Trading update Q1 2010 - Vopak.com...Trading update Q1 2010 21 Terminal capacity under construction...

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Roadshow Presentation Trading update Q1 2010

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Trading update Q1 2010 2

A worldwide network strategy

Vopak Singapore Sebarok Terminal

Vopak Terminal Europoort

Vopak Houston Deer Park Terminal

Vopak Horizon Fujairah

Vopak Terminal Bahamas

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Agenda

Introduction

Business performance

Growth projects

Financing

Outlook

Details and definitions used in this presentation are derived from the Q1 2010 press release, which is leading.

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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

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Tank terminal:

key role in oil and chemical supply chain

Vopak Terminal Europoort – Rotterdam, the Netherlands

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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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Vopak’s challenge

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

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Downstream Chemicals

Outgoing Logistics

Strategic position tank terminals

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Logistic hub terminal

Where large flows of products merge – logistics crossroad

Houston, Rotterdam / Antwerp, Singapore and Fujairah

Example fuel oil

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Import / Export terminal

- Break or make bulk

- Local distribution

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Industrial terminal

Vopak Singapore – Sakra Terminal

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Vopak core businesses

Existing market

Oil

Chemicals

New products inexisting market

Biofuels

New market

LNG

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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

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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

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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

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Worldwide LNG demand drives need for

independent import terminals

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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

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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

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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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Market share according to the definition

9 %

15 %

18.7 mln

70 mln

125 mln

195 mln

Oil

22 %

24 %

10.5 mln

6 mln

44 mln

50 mln

Chemicals

28.3 mln CBMVopak

76 mln CBMSecondary Competition

11.6 %

16.7 %

Vopak Market Share:

As % of total market

As % of primary competition

169 mln CBMPrimary Competition

245 mln CBMWorld Market

TotalStorage market

In mln cbm

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Terminal capacity under construction

10.6%Growth as % of Vopak capacity

3.0 mln cbmVopak

8.8%Growth %

24 mln cbmWorld Market, incl. Vopak

TotalAdditional Worldwide

Storage Capacity

Demand growth in storage market

to support international trade flows

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- 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

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Agenda

Introduction


Growth projects

Financing

Outlook

Details and definitions used in this presentation are derived from the Q1 2010 press release, which is leading.

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

2005 200820072006

2009: Another robust year for Vopak

EBITDA margin*

EBIT margin*

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

2004 2009

0%

10%

20%

30%

40%

50%

2004 2005 2006 2007 2008 2009

ROBUST OCCUPANCY RATES

ROBUST OCCUPANCY RATES

CUSTOMER FOCUSED GROWTH

CUSTOMER FOCUSED GROWTH

HEALTHY MARGINSHEALTHY MARGINS

20.4 21.221.8

27.1

2008200720062005

+0.8 +0.6

28.3

+5.3

2009

+1.2

20.2

2004

+0.2

Strong business performanceStrong business performance

EBITDA

231.8262.5

314.1369.5

429.3

513.4

2004 2005 2006 2007 2008 2009

In EUR mln, -excluding exceptional items-

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Net Profit

Net Revenues EBIT

Earnings per share

In EUR mln1,001.1923.5

In EUR mln

385.3320.4

In EUR mln

242.7202.1

In EUR

3.843.24

+20% +19%

+20%2008 2009+8%

2009 EBIT excl. exceptional items:

up 20% to EUR 385.3 mln

2008 2009

2008 2009 2008 2009

All figures excluding

exceptional items

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Q1 2010 Summary

Further Q1 2010 highlights:

- Additional expansion of terminal under construction

Amsterdam Westpoort with 570,000 cbm for oil

products

Q1 2010 EBIT excl. exceptional items up 28%

to EUR 109.7 mln (Q1 2009 EUR 85.6 mln)

Q1 2010 EBITDA excl. exceptional items increased

by 26% to EUR 145.4 mln (Q1 2009 EUR 115.6 mln)

Events after 31 March 2010:

- Opening of Vopak Terminal Jakarta, 250,800 cbm for oil

products

- Expansion of Vopak Horizon Fujairah with 606,000 cbm

for oil products

- Starting construction of a new terminal in Algeciras

(Spain) for oil products of 403,000 cbm

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+26%115.6145.4EBITDA excl. exceptionals

27.428.4Storage capacity (in mln cbm)

95%93%Occupancy rate

+28%85.6109.7EBIT excl. exceptionals

+20%91.2109.6EBIT incl. exceptionals

∆Q1 09Q1 10In EUR mln

Q1 2010 EBIT excl. exceptional items

up 28% to EUR 109.7 mln

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0%

25%

50%

75%

100%

2005 2009

Supported by a robust contract portfolio

> 3yr

1yr < > 3yr

< 1yr

Focus on strategic (growth, customer and operational efficiency) leadership delivers results

115.6

EBITDA

Q1 2009

Occupancy

EBITDA improvements by:

• Improved revenue per cbm

• Effective cost management

• Storage capacity growth

• Benefits from economies of scale

145.4

EBITDA

Q1 2010

In EUR mln, - excl. exceptional items -

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All divisions contributed to the

Q1 2010 EBIT increase of 28%

CEMEA

Asia

Latin America

OEMEA

Other

North America

23%

30.6 37.731.5 36.6

11.4 13.3

6.4 7.3

Q1 09 Q1 10

Q1 09 Q1 10

Q1 09 Q1 10Q1 09 Q1 10

In EUR mln, - excl. exceptional items -

17% 16%

14%

17.7 25.3

Q1 09 Q1 10

-12.0 -10.5

Q1 09 Q1 1043%

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Chemicals EMEA“We notice the first signs of structural recovery in the

