Analyst presentation HY1 2010 results - Vopak...HY1 results 2010 327 August 2010 3 Agenda Details...
Transcript of Analyst presentation HY1 2010 results - Vopak...HY1 results 2010 327 August 2010 3 Agenda Details...
–– –
_HY1 results 2010 27 August 2010
–– –27 August 2010HY1 results 2010 2
A worldwide network strategy
Vopak Singapore Sebarok Terminal
Vopak Terminal Europoort
Vopak Houston Deer Park Terminal
Vopak Horizon Fujairah
Vopak Terminal Bahamas
–– –27 August 2010HY1 results 2010 33
Agenda
Details and definitions used in this presentation are derived from the HY1 2010 press release and HY1 Report, which are leading.
Achievements HY1 2010
Business environment
Growth projects
Business performance
Financing
Outlook
–– –27 August 2010HY1 results 2010 4
EBITDA excl. exceptionals
200
250
300
350
HY1 2009 HY1 2010
Robust results in HY1 2010
Healthy occupancy rateAdded 0.3 mln cbm storage capacity
Strong business performance
+21%
EUR 297.3 mln
–– –27 August 2010HY1 results 2010 5
Personnel & Process Safety
* Number of accidents own personnel and contractors relative to the number of hours worked
*Total Injury Rate*
6.7
5.5 5.2 5.3
3.7
0
2
4
6
8
FY 2006 FY 2007 FY 2008 FY 2009 H1 2010
Lost Time Incident Rate*
1.7 1.7 1.71.4
1.8
0
1
2
3
FY 2006 FY 2007 FY 2008 FY 2009 H1 2010
Process Incidents
44 41
17 1617 6
0
25
50
75
100
125
H1 2009 H1 2010
Spills Fires Contaminations
–– –27 August 2010HY1 results 2010 66
Agenda
Achievements HY1 2010
Business environment
Growth projects
Business performance
Financing
Outlook
Details and definitions used in this presentation are derived from the HY1 2010 press release and HY1 Report, which are leading.
–– –27 August 2010HY1 results 2010 7
The tank storage market continues to evolve
But also:
• New competitors are emerging
• Previously unavailable space being considered
• NOC’s establishing in new markets
• Oil traders expanding with own storage capacity
Drivers of structural growth in demand remain:
• Increasing geographical imbalances
• Countries setting individual specifications for products
• Liberalization of previously closed economies
• Growing demand for environmentally friendlier fuels
–– –27 August 2010HY1 results 2010 88
- Supply-side in development- Government requirements- Developing toward structural flows
Current business environment
- Increasing geographical imbalance between demand and supply leads to robust demand
- Possible permanent closure/divestments of less efficient refineries
- IOC’s focussing on upstream business
- Redesign of supply chain and production facilities- Industrial terminal: stable/robust- Remainder of chemical business:
- China - robust- Asia - encouraging- America’s - stable- Europe - improved demand
Oil
Chemicals
LNG- More focus on LNG solutions as energy source
Biofuels
–– –27 August 2010HY1 results 2010 9
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
–– –27 August 2010HY1 results 2010 1010
Agenda
Achievements HY1 2010
Business environment
Growth projects
Business performance
Financing
Outlook
Details and definitions used in this presentation are derived from the HY1 2010 press release and HY1 Report, which are leading.
