Q3 2015 Investor Presentation

November 10, 2015
9:00 AM EDT
2:00 PM UK
VTTI ENERGY PARTNERS LP
Q3 2015 RESULTS
1
VTTI MARKET POSITIONING
VTTI is a unique global terminal MLP, well differentiated from its peers
Cash flow
stability
▪ Long-term, take or pay contracts
▪ No direct commodity price exposure
Attractive growth
characteristics
▪ Dropdown inventory approximately 3x existing MLP capacity
Positive long-term
trends
▪ Driven by supply-demand imbalances and product demand growth
Premium
portfolio
1099 filer
▪ Active in highly fragmented international terminal market
▪ Not dependent on upstream investment in US (or elsewhere)
▪ High quality, strategically located assets with leading customer service
▪ Resilient financial performance in different market pricing structures
▪ VTTI unitholders receive an annual 1099
▪ No K-1s
2
VTTI FINANCIAL PERFORMANCE SINCE IPO
(1) Note
Next Twelve Month ("NTM") Forecast for Q3 2014 to Q2 2015 inclusive, no forecast provided for Q3 2015
3
MISC-VITOL INVESTMENT PARTNERSHIP ("VIP") TRANSACTION
Vitol Contract Extensions (1)
Terminal
Country
Omnibus
Guarantee
Revised
Expiration
VIP
Capacity
Amsterdam Netherlands
Jun 19
Dec 19
2.9
Rotterdam
Netherlands
Jun 19
Sep 19
5.1
Fujairah
UAE
Jun 19
Jun 19
7.4
Antwerp
Belgium
Jun 17
Dec 18
2.3
Seaport
US
Jun 17
Mar 19
2.8
50%
interest
50%
interest
VTTI BV
(Sponsor)
20.5
ROFO assets
PUBLIC
UNITHOLDERS
▪  VIP, an investment vehicle sponsored by Vitol, has acquired the MISC
50% stake in VTTI B.V.
▪  Completed on 9 November 2015
VTTI MLP B.V.
(VTTI OPERATING)
▪  Two new VIP Board representatives replacing MISC representatives
▪  Vitol contract extensions have replaced the VTTI B.V. rate guarantee
provided in the Omnibus Agreement
(1)
6 MLP Terminals
Operating companies
Johore Malaysia terminal was not included in the Omnibus Guarantee; contract expiration is September 2019
4
Q3 2015 CORPORATE AND OPERATING REVIEW
•  First dropdown completed and effective from 1 July 2015 6.6% of VTTI Operating: $75m
equity value, $110m enterprise value
Corporate
Update
•  Priced new senior secured notes for $245 million and €180 million with weighted
average fixed interest rate of 3.9% and tenors of 7, 10, and 12 years; settlement
expected in December 2015. Proceeds will be used to repay existing RCF
•  VIP acquisition of MISC 50% stake in VTTI B.V.
•  Strong revenue performance and utilization compared to Q2 2015
Operating
Highlights
•  $9.3m final lump sum income receipt
•  Excess throughputs for Q4 likely to be down on prior years
•  Extension of certain Vitol contracts underpins future revenues
5
Q3 2015 FINANCIAL AND DEVELOPMENT REVIEW
•  Malaysia Phase 2 assets became operational in August 2015 and added 1.6MMbls to
existing drop down inventory(1)
Growth
Projects
•  Fujariah expansion in progress and is expected to be operational in mid-2016 and will
add 2.7MMbls to drop down inventory
•  Continue to be actively pursuing organic development and M&A opportunities
•  Adjusted EBITDA for Q3 2015 of $57.1m compared to $53.1m in Q2 2015
Financial
Highlights
•  Raised dividend by 3.9% over prior quarter in line with mid-teen annual distribution
growth target from $0.2815 to $0.2925 per unit
•  Net debt implies a net debt to annualized Adjusted EBITDA ratio of 2.7x
•  Additional $75m of related party debt at VTTI Energy Partners LP level as of July 1, 2015
(1)
(2)
Malaysian Phase 2 assets are economically for the benefit of VTTI B.V.
