Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Non-Deal Roadshow (March 2023)
54 slides from Royal Vopak Nv's roadshow presentation, March 2023
Slide 1: Shaping the future – Roadshow Presentation
Shaping the future Roadshow Presentation March 2023 Vopak Roadshow Presentation FY 2022 1
Slide 2: Forward-looking statement
Forward-looking statement Any statement, presentation or other information contained herein that relates to future events, goals or conditions is, or should be considered, a forward-looking statement. Although Vopak believes these forward-looking statements are reasonable, based on the information a
Slide 3: Leading global platform
Shaping the future Leading global platform Unparalleled access to growth opportunities IMPROVE GROW ACCELERATE performance of our our base in industrial towards new energies & portfolio & gas terminals sustainable feedstocks Improve performance of existing portfolio Commitment to ESG > 12% EUR 1 bil
Slide 4: We serve multiple end markets through different products and customer offerings
We serve multiple end markets through different products and customer offerings End markets Energy Manufacturing New energies Products Gas & sustainable Oil Chemicals feedstocks Customer offerings Industrial Multifunctional Distribution Vopak Roadshow Presentation FY 2022 4 Gas product segment inclu
Slide 5: Diversified portfolio through global network, product and commercial expertise
Diversified portfolio through global network, product and commercial expertise Global network Product expertise Commercial expertise Diversified portfolio of terminals Storing a wide variety of products and Our skilled commercial expertise allows across the globe expertise in handling gaseous produc
Slide 6: 2022 Key Highlights
2022 Key Highlights >12% EUR 1 billion EUR 1 billion Operating cash return by 2025 Growth capex by 2030 Growth capex by 2030 IMPROVE GROW ACCELERATE performance of our our base in industrial towards new energies & portfolio & gas terminals sustainable feedstocks Improved performance by reporting an
Slide 7: Diversified portfolio with terminals across countries around the globe
Diversified portfolio with 78 terminals across 23 countries around the globe Supporting energy and supply Biggest independent storage security in Europe provider in China and India. Accelerating to sustainable feedstocks in LA Industrial terminals showing stable performance in Asia Chemicals and Ind
Slide 8: Serving markets contributing to energy and supply security
Serving markets contributing to energy and supply security New energies & Gas Energy Manufacturing sustainable feedstocks • Rebalancing global oil flows • The chemicals market Market dynamics • Momentum for hydrogen • LNG infrastructure is in high following the international continues to be under co
Slide 9: Improve portfolio performance
Improve portfolio performance Improve Grow EBITDA EBITDA performance In EUR million • EBITDA of EUR 887 million in FY 2022, 9 supported by positive currency translation 56 887 50 23 effects and improved market conditions 12 827 58 • Chemicals and gas continue to perform well 12 • Oil performance imp
Slide 10: Actively managing our portfolio
Actively managing our portfolio Increase portfolio operating cash return Rationalize the portfolio • Divested our Canadian oil terminals and Agencies business • Started a strategic review of our three chemical terminals in the port of Rotterdam (Botlek, TTR and Chemiehaven). Repurpose our existing a
Slide 11: Actively managing our portfolio
Actively managing our portfolio Looking back Operating cash return1 average by terminal type In % for FY 2022, excluding the corporate cost allocation • Increased gas and industrial exposure over the last 5 years ~16 ~15 ~13 11.4 ~10 • Lowered oil exposure with 20% by material divestments and impair
Slide 12: Vopak's approach to sustainability
Vopak’s approach to sustainability We are ambitious and performance driven with a balanced roadmap focusing on care for people, planet and profit Network Environmental Social Governance GHG emissions Safety performance Diversity & inclusion Achieved 10% CO2 reduction in 2022 Maintained good performa
Slide 13: Accelerating in new energies and sustainable feedstocks
Accelerating in new energies and sustainable feedstocks 4 focus areas Ammonia – ACE, import terminal for green ammonia as a Sustainable fuels – projects in LOHC – green liquid organic hydrogen carrier pilot (LOHC) Liquid hydrogen – green liquid hydrogen supply chain between Vlaardingen and Los Angel