–– –27 August 2010HY1 results 2010 1111
Storage CapacityIn mln cbm
20.4 21.2 21.8
27.1
32.6
2008200720062005
+0.8 +0.6
28.3
+5.3
2009
+1.2
20.2
2004
+0.2
2012
94%95% 93%96%94%92%85%
Occupancy Rate
Company growth supported byhealthy demand for storage capacity
28.6
+0.3 +4.0
HY1 2010
–– –27 August 2010HY1 results 2010 12
Various projects commissioned
Jakarta (Indonesia) 250,000 cbm
Vopak Zhangjigang(China)
74,500 cbm commissioned
and 114,700 under construction
Total storage capacity under construction 4.0 mln cbm
Alemoa (Brazil) 38,600 cbm
Decommissioned Waltershof (Germany) 99,400 cbm decommissioned
–– –27 August 2010HY1 results 2010 13
Amsterdam Westpoort
Aerial photo of the Vopak Westpoort Terminal (Netherlands) under construction
• Total storage capacity of 1,190,000 cbm• 41 storage tanks: 7 x 50,000 cbm, 11x 40,000 cbm, 17 x 20,000 cbm
and 6 x 10,000 cbm • A facility for blending (mixing) products and components• Ten berths at two finger piers and two quay walls
–– –27 August 2010HY1 results 2010 14
New chemical terminals in China under construction
Dongguan 153,000 cbm
Tianjin 95,300 cbm
–– –27 August 2010HY1 results 2010 15
New terminal in Algeciras (Spain)
• 403,000 cbm for oil products• Vopak acquired 80% of shares• Joint Venture with Wilma Oil
–– –27 August 2010HY1 results 2010 1616
Vopak’s growth based on healthy demand
–– –27 August 2010HY1 results 2010 17
“Confidence in the future!”
–– –27 August 2010HY1 results 2010 18
New chairman of the Executive Board• Personal reason for departure: the offered challenge
• Succession planning proves its value
• Key disciplines - commercial, financial and operational –represented in the Executive Board
• Vopak is in good shape and confident in its future
–– –27 August 2010HY1 results 2010 1919
Agenda
Achievements HY1 2010
Business environment
Growth projects
Business performance
Financing
Outlook
Details and definitions used in this presentation are derived from the HY1 2010 press release and HY1 Report, which are leading.
–– –27 August 2010HY1 results 2010 20
Robust demand continues
EPSin EUR
1.04
0.92
EBITDAin mln EUR
297.2245.9
HY1 09 HY1 10
HY1 09 HY1 10
0.79
209.1
HY1 08
HY1 08
All figures excluding exceptional items
13%15%
21%18%
–– –27 August 2010HY1 results 2010 21
0
100
200
300
400
500
600
2004 2005 2006 2007 2008 2009 2010
Robust EBITDA developmentsResulting from a solid growth strategy
HY1
297.3HY1
245.9
21%
In EUR mln
513.4
429.3
369.5314.1
262.5231.8
–– –27 August 2010HY1 results 2010 22
Net Profit
Net Revenues EBIT
Earnings per share
In EUR mlnIn EUR mln
HY1 2010 Positive financial developments
All figures excluding exceptional items
HY1 09 HY1 10
543.9
492.1
HY1 08
453.9
11%HY1 09 HY1 10
223.0184.2
HY1 08
156.8
21%
HY1 09 HY1 10
1.040.92
HY1 08
0.79
13%HY1 09 HY1 10
132.4114.9
HY1 08
98.915% 15%16%
8% 18%
In EUR mln In EUR mln,2008/2009 restatedfor share split
–– –27 August 2010HY1 results 2010 23
All divisions contribute to the revenue growth
CEMEA
Asia
Latin America
OEMEANorth America
27%
100.2 127.3132.8 139.1
68.1 69.0
37.4 43.5
HY1 2009 HY1 2010
In EUR mln
1% 5%
16%
152.0 163.1
7%
HY1 2009 HY1 2010
HY1 2009 HY1 2010 HY1 2009 HY1 2010
