Annual Report 2007 Key Data

Royal Vopak Annual Report 2007 Key Data Income from rendering of services EUR 853.0 million Net profit attributable to shareholders EUR 182.9 million Earnings per ordinary share EUR 2.90 Employees 3,564 Terminals 74 (in 30 countries) Global storage capacity 21,834,200 cbm Royal Vopak Annual Report 2007 This English translation of the Annual Report contains the report of the Executive Board, the financial statements and other information. In the event of textual inconsistencies between the English and Dutch versions, the latter prevails. Copies of the Dutch Annual Report and the English translation can be obtained from Royal Vopak, Corporate Communication & Investor Relations: Telephone : +31 10 400 27 78 Fax : +31 10 404 73 02 E-mail : [email protected] The Annual Report is also available on the Internet: www.vopak.com Forward-looking statements This document 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 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 could lead to actual results being materially different from those expected. Koninklijke Vopak N.V. (Royal Vopak) Westerlaan 10, 3016 CK Rotterdam, Netherlands P.O. Box 863, 3000 AW Rotterdam, Netherlands Telephone : +31 10 400 29 11 Fax : +31 10 413 98 29 E-mail : [email protected] Internet : www.vopak.com Registered at the Company Registry of the Rotterdam Chamber of Commerce under number 24295332 Contents 3 Profile 116 Other information 4 Key figures 5 Letter from the Chairman of the Executive Board 116 Auditors’ report to customers, employees, shareholders 117 Events after balance sheet date and partners 118 Articles of Association provisions governing 8 Report of the Supervisory Board profit appropriation 119 Proposed profit appropriation 13 Report of the Executive Board 120 Stichting Vopak 121 Stichting Administratiekantoor Financierings- 13 Strategic framework of Vopak preferente Aandelen Vopak (‘the Foundation’) 16 Growth perspective 122 Information on the Executive Board members 18 Corporate social responsibility 123 Information on the Supervisory Board members 22 Financial Performance 124 Principal company officers 28 The world of Vopak 125 Consolidated subsidiaries, joint ventures and associates 31 Review by division 126 Five-year consolidated summary 32 Chemicals Europe, Middle East & Africa (CEMEA) 127 Glossary 34 Oil Europe, Middle East & Africa (OEMEA) 36 Asia 38 North America 40 Latin America 42 Risks and risk management 45 Management reporting 46 Information for shareholders 48 Corporate Governance 51 2007 Financial statements 52 Contents financial statements 2 Profile With a history going back almost four centuries, Vopak is the ments and producers of and traders in oil products and chem - global market leader in independent storage and handling of i cals, a high standard quality throughout the world. Vopak liquid oil products, chemicals, vegetable oils and liquefied develops its services according to the product, market and gases. Vopak has terminals in the world’s most strategic ports, functional requirements, often working with customers and/or with specialised facilities: product tanks, jetties, truck loading strategic partners. For example, Vopak adds components or stations, pipelines and access to road and rail networks. blends products: activities that add value for the customer. Products are stored for customers for some time at these ter- Vopak entered the market for storage of liquefied natural minals, often under very specific conditions, such as temper- gas (LNG) for import and distribution to a consumption area, ature control, or they are blended to the desired specifica- with the first terminal for this being built with Gasunie in tion. Vopak’s terminals play a key role in the transit: products Rotterdam (Netherlands). Vopak currently opera tes 74 ter- are transported from the terminal to end-users by vessel, rail- minals in 30 countries. car, tank truck or pipeline. Sustainable entrepreneurship is the basis for long-term rela- tionships with customers, strategic partners, employees, Vopak’s independent tank terminal network is responsible for govern ments, neighbours and shareholders and is therefore a number of functions in the product’s journey from produc- an integral part of the company’s processes and operations. er to end-user. Vopak distinguishes three types of terminal: In its decisions, Vopak not only considers economic aspects but also longer-term safety, health, environmental and social G Import, export or distribution terminal aspects. Vopak, therefore, consistently applies and enforces As part of the import and export role, bulk liquid is trans- strict Safety, Health, Environment & Quality (SHEQ) stan- ported by ocean-going vessel. For Vopak’s customers, the dards, rules, codes and