Slide 14: Redeveloping land in Port of Antwerp
Redeveloping land in Port of Antwerp Redevelop Accelerate to make a positive contribution to the decarbonization of the industrial cluster of Antwerp Multi-modality Deep sea, river, road and rail access, as well as pipeline connections to Northwest Europe Products of the future The adjacent and futu
Slide 15: Repurposing to low carbon fuels
Repurposing to low carbon fuels Market need Existing oil assets show huge potential to be repurposed and transformed to store and handle Vlaardingen sustainable fuels and feedstocks Capacity being built for waste-based feedstocks Well positioned We have presence in the locations where import, export
Slide 16: 2022 Key Highlights
2022 Key Highlights >12% EUR 1 billion EUR 1 billion Operating cash return by 2025 Growth capex by 2030 Growth capex by 2030 IMPROVE GROW ACCELERATE performance of our our base in industrial towards new energies & portfolio & gas terminals sustainable feedstocks “During 2022, we made good progress i
Slide 17: Financial framework and performance
Shaping the future Vopak Roadshow Presentation Financial framework and performance
Slide 18: Delivering on performance improvement
Delivering on performance improvement Revenue EBITDA Operating Cash Return EUR 1,367 m. EBITDA +11% EURoperating Prop. 887 m. cash+7% flow 11.4% Prop. +1.2return operating cash %p. Growth Capital Expenditures Net debt to EBITDA Proposed Dividend EUR 313 m. EBITDA +16% 2.65x Prop. -0.28x operating ca
Slide 19: Q4 2022 Key messages
Q4 2022 Key messages Occupancy – Q4 ‘22 Revenue – Q4 ‘22 Costs – Q4 ‘22 EBITDA – Q4 ‘22 In % In EUR million In EUR million In EUR million 90 QoQ +1 pp 355 191 228 QoQ +1.6% QoQ +4.6% QoQ +0.4% Improved financial Proportional occupancy Revenues increased Costs increased due to performance slightly im
Slide 20: High EBITDA primarily due to strong performance of Americas division
High EBITDA primarily due to strong performance of Americas division EBITDA In EUR million 8 EBITDA performance 23 22 887 1 3 • EBITDA improved due to improved results in 12 5 our Americas division with mainly the US and Brazil performing well 58 • Positive currency effects also contributed to impro
Slide 21: Well diversified infrastructure portfolio
Well diversified infrastructure portfolio Americas Asia & Middle East China & North Asia 88 90 93 93 94 95 87 91 84 84 84 85 85 85 84 76.4 78.4 83.4 54.4 58.7 54.5 56.2 57.2 72.5 73.4 22.0 19.5 18.6 16.8 17.5 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2021 2022 2022 2022 2022 2021 2022 2022 2022 2
Slide 22: Strong cash flow generation
Strong cash flow generation Cash flow overview In EUR million +18% YoY • CFFO improved driven by higher dividends from 872 47 825 741 joint ventures and lower operating capex 291 664 • Other CFFI and CFFF include interest expenses 608 160 374 and interest component of leases Dividends 190 from JV 13
Slide 23: Good operational performance driving higher proportional operating cash flow
Good operational performance driving higher proportional operating cash flow Proportional cash flow (FY 2022) Proportional operating cash flow bridge In EUR million In EUR million +24% 1,068 684 384 34 11 684 40 349 335 553 68 EBITDA Operating capex Operating cash flow Growth investments Cash flow a
Slide 24: Operating cash return increased due to positive EBITDA performance and lower operating capex
Operating cash return increased due to positive EBITDA performance and lower operating capex Operating cash return1 reconciliation – YoY In EUR million Proportional EBITDA Proportional Operating cash return 1,068 Operating Capex performance 1,000 Operating cash return +7% 355 315 42% 15% -11% • 42%
Slide 25: Inflation protection through indexation clauses
Inflation protection through indexation clauses Proportional revenues containing indexation clauses Indexation clauses are mostly applied in January looking at average CPI from previous year Active management of the exposure by applying energy surcharges to the customers and having more frequent con
Slide 26: Portfolio transformation continues to improve earnings quality
Portfolio transformation to industrial and gas terminals continue to improve earnings quality Share of proportional revenue with Contract duration as a share of a contract duration > 10 years proportional revenue (%) 100% 100% 12% < 1 year 25% 27% 1-3 years 22% 34% 13% 16% 3-5 years 11% 5-10 years 1
Slide 27: Disciplined capital allocation priorities
