world’s leading independent tank storage company. - Semi Annual … · Market share according to the definition 10 % 15 % 16 mln 60 mln 105 mln 165 mln Oil 23 % 26 % 10.4 mln 5

–– –

_

13/10/2008Semi Annual Results 2008 1

Semi Annual Results 2008

_

–– –13/10/2008Semi Annual Results 2008 2

The world of Vopak

_


Agenda

StrategyStorage WorldwideAchievements 1H08Business Performance 1H08

OutlookFinancial Reporting Implications

_


IT’S ABOUT ALL THREE

COMPANYGROWTHOPERATIONALEFFICIENCYCUSTOMEREXCELLENCE

_


Executing and embedding the strategy

LEADERSHIPENABLERSLEADERSHIPENABLERS

• Organization• Leadership Resourcing• ICT Realignment

• Support Tools• Business Intelligence• Communication & Branding

EXCELLENT CUSTOMER

SERVICE

• KAM • Customer Metrics• CRM

EXCELLENT CUSTOMER

SERVICE

• KAM • Customer Metrics• CRM

MAXIMUM OPERATIONAL

EFFICIENCY

• Operational Efficiency Improvements

• Terminal of the Future

MAXIMUM OPERATIONAL

EFFICIENCY

• Operational Efficiency Improvements

• Terminal of the Future

ACCELERATED COMPANY GROWTH

• Growth Opportunities

• Blueprint Automation

• Repeatable Formula

ACCELERATED COMPANY GROWTH

• Growth Opportunities

• Blueprint Automation

• Repeatable Formula

EXCELLENCE• SHE• Portfolio Rationalization• Vopak Way

_


Strategic initiatives delivering results

Key Account Management:increased revenue with KAM clients

Business Intelligence:improved market knowledge

Operational Efficiency Improvement:program will be started at 10 terminals

Branding:new visual identity to support one company brand

Repeatable Formula:standard designs result in shorter engineering time for new projects

_


Agenda



_


Vopak core businesses

Existing market

Oil

Chemicals

New products inexisting market

Biofuels

New market

LNG

_

–– –13/10/2008Source: WoodMackenzie 9

0

2 5 0

5 0 0

7 5 0

1 0 0 0

19901991199219931994199519961997199819992000200120022003200420052006

Mill

ion

tonn

es

L P G N a p h th a G as o lin e Je t /k e ro G a s /d ie s e l H F O O th e r

CAGR=2.9%

CAGR=5.1%

CAGR=0.5%

Product differentiationIncreasing geographical imbalances

Liberalization of new marketsHigh oil price – high feedstock costs

New giant oil players

World gross trade in major oil productshas risen strongly over the last years

_

–– –13/10/2008Source: CMAI 10

0

10000

20000

30000

40000

50000

60000

1990 1992 1994 1996 1998 2000 2002 2004 2006

World Trade in M ajor L iqu id Petrochem ica ls

M ixed Xy lenes Paraxy lene Benzene Cum ene Pheno l S ty rene M EG M ethano l

Thousand M etric Tons

World trade in major liquid petrochemicalshas risen strongly over the last years

Increasing demand for storageRobust growth in developing markets

Build-up of new petrochemical complexes in Asia and the Middle East

_

–– –13/10/2008Source: Exxon Mobil 11

Growth in biofuels will continue to grow

Government requirements

Increased producers’ interest in biofuels due to subsidies and incentives

_


LNG demand worldwide will continue to grow…

More focus on LNG solutions as energy source

_


Further develop growth…

Demand in all markets continues to grow…

Production grows at remote locations…

As a result trade flows grow even faster…

Strong demand for storage continues…

Let’s define the storage market!

_


Defining the liquid storage market…

Producers selling thiernon-core assets

Traders renting to thirdparties

State markets opening up: China, Russia

Data sources scattered

New constructions

Marine terminalsInland river terminals

CavernsFloating storage

Pipelines

Captive terminalsIndependent terminals

Trade & terminalsShip & terminals

Pipeline & terminals

How to define the market?

