Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Non-Deal Roadshow (March 2024)
74 slides from Royal Vopak Nv's roadshow presentation, Mar 12, 2024
Slide 1: Q3 2024 Roadshow presentation
Q3 2024 Roadshow presentation Shaping the future to help the world flow forward
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: We help the world flow forward
We help the world We deliver flow forward We provide safe storage and infrastructure for vital liquids and gases. Our trusted professionals ensure that they are available in the right place, at the right time. We drive progress We create connections We proudly serve a growing world We are entreprene
Slide 4: Vopak at a glance: A leading global independent liquid bulk storage provider
Vopak at a glance: A leading global independent liquid bulk storage provider Strategic terminal types Energy Manufacturing New energies Gas Industrial Chemical Oil and feedstocks terminals terminals terminals terminals 5.22bn 1,942mm 1,154mm 1.50 Market Cap1 Prop. revenue Prop. EBITDA Dividend per s
Slide 5: Well-positioned to leverage the strong market fundamentals and energy transition opportunities
Well-positioned to leverage the strong market fundamentals and energy transition opportunities Macroeconomic and end market developments Business impact Additional storage requirements to optimize supply chains Global energy demand Energy and supply security > +8% by 20301 > As result of geopolitica
Slide 6: Well-diversified portfolio supports energy security and energy transition
Well-diversified portfolio supports energy security and energy transition We deliver We create connections an independent network partnerships that matter 77 23 5,500+ terminals countries professionals around the 1,000+ customers world We drive progress future focused capabilities 35+ joint venture
Slide 7: Grow LNG and LPG infrastructure for today's energy security and growing energy demand
Grow LNG and LPG infrastructure for today’s energy security and growing energy demand Grow Market opportunities Network that delivers Capabilities to drive progress Global energy demand and imbalance in gas Reputation and proven track record in developing, Investing and expanding the network by ensu
Slide 8: Unique assets strategically positioned to capture opportunities in LNG and LPG
Unique assets strategically positioned to capture opportunities in LNG and LPG Hub terminal Terminal Market opportunities in LNG and LPG 8 Vopak Q3 2024 roadshow presentation
Slide 9: Growing our footprint in industrial clusters
Growing our footprint in industrial clusters Grow Market opportunities Network that delivers Capabilities to drive progress Global manufacturing market will continue to grow Reputation and proven track record in developing Expansion opportunities in existing locations, exploring terminals in the big
Slide 10: Unique assets strategically positioned to capture opportunities in industrial terminals
Unique assets strategically positioned to capture opportunities in industrial terminals Hub terminal Terminal Market opportunities in Industrial 10 Vopak Q3 2024 roadshow presentation
Slide 11: Opportunities in all phases of decarbonization journey
Opportunities in all phases of Next generation fuels decarbonization journey Ammonia as H2 carrier Renewable fuels & Hydrogen feedstocks electrolysis Generating wind & solar New Hydrogen carriers Electricity storage Large-scale electrification Carbon capture Gas replacing coal New gas capacity Repur
Slide 12: Unique assets strategically positioned to capture opportunities in biofuels
Unique assets strategically positioned to capture opportunities in biofuels Hub terminal Terminal Market opportunities in biofuels Vopak Q3 2024 roadshow presentation 12
Slide 13: Unique assets strategically positioned to capture opportunities in ammonia
Unique assets strategically positioned to capture opportunities in ammonia Hub terminal Terminal Market opportunities in ammonia Vopak Q3 2024 roadshow presentation 13
Slide 14: Decarbonizing our operations and becoming net-zero – lines of action
Decarbonizing our operations and becoming net-zero – 5 lines of action Lines of action Examples Apply heat tracing optimization, pump performance programs (e.g. Vlaardingen), steam system segregation, Energy efficiency optimization flameless thermal oxidizer, LED lighting Renewable energy Use of sol