Disciplined capital allocation priorities We focus on a robust balance sheet – Maintain a healthy leverage ratio We return value to shareholders – By a progressive dividend policy Remaining capital is spent on growth investments with attractive operating cash returns Generate total shareholder retur
Slide 28: Solid balance sheet allows us to execute our strategy
Solid balance sheet allows us to execute our strategy Senior net debt : EBITDA Interest-bearing loans Maximum covenant level of 3.75x Composition and average rate 3.75 Average floating Average fixed 2.93 3.0 rates: 3.1% rates: 3.9% 2.75 30% 2.65 2.58 2.5 FY 2019 FY 2020 FY 2021 FY 2022 70% Maintain
Slide 29: Progressive dividend policy
Progressive dividend policy Dividend and EPS* In EUR 41% 47% 48% 41% 2.80 51% 53% 55% Progressive dividend policy 2.56 2.25 2.27 2.37 2.38 2.35 aims to maintain or grow our annual dividend subject 1.15 1.20 1.25 1.30 to market conditions 1.05 1.05 1.10 2016 2017 2018 2019 2020 2021 2022 EPS* Dividen
Slide 30: Outlook drivers
Outlook drivers EBITDA outlook +77 In EUR million 950 Market Vopak indicators business 910 Continue the momentum in The storage demand indicators improved financial 887 are expected to remain performance in 2022, capturing 14 873 favorable in the first half of growth opportunities and 2023, similarl
Slide 31: Outlook
Outlook EBITDA For FY 2023 is expected to be in the range of EUR 910-950 million Short term Consolidated operating capex For FY 2023 is expected to be a maximum of EUR 300 million outlook Consolidated growth capex For FY 2023 is expected to be around EUR 300 million Operating cash return For FY 2023
Slide 32: Renewed EUR 1 billion sustainability-linked revolving credit facility
Successfully renewed a EUR 1 billion sustainability-linked revolving credit facility EUR 1 billion 12 Sustainability-linked RCF International relationship banks Safety Gender diversity in Greenhouse gas performance senior management emissions Vopak Roadshow Presentation FY 2022 32
Slide 33: Our contribution to a net-zero society
Our contribution to a net-zero society Provide critical • Contribute actively to decarbonize industrial clusters infrastructure for new 1 • Enlarge share of investments in new energies and sustainable feedstocks energies and sustainable • Focus on four areas in new energies and sustainable feedstock
Slide 34: Vopak's global GHG emissions in perspective
Vopak’s global GHG emissions in perspective ~2x the emissions of Formula 1 as a full event, ~25% of one coal-fired electricity plant and ~0.3% of the Netherlands GHG emissions Formula 1 0.26 ~2x Formula 1 as a full event per annum as a full event In million Storage & metric tons regasification Vopak
Slide 35: Reduce our own environmental and carbon footprint
Reduce our own environmental and carbon footprint Decarbonize our Interim GHG emissions reduction target of Our ambition is to net-zero by existing and future 30% by 2030 vs. 2021, which requires a 2050 operations 45-60% reduction of the current asset base GHG emissions in the Renewable electricity
Slide 36: Decarbonizing our operations and becoming net-zero – lines of action
Decarbonizing our operations and becoming net-zero – 6 lines of action Lines of action Examples Insulation of tanks and pipelines in the Netherlands, boiler economizers, variable speed drives for Energy efficiency pumps, data analytics optimizing compressor efficiency Produce renewable Solar park Ee
Slide 37: Appendix
Shaping the future XY Appendix Vopak
Slide 38: Healthy interest cover ratio and 5-year average time to maturity
Healthy interest cover ratio and 5-year average time to maturity Debt repayment schedule Interest cover In EUR million 1,400 RCF headroom 8.4 8.4 1,200 RCF drawn VTS 1,000 Subordinated loans 700 Asian PP 800 US PP 3.5x Minimum covenant level 600 419 400 273 213 200 118 141 FY ‘21 FY ‘22 70 73 47 97
Slide 39: Project timelines
Project timelines Vopak’s Capacity Country Terminal ownership Products (cbm) 2020 2021 2022 2023 2024 2025 Growth projects Existing terminals United States Los Angeles 100% Renewable fuels 148,000 Netherlands Vlaardingen 100% Renewable feedstocks 64,000 Belgium Antwerp 100% Chemicals 41,000 Brazil A
Slide 40: Strategic terminal types
Strategic terminal types Energy Manufacturing New energies & Gas terminals Industrial terminals Chemical terminals Oil terminals feedstocks • Accelerate infrastructure • Contribute to the energy • Petrochemical clusters are • Vopak operates a global • Hub terminals are located solutions for the worl
Slide 41: Ammonia terminal for import of hydrogen carrier
