Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Non-Deal Roadshow (September 2024)
75 slides from Royal Vopak Nv's roadshow presentation, Sep 23, 2024
Slide 1: HY1 2024 Roadshow presentation
HY1 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
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 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 76 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 HY1 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 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 HY1 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 positioned to capture opportunities in biofuels
Unique assets strategically positioned to capture opportunities in biofuels Hub terminal Terminal Market opportunities in biofuels Vopak HY1 2024 roadshow presentation 12
Slide 13: Unique assets positioned to capture opportunities in ammonia
Unique assets strategically positioned to capture opportunities in ammonia Hub terminal Terminal Market opportunities in ammonia Vopak HY1 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 4 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 HY1 2024 Vopak HY1 2024 roadshow presentation 18
Slide 19: Delivering on our shaping the future strategy
Delivering on our shaping the future strategy Key highlights HY1 2024 Strategic pillars Key achievements last 2 years • Proportional occupancy of 92% driven by favorable storage markets Improve The performance of our portfolio • Proportional EBITDA increased to EUR 599 million (+10%YoY) Actively man
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 Prop. EBITDA performance In EUR million Excluding exceptional items • Healthy proportional occupancy Grow Improve rate of 92% driven by favorable +19 EUR million demand across different product markets 9 15 599 5 • Higher expenses driven by 6 increa
Slide 22: Continuous commitment to improve our sustainability performance
Continuous commitment to improve our sustainability performance Safety Emissions Women in management Personal & Process safety Scope 1 & 2 emissions in Percentage of women in senior 1,000 MT CO2e management HY1 2023 HY1 2024 -15% 0.16 225 20.4 20.0 0.15 0.14 191 0.07 TIR PSER HY1 2023 HY1 2024 HY1 2
Slide 23: 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 24: 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 25: Delivering growth by investing in industrial terminals
Delivering growth by investing in industrial terminals Expanding Chemtank terminal in Saudi Arabia • Additional 44k cbm, supporting customer for export of gas and chemical products • Leveraging existing assets and operational expertise • Underpinned with a long-term contract, delivering attractive c
Slide 26: Strong footprint in India
Strong footprint in India Hindustan Aegis LPG Kandla 50k cbm 870k cbm + 28k cbm Distribution terminal for gas (LPG) Six distribution terminals storing and handling chemicals, gas (LPG) and vegoils Pipavav 117k cbm + 96k cbm Distribution terminal storing and handling chemicals and gas Mumbai +102k cb
Slide 27: Portfolio transition leading to high quality earnings
Portfolio transition leading to high quality earnings Capital employed Operating Cash Return Average proportional capital employed On proportional basis 16.7% ~5% ~5% ~20% ~25% 14.0% 12.8% ~40% ~15% 11.7% 11.4% ~25% 10.2% ~25% ~20% ~50% ~40% ~30% 2014 2019 HY1 2024 2019 2020 2021 2022 2023 HY1 2024
Slide 28: Accelerating towards new energies and low-carbon fuels and feedstocks
Accelerating towards new energies and low-carbon fuels and feedstocks Capturing opportunities around the world Entering next phase of open-acces CO2 infrastructure in Rotterdam, the Netherlands Commissioned repurposed capacity in Alemoa, Brazil for renewable feedstock Accelerate projects Vopak HY1 2
Slide 29: 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 • Approved dividend of EUR 1.50 per share • Confirming consolidated growth capex outlook of growth
Slide 30: 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 HY1 2024 results notwithstanding divestment impact, driven by favorable storage demand indicators in all markets • Actively managi
Slide 31: Financial framework Vopak HY1 2024
Financial framework Vopak HY1 2024 Vopak HY1 2024 roadshow presentation 31
Slide 32: Delivering on performance improvement
Delivering on performance improvement Proportional EBITDA Proportional Operating Excluding exceptional items EBITDA occupancy rate Cash Return Excluding exceptional items 599 586 494 +1 p.p. 487 43 +10% 43 +8% 92% 2.1 p.p. 91% 16.7% 543 451 14.6% HY1 2023 HY1 2024 HY1 2023 HY1 2024 HY1 2023 HY1 2024
Slide 33: Q2 2024 key messages
Q2 2024 key messages Prop. Occupancy – Q2 2024 Revenues – Q2 2024 In % In EUR million 92% 326 -1 p.p. vs. Q1 2024 -0.8% vs. Q1 2024 Slightly decreased, driven by Stable revenues on the back of lower occupancy in China and out favorable oil markets, partly offset of service capacity in the by weaker
Slide 34: Delivering on performance improvement
Delivering on performance improvement Proportional EBITDA In EUR million EBITDA performance Excluding exceptional items • Healthy demand for our services mainly across 3 5 geographies 2 5 5 599 2 7 • One-off item of total EUR 7 586 9 million, related to an unconditional success fee related to FID ta
Slide 35: Strong business performance leading to improved returns
Strong business performance leading to improved returns Proportional EBITDA HY 2024 in EUR million % change YoY vs HY1 2023 – adjusted for divestment impact +4% +10% 599 +4% 236 56 -3% 149 +44% 110 160 Gas Industrial Chemicals Oil Other Total • Gas terminals showed • Solid throughput levels in • Sta
Slide 36: Strong cash flow generation
