annual results 2010 - vopak · annual results 2010 311 march 2011 3 agenda details and definitions...

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_Annual results 201011 March 2011

–– –11 March 2011Annual results 2010 2

A worldwide network strategy

Vopak Singapore Sebarok Terminal

Vopak Terminal Europoort

Vopak Houston Deer Park Terminal

Vopak Horizon Fujairah


Agenda

Details and definitions used in this presentation are derived from the FY 2010 press release and Annual Report, which are leading.

Achievements 2010

Business environment

Growth projects

Business performance

Financing

Outlook


Robust results in 2010

Healthy occupancy rateAdded 0.5 mln cbm storage capacity

Strong business performanceEBITDA excl. exceptionals

450

500

550

600

650

2009 2010

EUR 598.2 mln

+17%

*Q1 2011: Adjustment of 3.4 million cbm after divestment Vopak Terminal Bahamas


Personnel & Process Safety

* Number of injuries per million hours worked by employees

*

* Number of injuries leading to lost time per million hours worked by employees and contractors

Total Injury Rate*

7,16,2 5,8

6,5

3,2

0

2

4

6

8

2006 2007 2008 2009 2010

Lost Time Injury Rate*

1,9

1,41,7

1,4 1,3

0

1

2

3

2006 2007 2008 2009 2010

Process Incidents

141 133

0

50

100

150

2009 2010


Strategic focus Vopak

EXCELLENT CUSTOMER

SERVICE

EXCELLENT CUSTOMER

SERVICE

OPERATIONAL EXCELLENCE

OPERATIONAL EXCELLENCE

ACCELERATED COMPANY GROWTH

ACCELERATED COMPANY GROWTH

Pursue and strengthen leadership in key

locations

Invest in partnerships with strategic customers

Attain service excellence across the

network

Become preferred provider for strategic

accounts

To be the most safe, sustainable and efficient

terminal operator

By continuous improvements in our

operational processes

LEADERSHIP ENABLERSAlign structure with strategy and sustainable entrepreneurship

LEADERSHIP ENABLERSAlign structure with strategy and sustainable entrepreneurship


Focused Strategy: Customer Service

Strengthening Key Account Management

Improved outcomes customer survey 2010

“Annual world wide customer survey to further improve our customer service”

Enhanced product flow knowledge


Focused Strategy: Operational Excellence

Focus on maintenance master plans

Preparing infrastructure for the future

Vopak Terminal Teesside – Infrastructure improvements to serve as fuel distribution terminal

Operational efficiency improvements


Focused strategy: Company growth

9

Vopak Horizon Fujairah – Expansion of 606,000 cbm under construction in key hub location

Various new expansions announced

New strategic partnerships

Financing programs in place


Various projects commissioned in 2010

Jakarta (Indonesia) 250,000 cbm

Vopak Zhangjiagang (China)

190,000 cbm commissioned

Total storage capacity commissioned 0.5 mln cbm

Alemoa (Brazil) 38,600 cbm

Decommissioned Waltershof (Germany) 99,400 cbm decommissioned


Vopak Terminal Bahamas Subsequent event: Sale of 20% equity stake* in 3.4 million cbm Vopak Terminal Bahamas

*Joint venture initiated in 2008 between Vopak (20%) and First Reserve Capital (80%)


Agenda


Achievements 2010


Growth projects


Financing

Outlook


- Biodiesel: Wait-and-see approach by many customers pending government regulations (EU certifications)

- Bioethanol: Increasing intra-EU product flows and subsided US import routes

- Vegoils: Closely related to food consumption

Current demand for tank storage

- Increasing number of specifications and increasing geographical imbalance between demand and supply leads to robust demand

- Possible permanent closure/divestments of less efficient refineries and IOC’s focussing on upstream business

- Redesign of supply chain and production facilities- Industrial terminals: Solid- Chemical hub- and distribution terminals:

- China - robust- Asia - encouraging- America’s - stable- Europe - improved demand

