Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Q3 2023 Earnings Presentation
33 slides from Royal Vopak Nv's earnings presentation, Oct 25, 2023
Slide 1: Shaping the future – Analyst Presentation
Shaping the future Analyst Presentation 25 October 2023 Vopak Q3 2023 - Analyst Presentation 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: Vopak Q3 2023 Results – CEO
Shaping the future Vopak Q3 2023 Results Dick Richelle CEO of Royal Vopak
Slide 4: Q3 2023 Key Highlights
Q3 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 76 Solidifying our
Slide 5: Solid market demand across our services
Solid market demand across our services New energies Gas & sustainable Energy Manufacturing feedstocks ● Relatively stable LNG ● High demand for low carbon ● Oil markets continued to be ● Manufacturing markets markets with limited supply fuels increases the need for volatile resulting extended remai
Slide 6: Improve portfolio performance
Improve portfolio performance EBITDA In EUR million EBITDA performance Improve Grow +88 EUR mln. • EBITDA of EUR 735 million YTD Q3 2023, 12 supported by improved market conditions 37 6 735 40 • Continued improved performance of oil and 659 73 chemicals market 15 3 • Gas continue to perform well in
Slide 7: Growing our core in Industrial and Gas terminals
Growing our core in Industrial and Gas terminals Expanding in LNG in the Netherlands to enhance Solidifying our leading position in the Industrial security of supply in North West Europe clusters of Singapore Banyan, Singapore EemsEnergy Terminal • Creating a long-term industrial integration between
Slide 8: 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 Long duration Redeveloping Commissioned repurposed energy storage land in Antwerp capacity for low-carbon fuels Vopak Q3 2023 - Analyst Presentation 8
Slide 9: Q3 2023 Key Highlights
Q3 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 our
Slide 10: Vopak Q3 2023 Results – CFO
Shaping the future Vopak Q3 2023 Results Michiel Gilsing CFO of Royal Vopak
Slide 11: Financial focus areas
Financial focus areas Improved financial Strong Solid Capital business performance cash flow generation balance sheet allocation Improve performance of the portfolio Vopak Q3 2023 - Analyst Presentation 11
Slide 12: Delivering on performance improvement Year to date 2023
Delivering on performance improvement Year to date 2023 Revenue EBITDA Proportional occupancy EUR 1,073 m. EBITDA +6% EURoperating Prop. 735 m. cash+12% flow 91% Prop. +4 return operating cash %p. Operating Cash Return Growth capital expenditures1 Total net debt to EBITDA 14.4% +3.1 %p. EUR 188 m. E
Slide 13: EBITDA performance driven by organic growth across most business units
EBITDA performance driven by organic growth across most business units EBITDA EBITDA performance In EUR million 6 735 • EBITDA performance driven by growth in 27 most of the Business Units due to favorable 5 storage market developments, partly offset by negative currency effects. 22 • In Singapore a
Slide 14: Q3 2023 Key messages
Q3 2023 Key messages EBITDA – Q3 ‘23 Occupancy – Q3 ‘23 Costs – Q3 ‘23 OCR – Q3 ‘23 In EUR million % In EUR million % 241QoQ -1.9% 92 179 QoQ +2.9% 14.1 QoQ +0.4%p QoQ +1%p Proportional occupancy up Costs slightly increased Proportional operating Stable financial driven by improvements in mainly due
Slide 15: Improving trend on market dynamics quarter on quarter
Improving trend on market dynamics quarter on quarter EBITDA EBITDA performance In EUR million • Normalized EBITDA impacted by divestment of Savannah 3 245 4 • Underlying markets still strong quarter 1 over quarter, especially in chemicals 3 4 241 4 241 and gas, oil markets stable 1 • Project develo
Slide 16: Strong cash flow generation
Strong cash flow generation Cash flow overview In EUR million +17% YoY 680 581 102 578 186 396 518 187 149 200 207 Changes in Dividends Dividends net debt 185 from JV 162 from JV 49 CFFO gross CFFO gross (excl. Derivatives, Tax, CFFO Operating Capex Dividend Growth capex cash out3 Proceeds from Net
Slide 17: Reached agreement on the sale of chemical terminals in Rotterdam
Reached agreement on the sale of chemical terminals in Rotterdam • Decreasing exposure to chemical distribution segment with divestment of 3 chemical terminals in Rotterdam • Reverse impairment of around EUR 54 million and net proceeds of around EUR 368 million • Expected close by end of 2023 Vopak