_


Vopak refined definition

Definition

Vopak’s competitive environment is defined as non-captivemarine 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 theirown products

_


Market share according to the definition

10 %15 %

16 mln

60 mln

105 mln

165 mln

Oil

23 %26 %

10.4 mln

5 mln

40 mln

45 mln

Chemicals

26.4 mln CBMVopak

65 mln CBMSecondary Competition

13 %18 %

Vopak Market Share:As % of total marketAs % of primary competition

145 mln CBMPrimary Competition

210 mln CBMWorld Market

TotalStorage market (in cbm)

_


Terminal capacity growth from 2008 up to 2011 Announced projects

7%Annual Growth RateAs % of Vopak capacity

7 Million CBMVopak (incl. E.O.S.)

6%Annual Growth Rate

48 Million CBMWorld Market, incl. Vopak

TotalAdditional Worldwide Storage Capacity

*Baseline: January 2008

Demand growth in storage marketto support international trade flows

_


Agenda



_


Process Safety & Quality Performance

LTIR

0

0,5

1

1,5

2

2,5

3

2004 2005 2006 2007 1H 2008

Spills

020406080

100120140160

2004 2005 2006 2007 1H 2008

_


Ongoing improvement in financial performance

EPS excl. exceptionals

1

1,5

2

1H 07 1H08

EBIT excl. exceptionals

130

140

150

160

1H 07 1H08

Net Revenues

0

100

200

300

400

500

1H 2H 1H 2H 1H 2H 1H 2H 1H

2004 2005 2006 2007 2008

_


Growth continuesOccupancy rates

0%

25%

50%

75%

100%

2004 2005 2006 2007 1H 2008

15

17

19

21

23

25

27

2005 2006 2007 2008

Capacity (in mln cbm)

Existing capacity New capacity

?

_


The world of Vopak

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R’dam biodiesel

LNG Rotterdam

Spain

Botlek Pit19

Vlaardingen

Korea

Zhangijagang

Houston

Altamira

Venezuela

Suape

Alemoa

San Antonio

Europoort

Amsterdam

Sydney

Sebarok

Penjuru

Jakarta

Banyan

Malaysia

FujairahVietnam

Thailand

Hainan

Caojing

Japan

LNG Eemshaven

Pakistan

Gothenburg

Teesside

Underconstruction

CommissionedYTD 08

Announcedinvestigation

Commissioned &Construction

London

LNG Rostock

Tallinn

Bahamas

Linkeroever

_


Step into the LNG terminal business -Operational in 2011

The launching customers:

_


Vopak Terminal Linkeroever

_


Vopak E.O.S.

_


26

Vopak Terminal Bahamas

_


Strategic Locationclose to the US East Coast

The closest proximity to the US East Coast

Deep water access (VLCC and ULCC)

Availability of land means room forexpansions

Close to the refineries/clients

Transshipment hub

_


Florida Ports

The max draughts of Florida ports:- Tampa: 13 metres- Port Manatee: 12 metres- Jacksonville: 11 metres- Port Canaveral: 12 metres- Palm Beach: 10 metres- Port Everglade: 13 metres

The ports must rely on VT Bahamasto accomodate the VLCCs.

_


Refining Center – Gulf Coast

U.S.A.MEXICO

Houston

Texas

Louisiana

New Orleans

Mississippi

Alabama

MobileBaton Rouge

Lafayette

Miss

issip

pi

Rive

r

Florida

UNITED STATES OF AMERICA

MEXICO

CUBA

Dallas

Arkansas

Tampa

AtlantaBirmingham

Jackson

HAVANA

YucatanPeninsula

Georgia

400 metres

1 ,000 metres

2,00

0 m

etre

s

Gulf of Mexico

Florida Keys

Oklahoma

Tennessee

Yuca tan Channel

Caribbean Sea

Western GulfPlanning Area

Central GulfPlanning Area

Eastern GulfPlanning Area3,000 metres

ChevronPascagoulaShellDeer ParkValero (2)Port ArthurMarathonGaryvilleExxon Mobil

Baytown

Valero (3)St CharlesValero (1)Texas CityConocoPhillips

Lake Charles

Valero (4)Aruba

OwnerRefinery

Aruba

1.3.

2.

4.