Ammonia terminal for import of hydrogen carrier Products: green ammonia as hydrogen carrier Partners: Gasunie, HES International and Vopak Start 2021 – Operational 2026 Possible services: storage, cracking, break-bulk, pipeline integration with Northwest European industrial areas End-use: industry a
Slide 42: LNG terminal strengthening supply security
LNG terminal strengthening supply security Product: high-calorific liquefied natural gas (LNG) Shareholding: Gasunie (50%) and Vopak (50%) Services: storage, regasification, truck and vessel loading, ship-to-ship transfer, bio-LNG End-use: power and industry Gate terminal in the Netherlands Storage:
Slide 43: Industrial terminal integrated with petrochemical complex
Industrial terminal integrated with petrochemical complex Product: chemicals and base oils Services: storage, blending, integrated pipeline systems with Vopak Sakra terminal in Singapore industrial complex, trucking, drumming, heating and chilling End-use: manufacturing, wide range of consumer goods
Slide 44: Vopak Industrial Infrastructure
Vopak Industrial Infrastructure 1. Serves feedstock and rundown from/to Refineries, Crackers and Single or multi-customer Industrial Terminal Chemical Plants 2. Handles all shipping operations: loading and unloading of vessels 3. Transfers between terminal and plant(s), built to specific needs of pl
Slide 45: Typical ITL contracting
Typical ITL contracting Lease Long-term between 10 to 25 years Term Stable revenues with fixed “take-or-pay”, Fee variable OPEX and energy & utilities Structure (pass-through or with markup) Fixed Fee adjustment in consideration of Renewal investment capex recovery Vopak Roadshow Presentation FY 202
Slide 46: Vopak Industrial Infrastructure Americas
Vopak Industrial Infrastructure Americas Product: chemicals, oil products, biofuels, base oils and Freeport lubricants Shareholding: BlackRock (50%) and Vopak (50%) Services: storage, blending, integrated pipeline systems with industrial complex End-use: manufacturing, wide range of consumer goods S
Slide 47: Chemicals distribution terminal
Chemicals distribution terminal Products: chemicals including acetyls, acrylics, solvents and acids Services: import, export, distributing, blending End-use: manufacturing for a wide range of products like paints, Vopak ACS terminal in Antwerp Belgium adhesives and packaging Storage: 203 thousand cb
Slide 48: Oil hub terminal
Oil hub terminal Products: crude and oil products Services: storage, blending and heating Vopak Sebarok terminal in Singapore End-use: industry and mobility Storage: 1.3 million cbm (83 tanks) Access for barges - break bulk distribution Access for seagoing vessels - long haul Hub, import, shipments
Slide 49: Fuel distribution terminal
Fuel distribution terminal Products: oil products Services: storage, distribution and truck loading Vopak Lesedi terminal in South Africa End-use: mobility Storage: 100 thousand cbm (6 tanks) Johannesburg Lesedi Truck loading bays for inland distribution Durban Solar Fuel supply to panels Johannesbu
Slide 50: Americas developments
Americas developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 0.5 Q4 2022 91 93 93 94 95 96.3 98.2 97.7 94.8 0.9 4.7 million cbm 86.7 3.3 Subsidiaries Joint ventures & associates Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2021 2022 2022 2022 2
Slide 51: Asia & Middle East developments
Asia & Middle East developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q4 2022 84 84 84 88 90 85.9 85.8 3.3 4.2 74.6 78.2 78.8 16.8 million cbm 9.3 Subsidiaries Joint ventures & associates Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2021 2022
Slide 52: China & North Asia developments
China & North Asia developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q4 2022 85 85 87 85 84 0.8 3.2 million cbm 11.9 13.0 13.3 13.5 11.7 2.4 Subsidiaries Joint ventures & associates Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2021 2022 2022
Slide 53: Europe & Africa developments
Europe & Africa developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 1.3 Q4 2022 86 87 87 89 151.1 158.6 79 141.3 136.7 147.0 10.6 million cbm 9.3 Subsidiaries Joint ventures & associates Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2021 2022 20
Slide 54: JVs & associates developments
JVs & associates developments* Net result JVs and associates Americas Asia & Middle East In EUR million In EUR million In EUR million 57.6 53.2 47.1 51.0 43.4 23.2 22.8 19.2 18.4 18.6 4.4 4.5 3.8 3.3 2.9 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2021 2022 2022 2022 2022 2021 2022 2022 2022 2022 2