_ Roadshow Presentation Results Q3 2010
– – – Vopak: A worldwide tank terminal network
Key facts • Global market leader in independent storage of liquid bulk products • Present in 31 countries, operating 80 terminals • Total storage capacity of 28.7 mln cbm • Strong focus on safety and environment • Infrastructure service provider to many oil and chemical majors • Many successful strategic partnerships • Market capitalization of EUR 4.6 bln
– – – Trading update Q3 2010 2 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
July 2002 2003 2004 2005/2006 2007/2008/2009
– – – Trading update Q3 2010 3 Tank terminal: key role in oil and chemical supply chain
Vopak Terminal Europoort – Rotterdam, the Netherlands – – – Trading update Q3 2010 4 Vopak’s role in the supply chain “Reliability and efficiency crucial throughout the supply chain”
Feedstock Feedstock Production & Products Independent Mid-Stream & Production Gathering Refining Transmission Storage & End-user Transshipment Distribution
Oil and Chemical supply chain
– – – Trading update Q3 2010 5 Vopak’s challenge
The challenge is to facilitate the current and future product flows :
– – – Trading update Q3 2010 66 Strategic position tank terminals
Outgoing Logistics
Downstream Chemicals
– – – Trading update Q3 2010 77 Logistic hub terminal
Where large flows of products merge – logistics crossroad Houston, Rotterdam / Antwerp, Singapore and Fujairah
Example fuel oil – – – Trading update Q3 2010 88 Import / Export terminal
- Break or make bulk - Local distribution
– – – Trading update Q3 2010 99 Industrial terminal
Vopak Singapore – Sakra Terminal – – – Trading update Q3 2010 10 Vopak core businesses
Existing market Oil Chemicals
New products in existing market Biofuels
New market LNG
– – – Trading update Q3 2010 11 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 = 5,5% Annual growth rate = Annual growth rate = 2,9% 0,5%
Source: Wood Mackenzie – – – Trading update Q3 2010 12 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 – – – Trading update Q3 2010 1313 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
– – – Trading update Q3 2010 1414 Worldwide LNG demand drives need for independent import terminals
– – – Trading update Q3 2010 1515 Drivers of structural growth in demand
Countries setting individual specifications for products Liberalization of previously closed economies
Increasing geographical imbalances
Growing demand for environmentally friendlier fuels
– – – Trading update Q3 2010 16 Accelerated Strategy Execution Based on Reliability and Efficiency
EXCELLENTEXCELLENT CUSTOMERCUSTOMER MAXIMUMMAXIMUM OPERATIONALOPERATIONAL SERVICESERVICE EFFICIENCYEFFICIENCY •• Operational Efficiency Improvement •• KeyKey AccountAccount ManagementManagement Operational Efficiency Improvement •• Enhancing maintenance plans •• FocusFocus onon serviceservice andand qualityquality Enhancing maintenance plans •• PreparingPreparing infrastructureinfrastructure forfor thethe futurefuture •• GlobalGlobal procurementprocurement
Scenario planning
COMPANYCOMPANY GROWTHGROWTH
•• PrioritizingPrioritizing newnew investmentsinvestments Toolbox •• FinancingFinancing andand partnershipspartnerships
– – – Trading update Q3 2010 17 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
– – – Trading update Q3 2010 18 Market share according to the definition
In mln cbm
Storage market Oil Chemicals Total
World Market 203 mln 50 mln 253 mln CBM
Primary Competition 128 mln 44 mln 172 mln CBM
Secondary Competition 74 mln 6 mln 80 mln CBM
Vopak 17.3 mln 11.4 mln 28.7 mln CBM
Vopak Market Share: As % of total market 9 % 23 % 11.3 % As % of primary competition 14 % 26 % 16.6 %
– – – Trading update Q3 2010 19 Demand growth in storage market to support international trade flows
Terminal capacity under construction
Additional Worldwide Total Storage Capacity
World Market, incl. Vopak 28.4 mln cbm
Growth % 11.2%
Vopak 3.9 mln cbm
Growth as % of Vopak capacity 14%
– – – Trading update Q3 2010 20 Vopak - the global market leader
In mln CBM Source: company websites, including inland capacity and Joint Ventures
VopakVopak Oiltanking Kinder Morgan NuStar CLH IMTT Vitol CIM SUMED terminal Dalian Port Sunoco Horizon Sinochem Magellan EAPC STS Odfjell LBC Universal SPSE
-0 5 10 15 20 25 30 35
– – – Trading update Q3 2010 21 Agenda
Highlights
Business performance
Storage capacity growth
Outlook
Details and definitions used in this presentation are derived from the Q3 2010 press release, which is leading.
