Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Q1 2024 Earnings Presentation
35 slides from Royal Vopak Nv's earnings presentation, Apr 24, 2024
Slide 1: Q1 2024 Analyst presentation
Q1 2024 Analyst presentation Shaping the future to help the world flow forward 24 April 2024
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: Vopak Q1 2024 Results - CEO Dick Richelle
Vopak Q1 2024 Results CEO - Dick Richelle Vopak Q1 2024 Analyst presentation 3
Slide 4: Q1 2024 Key Highlights
Q1 2024 Key Highlights >12% EUR 1 billion EUR 1 billion Operating cash return Growth capex by 2030 Growth capex by 2030 Improve Grow Accelerate performance of our base in industrial towards new energies & our portfolio & gas terminals sustainable feedstocks Favorable storage markets resulting in a s
Slide 5: Market dynamics
Solid market demand for our services Gas New energies & Energy Manufacturing sustainable feedstocks Market dynamics Lower LNG demand in Europe and Asia High demand for low-carbon fuels Market fundamentals remain healthy Chemical markets continued to be mainly due to mild winter infrastructure driven
Slide 6: Improved portfolio performance
Improved portfolio performance Proportional EBITDA EBITDA performance In EUR million Excluding exceptional items Improve Grow • Adjusted for divestment impact +12 EUR million EBITDA increased to EUR 298 million a 9% increase compare to 298 Q1 2023 294 • Healthy proportional occupancy 18 rate of 93%
Slide 7: Continuous effort to improve on our sustainability goals
Continuous effort to improve on our sustainability goals Reduce emissions Renewable energy Renewable electricity Scope 1 & 2 emissions (in MT) Renewable energy as % of Number of terminals total energy using green electricity 577 63 66 35 517 31 55 433 21 2021 2022 2023 2021 2022 2023 2022 2023 YTD 2
Slide 8: Creating connections in India
Creating connections in India Hindustan Aegis LPG Kandla 50k cbm 870k cbm + 28k cbm Distribution terminal for gas (LPG) ~1.8M cbm Six distribution terminals storing and ~1.3M cbm +38% handling chemicals, gas (LPG) and vegoils Pipavav 117k cbm + 96k cbm 2021 2025E Distribution terminal storing and ha
Slide 9: Accelerating towards new energies and low-carbon fuels and feedstocks
Accelerating towards new energies and low-carbon fuels and feedstocks Houston, the USA Vlaardingen, the Netherlands Entering the electricity storage Additional 34k cbm capacity is being market in the USA repurposed Los Angeles, the USA Commissioned repurposed infrastructure for low-carbon Vopak Ener
Slide 10: Strong cash generation to return cash to shareholders and finance growth
Strong cash generation to return cash to shareholders and finance growth Robust balance sheet Shareholder distribution Confirming growth outlook • Low leverage of 1.76x creates opportunities to capture • Proposed dividend of EUR 1.50 per share • Confirming consolidated growth capex outlook of growth
Slide 11: Positioned for the future of energy
Positioned for the future of energy Vopak is capturing the opportunities in the energy transition today and tomorrow We deliver Proven track record of execution • Strong Q1 2024 results driven by favorable storage demand indicators in all markets • Actively managing our portfolio towards healthy and
Slide 12: Vopak Q1 2024 Results - CFO Michiel Gilsing
Vopak Q1 2024 Results CFO – Michiel Gilsing Vopak Q1 2024 Analyst presentation 12
Slide 13: Delivering on our Shaping the future strategy
Delivering on our Shaping the future strategy Improve The performance of our portfolio Delivering on performance improvement >12% operating cash return Strong, stable, and long-term cash flows Grow our base in industrial & gas terminals Strong long-term fundamentals EUR 1 billion growth capex by 203
Slide 14: Delivering on performance improvement
Delivering on performance improvement Proportional EBITDA Proportional Operating Excluding exceptional items EBITDA occupancy rate Cash Return Excluding exceptional items +1 p.p. 93% 92% +1.6 p.p. 294 298 249 17.0% 21 +9% 235 21 +3% 15.4% 273 228 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 20
Slide 15: Q1 2024 key messages
Q1 2024 key messages Prop. Occupancy – Q1 2024 Revenues – Q1 2024 In % In EUR million 93% 328 +2 p.p vs. Q4 2023 -7.0% vs. Q4 2023 Increased proportional occupancy Adjusted for divestment impact of rates mainly related to reduced EUR 26 million revenues base capacity in Europoort remained stable Ope
Slide 16: Delivering on performance improvement
Delivering on performance improvement Proportional EBITDA In EUR million EBITDA performance Excluding exceptional items 298 • Robust demand for our services 294 mainly driven by a higher 5 demand for energy, and 18 rerouting of supply chains • Proportional EBITDA growth in most of the Business Units
Slide 17: Strong cash flow generation
Strong cash flow generation Cashflow Q1 2024 in EUR million Cash flow performance % of CFFO gross 276 31% • Cash generation improvements sufficient to fund company needs 220 86 • Share buyback program and 14% growth capex funded by strong 153 190 cash generation 40 3% 23% • Dividend upstream from jo
Slide 18: FY24 EBITDA outlook
FY24 EBITDA outlook Updated outlook as Previous outlook as Market indicators per Q1 2024 per FY 2023 Strong start of the year, with firm demand for storage infrastructure Business performance Proportional EBITDA EUR 1,140 – 1,180 EUR 1,120 – 1,170 Continue the momentum in improving financial and sus