Oil

Chemicals

Vegoils & Biofuels


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

• Long term growing demand for environmentally friendlier fuels

• Liberalization of previously closed economies


Agenda


Achievements 2010


Growth projects


Financing

Outlook


29.9

2012

Company growth supported by healthy demand for storage capacity

Storage CapacityIn mln cbm

21.2 21.8

27.128.3

2009200820072006

+0.6 +5.3 +1.2

2010

+0.5

20.4

2005

+0.8

94% 93%95%96%94%92%

Occupancy Rate

28.8

+4.5

* Adjustment of 3.4 million cbm after divestment of Vopak Terminal Bahamas during Q1 2011

25.4

-3.4

Pro forma*


Amsterdam Westpoort

Aerial photo of the Vopak Westpoort Terminal (the Netherlands) under construction

• Total storage capacity of 1,190,000 cbm• Phase 1 to come on stream in Q3 2011• Full capacity available as of mid 2012 • A facility for storage and blending of oil products and components


Algeciras, SpainStrategically located greenfield capacity expansion

• Total storage capacity of 403,000 cbm• To come on stream end of 2012• Joint Venture between Vilma oil (20%) and Vopak (80%)• A facility for independent bunker storage services


Various projects under construction

MOT, Rotterdam (the Netherlands)increase in entitlement

with 360,000 cbm

Dongguan (China) 153,000 cbm

Total storage capacity under construction 4.5 mln cbm

Gate terminal (the Netherlands) 540,000 cbm


“Confidence in the future!”


Agenda

Details and definitions used in this presentation are derived from the full year 2010 press release and Annual Report, which are leading.

Achievements 2010


Growth projects


Financing

Outlook


0%

10%

20%

30%

40%

50%

60%

2005 2006 2007 2008 2009 2010

2010: Another robust year for Vopak

EBITDA margin*

EBIT margin*

* Excluding exceptional items and excluding Net result of JV’s

OCCUPANCY RATESWITHIN 90-95% BANDWIDTH

OCCUPANCY RATESWITHIN 90-95% BANDWIDTH

HEALTHY MARGINSHEALTHY MARGINSStrong business performanceStrong business performanceIn EUR mln, -excluding exceptional items-

CUSTOMER FOCUSED GROWTH

CUSTOMER FOCUSED GROWTH

262.5314.1

369.5429.3

513.4

598.2

2005 2006 2007 2008 2009 2010

EBITDA

* Adjustment of 3.4 million cbm after divestment VTB


2010 Financial overview

17% EBITDA growth

16% EBIT growth

8% EPS growth

Proposed cash dividend of EUR 0.70 per share

Adequate funding of growth strategy secured- All figures excluding exceptional items -


0%

25%

50%

75%

100%

2005 2010

Supported by a robust contract portfolio

> 3yr

1yr < > 3yr

< 1yr

Focused (growth, customer service and operational excellence) strategy delivers results

262.5

EBITDA

2005

Divestments

EBITDA improvements by:• Higher occupancy rates

• Improved revenue per cbm

• Effective cost management

• Storage capacity growth

• Benefits from economies of scale

598.2

EBITDA

2010

In EUR mln, - excl. exceptional items -


Net Profit

Revenues EBIT

Earnings per share

In EUR mln1,106.3

1,001.1

In EUR mln

445.3385.3

In EUR mln

264.8242.7

In EUR

2.081.92*

+9% +8%

+16%2009 2010+11%

2010 EBIT excl. exceptional items: up 16% to EUR 445.3 mln

2009 2010

2009 2010 2009 2010

All figures excluding exceptional items

* Adjusted for 1:2 share split effectuated May 17, 2010

923.5

2008 2008

320.4

202.1

2008

1.62*

2008


Storage CapacityIn mln cbm

21.2 21.8

27.128.3

2009200820072006

+0.6 +5.3 +1.2

2010

+0.5

20.4

2005

+0.8

94% 93%95%96%94%92%

Occupancy Rate

Revenue developments supportedby robust demand for storagecapacity

Joint Ventures

Group Companies

18.3

28.810.5

Adjustment for announced divestment Vopak Terminal Bahamas (Q1 2011)