Strong cash flow generation Cashflow YTD 2024 in EUR million % of CFFO gross Cash flow performance +18% 24% 517 • EBITDA growth when 440 123 18% adjusted for divestments 394 76% supported cash flow 331 92 338 Dividend • Strong dividend upstream 204 from joint-ventures Dividends 186 Ongoing Share buy
Slide 37: Financial framework Vopak FY 2023
Financial framework Vopak FY 2023 Vopak HY1 2024 roadshow presentation 37
Slide 38: 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 39: 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 40: 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 41: 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 42: 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 43: 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 44: 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 45: Updated FY24 outlook
Updated FY24 outlook Updated outlook as Previous outlook as Market indicators per Q2 2024 per Q1 2024 Strong start of the year, with firm demand for storage infrastructure Proportional EBITDA EUR 1,150 – 1,180 EUR 1,140 – 1,180 (excluding exceptional items) million million Business performance Conti
Slide 46: Updated 2024 outlook
Updated 2024 outlook Proportional EBITDA For FY 2024 is expected to be in the range of EUR 1,150 – 1,180 million Consolidated EBITDA For FY 2024 is expected to be in the range of EUR 920 – 950 million Short-term Consolidated growth capex For FY 2024 is expected to be around EUR 350 million Consolida
Slide 47: Financial framework Capital allocation
Financial framework Capital allocation Vopak HY1 2024 roadshow presentation 47
Slide 48: 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: 1.76x net debt / EBITDA below target range 2.5x-3.0x We return va
Slide 49: 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 50: 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 51: 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 52: 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 53: Appendix
Appendix Vopak HY1 2024 roadshow presentation 53
Slide 54: 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 55: 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 56: Well-spread maturity profile
Well-spread maturity profile Debt repayment schedule Per Q2 2024 In EUR million 1,200 1,100 1,000 900 800 700 900 600 500 400 300 138 200 100 272 257 73 100 170 170 163 70 117 118 97 75 116 0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2040 RCF headroom VTS Asian PP RCF Subordinated
Slide 57: 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 58: 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 59: 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 HY1 2024 roadshow presentation 59
Slide 60: 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 HY1 2024 roadshow presentation 60
Slide 61: 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 HY1 2024 roadshow presentation 61
Slide 62: 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 HY1 2024 roadshow presentation 62
Slide 63: Well-diversified infrastructure portfolio Business Units
Well-diversified infrastructure portfolio Business Units Asia & Middle East China & North Asia Netherlands 91 92 90 93 94 91 92 92 91 91 87 82 82 83 83 72.3 77.9 69.3 46.5 57.5 56.3 29.5 33.8 32.8 33.3 17.5 18.1 17.7 15.8 15.0 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2023 2023 2023 2024 2024 202
Slide 64: Asia & Middle East developments
Asia & Middle East developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 0.8 Q2 2024 1.8 91 92 92 91 91 18.3 18.1 19.6 19.6 19.9 12.2 million cbm Subsidiaries Joint ventures & associates Operatorships 9.6 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2023 2023
Slide 65: China & North Asia developments
China & North Asia developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q2 2024 82 82 83 87 83 0.7 3.1 million cbm 11.2 11.7 12.8 11.3 10.1 Subsidiaries Joint ventures & associates 2.4 Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2023 2023 2023
Slide 66: Netherlands developments
Netherlands developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q2 2024 94 115.3 119.2 108.9 1.4 91 92 90 93 7.8 million cbm 82.6 81.9 Subsidiaries Joint ventures & associates 6.4 Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2023 2023 2023 2024
Slide 67: Singapore developments
Singapore developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q2 2024 97 93 93 93 95 72.8 70.2 70.4 72.0 73.0 1.5 4.8 million cbm Subsidiaries 3.3 Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2023 2023 2023 2024 2024
Slide 68: USA & Canada developments
USA & Canada developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q2 2024 91 92 95 95 95 57.9 58.0 58.0 57.1 0.8 2.7 million cbm 53.2 Subsidiaries 1.9 Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2023 2023 2023 2024 2
Slide 69: Other business units developments
Other business units developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q2 2024 93 93 93 82.5 0.5 92 90 80.1 81.4 81.0 79.1 3.3 million cbm 0.5 Subsidiaries 2.3 Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2023 2023
Slide 70: 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 67.7 49.8 55.5 54.2 55.3 12.0 11.3 33.7 11.0 11.2 11.1 12.3 10.3 10.5 10.0 10.1 23.4 21.8 20.2 16
Slide 71: 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% 1,068 961 1,000 684 186 166 42% 558 553 151% 42% 52% 82% 42% 42% 599 57% 447 60% 81% 72% 213 65%
Slide 72: 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 73: 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 74: 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 75: Thank you
Thank you www.vopak.com Royal Vopak HQ Westerlaan 10 3016 CK - Rotterdam The Netherlands 75