Slide 19: Revised 2024 outlook
Revised 2024 outlook Proportional EBITDA For FY 2024 is expected to be in the range of EUR 1,140 – 1,180 million Consolidated EBITDA For FY 2024 is expected to be in the range of EUR 900 – 940 million Short-term Consolidated growth capex For FY 2024 is expected to be around EUR 300 million Consolida
Slide 20: Strong long-term fundamentals
Strong long-term fundamentals Vopak is well-positioned to capture growth opportunities driven by its strong financial position We deliver Resilient financial performance • Assets that generate strong, stable, and long-term cash flows • Actively managing the portfolio towards healthy returns We creat
Slide 21: Vopak Q1 2024 Results Appendix
Vopak Q1 2024 Results Appendix Vopak Q1 2024 Analyst presentation 21
Slide 22: Well-diversified infrastructure portfolio - Business Units
Well-diversified infrastructure portfolio Business Units Asia & Middle East China & North Asia Netherlands 91 91 92 90 93 92 91 92 92 91 85 87 82 82 83 69.5 72.3 77.9 69.3 37.2 57.5 29.5 33.8 32.8 33.3 18.7 17.5 18.1 15.8 15.0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2023 2024 202
Slide 23: Asia & Middle East developments
Asia & Middle East developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 0.8 Q1 2024 1.8 92 91 92 92 91 19.2 18.3 18.1 19.6 19.6 12.2 million cbm Subsidiaries Joint ventures & associates Operatorships 9.6 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2023 2023
Slide 24: China & North Asia developments
China & North Asia developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q1 2024 85 82 82 83 87 0.8 3.2 million cbm 12.2 11.2 11.7 12.8 10.1 Subsidiaries Joint ventures & associates 2.4 Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2023 2023 2023
Slide 25: Netherlands developments
Netherlands developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q1 2024 91 91 92 90 93 1.4 7.8 million cbm 115.5 115.3 119.2 108.9 82.6 Subsidiaries Joint ventures & associates 6.4 Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2023 2023 2023 202
Slide 26: Singapore developments
Singapore developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q1 2024 96 97 93 93 93 71.8 72.8 70.2 70.4 72.0 1.5 4.8 million cbm Subsidiaries 3.3 Joint ventures & associates Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2023 2024
Slide 27: USA & Canada developments
USA & Canada developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q1 2024 95 91 92 95 95 61.0 0.8 2.8 million cbm 57.1 57.9 58.0 53.2 Subsidiaries 2.0 Joint ventures & associates Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2023 2
Slide 28: Other business units developments
Other business units developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q1 2024 94 93 93 93 92 0.5 3.2 million cbm 80.4 82.5 80.1 81.4 81.0 0.5 Subsidiaries 2.2 Joint ventures & associates Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2023 2023
Slide 29: JVs & associates developments
JVs & associates developments Net result JVs and associates Net result Asia & Middle East Net result China & North Asia Net result Netherlands In EUR million In EUR million In EUR million In EUR million 53.0 55.5 54.2 55.3 49.8 12.0 23.4 23.4 11.2 11.0 11.2 11.1 10.3 10.5 11.3 21.8 20.2 10.1 10.0 16
Slide 30: Stable cash flow generation across the portfolio
Stable cash flow generation across the portfolio Proportional EBITDA Proportional Operating Cash Flow JV dividend upstream In EUR million In EUR million As % of JV & Associates net income 1,154 795 107% 213 1,068 981 961 1,000 684 177 186 82% 604 166 42% 558 553 42% 52% 40% 42% 42% 57% 57% 81% 72% 6
Slide 31: Project timelines of new capacity
Project timelines of new capacity Vopak’s Capacity Country Terminal ownership Products (cbm) 2020 2021 2022 2023 2024 2025 2026 Growth projects Existing terminals Belgium Antwerp 100% Chemicals 41,000 Brazil Alemoa 100% Chemicals 30,000 China Caojing 50% Industrial terminal 110,000 India Aegis termi
Slide 32: Well-spread maturity profile
Well-spread maturity profile Debt repayment schedule Per Q1 2024 In EUR million 1,400 1,300 1,200 1,100 1,000 900 800 1,000 700 600 500 400 300 0 137 200 44 270 255 72 100 168 169 163 70 116 118 96 75 123 0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2040 RCF headroom RCF VTS Subordi
Slide 33: Alternative performance measures
Alternative performance measures To supplement Vopak’s financial information presented in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union (EU), management periodically uses certain alternative performance measures (APMs), as such term is define
Slide 34: Glossary (I)
Glossary (I) Average proportional capital employed Consolidated investment and financial commitment Exceptional items Is defined as proportional total assets excluding assets and Consolidated investment and financial commitment is Exceptional items are non-recurring gains and losses current liabilit
Slide 35: Glossary (II)
Glossary (II) FID Proportional growth capex • Proportional operating cash flow is pre-tax, excludes Final Investment Decision Proportional growth capex is defined as Consolidated growth capex, derivative movements and working growth capex adjusted for: capital movements; IFRS • Investments in proper