– – – Trading update Q3 2010 2222 Q3 2010 Summary
Q3 2010 EBIT excl. exceptional items up 10% to EUR 114.8 mln (Q3 2009 EUR 104.2 mln)
YTD 2010 EBIT excl. exceptional items increased by 17% to EUR 337.8 mln (YTD 2009 EUR 288.4 mln)
Other developments: - Eelco Hoekstra appointed as member of the Executive Board - Added 0.1 mln cbm of storage capacity in Q3 2010 in amongst others Zhangjiagang (China) and Coatzacoalcos (Mexico)
– – – Trading update Q3 2010 23 Q3 2010 EBIT excl. exceptional items up 10% to EUR 115 mln
In EUR mln Q3 10 Q3 09 ∆
EBIT incl. exceptionals 113.8 104.3 +9%
EBIT excl. exceptionals 114.8 104.2 +10%
EBITDA excl. exceptionals 154.8 137.1 +13%
Occupancy rate 92% 93%
Storage capacity (in mln cbm) 28.7 28.0
– – – Trading update Q3 2010 24 YTD 2010 EBIT excl. exceptional items up 17% to EUR 338 mln
In EUR mln YTD 10 YTD 09 ∆
EBIT incl. exceptionals 336.7 288.6 +17%
EBIT excl. exceptionals 337.8 288.4 +17%
EBITDA excl. exceptionals 452.1 382.9 +18%
– – – Trading update Q3 2010 25 Agenda
Highlights
Business performance
Storage capacity growth
Outlook
Details and definitions used in this presentation are derived from the Q3 2010 press release, which is leading.
– – – Trading update Q3 2010 2626 Q3 2010 business environment
Oil - Increasing geographical imbalance - Increasing number of product specifications - Possible permanent closure/divestments of less efficient refineries - IOC’s focussing on upstream business
Chemicals - Rebalancing of supply chain and production facilities - Industrial terminal: Solid - Remainder of chemical business: - China - robust - Asia - encouraging - America’s - stable - Europe - level of activities comparable to Q3 2009
Biofuels - Supply-side in development - Moving toward structural flows - Developments in regulations considering feedstock and subsidies is causing lagging demand for biofuel storage
– – – Trading update Q3 2010 27 Occupancy rate
Demand for storage capacity 93% 92% 93%
Q3’09 Q3’10 YTD’10
Oil Industrial Biofuels and Chemicals terminals vegoils ~ 55% of EBIT ~ 15% of EBIT ~ 12.5% of EBIT ~ 17.5% of EBIT
Previous ROBUST STABLE STABLE MIXED
Current ROBUST SOLID MIXED MIXED
Healthy demand for storage capacity
Slightly lower occupancy rate: - Slower take up rate of new storage capacity for chemicals in Asia - Lagging demand for biofuel storage in CEMEA and North America
– – – Trading update Q3 2010 28 Q3 2010 EBIT increase of 10%
In EUR mln, - excl. exceptional items -
North America OEMEA Asia 35.9 41.0 31.6 43.7 13.0 10.1
Q3 0922% Q3 10 Q3 0914% Q3 10 Q3 0938% Q3 10
Latin America CEMEA* Other 26.4 22.3
6.2 6.6 -8.9 -8.9
16% Q3 09 6% Q3 10 Q3 09 Q3 10 Q3 09 Q3 10 * CEMEA Q3 2009 result includes a positive one-off of EUR 2.6 mln, whilst the Q3 2010 result includes negative one-offs amounting to EUR 2.0 mln – – – Trading update Q3 2010 29 Chemicals EMEA “Activities in chemicals during Q3 2010 at a comparable level to Q3 2009”
In EUR mln, - excl. exceptional items -
26,4 25,3 24,6 24,5 22,6 22,3
17,7
43% 9% 16% Vopak Terminal Botlek Zuid, Rotterdam Q1 Q2 Q3* Q4
* CEMEA Q3 2009 result includes a positive one-off of EUR 2.6 mln, whilst 2009 2010 the Q3 2010 result includes negative one-offs amounting to EUR 2.0 mln – – – Trading update Q3 2010 30 Oil EMEA “Robust demand for tank storage continues”
In EUR mln, - excl. exceptional items -
41,0 38,8 36,6 35,9 33,6 34,3 31,5
Vopak Terminal Europoort, Rotterdam 16% 15% 14% Q1 Q2 Q3 Q4
2009 2010 – – – Trading update Q3 2010 31 Asia “Continued EBIT growth by expanding capacity and efficiency improvements”
In EUR mln, - excl. exceptional items -
43,7 41,0 37,7 33,9 31,6 30,6 31,4
31% 23% 21% 38% Vopak Terminal Sakra, Singapore Q1 Q2 Q3 Q4
2009 2010
– – – Trading update Q3 2010 32 North America “Unfavourable market conditions for storage of biofuels”
In EUR mln, - excl. exceptional items -
13,3 13,0 12,0 11,4 11,2 10,1 10,5
17% 7% 22% Vopak Terminal Deerpark, Houston Q1 Q2 Q3 Q4
2009 2010 – – – Trading update Q3 2010 33 Latin America “Continuing steady performance”
In EUR mln, - excl. exceptional items -
7,3 7,1 6,6 6,4 6,2 6,2 5,5
14% 29% 6%
Q1 Q2 Q3 Q4 Vopak Terminal Cartagena, Colombia
2009 2010
– – – Trading update Q3 2010 34 Except for NA, all divisions contributed to the YTD EBIT increase of 17%
In EUR mln, - excl. exceptional items - North America OEMEA Asia 101.0 116.4 96.1 122.4
35.6 35.4
YTD 091% YTD 10 YTD 0915% YTD 10 YTD 0927% YTD 10
Latin America CEMEA Other 66.7 72.2 18.1 21.0 -29.1 -29.6
8% YTD 09 16% YTD 10 YTD 09 YTD 10 YTD 09 YTD 10 – – – Trading update Q3 2010 35 Agenda
Highlights
Business performance
Storage capacity growth
Outlook
Details and definitions used in this presentation are derived from the Q3 2010 press release, which is leading.