HY1 2009 HY1 2010
–– –27 August 2010HY1 results 2010 24
Including net result from Joint Ventures and Associates, EBIT increased by 21%
21184.2223.0EBIT excl. exceptional items
3828.639.4Net result JV & Associates
21184.3222.9EBIT incl. exceptional items
EBITDA excl. exceptional items
Exceptional loss
Operating profit
- 0.10.1
21245.9297.3
18155.7183.5
%HY1 2009HY1 2010
In EUR mln
–– –27 August 2010HY1 results 2010 25
Supported by all divisions EBIT increased 21% to EUR 223.0 mln
CEMEA
Asia
Latin America
OEMEA
Other
North America
22%
64.5 78.765.1 75.422.6 25.3
11.9 14.4
In EUR mln, - excl. exceptional items -
12% 16%
21%
40.3 49.9-20.2 -20.7
24%
HY1 2009 HY1 2010 HY1 2009 HY1 2010
HY1 2009 HY1 2010 HY1 2009 HY1 2010
HY1 2009 HY1 2010
HY1 2009 HY1 2010
–– –27 August 2010HY1 results 2010 26
Net result from Joint Ventures and Associates increased 38% to EUR 39.4 mln
CEMEA
Asia
Latin America
OEMEA
0.8 0.5
North America15.5 16.715.9 18.1
2.1 4.6
0.5 0.3
8%119% 14%
38%40%
Other
-0.4 -0.8
In EUR mln, - excl. exceptional items -
HY1 2009 HY1 2010 HY1 2009 HY1 2010
HY1 2009 HY1 2010 HY1 2009 HY1 2010
HY1 2009 HY1 2010
HY1 2009 HY1 2010
–– –27 August 2010HY1 results 2010 27
USD
SGD
EUR
Other
27
59% of HY1 2010 EBIT generated in non-euro currencies
15%
22%
41%
22%
In principal revenues, costs and financing are denominated in the same currency.
SGD
USD
EUR
Other
+1.4Latin America
+0.3North America
-0.3Non-allocated
+0.4OEMEA
+8.2Total
+5.8Asia
+0.6CEMEA
Translation effect on EBIT per division HY1 2010
In EUR mln
–– –27 August 2010HY1 results 2010 2828
Sound EBIT(DA) marginsSupported by robust occupancy rates, improved revenue per cbm, effective cost management and economies of scale
EBITDA margin*
EBIT margin*
* Excluding exceptional items,
excluding net result of JV’s
0%
10%
20%
30%
40%
50%
60%
2004 2005 2006 2007 2008 2009 HY1 2010
–– –27 August 2010HY1 results 2010 29
-42.5
132.4
-30.1
223.0
HY1 2010
184.2
114.9
Net Profit - excluding exceptional items -
increased by 15%
21%
15%
HY1 2009 ∆%
EBIT
Net Profit attributable to holders of ordinary shares
Net finance costsTax*
-22.5 -34%-34.1 -25%
1.04 0.92EPS 13%
543.9Net Revenues 492.1 11%
* Includes exceptional items
In EUR mln, - excl. exceptional items -
–– –27 August 2010HY1 results 2010 30
Net Finance Costs aligned with expansion program
-22.5
HY1 2009HY1 2010
In EUR mln
4.0Interest and dividend income
Net finance costs
Finance costs -26.52.7
-32.8-30.1
Net-interest bearing debt Average interest rate
0%
2%
4%
6%
8%
10%
2004 2005 2006 2007 2008 2009 HY1 2010
505411,7 425,7
561,9
996,7 1017,7
1426,2
0
250
500
750
1000
1250
1500
2004 2005 2006 2007 2008 2009 HY1 2010
–– –27 August 2010HY1 results 2010 31
-42.5 22.0% 21.1%
HY1 2010 HY1 ‘09
In EUR mln
Stable effective tax rate
Tax
Effective Tax Rate
HY1 ‘10
–– –27 August 2010HY1 results 2010 32
0,00
0,50
1,00
1,50
2,00
2004 2005 2006 2007 2008 2009 HY1 2010
1.92
1.62
1.31
0.980.81
0.63
Positive EPS development
1.040.92
13%
In EUR, 2004-2009 restated for share split
HY1 2010 EPS includes impact of:
- Stock dividend (May 2009)- Financing preference shares (August 2009)- Additional expansions and debt funding programs (September and November 2009)