Slide 15: Delivering on improvements with our sustainability performance
Delivering on improvements with our sustainability performance Topic Target and actual score FY 2023 0.16 Total Injury Rate 2024 0.22 Process Safety Event Rate FY 2023 0.09 2024 0.13 Reduction of GHG emissions FY 2023 -25% (% reduction of scope 1 & 2 vs. 2021) 2030 -30% VOC emission FY 2023 -34% (%
Slide 16: ESG benchmarks
ESG benchmarks Rating: Rating: Rating: (Scale: CCC to AAA) (scale: 1 low risk to 10 high risk) (Scale: 0 to 50 high exposure) • Consensus has not been reached, particularly on the AAA Environmental 25.1 inclusion or exclusion of the use phase emissions of the 3 Rank in the Refiners & LNG we store an
Slide 17: Our capability to be a partner in low-carbon storage
Our capability to be a partner in low-carbon storage OUR STRENGTH OUR PLAN Infrastructure in highly strategic Strengthen our existing network to deliver by locations repurposing some of the current infrastructure Extensive connections with partners Leverage the connections to develop and customers b
Slide 18: Shaping the future
Shaping the future Vopak Q3 2024 Vopak Q3 2024 roadshow presentation 18
Slide 19: Delivering on our strategy
Delivering on our strategy >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 Proportional EBITDA increased to EUR 8
Slide 20: Market dynamics
Solid market demand for our services Gas New energies & Energy Manufacturing sustainable feedstocks LNG demand growth driven by Asian Oversupply of low-carbon products in the Market fundamentals remain healthy, Chemical markets continued to be Market dynamics markets, Europe remains well-supplied ma
Slide 21: Improved portfolio performance
Improved portfolio performance Proportional EBITDA In EUR million Prop. EBITDA performance Excluding exceptional items Grow Improve +30 EUR million • Healthy proportional occupancy rate 22 18 of 92% driven by favorable demand 7 894 across different product markets 16 872 10 • Higher expenses driven
Slide 22: Growing our base in industrial and gas terminals
Growing our base in industrial and gas terminals Gate terminal, the Netherlands 891 EUR million Growth in gas terminals Industrial expansions • Terminals provide security of supply of • Supporting our customers in key Committed investments energy and feedstocks industrial clusters around the world s
Slide 23: Delivering growth with strategic investments in gas terminals
Delivering growth with strategic investments in gas terminals Increase capital employed in gas terminals Large scale LPG export facility in Prince Rupert, Western Canada Proportional capital employed in gas terminals In EUR million 95K cbm Fully committed capacity and underpinned by a long-term comm
Slide 24: Commissioning new industrial terminal
Commissioning new industrial terminal Huizhou terminal, China Commissioning new industrial capacity… … growing in industrial terminals in China… … and expanding the industrial network worldwide • Greenfield 560k cbm terminal in a new location • A total of 4 industrial terminals in China with 2.3 mil
Slide 25: Funding growth in our joint venture in India
Funding growth in our joint venture in India Kandla 2022 Together with Aegis we created the largest independent tank storage operator in India Pipavav Mumbai Haldia 1.5m cbm Existing capacity in 6 ports, strategically located along the Indian coast Mangalore Funding growth Liquid products capacity A
Slide 26: Portfolio transition leading to high quality earnings
Portfolio transition leading to high quality earnings ~5% Operating Cash Return ~5% On proportional basis ~25% ~30% Average Average 16.2% Capital prop. capital prop. capital 14.4% ~50% employed employed employed 12.6% 12.3% YTD 2014 ~40% YTD 2024 11.1% 11.3% ~25% ~20% Gas & New Energies Industrial C
Slide 27: Accelerating towards new energies
Accelerating towards new energies Redeveloping and preparing a strategic and well-connected plot of land in Antwerp February, 2023 October, 2024 Access to strategic plot of land Developing for green methanol and ammonia • Acquiring Gunvor refinery of 105 hectares in size with deep-sea, river, road •