= Largest refineries in the Maya area

Source: WoodMackenzie

_


Transshipment hub:Example - gasoline flow from Europe to the US

PipelineUS$9/ton

55 ktonUS$24/ton

100 ktonUS$18/ton

20 ktonUS$18/ton

VTB

20 ktonUS$9/ton

700US$/t 703

US$/t

685US$/t

709US$/t

Good shipping connections:• easy access to the US for European cargoes (e.g. gasoline) • benefits through backhaul trade (diesel)

Other shipping possiblities:• flows from/to the ME• flows from/to Asia• flows from/to Latin America

Main sources of crude supply:• the Middle East• North and West Africa• FSU (Caspian & Baltic)• Canadian oil sands

Range of services:• blending• tank-to-tank transfers• ship-to-ship transfers• heating, etc.

_


Vopak Terminal BahamasValue creation by capitalizing on the unique strategic location

All availablecapacity is

completely rented

Very positive and fruitful cooperation

with JV partner

Started repair of remaining

590,000 cbm

Startedconstruction of

290,000 cbm

_


Many projects in the pipeline

Potentialopportunities

Projectsunder study

Announcedprojects

_


220.9 272.9

Outlook – reaffirmed!

* EBITDA includes joint ventures & associates results **excluding exceptional items

475-550

FY 2006 FY 20075 year plan

(2011)EUR (mln)

EBIT**

369.6EBITDA* 314.1

ROCE 25.1%19.4% Around 16%

OutlookFY 2008

a minimum increase of10%

Long-term

Bearing in mindsubstantial investmentsin greenfield projects/

expansions


expansions

Guidance

Updated to2009 / 2010

_


Agenda



_

–– –13/10/2008All figures are excluding

exceptionals35

1H08 EBIT excl. exceptional items: up 12% to EUR 156.8 mln

Net Revenuesin mln EUR

EBITin mln EUR

Net Profit*in mln EUR

EPSin EUR

1H 07 1H 08 1H 07 1H 08 1H 07 1H 08 1H 07 1H 08

1.591.3298.982.3156.8139.4453.9423.7

+12%

+7%

+20%

+20%

_


Pro forma EBIT 1H 08 vs 1H07:increased by 20%

-3.4Divestments

Pro forma EBIT

FX translation effects

EBIT excl. exceptionals

Exceptionals

EBIT incl. exceptionals

12139.4156.8

-9.9-9.7

20130.7156.8

-5.3

12149.3166.5

%1H 20071H 2008

_


Exceptional Items in 1H 2008

4.5Vopak Barging9.7Exceptional Items

5.2Merger Vopak E.O.S.

In EUR millions

_


EBIT(DA) margins excl. exceptionals

_


Net Financing Costs

-21.0

1H07 1H08In EUR millions

3.2Interest and dividend income

Net financing costs

Financing costs -24.23.2

-22.6-19.4

Effective Access to Financing Sources

Gate:EUR 745M senior project financingagreement

VTS:Increase to SGD 200M

RCF:Increase to EUR 1B and extend with 4 years. Option toincrease to EUR 1.2B

USPP 2007:New Notes forUSD 375M

July 2008Aug / Sep 2007July/Aug 2007May 2007

_


-31.4 21.3% 21.5%

€1H08 1H07 %In EUR millions

Effective tax rate 1H 2008

Tax

Effective Tax Rate

1H08 %

_


-8.391.5

-27.6-21.0 149.3423.7

1H07

166.5

106.9

Net Profit 1H 2008 increased by 17%

All figures are including exceptional items

12%

17%

1H08 ∆%In EUR millions

EBIT

Net Profit

453.9Net Revenues 7%

Finance Income & ExpensesTaxMinority Interests

-19.4 8%-31.4 14%- 8.2 1%

1.47 1.71EPS 16%

_


Business Performance per Division

_


Strong demand for storage capacity

85% 94%

2004 1H 2008

Occupancy rate

92% 96% 95%

2005 2006 2007

Capacity (in cbm)

26,396,22121,834,20021,224,30020,441,00020,191,481

_


Growth continues- increase by more than 7M cbm (2008-2011)

2.7M cbmRemaining 2008 till 2011 (incl. LNG)