–– –27 August 2010HY1 results 2010 33
HY1 2010 Sources and uses of cash
InvestmentsGross operating
cash flow
181.3Financing costs and tax paid
Dividend paid in cash
In EUR mln
52.2
263.0
-159.4
54.179.6
Other
Net change in Cash and cash
equivalents
–– –27 August 2010HY1 results 2010 34
Pensions
Dutch 83%
Other
17%
Vopak defined Pension obligations Dutch Pension obligations
• Pension fund cover ratio from 108% at year end 2009 to 103% at the end of HY1 2010 (including 3.5% reservation for increased life expectancy)
• The employer’s contribution remains at the maximum of 30% for 2010
HY1 2010
–– –27 August 2010HY1 results 2010 35
Business performanceEBIT per Division
Vopak Singapore Sebarok Terminal
Vopak Terminal Europoort
Vopak Houston Deer Park Terminal
Vopak Horizon Fujairah
–– –27 August 2010HY1 results 2010 36
23.1
17.7
25.3
21.722.6
24.622.8
26.4
22.1
24.5
Q1 Q2 Q3 Q4
2008 2009 2010
Chemicals EMEA“In Europe the demand for storage of chemicals has improved”
Vopak Terminal Botlek Zuid, Rotterdam
EBIT in EUR mln, - excl. exceptional items -
43% 9%
24.625.317.7 22.6
–– –27 August 2010HY1 results 2010 37
26.0
31.5
36.6
25.1
33.638.8
27.9
35.9
29.1
34.3
Q1 Q2 Q3 Q4
2008 2009 2010
Oil EMEA“Robust demand for tank storage continues”
16%Vopak Terminal Europoort, Rotterdam
EBIT in EUR mln, - excl. exceptional items -
15%
38.836.631.5 33.6
–– –27 August 2010HY1 results 2010 38
23.4
30.6
37.7
22.9
33.9
41.0
24.2
31.6
25.0
31.4
Q1 Q2 Q3 Q42008 2009 2010
Asia“Continued EBIT growth by expanding capacity and efficiency improvements”
23% Vopak Terminal Sakra, Singapore
EBIT in EUR mln, - excl. exceptional items -
21%
41.037.730.6 33.9
–– –27 August 2010HY1 results 2010 39
7.5
11.4
13.3
9.3
11.212.0
8.4
13.0
9.210.5
Q1 Q2 Q3 Q4
2008 2009 2010
North America“Growth through acquisitions, effective cost management and rationalizations”
17%Vopak Terminal Deer Park, Houston
EBIT in EUR mln, - excl. exceptional items -
7%
12.013.311.4 11.2
–– –27 August 2010HY1 results 2010 40
5.3
6.4
7.3
5.15.5
7.1
5.86.2
5.86.2
Q1 Q2 Q3 Q42008 2009 2010
Latin America“Continuing steady performance”
14%Vopak Terminal Cartagena, Colombia
EBIT in EUR mln, - excl. exceptional items -
29%
7.17.36.4 5.5
–– –27 August 2010HY1 results 2010 41
Investments
Vopak Singapore Penjuru Terminal
Vopak Terminal Westpoort
Vopak Terminal Bahamas
Gate terminal
–– –27 August 2010HY1 results 2010 42
Growth continuesHY1 2010 storage capacity increased with 0.3 mln cbm
-0.3 mlnDivested terminal Basle (Switzerland)
-0.1 mlnDemolished site Waltershof (Germany)
1.1 mlnTotal capacity increase
4.0 mlnUnder construction 2010, 2011 and 2012 (incl. LNG)
27.9 mln End HY1 2009 Storage Capacity
28.6 mlnEnd HY1 2010 Storage Capacity
32.6 mlnTotal ultimo 2012
In cbm
Zangjiagang, ChinaProduct: ChemicalsCapacity addition: 74,500 cbm
Alemoa, BrazilProduct: ChemicalsCapacity addition: 38,600 cbm
Jakarta, IndonesiaProduct: Oil productsCapacity addition: 250,000 cbm
–– –27 August 2010HY1 results 2010 43
Total investments
146 147 188
446
268
End HY1 2010 2012
Remaining Vopak ShareApproved & Under Construction Projects
EUR 0.5 bln
In EUR mln
800