Slide 28: 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 • Continued strong results year to date • Reached an agreement for primary equity issue and continuing to explore options to fund growth in
Slide 29: Financial framework
Financial framework Vopak Q3 2024 Vopak Q3 2024 roadshow presentation 29
Slide 30: Delivering on performance improvement
Delivering on performance improvement Proportional EBITDA Proportional Operating Excluding exceptional items EBITDA occupancy rate Cash Return Excluding exceptional items 894 872 735 +1 p.p. 720 63 +11% 64 92% +7% 91% +1.8 p.p. 16.2% 809 671 14.4% YTD Q3 2023 YTD Q3 2024 YTD Q3 2023 YTD Q3 2024 YTD
Slide 31: Q3 2024 key messages
Q3 2024 key messages Prop. Occupancy – Q3 2024 Revenues – Q3 2024 In % In EUR million 92% 325 +0 p.p. vs. Q2 2024 -0.3% vs. Q2 2024 Stable proportional occupancy, Stable revenues on the back of driven by strong performance in favorable energy markets, despite energy markets some weaknesses in chemic
Slide 32: Delivering on performance improvement
Delivering on performance improvement Proportional EBITDA In EUR million EBITDA performance Excluding exceptional items 1 5 8 • Healthy demand for our 8 7 894 services across main 2 7 geographies 872 15 • Strong performance in Asia & Middle East, driven by favorable energy markets 63 62 • Strong con
Slide 33: Strong business performance leading to improved returns
Strong business performance leading to improved returns Proportional EBITDA YTD Q3 2024 in EUR million % change YoY vs YTD Q3 2023 – adjusted for divestment impact +5% +11% 894 +3% 355 90 +2% 221 +42% 172 236 Gas Industrial Chemicals Oil Other Total • Gas terminals showed • Solid throughput levels i
Slide 34: Strong cash flow generation supporting capital allocation policy
Strong cash flow generation supporting capital allocation policy Cashflow YTD Q3 2024 in EUR million Cash flow performance % of CFFO gross +8% 21% 736 • EBITDA growth when 680 20% adjusted for divestments 158 578 supported cash flow 29% 504 148 518 • Strong dividend upstreaming 215 33% from joint-ve
Slide 35: Unlocking value in our joint-venture in India
Unlocking value in our joint-venture in India 3.4% Of AVTL share sold in a primary equity issue 88 EUR mln. Transaction amount 47.3% Vopak’s shareholding following primary equity issue Vopak Q3 2024 roadshow Vopak Q3 2024 roadshow presentation 35 35 presentation
Slide 36: Financial framework Vopak FY 2023
Financial framework Vopak FY 2023 Vopak Q3 2024 roadshow presentation 36
Slide 37: Delivering on performance improvement
Delivering on performance improvement EBITDA Proportional Proportional Operating Excluding exceptional items EBITDA occupancy rate Cash Return Excluding exceptional items +8% +3 p.p. +2.6 p.p. +9% 1,154 91% 14.0% 964 887 1,068 88% 11.4% 2022 2023 2022 2023 2022 2023 2022 2023 EBITDA margin Prop. EBI
Slide 38: Growing earnings and return to shareholders
Growing earnings and return to shareholders Earnings per Total net debt Dividend per Robust fundamentals share (EPS) to EBITDA share Excluding exceptional items • Growing earnings through projects and autonomous growth of the +40% +15% business 3.29 -0.86x 2.85x 1.50 • Reduced leverage driven by hea
Slide 39: Delivering on performance improvement
Delivering on performance improvement Proportional EBITDA In EUR million EBITDA performance Excluding exceptional items 11 1,154 24 • EBITDA growth in most of the Business Units, mainly in the Netherlands and Singapore 27 • Negative divestment effect offset 10 by better performance of the three chem
Slide 40: Strong cash flow generation
Strong cash flow generation Cashflow FY 2023 in EUR million Cash flow performance % of CFFO gross 20% • Cash generation improvements 898 900 sufficient to fund company needs 185 28% 715 • Dividend and growth capex fully funded by strong cash generation 625 255 690 726 22% • Dividend paid to sharehol
Slide 41: Well-positioned towards higher cash returns
Well-positioned towards higher cash returns Operating cash return1 average by terminal type Development in %, excluding the corporate cost allocation and FY 2022 FY 2023 other • Average returns per terminal type improved ~20% ~18% • Chemical terminal performance improved ~16% ~16% due to portfolio a
Slide 42: Creating value per share