25.4

Pro forma

-3.4


All divisions contribute to the 11% revenue growth

CEMEA

Asia

Latin America

OEMEANorth America

32%

206.2 272.5269.5 278.1

131.7 138.3

77.9 88.2

2009 2010

2009 2010

2009 20102009 2010

In EUR mln

5% 3%

13%

312.7 325.1

2009 20104%


EBIT - excluding exceptional items -

increased by 16%

38%60.583.4Net result Joint Ventures

13%391.1442.0EBIT incl. exceptional items

EBIT excl. exceptional items

Exceptional gain (loss)

Operating profit

5.8(3.3)

16%385.3445.3

8%330.6358.6

∆20092010

In EUR mln


OEMEA 2.1CEMEA 1.4Asia 17.4North America 2.6Latin America 3.2Non allocated -0.8Total 25.9

FX Translation-effect on EBITper division

USD

SGD

EUR

Other

29

64% of EBIT generated in non-euro currencies

14%

26%

36%

24%

Transactional currency exchange risks are limited. As a rule revenues, costs and financing are denominated in the same currency.

SGD

USD

EUR

Other In EUR mln


16% EBIT increase mainly driven by Asia and OEMEA

CEMEA

Asia

Latin America

OEMEA

Other

North America

33%

127.5169.9

135.3152.2

46.1 46.0

24.3 25.7

2009 2010

2009 2010

2009 20102009 2010


0% 12%

6%

91.2 90.6

2009 2010

-39.1 -39.1

2009 2010-1%

0%


Net result from Joint Ventures increases with 29%

CEMEA

Asia

Latin America

OEMEA

Other

North America

18%

28.833.932.1 41.9

3.68.6

0.7 1.1

2009 2010

2009 2010

2009 20102009 2010


31%

57%

1.8 1.5

2009 2010

-0.9 -2.0

2009 2010-17%

139%


Healthy 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%

2005 2006 2007 2008 2009 2010


-72.8

264.8

-68.4 445.3

2010

385.3

242.7

Net Profit - excluding exceptional items -

increased by 9%

16%

9%

2009 ∆

EBIT

Net Profit attributable to holders of ordinary shares

Net finance costsTax *

-45.7-68.9

2.08 1.92EPS 8%

1,106.3Revenues 1,001.1 11%

* Includes exceptional items



Net Finance Costs aligned with expansion program

-45.7

20092010

In EUR mln

6.7Interest and dividend income

Net finance costs

Finance costs -52.44.6

-73.0-68.4

Net-interest bearing debt Average interest rate

0%

2%

4%

6%

8%

10%

2004 2005 2006 2007 2008 2009 2010

411.7 425.7561.9

996.7 1017.7

1431.4

0

250

500

750

1000

1250

1500

2005 2006 2007 2008 2009 2010


-72.8 19.5% 19.9%

2010 2009

In EUR mln

Effective tax rate 2010

Tax

Effective Tax Rate

2010


0.805 0.98

2.081.921.62

1.31

0.00

0.50

1.00

1.50

2.00

2.50

2005 2006 2007 2008 2009 2010

Solid improvements in EPS

8%19%24%34%22%

Historical figures adjusted for 1:2 share split effectuated May 17, 2010

In EUR, - excl. exceptional items -


Dividend: Increase with 12%

Proposed 2010 dividend amounts to EUR 0.70 per ordinary share

Proposed dividend

+12%0.70

0.550.625

0.475

0.3750.30

2005 2006 2007 2008 2009 2010

Historical figures adjusted for 1:2 share split effectuated May 17, 2010


Sources and uses of cashIn EUR mln

-100

0

100

200

300

400

500

600

NetCash position 31 Dec 2010

NetCash position

1 Jan 2010

Net finance costs

Tax paid Financing activities

Divestments Derivative Settlement

455.1

564.7

11.2

12.8

147.8172.6

53.0

194.9

Gross operating cash flow

Investments58.7


Pensions

Dutch 83%

Other

17%

Vopak defined Pension obligations Dutch Pension obligations

• Pension fund cover ratio 110%(per end of February 2011)

• Included additions to pension obligationsdue to increased life expectancy in total 7%