procedures. Vopak’s policy is designed terminal can, for example, serve as a starting point for the to prevent its activities causing damage and nuisance. Vopak inland distribution of products by inland vessel, pipeline, wants to offer its employees a highly attractive, international tank truck and railcar. working environment with excellent opportunities for devel- opment. G Hub terminal A hub terminal combines the roles as mentioned above Vopak is organised into five divisions: Chemicals Europe, with the role of a meeting point for trade, a location that Middle East & Africa; Oil Europe, Middle East & Africa; Asia; gives customers access to a market. The Vopak network North America and Latin America. There is also a separate com prises hubs in Amsterdam-Rotterdam-Antwerp (the project organisation for developing LNG terminals and func- ARA region, Europe), Houston (USA), Fujairah (United Arab tional support departments in key areas. The units of the Emi rates) and Singapore (Asia). world wide organisation work closely together and actively exchange know-how and expertise, enabling Vopak to re - G Industrial terminal spond rapidly, creatively and precisely to changing customer A logistics centre integrated in a major petrochemical com- wishes and market developments. Vopak aims to continually plex that supports the product flows within the complex improve and expand its terminal network, particularly in and the supply and export of respectively feedstocks and strategically located international ports close to its customers’ finished products. production centres and markets. Vopak’s terminals offer customers professional support in Vopak workforce at year-end comprises of 3,564 employees optimi sing reliable and efficient logistics processes. From its in the group companies and more then 1,100 employees in terminals, Vopak offers its customers, who include govern- joint ventures for tank storage. Royal Vopak ANNUAL REPORT 2007 3 Key figures In EUR millions 2007 2006 Results Income from rendering of services 853.0 778.1 Group operating profit before depreciation and amortisation (EBITDA)* 388.8 309.8 Group operating profit excluding exceptional items 272.9 220.9 Group operating profit (EBIT)* 292.2 216.6 Net profit attributable to shareholders* 182.9 131.9 Net profit attributable to holders of ordinary shares* 181.1 129.4 Cash flow from operating activities (net) 263.2 225.3 Investments Total investments 445.7 267.6 Average gross capital employed 2,251.7 2,145.5 Average capital employed 1,162.7 1,117.5 Proposed profit appropriation Dividend: Financing preference shares 1.8 2.5 Ordinary shares 59.3 46.8 Capital and financing Shareholders’ equity 809.7 671.0 Interest–bearing loans 672.2 514.1 Net interest-bearing debt 561.9 425.7 Ratios ROCE excluding exceptional items 23.7 19.9 ROCE including exceptional items 25.1 19.4 Net debt : EBITDA 1.71 1.61 Interest cover (EBITDA : net finance costs) 8.5 7.1 Key figures per ordinary share (in EUR) Earnings per ordinary share 2.90 2.08 Diluted earnings per ordinary share 2.90 2.07 Earnings per ordinary share (excluding exceptional items) 2.62 1.96 Diluted earnings per ordinary share (excluding exceptional items) 2.62 1.96 * Including exceptional items 4 Royal Vopak ANNUAL REPORT 2007 Letter from the Chairman of the Executive Board to customers, employees, shareholders and partners Executive Board, from left to right: Jack de Kreij, John Paul Broeders, Frans de Koning A year of focus, progress and acceleration Changing markets demand a faster approach The market is still changing at a rapid rate. The imbalance sites. However, they also mean that our competitors and new between supply and demand for oil and chemical products entrants recognise opportunities in the market and are re- continues to be large and is in fact increasing. Prosperity is sponding to them. Growing global demand for the services growing in many parts of the world. Local (oil) markets that ha - that Vopak offers is proving attractive to other companies. It ve up to now been closed are gradually opening up. New ty - is, therefore, more important than ever for Vopak to move up pes of energy, such as liquefied natural gas, are increasingly a gear and also to make a move in depth. As global market important as they place a smaller burden on the environment. leader, we want to continue to stay at the front by continuous These developments are leading to new and bigger freight improvement and keep a step ahead of the competition. We flows that are increasingly international and even global, and have sharpened our strategy by tying growth even more so the importance of tank storage and related services is to customer satisfaction and operational efficiency. This growing.

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