Creating value per share Earnings per Proportional EBITDA Proportional free Proportional debt share (EPS) per share operating cash flow per share Excluding exceptional items per share +38% +15% +44% -10% 3.29 9.20 6.34 31.67 33.56 7.97 8.52 5.46 28.58 2.38 2.35 4.41 2021 2022 2023 2021 2022 2023 202
Slide 43: Returning value to shareholders
Returning value to shareholders Shareholder returns over time Dividend Share buyback program Dividend payout ratio 41% 51% 53% 55% 46% 489 246 300 100 163 +29% 157 189 151 146 2019 2020 2021 2022 2023 • Stable to progressive dividend policy, increasing dividend payout since 2019 • Share buyback prog
Slide 44: Updated FY24 outlook
Updated FY24 outlook Market indicators Updated outlook as Previous outlook as Strong start of the year, with firm demand for storage infrastructure per Q3 2024 per Q2 2024 Business performance Proportional EBITDA EUR 1,160 – 1,180 EUR 1,150 – 1,180 Continue the momentum in improving financial and su
Slide 45: Updated 2024 outlook
Updated 2024 outlook Proportional EBITDA For FY 2024 is expected to be in the range of EUR 1,160 – 1,180 million Consolidated EBITDA For FY 2024 is expected to be in the range of EUR 930 – 950 million Short-term Consolidated growth capex For FY 2024 is expected to be around EUR 350 million Consolida
Slide 46: Financial framework Capital allocation
Financial framework Capital allocation Vopak Q3 2024 roadshow presentation 46
Slide 47: Disciplined capital allocation
Disciplined capital allocation Driving value through accretive growth investments Capital allocation policy with discipline on shareholder returns We focus on a robust balance sheet – Maintain a healthy leverage ratio Target achieved: 2.28x net debt / EBITDA YTD Q3 2024 which is below target range 2
Slide 48: Growth capex allocated towards accretive investments
Growth capex allocated towards accretive investments Return Allocation Timing Investments multiples1 per segment EUR 1 billion towards new energies & Of allocating EUR 2 billion in growth and brownfield and greenfield (excl. M&A) sustainable feedstocks accelerate. Gas 5-7x 80-90% Majority of growth
Slide 49: Growth capex allocated towards accretive investments
Growth capex allocated towards accretive investments >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 In Belgium,
Slide 50: Adapting the portfolio to evolving market dynamics
Adapting the portfolio to evolving market dynamics Proportional capital employed per product category1 in % • Portfolio well-positioned to capture opportunities 10-15% 20-25% 25-30% 25-30% 35-40% • Share of oil and chemical expected to 15-20% reduce overtime as new energies 20-25% 20-25% 20-25% inve
Slide 51: 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 • New capital raised to support our growth ambitions in India We c
Slide 52: Appendix
Appendix Vopak Q3 2024 roadshow presentation 52
Slide 53: Funding ventures facilitating new sustainable solutions
Funding ventures facilitating new sustainable solutions With the Vopak Ventures New Energies, Feedstocks & Sustainability fund, we focus on funding ventures facilitating new sustainable solutions in areas such as zero emission fuels, green feedstocks, recycling solutions and flow batteries Operation
Slide 54: 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 2027 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
Slide 55: Well-spread maturity profile
Well-spread maturity profile Debt repayment schedule In EUR million 1,200 1,100 1,000 900 800 700 850 600 500 400 300 140 150 200 261 67 247 70 100 164 164 163 112 115 95 75 126 0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2040 RCF headroom RCF VTS Subordinated loans Asian PP US PP
Slide 56: Vopak's role in the value chain
Vopak’s role in the value chain How we help the world Supply chain links where Vopak plays a role flow forward We provide independent, open-access storage Gas (LNG + LPG) and regasification infrastructure for LNG. Gas production and liquefaction Storage Transport Storage Regasify LNG Distribution to
Slide 57: 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 58: Gas
Gas LNG terminal strengthening supply security EemsEnergyTerminal in the Netherlands 1 Financial metrics are calculated excluding cost of global functions 2 On proportional basis 3 Numbers as per Annual Report 2023 Vopak Q3 2024 roadshow presentation 58