Excludes Affiliate Debt
6
Q3 2015 SUMMARY FINANCIALS
Adjusted EBITDA and Distributable Cash Flow
$ MM
Q3 2015
Q2 2015
Adjusted EBITDA
57.1
53.1
Cash interest expense
(4.6)
(3.7)
0.0
0.0
(3.4)
(5.6)
(31.2)
(29.6)
Distributable cash flow
17.9
14.2
Total distribution
12.0
11.6
Coverage ratio
1.49x
1.22x
Cash income tax expense
Maintenance capital expenditures
Cash flow attributable to non-controlling interest
•  Adjusted EBITDA $57.1m includes $9m final
lump sum receipt of other income
(compared to $5m Q2 2015)
•  Maintenance capex is lower primarily due
to seasonal deferral of spend into Q4 2015
•  Interest costs higher due to additional debt
for drop down transaction
•  Distributable cash flow and coverage ratio
are materially higher than prior quarter
7
BALANCE SHEET UPDATE
VTTI Energy Partners LP
(USD $mm)
VIP
Actual
Sept 30 2015
Cash
Cash and cash equivalents(1)
37.8
Debt
RCF FACILITY
$270mm CAPACITY
~$200m UNDRAWN
VTTI B.V.
$75m
Loan
VTTI MLP
PARTNERS B.V.
VTTI Operating Revolving Credit Facility(2)
553.0
Net debt
515.2
Net debt / annualized Adjusted EBITDA (3)
2.7x
Financial Targets
PUBLIC
RCF FACILITY
€580mm CAPACITY
~$100m UNDRAWN
VTTI MLP B.V.
• 
Net Debt / EBITDA threshold of 3.0x - 3.5x
• 
Look to extend non-USD FX hedging each year
• 
Average ~4 years of non-USD net cashflows largely hedged
(VTTI OPERATING)
(1) Excluding restricted cash
(2) Excluding affiliate debt
(3) Net debt/annualized Adjusted EBITDA excludes $9.3 million of other revenue receipts
8
OUTLOOK
•  Regional product imbalances and product demand growth continue to drive
fundamental requirement for storage
Market
Dynamics
•  Currently looking to capitalize on current contango market in certain products,
although financial benefit limited due to largely contracted portfolio
•  Excess throughputs for Q4 likely to be down on prior years due to market structure
•  Opportunity to grow existing footprint and enter new markets through development
projects
Growth
•  Actively monitoring several ongoing processes and have ROFO on all current and
future VTTI B.V. assets
•  Liquidity available to finance further growth
•  Next dropdown will likely be 6-12 months from last dropdown
Dropdowns
•  Investigating alternative sources of funding
•  Continue to target mid-teens annual distribution growth, in line with the distribution
increase level delivered in last three successive quarters
9
VTTI ENERGY PARTNERS LP
THANK YOU
10
FINANCIAL DETAIL Q3 2015
Income Statement (unaudited)
$ MM
Actual
Q3 2015
Revenues
74.3
Operating expenses (incl. D&A)
Other operating income
Total operating income
Total other expense, net
Income before income tax expense
43.9
9.3
39.7
(3.4)
36.3
Income tax expense
Net income
Interest expense, including affiliates
(10.7)
25.6
4.1
Other items(1)
(0.8)
Depreciation and amortization
17.5
Income tax expense
10.7
Adjusted EBITDA
57.1
(1) Other items comprise primarily the impact of FX and related derivatives on our financial results and the receipt of other miscellaneous revenues
11
FINANCIAL DETAIL Q3 2015
Balance Sheet September 30, 2015 (unaudited)
$ MM
Cash and cash equivalents(1)
Property, plant & equipment
September 30, 2015
37.8
1,246.7
Other assets
284.4
Total assets
1568.9
Debt(2)
553.0
Other liabilities
311.9
Total equity
704.0
Total liabilities and equity
Net debt
Net debt / Annualized adjusted EBITDA ratio (3)
1,568.9
515.2
2.7x
Cash and cash equivalents excludes restricted cash
Debt excludes affiliate debt
(3) Ratio excludes the effect of other revenue $9.3 million lump sum revenue receipt from our Rotterdam terminal received in Q3 2015
(1)
(2)
12