21.8M cbmTotal 2007 Capacity

26.4M cbmTotal 1H 2008 Capacity

4.6M cbmTotal net capacity increase in 1H 2008

>28.0M cbmTotal

_


Net Revenues1H08: increase by 7%

CEMEA

1H 07 1H 083%

North America

15.2%

66.0 56.0

1H 07 1H 08

Latin America

6.7%

31.3 33.4

1H 07 1H 08

Asia

15.6%

67.1 77.6

1H 07 1H 08

OEMEA

23.3%

102.2126.0

1H 07 1H 08

154.9 159.5

_


EBIT excl. exceptional items1H08: increase by 12%

CEMEA

Asia

Latin America

OEMEA

Other

42.5 44.8

5.4%

North America

18.7%16.7%

8.4%

1%

39.046.343.8

51.1

15.5 16.8

10.5 10.4

-12.0 -12.6

1H 07 1H 08

1H 07 1H 08 1H 07 1H 081H 07 1H 08

1H 07 1H 081H 07 1H 08

5%

_


20,323,1 22,2 21,7 21,8 21,8

0

5

10

15

20

25

30

Q1 Q2 Q3 Q4

20072008

Division: Chemicals EMEA“Sound results taking into account divestments”

14% 2%

_


21,9

26,0

21,925,1

20,0 19,1

0

5

10

15

20

25

30

Q1 Q2 Q3 Q4

20072008

Division: Oil EMEA“Effective response to market demand”

19% 15%

_


19,2

23,419,8

22,919,9 19,9

0

5

10

15

20

25

30

Q1 Q2 Q3 Q4

20072008

Division: Asia“Maintaining growth with continuinggood results”

22% 16%

_


7,2 7,5 8,3 9,37,7 7,9

0

5

10

15

20

25

30

Q1 Q2 Q3 Q4

20072008

Division: North America“Focus on improving results is bearing fruit”

4% 12%

_


5,1 5,3 5,4 5,1 5,5 5,1

0

5

10

15

20

25

30

Q1 Q2 Q3 Q4

20072008

Division: Latin America“Continuing steady performance affected by negative FX differences”

4% 6%

_


Sources and Uses of Cash

_


0

100

200

300

400

500

600

Sources Uses Sources Uses

Sources and uses of cash

Operations Operations

InvestmentsDivestments

Investments

Divestments

FinancingFinancing

Dividends

Dividends

1H07 1H0856.0 -138.4

EUR (mln)

Net Cash Flow

Proceeds frominterest-bearing

loansProceeds frominterest-bearing

loans

390.1 -334.1 433.0 -571.4

_


2003* 2004 2005 2006 2007 2008

Total investments

146 151 188

446268

1H 2008:375

?

_


Projects completed in YTD 2008

Chemicals

Chemicals

Oil

Oil

Chemicals

Oil

Oil

Oil

Product

100,000Greenfield100%Linkeroever

Location Ownership Type Consolidated Joint venture

Rotterdam 100% Expansion 200,000

Fujairah 30% Expansion 380,000

Sebarok 69.5% Expansion 223,000

Zhangjiagang 100% Expansion 84,900

Bahamas 20% Acquisition 3,000,000

Vopak EOS 50% Merger 435,000

Malaysia 100% Acquisition 20,600

Other 106,000 60,000

Total added capacity 1H 2008 734,500 3,875,000

Total added capacity 1H 2008 >4.6M cbm

Additional CBM

_


Gate terminal

Clients

Throughput

Jetties

Tanks

16 bcm12 bcm9 bcm

221

?43

433

?Q3 2008Q4 2007

_


Expansion in progressBanyan Terminal (Singapore)

2006 2007 2008 2009

371,800 cbm 165,000 cbm 320,000 cbm 397,500 cbm1.25 M

_


Expansion in progressVopak Jakarta Terminal (Indonesia)

Tankfarm

Jetty

‘Artist impression of Vopak Jakarta Terminal’

Underseapipelines

Division: Asia Start of operations: 2009Capacity: 250,000 cbmProduct focus: oil

_



Expansion in progressVopak Terminal Bahamas

Division: North AmericaStart of operations: 2009Capacity: expansion 290,000 cbmProduct focus: oil

