Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — H1 2022 Earnings Presentation
35 slides from Royal Vopak Nv's earnings presentation, Jul 27, 2022
Slide 1: Analyst Presentation 27 July 2022
Analyst Presentation 27 July 2022 Vopak Analyst Presentation HY1 2022 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: Shaping the future: Vopak HY1 2022 Results
Shaping the future Vopak HY1 2022 Results Dick Richelle CEO of Royal Vopak
Slide 4: Vopak reports improved results and asset impairment charges
Vopak reports improved results and asset impairment charges IMPROVE • EBITDA increased to EUR 433 million for HY1 2022 • EBITDA in the range of EUR 830 million to EUR 850 million for FY 2022 IMPROVE GROW ACCELERATE performance of our our base in industrial towards new energies & GROW portfolio & gas
Slide 5: Impact of the Russia – Ukraine war
Impact of the Russia – Ukraine war • Russian invasion of Ukraine is a major humanitarian drama • Vopak has no operations in Russia, Ukraine or any of the Baltic states • Vopak is monitoring the situation closely and is fully committed to adhere to relevant sanctions laws and regulations • The Russia
Slide 6: 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 Analyst Presentation HY1 2022 6 Gas product segment inclu
Slide 7: Market dynamics
Markets remain volatile due to an uncertain economic outlook New energies & Gas Oil Chemicals sustainable feedstocks • Record high LNG • Ammonia and liquid • Global oil flows are • China lockdown impacts Market dynamics volumes to Europe due to hydrogen accelerate rebalancing following the manufactu
Slide 8: Improve portfolio performance
Improve portfolio performance Improve Grow 433 20-25 21 19 15-20 25 403 HY1 2021 FX-effect Oil Chemical Expenses Growth HY1 2022 markets1 markets1 2 projects Figures in EUR million, excluding exceptional items. 1 Oil and chemical markets represents revenues and result joint ventures. Vopak Analyst P
Slide 9: Grow in industrial and gas terminals
Grow in industrial and gas terminals Gate terminal Increase in truck loading capabilities, increase in send-out and open season for an additional 4 bcm send-out Aegis Vopak terminals Largest independent storage company for LPG and chemicals in India with 1.5 million cbm of capacity Caojing terminal
Slide 10: Accelerate in new energies and sustainable feedstocks
Accelerate in new energies and sustainable feedstocks Projects per focus area Ammonia – ACE, import LOHC – green liquid organic Liquid hydrogen – green liquid terminal for green ammonia as a hydrogen carrier pilot (LOHC) hydrogen supply chain between hydrogen carrier from Germany to the Netherlands
Slide 11: Vopak's approach to sustainability
Vopak’s approach to sustainability We are ambitious and performance driven with a balanced roadmap focusing on care for people, planet and profit ESG benchmarks Sustainability roadmap MSCI Rating: AAA* (Scale: CCC to AAA) Safety is our first priority Positioned towards the future and ready to
Slide 12: Shaping the future
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 >10% EUR 1 bill
Slide 13: Shaping the future: Vopak HY1 2022 Results
Shaping the future Vopak HY1 2022 Results Michiel Gilsing CFO of Royal Vopak
Slide 14: Financial focus areas
Financial focus areas Improve performance of the portfolio Stronger focus on Actively manage our portfolio and Improve operating cash return cash flow generation create headroom to grow Focus on cost efficiency and Disciplined capex approach to Progressive dividend policy reduce overhead costs deliv
Slide 15: Key messages
Key messages Asset impairment charges • Vopak has recorded asset impairment charges of EUR 468 million EBITDA growth • EBITDA improved by EUR 5 million, excluding currency translation effects, to EUR 433 million Operating cash return • 11.4% driven by lower operating capex during HY1 2022 Leverage •
Slide 16: Drivers for assets impairment charges
Drivers for assets impairment charges • Vopak has recorded asset impairment charges of EUR 468 million • The valuations for impaired assets take into account: • Impact on long-term financial projections for revenue and current dynamics related to inflation pressure, utility prices, labor and materia
Slide 17: Improve EBITDA primarily due to Americas performance and currency movements
Improve EBITDA primarily due to Americas performance and currency movements EBITDA EUR million EBITDA performance 2.8 0.1 4.3 17.1 16.0 1.2 432.5 • EBITDA improved in the first half of the year due to positive performance in the Americas and positive currency movements 24.5 403.3 • China & North Asi
Slide 18: Improve EBITDA primarily due to higher net sales in Europe & Africa
Improve EBITDA primarily due to higher net sales in Europe & Africa EBITDA EUR million 0.2 1.2 EBITDA performance 1.9 11.5 8.2 • EBITDA improved in the second quarter 219.4 primarily due to improved results in Europe & 1.9 Africa and positive currency movements 7.8 213.1 • Americas performance was i
Slide 19: Divisional performance
