherlands

540,000 cbm

Westpoort, Netherlands

620,000 cbm

Barcelona, Spain

155,000 cbm

Gothenburg, Sweden

20,000 cbm

2011

Remaining cash spend Vopak EUR 0.3 bln

Total investment for Vopak and partners EUR 1.5 bln

Q3 2009


Gate terminal progressing well

Launching

customers:

Division: LNG

Start operations: HY2 2011

Capacity: 540,000 cbm

Product: LNG

All 3 roofs air lifted


Amsterdam Westpoort (Phase1)

• Phase 1: 620,000 cbm, potential total storage capacity of 1.1 mln cbm• 20 above-ground storage tanks, 11 x 40,000 cbm & 9 x 20,000 cbm

• A facility for blending (mixing) products and components• Seven berths at two finger piers and a quay wall

Artist impression of the Vopak Westpoort Terminal (Netherlands)


Announced feasibility studies

Artist impression of possible

LNG terminal in Fos-sur-Mer, France

Gasunie and Vopak jointly investigate the feasibility

for developing a distribution hub for handling and temporary storage of CO2 (CCS)

Vopak and Dialog Group sign Memorandum of

Understanding to develop storage terminal for oilproducts in Malaysia with an initial storage

capacity of 1.4 mln cbm

To explore and pursue further opportunities in LNG,

Vopak and Shell announced a joint venture to investigate the feasibility of a liquefied natural gas

(LNG) terminal at Fos-sur-Mer, France.

Vopak Terminal Kertih

(Malaysia), Existing Joint

Venture with Dialog

CO2 production

The Hainan Island (China)

Investigation into the possibilities of an oil

terminal at the Hainan Island, China

30 September 2009

20 July 2009

16 July 2009

HY1 2009


Vopak’s growth based on healthy demand


Agenda

Introduction

Highlights


Growth projects

Financing

Outlook




2004 2005 2006 2007 2008 HY1 2009

Total investments

147 188

446

268

800

In EUR mln

220

Including yearly sustaining CAPEX of around EUR 100-125 mln


2.11

2.49

2.42

2.20

1.76

1.61

1.71

2.54

0 0.5 1 1.5 2 2.5 3 3.5 4

2002*

2003*

2004

2005

2006

2007

2008

Q3 2009

Strategic financeNet debt : EBITDA ratio

Maximum Ratio under US PP

Maximum Ratio under other loans and syndicated revolving credit facility

* Based on Dutch GAAP


Effective access to financing sources

After 30 September 2009


USD 680 mlnSGD 210 mlnEUR 210 mln*USD 375 mlnUSD 396 mlnAmount outstanding

2017-2029201420122015-20222011-2016Redemption payment

3.5

> 3.75

3.75

Asian PP

3.5

> 3.75

3.75

US PP 2009

3.53.54.0

Minimum EBITDA /

Net Interest

Payable

> 3.75

3.75

RCF

EUR 1 bln

Covenant

TermUS PP 2001 US PP 2007

Maximum

Net Senior Debt/

EBITDA

3.75 3.75

Additional headroom

When financed with

subordinated debt

Up to 4.25

Maturity of debt funding further enhancedTotal program around EUR 2.0 bln

US PP = US Private Placement RCF = Revolving Credit Facility

As of December 2009

* Pro forma for Asian PP and Financial Preference Shares


Agenda

Introduction

Highlights


Growth projects

Financing

Outlook




Previous Outlook HY1 2009:

“For 2009, Vopak expects a group operating profit before depreciation and amortization

(EBITDA) of around EUR 495 million.”

EBITDA outlook 2009

Previous Outlook Q1 2009:


(EBITDA) of at least EUR 450 million.”(EBITDA) of at least EUR 450 million”.

(EBITDA) of around EUR 495 million”.

Q1 2009

HY1 2009

Current Outlook:


(EBITDA) of around EUR 495 million.”(EBITDA) of at least EUR 510 million”.

Q3 2009


Outlook Assumptions

Oil

~ 50% of EBIT

Biofuels and vegoils

~ 15% of EBIT

Chemicals

~ 20% of EBIT

Industrial terminals

~ 15% of EBIT

Healthy demand for storage capacity

Contract renewals

+

New storage capacity commissioned

STABLEROBUST MIXED


220.9272.9

Outlook 2009: in the EUR 475-550 mln range

* Excluding exceptional items, including net result from

Joint Ventures & associates

2006 2007 2009

EBIT*

369.5

EBITDA*

314.1

Outlook

2008

179.7

262.5

151.0

231.8

20052004

Guidance

429.3

320.4

At least 510

Q3 YTD 382.9

Q3 YTD 288.4

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


“Confidence in the future!”


Appendix:

Detailed overview of projects under construction


Many projects under construction

2010

160,000O100%Netherlands, Europoort

155,000O50%Barcelona, Spain

16,000C50%China, Caojin

177,000C100%China, Zhangjiagang

75,000

7,000

4,000

40,000

250,000

37,000

443,000

cbm

O100%Australia, Sydney

Location Ownership Product* 2009 2011

Bahamas, Grand Bahamas 20% O

Brazil, Alemoa 100% O/C

Indonesia, Jakarta 49% O

Singapore, Penjuru 69.5% C

China, Lanshan 42% C

Singapore, Banyan 69.5% C

* O = Oil products, C = Chemicals, B = Biofuels, V = Vegetable oils, LNG = Liquefied Natural Gas


14,000C50%Spain, Tarragona

620,000O100%Netherlands, Westpoort

540,000LNG40%Netherlands, Gate

2010

360,000

20,000

cbmLocation Ownership Product* 2009 2011

Gothenburg, Sweden 100% O

Netherlands, MOT 16% O

Many projects under construction (II)* O = Oil products, C = Chemicals, B = Biofuels, V = Vegetable oils, LNG = Liquefied Natural Gas


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 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


–

www.vopak.com

roadshow q3 2009 - vopak€¦ · q3 2009 summary further q3 2009 highlights: - new business...

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