Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — FY2023 Earnings Presentation
43 slides from Royal Vopak Nv's earnings presentation, Feb 14, 2024
Slide 1: FY 2023 Results presentation
FY 2023 Results presentation Shaping the future to help the world flow forward 14 February 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 FY 2023 Results - CEO Dick Richelle
Vopak FY 2023 Results CEO - Dick Richelle Vopak FY 2023 analyst presentation 3
Slide 4: FY 2023 Key Highlights
FY 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 base in industrial towards new energies & our portfolio & gas terminals sustainable feedstocks FY 2023 EBITDA increased to EUR 964 millio
Slide 5: Market dynamics
Solid market demand for our services Gas New energies & Energy Manufacturing sustainable feedstocks Market dynamics Mild winter and high storage inventories High demand for low carbon fuels Market fundamentals remain healthy with Chemical production continued to be weak in has led to lower LNG deman
Slide 6: Improved portfolio performance
Improved portfolio performance EBITDA In EUR million EBITDA performance Improve Grow Excluding exceptionals +83 EUR million • Strong EBITDA increase by EUR 12 77 million to EUR 964 million, a 9% increase year-on-year 26 50 964 11 • Increase in expenses driven by higher personnel costs and other +9%
Slide 7: Delivering on our sustainability goals
Delivering on our sustainability goals Safety performance Emissions Diversity Personal & process safety Scope 1 & 2 CO2 in 1,000 mt Women in senior management TIR PSER -25% 577 517 0.25 0.25 433 20% 20% 17% 0.16 0.11 0.09 0.09 2021 2022 2023 2021 2022 2023 2021 2022 2023 • Record low personal safety
Slide 8: Active portfolio management
Active portfolio management Rationalize existing portfolio to Drive value through accretive growth investments High cash proceeds received for low cash generating assets € 523m Total capex allocated towards growing in gas and industrial and accelerating towards new energies € 480m Allocated since Ju
Slide 9: Delivering on our industrial footprint in China
Delivering on our industrial footprint in China Position in China Reduced exposure Growing our core Solid EBITDA contribution with long-term Through divestments of chemical Investing in industrial terminals contracts and expansions ongoing distribution and oil terminals with long-term contracts 2012
Slide 10: Creating connections in India
Creating connections in India Hindustan Aegis LPG Kandla 50k cbm ~1.8M cbm 855k cbm + 28k cbm Distribution terminal for gas (LPG) ~1.3M cbm +38% Six distribution terminals storing and handling chemicals, gas (LPG) and vegoils 2021 2025E Pipavav 117k cbm + 96k cbm • Expanding in a fast growing market
Slide 11: Growing our footprint in industrial and gas
Growing our footprint in industrial and gas Industrial terminal expansion LPG export facility LNG capacity In the USA in Canada in the Netherlands • Supporting energy security of supply in North • Expanding in our industrial terminal with our • Good progress in strengthening Canada-Asia West Europe
Slide 12: 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 will be market in the USA repurposed Los Angeles, the USA Commissioned repurposed infrastructure for low-carbon Vopak Energ
Slide 13: Strong cash generation and returning cash to shareholders
Strong cash generation and returning cash to shareholders Shareholder distribution Robust balance sheet • Successful execution of our strategy has led to a robust financial position which • Low leverage of 1.99x creates opportunities to capture allows us to increase the dividend and the start of a s
Slide 14: 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 FY 2023 results driven by favorable storage demand indicators in all markets • Actively managing our portfolio towards healthy and
Slide 15: Vopak FY 2023 Results - CFO Michiel Gilsing
Vopak FY 2023 Results CFO – Michiel Gilsing Vopak FY 2023 analyst presentation 15
Slide 16: Delivering on our Shaping the future strategy
Delivering on our Shaping the future strategy Improve Growing earnings and shareholder return The performance of our portfolio >12% operating cash return Strong, stable, and long-term cash flows Grow our base in industrial & gas terminals Well-diversified portfolio EUR 1 billion growth capex by 2030
Slide 17: 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 18: 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 19: Q4 2023 key messages
Q4 2023 key messages Occupancy – Q4 2023 Revenue – Q4 2023 In % In EUR million 91% 353 QoQ 0p.p QoQ +0.3% Remaining high occupancy rates, Divestment impact offset by negatively impacted by stronger performance in oil and chemicals markets and China industrial terminals Costs – Q4 2023 EBITDA – Q4 20
Slide 20: Delivering on performance improvement
Delivering on performance improvement Proportional EBITDA In EUR million EBITDA performance 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 chemical terminals in 18 Rotterd
Slide 21: Stable cash flow generation supported by business performance