Divisional performance Americas Asia & Middle East China & North Asia 88 86 87 85 85 87 89 90 91 93 93 84 84 84 84 48.2 54.4 58.7 54.5 73.4 76.4 22.0 45.6 68.0 70.9 72.5 15.7 15.6 19.5 18.6 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 2021 2021 2021 2022 2022 2021 2021 2021
Slide 20: Successfully renewed a EUR 1 billion sustainability-linked revolving credit facility
Successfully renewed a EUR 1 billion sustainability-linked revolving credit facility EUR 1 billion 12 Sustainability-linked RCF International relationship banks Safety Gender diversity in Greenhouse gas performance senior management emissions Vopak Analyst Presentation HY1 2022 20
Slide 21: Actively managing our portfolio
Actively managing our portfolio Looking back Proportional capital employed per product category • Increased gas and industrial exposure over the last 5 years 10-15% 15-20% 20-25% Gas and new energies ~25% 25-30% Industrial 15-20% • Lowered oil exposure with 15% by material divestments 20-25% Chemica
Slide 22: Higher proportional operating cash flow is driven by EBITDA and operating capex
Higher proportional operating cash flow is driven by EBITDA and operating capex Proportional operating cash flow reconciliation (HY1 2022) Proportional operating cash flow bridge EUR million EUR million 521 +20% 433 88 127 347 47 347 289 32 3 29 Reported Effects Proportional Proportional IFRS 16 Pro
Slide 23: Consolidated cash flow generation
Consolidated cash flow generation Cash flow overview EUR million Operating cash flow • Reported operating cash flow of EUR 268 million (CFFO gross excl. derivatives – sustaining, service & IT investments) 383 • Proportional operating cash flow of EUR 347 million 43 340 21 Cash Flow 115 • FCF before
Slide 24: Improving operating cash return drives value creation
Improving operating cash return drives value creation Operating cash return1 on a portfolio level ~9.5% • Operating cash return is expected to be Target of at least 10% 12.8% 11.7% 10.2% 11.4% operating cash return around 9.5% for the full year, as the majority 2019 2020 2021 HY1 2022 by 2025 of pro
Slide 25: 2022 Guidance
2022 Guidance • In the range of EUR 830 million to EUR 850 million, subject to market conditions and currency exchange EBITDA • Factoring continued volatility in the energy market, inflation and utility prices pressure Excluding exceptional items • Around EUR 690 million including additional costs f
Slide 26: Disciplined capital allocation priorities
Disciplined 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 Generate total shareholder retur
Slide 27: Appendix
Shaping the future XY Appendix Vopak
Slide 28: Project timelines
Project timelines Vopak’s Capacity Country Terminal ownership Products (cbm) 2020 2021 2022 2023 2024 Growth projects Existing terminals Netherlands Vlaardingen 100% Renewable feedstocks 64,000 Brazil Alemoa 100% Chemicals 20,000 Acquisitions China LNG Hong Kong 49.99% LNG 263,000 New terminals Chin
Slide 29: Non-IFRS proportional information
Non-IFRS proportional information EBITDA Occupancy rate In EUR million In percent – subsidiaries only IFRS BASED 205 211 213 213 219 87 87 86 83 87 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 2021 2021 2021 2022 2022 EBITDA Occupancy rate PROPORTIONAL In EUR million In percent NON-IFRS 26
Slide 30: Asset impairment charges
Asset impairment charges Europoort Botlek SPEC LNG Colombia EUR 240 million EUR 190 million EUR 36 million • Transition in the energy markets and • Below Vopak’s minimum return levels • Due to weather conditions in recent accelerating into new energies which is driven by lower revenue years which ha
Slide 31: Americas developments
Americas developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 0.5 Q2 2022 89 90 91 93 93 94.8 96.3 0.9 4.7 million cbm 83.1 86.7 79.2 3.3 Subsidiaries Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2
Slide 32: Asia & Middle East developments
Asia & Middle East developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q2 2022 88 84 84 84 84 74.6 78.2 78.8 3.3 4.2 70.7 68.9 16.9 million cbm 9.4 Subsidiaries Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2021 2021
Slide 33: China & North Asia developments
China & North Asia developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q2 2022 86 87 85 85 87 0.8 3.2 million cbm 11.2 11.9 13.0 13.3 10.9 2.4 Subsidiaries Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2021 2021 2021
Slide 34: Europe & Africa developments
Europe & Africa developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 1.3 Q2 2022 87 88 86 87 141.2 142.7 141.3 147.0 79 136.7 10.6 million cbm 9.3 Subsidiaries Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2021 2021 20
Slide 35: JVs & associates developments
JVs & associates developments Net result JVs and associates* Americas* Asia & Middle East* In EUR million In EUR million In EUR million 57.6 42.5 42.2 47.1 43.4 22.1 23.2 19.0 19.2 18.4 4.0 4.4 4.5 3.8 1.5 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 2021 2021 2021 2022 2022