• Employer’s contribution for 2011remains at the maximum of 30%

FY 2010


Business performanceEBIT per Division

Vopak Singapore Sebarok Terminal

Vopak Terminal Europoort

Vopak Terminal Deerpark, Houston

Vopak Horizon Fujairah


Q1 Q2 Q3 Q4

79,285,6

109,7

77,6

98,6

113,3

80,8

104,2114,8

82,8

96,9107,5

Q1 Q2 Q3 Q4

Quarterly EBIT development“Solid year-on-year growth”

16%


9%9%23%

200820092010


31-12-2008 3.98Divestments -0.03Expansions 0.33


31-12-2010 4.22

Capacity developments

17.7

25.322.6

24.626.4

22.324.5

18.4

Q1 Q2 Q3 Q4

Chemicals EMEA“Increased customer activity offset by lower demand for storage of biofuels”

9%

Vopak Terminal Botlek Zuid, Rotterdam


-25%-16%43%

In mln cbm

2009 2010




31-12-2010 11.04


31.5

36.633.6

38.835.9

41.0

34.335.8

Q1 Q2 Q3 Q4

Oil EMEA“Increasing geographical imbalances drive demand for tank storage”

16% 15%

Vopak Terminal Europoort, Rotterdam

14%


4%

In mln cbm

2009 2010


31-12-2008 5.82Divestments 0.00Expansions 0.60


31-12-2010 6.87


30.6

37.733.9

41.0

31.6

43.7

31.4

47.5

Q1 Q2 Q3 Q4

Asia“Increasing consumption in Asia offers Vopak a robust growth perspective”

23% 21%

Vopak Terminal Sakra, Singapore

38%


51%

In mln cbm

2009 2010




31-12-2010 5.73


11.4

13.3

11.212.0

13.0

10.1 10.5 10.6

Q1 Q2 Q3 Q4

North America“Healthy results in turbulent year”

17% 7%


-22%


1%

In mln cbm

2009 2010




31-12-2010 0.95


6.4

7.3

5.5

7.16.2

6.6 6.2

4.7

Q1 Q2 Q3 Q4

Latin America“Continuing steady performance”

14% 29%

Vopak Terminal Cartagena, Colombia

6%


-24%

In mln cbm

2009 2010


Investments

Vopak Singapore Penjuru Terminal

Vopak Terminal WestpoortGate terminal



Growth continues2010 storage capacity increased with 0.5 mln cbm

25.4 mlnPro forma (11 March 2011)

-3.4 mlnAnnounced divestment Vopak Terminal Bahamas (Q1 2011)

0.5 mlnTotal net capacity increase 2010

4.5 mlnAnnounced expansion plans for 2011 and 2012 (incl. LNG)

28.3 mln YE 2009 Capacity

28.8 mlnYE 2010 Capacity

29.9 mlnTotal ultimo 2012

In cbm

Tallinn, EstoniaProduct: Oil productsCapacity addition: 75,000 cbm

Zhangjiagang, ChinaProduct: ChemicalsCapacity addition: 190,000 cbm

Ningbo, ChinaProduct: Chemicals Capacity addition: 5,500 cbm


Expansion projects progressing well

Gate terminal Rotterdam540,000 cbm

Vopak Terminal Westpoort1,190,000 cbm

Vopak Terminal Fujairah606,000 cbm

Vopak Terminal Barcelona 155,200 cbm


Total investments

146 147 188

446

268

YE 2010 2012

Remaining Vopak Share Approved & Under Construction Projects

EUR 0.4 bln

In EUR mln

800

188268

446

800

535 565

2005 2006 2007 2008 2009 2010


Investing in 4.5 mln cbm storage capacity growth

Total CAPEX projects 2011 and 2012Approved & Under Construction Projects

Remaining Vopak share in CAPEX Spend 2011 and 2012 Approved & Under Construction

Projects

Group companies and

joint ventures Around EUR 0.4 bln

Yearly Sustaining Capex +/- EUR 125-150 mln

Around EUR 1.9 bln

Total investments up to and including 2012


Agenda

Achievements 2010


Growth projects


Financing

Outlook



Debt funding program further strengthened

EUR 1,200,000,000 Syndicated Revolving Credit Facility

Bookrunning Mandated Lead Arrangers

Mandated Lead Arrangers

February 2011

EUR 1,200,000,000 Syndicated Revolving Credit Facility

Bookrunning Mandated Lead Arrangers

Mandated Lead Arrangers

February 2011

Second Asian PP - November 2010SGD 225 mln Asian private placement notes

7.2 years bullet maturity

Third Asian PP - December 2010JPY 20 bln private placement

30 years bullet maturity

Renewal RCF - February 2011EUR 1.2 bln revolving credit facility (RCF)