151188
268
446
800
535
263
2004 2005 2006 2007 2008 2009 HY1 2010
–– –27 August 2010HY1 results 2010 44
Investing in growth
Total CAPEX projects 2010, 2011 and 2012Approved & Under Construction Projects
Remaining Vopak share in CAPEX Spent 2010, 2011 and 2012 Approved & Under Construction
Projects
Group companiesand
joint ventures AroundEUR 0.5 bln
Yearly Sustaining Capex +/- EUR 125-150 mln
Around EUR 1.9 bln
–– –27 August 2010HY1 results 2010 4545
Agenda
Achievements HY1 2010
Business environment
Growth projects
Business performance
Financing
Outlook
Details and definitions used in this presentation are derived from the HY1 2010 press release and HY1 Report, which are leading.
–– –27 August 2010HY1 results 2010 46
Sufficient headroom to continue growth strategyDebt repayment schedule (in EUR mln)
Various financing sources
Total financing program around EUR 2.3 bln
EUR 62 mln (total facility EUR 1.0 bln)5 yearsRCF 2007
SGD 210 mln5 yearsAsian PP 2009
Amount outstanding HY1 2010MaturityFacility
USD 686 mln
USD 375 mln
USD 350 mln
8-20 years
8/10/12/15 years
Majority 10 years
USPP 2007
USPP 2009
USPP 2001
200
400
600
800
027
204
77 82122 110
817
2016- 2029201520142013201220112010
–– –27 August 2010HY1 results 2010 47
2.70
2.23
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
2009
HY1 2010
Strategic financeNet debt : EBITDA ratio
Maximum Ratio under US PP
Maximum Ratio under other loans and syndicated revolving credit facility
* Based on Dutch GAAP
–– –27 August 2010HY1 results 2010 4848
Agenda
Achievements HY1 2010
Business environment
Growth projects
Business performance
Financing
Outlook
Details and definitions used in this presentation are derived from the HY1 2010 press release and HY1 Report, which are leading.
–– –27 August 2010HY1 results 2010 49
2010“For 2010 Vopak expects a Group
operating profit before depreciation and
amortization (EBITDA) of at least EUR 585
million (previously: EUR 560 million).”
Outlook2012“Based on its growth strategy and the
positive developments in 2010 Vopak
could potentially achieve its 2012
guidance of EUR 625-700 million Group
operating profit before depreciation and
amortization one year earlier.”
2006 2007 2009
369.5
EBITDA
314.1
Outlook Guidance2008
262.5231.8
20052004
429.3
513.4
In EUR mln, excluding exceptional items, including net result from Joint Ventures & associates
2012/20112010
> 585625-700
HY1 297
–– –27 August 2010HY1 results 2010 50
Outlook Assumptions
Oil ~ 55% of EBIT
Biofuels and vegoils
~ 12.5% of EBIT
Chemicals~ 17.5% of EBIT
Industrial terminals~ 15% of EBIT
Healthy demand for storage capacity
Contract renewals
+Some new storage capacity commissioned
ROBUST/STABLEROBUST MIXEDSTABLE
–– –27 August 2010HY1 results 2010 51
“Confidence in the future supported by a focused growth strategy,attractive market developments and solid business performance”
–– –27 August 2010HY1 results 2010 52
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 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 couldlead to actual results being materially different from those expected.
Forward-looking statement
–– –27 August 2010HY1 results 2010 53
–
www.vopak.com