Slide 18: 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 2.5-3.0x net debt to reported EBITDA 4.00 3.02 3.0 2.82 2.65 2.49 2.5 2.27 2.27 2.09 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 YTD Q3 YTD 2022 2023 Senior net debt : EBITDA Total net debt
Slide 19: Capital allocation supporting strategy execution
Capital allocation supporting 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, Vopa
Slide 20: Improved performance across all indicators
Improved performance across all indicators Reported Revenue EBITDA Net interest-bearing debt ROCE In EUR million In EUR million In EUR million In % Reported 362 249 3,279 12.6% 12.6% 359 245 12.2% 241 3,051 355 2,947 352 2,853 350 227 228 2,699 10.4% 10.6% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q
Slide 21: Increased FY 2023 outlook
Increased FY 2023 outlook EBITDA For FY 2023 reported EBITDA is expected to be around EUR 970 million (from prior outlook of above EUR 950 million) Proportional EBITDA For FY 2023 is expected to be around EUR 1,160 million (from prior outlook of above EUR 1,140 million) Short-term outlook Consolidat
Slide 22: Appendix
Shaping the future Appendix Vopak
Slide 23: Well diversified infrastructure portfolio – Divisions
Well diversified infrastructure portfolio Divisions Vopak Americas Asia & Middle East 92 92 95 93 93 89 90 91 94 94 92 92 88 90 92 226.9 227.8 249.0 245.2 240.5 85.4 91.6 84.2 85.8 57.6 58.6 59.8 64.5 79.9 55.6 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2022 2022 2023 2023 2023 2022 2022 2023 2023
Slide 24: Well diversified infrastructure portfolio – Business Units
Well diversified infrastructure portfolio Business Units Asia & Middle East China & North Asia Netherlands 88 92 92 90 91 91 92 88 90 91 85 84 85 82 82 69.5 72.3 77.9 60.8 58.1 31.3 36.8 37.2 29.5 33.8 17.7 16.7 18.7 15.8 15.0 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2022 2022 2023 2023 2023 202
Slide 25: 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 2023 88 90 92 91 92 18.9 18.5 19.2 18.3 18.1 1.8 12.1 million cbm Subsidiaries Joint ventures & associates 9.5 Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2022 2022
Slide 26: China & North Asia developments
China & North Asia developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q3 2023 85 84 85 82 82 0.8 3.2 million cbm 13.5 11.7 12.2 11.2 10.1 Subsidiaries Joint ventures & associates 2.4 Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2022 2022 2023
Slide 27: Netherlands developments
Netherlands developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 1.2 Q3 2023 88 90 91 91 92 9.4 million cbm 108.1 116.4 115.5 115.3 119.2 Subsidiaries Joint ventures & associates 8.2 Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2022 2022 2023 20
Slide 28: Singapore developments
Singapore developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q3 2023 96 97 93 71.8 72.8 70.2 89 88 67.0 67.5 1.5 4.9 million cbm Subsidiaries 3.4 Joint ventures & associates Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2022 2022 2023 2023 2023
Slide 29: USA & Canada developments
USA & Canada developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q3 2023 95 96 95 91 92 60.8 61.0 2.7 million cbm 59.2 0.8 57.1 53.2 Subsidiaries 1.9 Joint ventures & associates Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2022 2022 2023 2023 2
Slide 30: Other Business Units developments
Other Business Units developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q3 2023 93 93 94 93 93 0.5 3.3 million cbm 80.2 80.4 80.4 82.5 80.1 0.5 Subsidiaries 2.3 Joint ventures & associates Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2022 2022
Slide 31: 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 51.0 53.2 53.0 55.5 49.8 12.9 23.0 23.4 23.4 10.1 10.2 11.2 11.0 10.1 11.4 10.3 10.5 18.7 10.0 1
Slide 32: Project timelines
Project timelines 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 20,000 China Caojing 50% Industrial terminal 110,000 India Aegis terminals 49% LPG & L
Slide 33: Well spread maturity profile
Well spread maturity profile Q3 Debt repayment schedule In EUR million 1,400 1,200 1,000 900 800 600 400 100 139 200 45 276 261 74 171 118 172 120 97 163 127 0 71 75 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2040 RCF headroom RCF VTS Subordinated loans Asian PP US PP Vopak Q3