– – – Trading update Q3 2010 3636 Company growth supported by healthy demand for storage capacity
Storage Capacity In mln cbm 32.6 28.7 27.1 28.3
21.8 20.2 20.4 21.2
+0.2 +0.8 +0.6 +5.3 +1.2 +0.4 +3.9
2004 2005 2006 2007 2008 2009 Q3 2010 2012 Occupancy Rate YTD
85% 92% 94% 96% 95% 94% 93%
– – – Trading update Q3 2010 3737 Growth continues: Q3 2010 storage capacity increased with 0.1 mln cbm
Zhangjiagang, China Coatzacoalcos, Mexico Alemoa, Brazil Product: Chemicals Product: Chemicals Product: Chemicals Capacity addition: 190,000 cbm Capacity addition: 8,400 cbm Capacity addition: 38,600 cbm
In cbm YE 2009 Capacity 28.3 mln Total net capacity increase HY1 2010 0.3 mln Total net capacity increase Q3 2010 0.1 mln Q3 2010 Capacity 28.7 mln Remaining 2010 up to and including 2012 (incl. LNG) 3.9 mln Total 32.6 mln
– – – Trading update Q3 2010 38 Under construction: 3.9 mln cbm
Fujairah, U.A.E. 606,000 cbm Algeciras, Spain 403,000 cbm Gate, Netherlands 540,000 cbm
MOT, Netherlands 360,000 cbm
Europoort, Netherlands 160,000 cbm
Westpoort, Netherlands 1,190,000 cbm
Total investment for Vopak and partners EUR 1.9 bln
Remainingcash spendVopak EUR 0.4 bln Q3 2010 2012
– – – Trading update Q3 2010 39 Strategic finance Net debt : EBITDA ratio
Q3 2010 2,50
2009 2,23
2008 2,54
2007 1,71
2006 1,61
2005 1,76
2004 2,20
2003* 2,42
2002* 2,49
0 0,5 1 1,5 2 2,5 3 3,5 4
Maximum Ratio under US PP Maximum Ratio under other loans and syndicated revolving credit facility
* Based on Dutch GAAP
– – – Trading update Q3 2010 40 Agenda
Highlights
Business performance
Storage capacity growth
Outlook
Details and definitions used in this presentation are derived from the Q3 2010 press release, which is leading.
– – – Trading update Q3 2010 4141 Outlook
2010 2012 “For 2010 Vopak expects a Group “Based on its growth strategy and the operating profit before depreciation and positive developments in 2010 Vopak amortization (EBITDA) of at least could potentially achieve its 2012 EUR 585 million.” guidance of EUR 625-700 million Group operating profit before depreciation and amortization one year earlier.”
Outlook Guidance 2004 2005 2006 20072008 2009 2010 2012/2011 EBITDA 625-700 In EUR mln, excluding exceptional items, including net result from Joint Ventures & > 585 associates 513.4 YTD Q3 429.3 452.1 369.5 314.1 262.5 231.8
– – – Trading update Q3 2010 42 “Confidence in the future!”
– – – Trading update Q3 2010 43 Q3 2010 approved projects
* O = Oil products, C = Chemicals, B = Biofuels, V = Vegetable oils, LNG = Liquefied Natural Gas
Location Ownership Product* cbm 2009 2010 2011 2012
Chili, Mejilones 50% C 10,000
Estonia, Tallinn 50% O 75,000
Sweden, Gothenburg 100% O 20,000
Germany, Hamburg 100% C 8,900
Brazil, Aratu 100% C 26,300
China, Caojing 50% C 30,000
Netherlands, Europoort 100% O 160,000
Spain, Barcelona 50% O 155,200
Netherlands, MOT 16.67% O 360,000*
Netherlands, Gate 40% LNG 540,000
China, Dongguan 50% C 153,000
China, Tianjin 50% C 95,300
*Net capacity expansion for Vopak use – – – Trading update Q3 2010 44 Q3 2010 approved projects (II)
* O = Oil products, C = Chemicals, B = Biofuels, V = Vegetable oils, LNG = Liquefied Natural Gas
Location Ownership Product* cbm 2009 2010 2011 2012
U.A.E., Fujairah 33% O 606,000
Netherlands, Vlaardingen 100% V/B 38,100
620,000 Netherlands, Westpoort 100% O 570,000
Spain, Algeciras 80% O 403,000
– – – Trading update Q3 2010 45 Forward-looking statement
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.
– – – Trading update Q3 2010 46 – – – – www.vopak.comTrading update Q3 2010 47