Maturity 5 + 2 years

Total program around EUR 2.8 bln


3.53.5Minimum EBITDA / Net Interest Payable

-Amount outstanding

Redemption payment

> 3.75> 3.75Additional headroom when financed with subordinated debt

3.75Maximum Net Senior Debt/ EBITDA

3.75 3.75

Maturity of debt funding further enhanced

PP = Private Placement RCF = Revolving Credit Facility

- Up to 4.25 > 3.75

Term

Asian PP

Current Revolving Credit Facility of EUR 1.2 billion fully available

US PP RCFCovenant

2001 2007 2009 SGD2009 SGD2010 JPY PP EUR 1.2 bln

4.0 3.5 3.5

321 mln 375 mln 674 mlnUSD USD USD

2011-2016 2015-2022 2017-2029

210 mln 225 mln 20 blnSGD SGD JPY

2014 2018 2040 2016


2.63

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

2010

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


Balanced debt repayment schedule

In EUR mln

2010 Overall weighted average interest rate 5.2%

0

50

100

150

200

250

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2029 2040


Agenda

Achievements 2010


Growth projects


Financing

Outlook



Proceeds of sale consist of:

Over USD 168 million in cash

Approximately USD 100 million in Buckeye units:

– 620,861 Buckeye LP units

– 1,095,772 Buckeye Class B units

Subsequent Event: Sale of 20% equity stake Vopak Terminal Bahamas

In February 2011 Vopak decided to sell its 20% equity stake in Vopak Terminal Bahamas

Expected after tax profit of over USD 150 million, to be recognized in Q1 2011


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 MIXEDMIXED


Reconciling FY10 with FY11 outlook

Actual 2010 EBITDA

EUR 598.2 mln

+

Outlook 2011 EBITDA

Growth around 5%

- / -

Currency developments ?

Expansions to be commissioned in HY2

Contract renewalsOperational efficiency

improvements / margin management

Tanks out-of-operation Pre-operating expensesContinued uncertainty in

biofuels storageDivestment VTBCosts associated with further

professionalization of strategic network


Outlook update

2012

“Based on its growth strategy and the

positive developments in 2010 Vopak

could potentially achieve its 2012

guidance of EUR 625-700 million

EBITDA one year earlier.”

2011“For 2011 Vopak expects EBITDA

to grow by around 5%.”

2013“Based on our growth strategy

Vopak is well positioned to

realize a EBITDA of between

EUR 725 – 800 million in 2013.”

2010“For 2010 Vopak expects a EBITDA of

at least EUR 585 million.”

2010“Realized EBITDA of EUR 598.3 million”

UpdatedQ3 2010


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

2005Guidance

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 mln20132010

598.2

725-800

+5%

2011


• Vopak has realized a 16% EBITDA growth in 2010 (2010 EUR 598 mln: 2009 EUR 513 mln)

• Vopak has realized a 8% EPS growth in 2010 (2010 EUR 2.08: 2009 EUR 1.92*)

• Vopak proposes a EUR 1.25 Cash-Dividend per share (2009: EUR 0.625)

• Vopak continues its expansion strategy based on positive market development and a robust globalterminal network

• Vopak secured adequate funding of its growth strategy

• Vopak expects around 5% EBITDA growth in 2011 and is well positioned to realize a 2013 EBITDA of between EUR 725-800 mln

Summary

a EUR 0.70 Cash-Dividend per share

a 8% EPS growth in 2010

a 17% EBITDA growth in 2010

Vopak continues its expansion strategy

Vopak secured adequate funding of its growth strategy

* Adjusted for 1:2 share split effectuated May 17, 2010


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 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


–

www.vopak.com

annual results 2010 - vopak · annual results 2010 311 march 2011 3 agenda details and definitions...

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