Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Non-Deal Roadshow (April 2023)
54 slides from Royal Vopak Nv's roadshow presentation, Apr 9, 2023
Slide 1: Vopak Roadshow Presentation HY1 2023
Shaping the future Vopak Roadshow Presentation HY1 2023 Vopak Roadshow Presentation HY1 2023 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 HY1 2023 4 Gas product segment incl
Slide 5: Diversified portfolio with 77 terminals across 23 countries around the globe
Diversified portfolio with 77 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 Indu
Slide 6: HY1 2023 Key Highlights
HY1 2023 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 our base in industrial towards new energies & portfolio & gas terminals sustainable feedstocks EBITDA increased by EUR 61 Solidifying ou
Slide 7: Solid market demand across our services
Solid market demand across our services New energies Gas & sustainable Energy Manufacturing feedstocks ● LNG market normalized ● Momentum for hydrogen ● Volatile oil markets ● Growth in global industrial during the first half of 2023. continues to accelerate. resulting from new patterns production c
Slide 8: Actively managing our portfolio
Actively managing our portfolio Solid market demand across our services Rationalize the Transform the portfolio portfolio Completed the divestments of Savannah Transforming our Eurotank terminal by chemical terminals and Agencies business. rebuilding 41k cbm. Received offers for the divestment of th
Slide 9: Improve portfolio performance
Improve portfolio performance Improve Grow EBITDA EBITDA performance In EUR million • EBITDA of EUR 494 million in HY1 2023, supported 9 by improved market conditions. 30 6 494 30 • Improved performance of oil and chemicals. 433 53 • Gas continue to perform well in normalized market. 2 5 • Energy an
Slide 10: Solidifying our leading position in industrial clusters
Solidifying our leading position in industrial clusters Repurposing existing capacity into vegetable oil Solidifying our leading industrial terminal storage in Deer Park terminal position in Singapore Creating a long-term industrial integration between Repurposing and expanding current capacity to B
Slide 11: Growing Vopak's footprint in gas terminals
Growing Vopak’s footprint in gas terminals A new partnership with EemsEnergy Terminal (8 bcma) AltaGas for LPG and bulk New floating LNG terminal in Eemshaven to enhance liquids export facility in gas supply security, operational since September 2022. +40% Prince Rupert, West Gate terminal (16+4 bcm
Slide 12: Accelerating in new energies and sustainable feedstocks
Accelerating in new energies and sustainable feedstocks 4 focus areas Hydrogen Low carbon fuels and feedstocks CO2 infrastructure Commissioned new Long duration energy storage Redeveloping capacity for biofuels land in Antwerp in Vlaardingen Vopak Roadshow Presentation HY1 2023 12
Slide 13: HY1 2023 Key Highlights
HY1 2023 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 our base in industrial towards new energies & portfolio & gas terminals sustainable feedstocks “We continued to make good progress on ou
Slide 14: Financial framework and performance
Shaping the future Vopak Roadshow Presentation HY1 2023 Financial framework and performance
Slide 15: Financial focus areas
Financial focus areas Strong financial business Improved cash flow Solid Disciplined capital performance generation balance sheet allocation Improve performance of the portfolio Vopak Roadshow Presentation HY1 2023 15
Slide 16: Delivering on performance improvement in first half year 2023
Delivering on performance improvement in first half year 2023 Revenue EBITDA Proportional occupancy EUR 721 m. EBITDA +9% EURoperating Prop. 494 m. cash+14% flow 91% Prop. +5 return operating cash %p. Operating Cash Return Growth capital expenditures1 Total net debt to EBITDA 14.6% +3.2 p.p. EUR 149
Slide 17: Q2 2023 Key messages
Q2 2023 Key messages EBITDA – Q2 ‘23 Occupancy – Q2 ‘23 Costs – Q2 ‘23 OCR – Q2 ‘23 In EUR million % In EUR million % 245QoQ -2% 91 QoQ -1%p 174QoQ ~0% 13.7 QoQ -1.7%p Stable financial Proportional occupancy Costs remained stable, Proportional operating performance, QoQ trend slightly down due to ou
Slide 18: Strong EBITDA performance driven by organic growth across most divisions
Strong EBITDA performance driven by organic growth across most divisions EBITDA In EUR million EBITDA performance 494 4 0 0 • Strong EBITDA performance driven by growth 33 in most of the regions due to favorable market developments in both oil and chemicals. • In China & North Asia, the performance