European chemicals segment”

Vopak Terminal Botlek Zuid, Rotterdam

EBIT in EUR mln, - excl. exceptional items -

17.7

25.3

22.6

26.424.5

Q1 Q2 Q3 Q4

2009 2010

43%

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31.5

36.633.6

35.934.3

Q1 Q2 Q3 Q4

2009 2010

Oil EMEA“Robust demand for tank storage continues”

16%Vopak Terminal Europoort, Rotterdam


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30.6

37.733.9

31.6 31.4

Q1 Q2 Q3 Q4

2009 2010

Asia“Continued EBIT growth by expanding

capacity and efficiency improvements”

23%Vopak Terminal Sakra, Singapore


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11.4

13.3

11.2

13.0

10.5

Q1 Q2 Q3 Q4

2009 2010

North America“Growth through acquisitions, effective cost

management and rationalizations”

17%

Vopak Terminal Deer Park, Houston


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6.4

7.3

5.5

6.2 6.2

Q1 Q2 Q3 Q4

2009 2010

Latin America“Continuing steady performance”

14%

Vopak Terminal Cartagena, Colombia


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Agenda

Introduction


Growth projects

Financing

Outlook

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Storage CapacityIn mln cbm

20.4 21.221.8

27.1

32.0

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 by

healthy demand for storage capacity

28.4

+0.1 +3.6

Q1 2010

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Growth continues: Q1 2010 storage capacity

increased with 0.1 mln cbm

0.1 mlnTotal net capacity increase Q1 2010

3.6 mlnRemaining 2009 till 2012 (incl. LNG)

28.3 mln YE 2009 Capacity

28.4 mlnQ1 2010 Capacity

32.0 mlnTotal

In cbm

Lanshan, ChinaProduct: ChemicalsCapacity addition: 3,700 cbm

AlemoaProduct: ChemicalsCapacity addition: 32,700 cbm

Zhangjiagang, ChinaProduct: ChemicalsCapacity addition: 74,500 cbm

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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

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Various projects under constructionTotal storage capacity under construction per Q1 2010: 3.6 mln cbm

MOT, Rotterdam (Netherlands)

increase in entitlement with 360,000

cbm

Gate terminal (Netherlands) 540,000 cbm

Fujairah (U.A.E.) 606,000 cbm

Jakarta (Indonesia) 250,800 cbm

Officially opened 12 April 2010

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Investing in growth

Total CAPEX projects 2010, 2011 and 2012Approved & Under Construction Projects

Remaining Vopak share in CAPEX Spend2010, 2011 and 2012 Approved & Under

Construction Projects

Group companiesand

joint ventures AroundEUR 0.3 bln

Yearly Sustaining Capex +/- EUR 100-125 mln

Around

EUR 1.7 bln

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Vopak’s growth based on healthy demand

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Agenda

Introduction


Growth projects

Financing

Outlook

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2.19

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

Q1 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

3.75

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USD 680 mlnSGD 210 mln-USD 375 mlnUSD 331 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

*Amounts outstanding per year-end 2009

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Balanced debt repayment schedule Revolving Credit Facility of EUR 1.0 billion fully available

In EUR mln

0

20

40

60

80

100

120

140

160

180

200

220

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2029

Debt repayment schedule per year-end 2009

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Agenda

Introduction


Growth projects

Financing

Outlook

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2010

“For 2010 Vopak expects Group operating

profit before depreciation and amortization

(EBITDA) of at least EUR 560 million.”

2012

“Based on our growth strategy Vopak is well

positioned to realize a Group operating profit

before depreciation and amortization (EBITDA)

between EUR 625 – 700 million in 2012.”

Outlook

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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

+

New storage capacity commissioned

STABLEROBUST MIXED

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220.9272.9

EBITDA Outlook 2012: in the EUR 625-700 mln range

* Excluding exceptional items, including net result from Joint Ventures & associates

2006 2007 2009

EBIT*

369.5EBITDA*314.1

Outlook

2008

179.7

262.5

151.0

231.8

20052004

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

20122010

>560

625-700

Q1 145.4

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“Confidence in the future!”

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Q1 2010 approved projects

26,300C100%Brazil, Aratu

8,900C100%Germany, Hamburg

20,000O100%Gothenburg, Sweden

75,000O50%Estonia, Tallinn

2011

5,500C37.5%China, Ningbo

160,000O100%Netherlands, Europoort

114,700C100%China, Zhangjiagang

10,000C50%Mejilones, Chili

2010

155,200O50%Barcelona, Spain

30,000C50%China, Caojing

8,400C100%Mexico, Coatzacoales

7,500

250,000

cbmLocation Ownership Product* 2009 2012

Indonesia, Jakarta 49% O

Singapore, Banyan 69.5% C

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

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2011

540,000LNG40%Netherlands, Gate

360,000O100%Netherlands, MOT

606,000O33%U.A.E., Fujairah

2010

620,000

570,000

cbmLocation Ownership Product* 2009 2012

Netherlands, Westpoort 100% O

Q1 2010 approved projects (II)* O = Oil products, C = Chemicals, B = Biofuels, V = Vegetable oils, LNG = Liquefied Natural Gas

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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 could

lead to actual results being materially different from those expected.

Forward-looking statement

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–

www.vopak.com

Trading update Q1 2010 - Vopak.com...Trading update Q1 2010 21 Terminal capacity under construction...

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