Slide 59: Industrial
Industrial Industrial terminal integrated with petrochemical complex Vopak Shanghai – Caojing Terminal in China 1 Financial metrics are calculated excluding cost of global functions 2 On proportional basis 3 Numbers as per Annual Report 2023 Vopak Q3 2024 roadshow presentation 59
Slide 60: Chemicals
Chemicals Chemical distribution terminal Vopak ACS terminal in Antwerp Belgium 1 Financial metrics are calculated excluding cost of global functions 2 On proportional basis 3 Numbers as per Annual Report 2023 Vopak Q3 2024 roadshow presentation 60
Slide 61: Oil
Oil Oil hub terminal Vopak terminal Europoort in the Netherlands 1 Financial metrics are calculated excluding cost of global functions 2 On proportional basis 3 Numbers as per Annual Report 2023 Vopak Q3 2024 roadshow presentation 61
Slide 62: Well-diversified infrastructure portfolio Business Units
Well-diversified infrastructure portfolio Business Units Asia & Middle East China & North Asia Netherlands 92 90 93 94 95 92 92 91 91 91 87 82 83 83 81 77.9 69.3 46.5 39.3 57.5 56.3 58.3 33.8 32.8 33.3 17.5 18.1 17.7 15.0 14.6 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024 2024 202
Slide 63: Asia & Middle East developments
Asia & Middle East developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 0.8 Q3 2024 1.8 92 92 91 91 91 18.1 19.6 19.6 19.9 19.4 12.2 million cbm Subsidiaries Joint ventures & associates Operatorships 9.6 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2023
Slide 64: China & North Asia developments
China & North Asia developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q3 2024 82 83 87 83 0.7 81 3.6 million cbm 12.8 10.1 11.7 11.3 9.6 Subsidiaries Joint ventures & associates 2.9 Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2
Slide 65: Netherlands developments
Netherlands developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q3 2024 95 119.2 108.9 1.4 92 90 93 94 7.8 million cbm 82.6 81.9 84.5 Subsidiaries Joint ventures & associates 6.4 Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024
Slide 66: Singapore developments
Singapore developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q3 2024 93 93 93 95 93 70.2 70.4 72.0 73.0 72.7 1.5 4.8 million cbm Subsidiaries 3.3 Joint ventures & associates Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024 2024
Slide 67: USA & Canada developments
USA & Canada developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q3 2024 92 95 95 95 97 57.9 58.0 58.0 57.6 0.8 2.7 million cbm 53.2 Subsidiaries 1.9 Joint ventures & associates Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024 2
Slide 68: Other business units developments
Other business units developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q3 2024 93 93 81.4 0.5 92 90 91 80.1 81.0 79.1 78.7 3.3 million cbm 0.5 Subsidiaries 2.3 Joint ventures & associates Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2023
Slide 69: JVs & associates developments
JVs & associates developments Result JVs and associates Result JVs & Associates Result JVs & Associates Result JVs & Associates In EUR million Asia & Middle East China & North Asia Netherlands In EUR million In EUR million In EUR million 67.7 55.5 54.2 55.3 60.1 12.0 33.7 12.3 10.5 11.3 10.6 10.1 11
Slide 70: 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 1,068 107% 961 1,000 684 127% 894 648 186 42% 558 553 166 42% 52% 42% 42% 57% 54% 82% 47% 60% 65% 81%
Slide 71: 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 72: Glossary (I)
Glossary (I) Average proportional capital employed Is defined as proportional total assets excluding assets and current EBIT - Earnings Before Interest and Tax Events for which a threshold of EUR 10 million is applied: liabilities not related to operational activities, excluding IFRS 16 lessee Net i
Slide 73: Glossary (II)
Glossary (II) Proportional Divided by 12-month rolling proportional EBITDA, excluding: Storage capacity Proportional is defined as the economic interest Vopak has in a joint • IFRS 16 adjustments in operating expenses for former operating Storage capacity at the end of the period consists of 100% ca
Slide 74: Thank you
Thank you www.vopak.com Royal Vopak HQ Westerlaan 10 3016 CK - Rotterdam The Netherlands 74