Slide 19: HY1 2023 Terminal type performance
HY1 2023 Terminal type performance Proportional Revenue In EUR million +21% +2% +10% +11% +9% 4 967 324 • Good performance across all terminals types 328 as market dynamics remain favorable. 132 179 • Vegetable oils & Biofuels is the fastest Gas Industrial Chemicals Oil Other Total growing product s
Slide 20: Portfolio transformation improving earnings quality
Portfolio transformation improving earnings quality Contract duration as a share of proportional revenue Vopak Proportional EBITDA margin In % In % 100% 100% 12% < 1 year 25% + 1 p.p. 27% 1-3 years 22% 56% 57% 16% 3-5 years 13% 11% 5-10 years 17% 34% > 10 years 23% 2015 2022 HY1 2022 HY1 2023 Improv
Slide 21: Strong cash flow generation
Strong cash flow generation Cash flow overview In EUR million 478 440 38 42 436 383 43 340 120 376 54 262 179 179 Dividends 161 from JV Dividends 35 102 from JV 110 201 139 CFFO Derivatives CFFO (gross) CFFO gross Derivatives CFFO (gross) Tax & other CFFO Operating capex Other CFFI Available Dividen
Slide 22: Solid balance sheet allows us to execute our strategy
Solid balance sheet allows us to execute our strategy Maintain a healthy leverage ratio with a range of around Interest-bearing loans 2.5-3.0x net debt to reported EBITDA Composition and average rate Average floating Average fixed rates: 4.5% 21% rates: 3.9% 4.00 Maximum covenant changed from 3.75x
Slide 23: Enhancing balance sheet strength
Enhancing balance sheet strength Updates in corporate debt portfolio Update joint ventures Financing • Successfully amended and aligned all existing Private Placement Note Refinanced the maturing project financing of PITSB programs to new covenant of 4.0x from 3.75x. • The new 10-year non-recourse p
Slide 24: Progress on our capital allocation priorities
Progress on our 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. Focus on cash flow genera
Slide 25: Capital allocation driving strategy execution
Capital allocation driving strategy execution >12% EUR 1 billion EUR 1 billion Operating cash return 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 In Belgium, Vopak i
Slide 26: Performance indicators
Performance indicators Reported Revenue EBITDA Net interest-bearing debt ROCE In EUR million In EUR million In EUR million In % +6% +12% +3.3 p.p. Reported -11% 362 359 249 245 3,279 12.6% 12.6% 355 3,211 350 3,051 227 228 2,947 10.4% 10.6% 338 219 2,853 9.3% Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q
Slide 27: Outlook drivers
Outlook drivers Market Business Cost Growth indicators performance The storage demand Continue the momentum in indicators in oil markets are Volatility in the energy Capturing growth improved financial expected to remain prices, inflation and opportunities and performance. EBITDA favorable. While in
Slide 28: Confirmed FY 2023 outlook
Confirmed FY 2023 outlook For FY 2023 reported EBITDA is expected to be above EUR 950 million, equivalent to an expected EBITDA FY 2023 proportional EBITDA outlook of above EUR 1,140 million Consolidated operating capex For FY 2023 is expected to be a maximum of EUR 300 million Short-term outlook Co
Slide 29: Improving our sustainability performance
Improving our sustainability performance 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 Continuous effort to further reduce GHG Improved perf
Slide 30: Our contribution to a net-zero society
Our contribution to a net-zero society Accelerate investments in infrastructure for • Invest EUR 1 billion in infrastructure for new energies & sustainable feedstocks 1 new energies and • Contribute actively to decarbonize industrial clusters sustainable feedstocks • Focus on four areas in new energ
Slide 31: Reducing our own environmental and carbon footprint
Reducing our own environmental and carbon footprint Decarbonize our Interim GHG emissions reduction target of Our ambition is to be net-zero by existing and future 30% by 2030 vs. 2021, which corresponds to 2050 (scope 1 & 2) operations a 45-60% reduction of the current asset base GHG emissions in t
Slide 32: 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, steam system segregation, optimization flameless Energy efficiency thermal oxidizer, LED lighting e.g. at Savannah and Botlek Renewable energy U
Slide 33: 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 New energ
Slide 34: ESG benchmarks
ESG benchmarks “Carbon intensity is 77 % lower than industry average” “Strong efforts to mitigate environmental impacts of operation MSCI relative to peers” ▪ Rating: AAA (Scale: CCC to AAA) “100% of operations from business lines with low injury and fatality rates” ISS Sustainalytics ▪ Rating (scal