_


Division: CEMEAStart of operations: Q3/Q4 2008Capacity: expansion 40,000 cbmProduct focus: ethanol

Vopak Teesside Terminal

Expansion in progressTeesside Terminal (UK)

_


New terminal – under constructionGate terminal

Division: LNGStart of operations: 2H 2011Capacity: 540,000 cbmProduct focus: LNG

‘Artist impression of Gate terminal’

_


Strategic Financing

_


Investing in growth

Total investments 2008-2011Approved & Under Construction Projects

Remaining Vopak share 2008-2011 Approved & Under Construction Projects

Group companiesand

joint ventures

€ 1.7B

Around€ 400M

Yearly Sustaining Capex

+/-€ 100M

_


2.22

1.71

1.61

1.76

2.20

2.42

2.49

0 0,5 1 1,5 2 2,5 3 3,5 4

2002*

2003*

2004

2005

2006

2007

1H 2008

Strategic financeNet debt : EBITDA ratio

Maximum Ratio under US PP

Maximum Ratio under other loans and syndicated revolving credit facility

_


Covenant/Term US PP 2001 US PP 2007 New RCFMaximum Net Debt / EBITDA 3.75 3.75 3.75

Additional headroomWhen financed withsubordinated debt

Up to 4.25 > 3.75

EBITDA / Net Interest Payable

> 4.0 > 3.5 > 3.5

Overview of US PP terms and RCF

Amount USD396 mln

USD 375 mln

EUR 1 bln

+ EUR 200 mln

_


Agenda



_


Balance Sheet

Gate terminal –financial implications

Joint venturesand associates

Profit & Loss Result of jv basedon equity method

Cash Flow

Off Balance Sheet guarantees

Project Phase2007-2011

Operationsbeyond 2011



Only pre-OPEX

Equitycontribution

Dividend

Equity: 40% Capacity: 0.5M cbm

_


Vopak E.O.S.

Pakterminal till YE 2007

304,900Vopak50%Pakterminal

Pakterminal till 23 April 2008

Vopak100%Pakterminal

Vopak E.O.S. 23 April 2008 till August

Vopak35%

Vopak E.O.S.

304,900

740,000

Vopak E.O.S. from August 2008

Vopak50%

Vopak E.O.S. 740,000 940,000in 2009

_


Balance Sheet

Vopak E.O.S. financial impliations

Profit & Loss Result of jv(equity method)

Cash Flow

Pakterminal(50%)

Vopak E.O.S.(50%)

Joint venturesand associates100% consolidated

100% consolidated

100% consolidated Acquisition priceDividend

Result of jv(equity method)


Dividend

Beforetransaction date E.O.S.

(100%)

_



Agreementbetween FirstReserve andVopak

AcquisitionBORCO, April 2008

FirstReserve 80%, Vopak 20%

Capacity: 3M cbm

Possibleexpansion upto 5M cbm

2008

_


Balance Sheet

Vopak Terminal Bahamas financial implications

Profit & Loss

Cash Flow*


Result of jv(equity method) +Management fee

Acquisition priceDividend

Equity: 20% Capacity: 3M cbm

_


Events After the Balance Sheet Date

_


Events after the balance sheet date

20 July

Financing agreement Gate terminal BV

30 July

Vopak increases shareholding in joint venture Vopak E.O.S. to 50%

1 August

Nippon Vopak acquires 2 terminals in Japan

5 August

Gate terminal signs agreement with E.ON Ruhrgas AG

_


Agenda



_


220.9 272.9

Outlook 1H 2008

* EBITDA includes joint ventures & associates results **excluding exceptional items

475-550

FY 2006 FY 20075 year plan

(2011)EUR (mln)

EBIT**

369.6EBITDA* 314.1

ROCE 25.1%19.4% Around 16%

OutlookFY 2008

a minimum increase of10%

Long-term


expansions


expansions

Guidance

Updated to2009 / 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 31 countries in which Vopak renders 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 couldlead to actual results being materially different from those expected.

Forward-looking statement

_


–

www.vopak.com

Documents

world’s leading independent tank storage company. - Semi Annual … · Market share according to the definition 10 % 15 % 16 mln 60 mln 105 mln 165 mln Oil 23 % 26 % 10.4 mln 5