Stable cash flow generation supported by business performance Proportional EBITDA FY 2023 in EUR million % change YoY vs FY 2022 +10% +8% 1,154 +12% 448 110 +3% 350 +9% 227 239 Gas Industrial Chemicals Oil Other Total • Gas market has • Lower activity levels, • The global chemical • Oil markets were
Slide 22: 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 23: Well-diversified portfolio with attractive EBITDA margin
Well-diversified portfolio with attractive EBITDA margin Actions taken to protect margins Proportional EBITDA margin In % Contract duration as a share of proportional revenue In % Indexation clauses in contracts More than 70% of revenues coming from 12% 10% < 1 year contracts with indexation clauses
Slide 24: 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 25: Stable, strong, and long-term cash flows
Stable, strong, and long-term cash flows Operating cash Operating cash return 14% return, a 2.6p.p. improvement over the last years 82% Of joint ventures Strong dividend upstream net income capabilities upstream as dividend to Vopak1 Growth capex allocated 480m Allocated since towards accretive June
Slide 26: 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: 1.99x net debt / EBITDA below target range 2.5x-3.0x We return va
Slide 27: 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 28: Returning value to shareholders
Returning value to shareholders Shareholder returns over time Dividend Share buy back program Dividend payout ratio Proposed 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 bu
Slide 29: FY24 EBITDA outlook drivers
FY24 EBITDA outlook drivers Proportional EBITDA Consolidated EBITDA In EUR million In EUR million +92 1,170 1,154 +32 1,120 964 76 920 1,078 76 888 880 Prop. Divestments Adjusted Low end of High end EBITDA Divestments Adjusted Low end of High end EBITDA Prop. FY 2024 of FY 2024 FY 2023 EBITDA FY 202
Slide 30: Outlook
Outlook Proportional EBITDA For FY 2024 is expected to be in the range of EUR 1,120 – 1,170 million Consolidated EBITDA For FY 2024 is expected to be in the range of EUR 880 – 920 million Short-term Consolidated growth capex For FY 2024 is expected to be around EUR 300 million Consolidated operating
Slide 31: 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 32: Vopak FY 2023 Results Appendix
Vopak FY 2023 Results Appendix Vopak FY 2023 analyst presentation 32
Slide 33: Well-diversified infrastructure portfolio Business Units
Well-diversified infrastructure portfolio Business Units Asia & Middle East China & North Asia Netherlands 90 91 91 92 90 92 91 92 92 85 90 84 82 82 83 69.5 72.3 77.9 69.3 36.8 37.2 58.1 29.5 33.8 32.8 16.7 18.7 17.5 15.8 15.0 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2022 2023 2023 2023 2023 202
Slide 34: Asia & Middle East developments
Asia & Middle East developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 0.8 Q4 2023 1.8 90 92 91 92 92 18.5 19.2 18.3 18.1 19.6 12.1 million cbm Subsidiaries Joint ventures & associates Operatorships 9.5 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2022 2023
Slide 35: China & North Asia developments
China & North Asia developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q4 2023 84 85 82 82 83 0.8 3.2 million cbm 11.7 12.2 11.2 11.7 10.1 Subsidiaries Joint ventures & associates 2.4 Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2022 2023 2023
Slide 36: Netherlands developments
Netherlands developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q4 2023 90 91 91 92 90 1.4 8.2 million cbm 116.4 115.5 115.3 119.2 108.9 Subsidiaries Joint ventures & associates 6.8 Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2022 2023 2023 20
Slide 37: Singapore developments
Singapore developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q4 2023 96 97 93 93 71.8 72.8 70.2 70.4 88 67.5 1.5 4.8 million cbm Subsidiaries 3.3 Joint ventures & associates Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2022 2023 2023 2023 2023
Slide 38: USA & Canada developments
USA & Canada developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q4 2023 96 95 91 92 95 61.0 0.8 2.8 million cbm 59.2 57.1 57.9 53.2 Subsidiaries 2.0 Joint ventures & associates Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2022 2023 2023 2023 2
Slide 39: Other business units developments
Other business units developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q4 2023 93 94 93 93 93 0.5 3.3 million cbm 80.5 80.4 82.5 80.1 81.4 0.5 Subsidiaries 2.3 Joint ventures & associates Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2022 2023
Slide 40: 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 53.2 53.0 55.5 54.2 49.8 12.9 23.0 23.4 23.4 21.8 11.2 11.0 11.2 12.0 10.2 10.1 10.0 10.3 10.5 16
Slide 41: 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 1,154 795 195 213 1,068 981 961 1,000 684 177 186 604 166 42% 558 553 107% 42% 52% 82% 40% 42% 42% 57% 57% 81% 7
Slide 42: 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 43: Well-spread maturity profile
Well-spread maturity profile Debt repayment schedule In EUR million 1,400 1,200 1,000 800 1,000 600 400 0 137 200 43 263 249 71 164 113 166 115 95 163 128 0 68 75 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2040 RCF headroom RCF VTS Subordinated loans Asian PP US PP Vopak FY 2023 ana