Slide 35: Appendix
Shaping the future XY Appendix Vopak
Slide 36: Save the date for our Analyst & Investor Day
Save the date for our Analyst & Investor Day 1 November 2023 Vopak will host its Analyst & Investor day in Rotterdam, the Netherlands. The Executive Board will provide a comprehensive update on the progress of strategy execution followed by a site visit to Vopak’s recently commissioned capacity for
Slide 37: Appendix
Shaping the future Appendix Vopak
Slide 38: Project timelines
Project timelines Vopak’s Capacity Country Terminal ownership Products (cbm) 2020 2021 2022 2023 2024 2025 2026 Growth projects Existing terminals United States Los Angeles 100% Renewable fuels 148,000 Belgium Antwerp 100% Chemicals 41,000 Brazil Alemoa 100% Chemicals 20,000 China Caojing 50% Indust
Slide 39: Well spread maturity profile
Well spread maturity profile HY1 2023 HY1 2022 Debt repayment schedule Debt repayment schedule In EUR million In EUR million 1,300 1,300 1,200 1,200 1,100 1,100 1,000 1,000 575 900 900 800 800 1,000 700 700 600 600 500 500 425 400 400 146 300 300 0 200 43 200 45 268 254 72 287 279 264 100 167 168 16
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 Possible services: storage, cracking, break-bulk, Start 2021 – Operational 2026 pipeline integration with Northwest European industrial areas End-use: industry a
Slide 42: Gas
Gas HY1 2023 performance1 Canada: RIPET Number Proportional Proportional US: M OD A of terminals Revenue EBITDA Colombia: SPEC in EUR million in EUR million Mexico: LNG Altamira India: Aegis Vopak Terminals Ltd (7 terminals), Hindustan Aegis LPG Ltd 16 132 110 (1 terminal) Proportional Proportional
Slide 43: Industrial
Industrial US: Freeport, Plaquemine, St. Charles, Corpus Christi HY1 2023 performance1 Malaysia: Kertih, PT2SB Number Proportional Proportional Singapore: Sakra of terminals Revenue EBITDA Thailand: Thai Tank in EUR million in EUR million 18 179 114 Saudi Arabia: Chemtank, Sabtank (Al Jubail), Sabta
Slide 44: Vopak Industrial Infrastructure
Vopak Industrial Infrastructure 1. Serves feedstock and rundown from/to Refineries, Crackers and Chemical Single or multi-customer Industrial Terminal 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 HY1 20
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
Chemicals US: Deer Park, Long Beach Brazil: Alemoa, Aratu HY1 2023 performance1 Colombia: Barranquilla, Cartagena Mexico: Altamira, Coatzacoalcos Number Proportional Proportional India: Konkan (1 terminal), CRLTerminals of terminals Revenue EBITDA in EUR million in EUR million Pvt Ltd. (2 terminals)
Slide 48: Oil
Oil US: Los Angeles Mexico: Veracruz HY1 2023 performance1 Panama: Vopak Panama, Bahia Las Minas Number Proportional Proportional Indonesia: Jakarta Revenue EBITDA of terminals Australia: Darwin, Sydney site B in EUR million in EUR million 18 324 217 Malaysia: Pengerang Singapore: Banyan, Sebarok, B
Slide 49: Well diversified infrastructure portfolio
Well diversified infrastructure portfolio Vopak Americas Asia & Middle East 92 95 93 89 90 91 93 94 94 92 90 93 87 84 88 249.0 245.2 83.4 89.9 219.4 226.9 227.8 63.2 76.4 78.4 81.7 54.5 56.2 57.2 58.7 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022 2022 2022 2023 2023 2022 2022 2022 2023 2023 2022
Slide 50: Americas developments
Americas developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 0.5 Q2 2023 93 94 95 94 92 96.3 98.2 97.7 97.2 98.0 4.5 million cbm 0.9 Subsidiaries 3.1 Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022 2022 2022 2023 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 3.3 Q2 2023 88 90 93 93 85.9 85.8 91.0 91.1 4.1 84 78.8 16.7 million cbm Subsidiaries Joint ventures & associates 9.3 Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022 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 Q2 2023 87 85 84 85 82 0.8 3.2 million cbm 13.3 13.5 11.7 12.2 11.2 Subsidiaries Joint ventures & associates 2.4 Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022 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 Q2 2023 87 87 89 90 90 151.1 158.6 159.7 156.9 147.0 10.7 million cbm Subsidiaries Joint ventures & associates 9.4 Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022 2022 20
Slide 54: JVs & associates developments
JVs & associates developments* Net result JVs and associates Net result Americas Net result Asia & Middle East In EUR million In EUR million In EUR million 51.0 53.2 53.0 49.8 43.4 22.8 23.8 18.4 18.6 16.9 5.4 3.8 3.3 2.9 3.0 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022 2022 2022 2023 2023 2022