Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Koninklijke Vopak — Shareholder Meeting (April 2024)
42 slides from Royal Vopak Nv's shareholder meeting presentation, Apr 24, 2024
Slide 1: Annual General Meeting of Koninklijke Vopak N.V.
Annual General Meeting of Koninklijke Vopak N.V. Shaping the future to help the world flow forward 24 April 2024
Slide 2: Agenda for the Annual General Meeting 24 April 2024
Agenda for the Annual General Meeting of Koninklijke Vopak N.V. – 24 April 2024 1. Opening 8. Re-appointment of Mr. B.J. Noteboom as member of the 2. Discussion of the management report for the 2023 financial Supervisory Board year 9. Appointment of Mr. R.L. de Visser as member of the 3. Implementat
Slide 3: Emergency exit
Emergency exit Emergency exit Vopak Annual General Meeting 2024 3
Slide 4: Agenda for the Annual General Meeting 24 April 2024
Agenda for the Annual General Meeting of Koninklijke Vopak N.V. – 24 April 2024 1. Opening 8. Re-appointment of Mr. B.J. Noteboom as member of the 2. Discussion of the management report for the 2023 financial Supervisory Board year 9. Appointment of Mr. R.L. de Visser as member of the 3. Implementat
Slide 5: Vopak FY 2023 Results - CEO Dick Richelle
Vopak FY 2023 Results CEO - Dick Richelle Vopak Annual General Meeting 2024 5
Slide 6: Annual General Meeting of Koninklijke Vopak N.V.
Annual General Meeting of Koninklijke Vopak N.V. Shaping the future to help the world flow forward 24 April 2024
Slide 7: 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 8: 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 9: 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 10: 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 11: Unique assets positioned to capture opportunities in LNG and LPG
Unique assets strategically positioned to capture opportunities in LNG and LPG Market opportunities Global energy demand and imbalance in gas availability will continue to grow • 44% global demand growth in LNG by 2050 • 20% global demand growth in LPG by 2050 Network that delivers Reputation and pr
Slide 12: Unique assets positioned to capture opportunities in industrial terminals
Unique assets strategically positioned to capture opportunities in industrial terminals Market opportunities Global manufacturing market will continue to grow1 • 4.5% growth in global chemical production in 2024-25 • 40 additional crackers needed to meet global demand for global ethylene production
Slide 13: 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 14: 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 15: 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 16: Vopak FY 2023 Results - COO Frits Eulderink
Vopak FY 2023 Results COO – Frits Eulderink Vopak Annual General Meeting 2024 16
Slide 17: Our contribution to a net-zero society
Our contribution to a net-zero society Accelerate investments in infrastructure for new energies and sustainable feedstocks Invest Contribute Focus EUR 1 billion in Actively to decarbonize In four areas: low-carbon fuels, infrastructure for new industrial clusters CO2 infrastructure, Hydrogen energi
Slide 18: Footprint in perspective
Footprint in perspective GHG emissions per annum In million metric tons CO2 savings of Gate sized terminal Gate emissions LNG throughput, compared to coal 25 close to zero usage for the same amount of energy ~ 0,001% of worldwide Total Vopak emissions 2023 0.43 emissions ~ 1,8% of Germany CO2 emissi
Slide 19: Global capabilities to store and handle low-carbon products
Global capabilities to store and handle low-carbon products Massive opportunity Global demand for liquid 3x low-carbon fuels by 2030 compared to 20201 Market demand for hydrogen 1.5x expected to grow from 90 MTPA today to 140 MTPA in 20302 Fast growing segment Capacity repurposed in ’23 and 316Kcbm
Slide 20: 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 21: Decarbonizing our operations and becoming net-zero
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 22: 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 27.9 inclusion or exclusion of the use phase emissions of the 4 Rank in the Refiners & LNG we store an
Slide 23: Vopak FY 2023 Results - CFO Michiel Gilsing
Vopak FY 2023 Results CFO – Michiel Gilsing Vopak Annual General Meeting 2024 23
Slide 24: 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 25: 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 26: Delivering on performance improvement: Proportional EBITDA
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 27: 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 28: 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 29: 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 30: 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 31: Returning value to shareholders
Returning value to shareholders Shareholder returns over time Dividend Share buyback program Dividend payout ratio Proposed 41% 51% 53% 55% 46% 489 246 300 100 163 157 189 151 146 2019 2020 2021 2022 2023 • Dividend increased to EUR 1.50 from EUR 1.30, a 15% increase • Stable to progressive dividend
Slide 32: 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 33: Agenda for the Annual General Meeting 24 April 2024
Agenda for the Annual General Meeting of Koninklijke Vopak N.V. – 24 April 2024 1. Opening 8. Re-appointment of Mr. B.J. Noteboom as member of the 2. Discussion of the management report for the 2023 financial Supervisory Board year 9. Appointment of Mr. R.L. de Visser as member of the 3. Implementat
Slide 34: Updated Executive Board remuneration policy
Updated Executive Board remuneration policy Effective per 1 January 2023 To drive the creation of long-term success and sustainable value for Vopak Connecting EB incentive schemes to the strategic pillars: • Improve portfolio and sustainability performance • Grow the base in industrial and gas termi
Slide 35: Executive Board remuneration in 2023
Executive Board remuneration in 2023 Performance of Vopak in 2023 as basis for the Incentive schemes for the Executive Board. Some key achievements during 2023: • Good Progress in the portfolio in gas and industrial terminals • Divestment of chemical terminals • Greenfield projects towards the energ
Slide 36: Agenda for the Annual General Meeting 24 April 2024
Agenda for the Annual General Meeting of Koninklijke Vopak N.V. – 24 April 2024 1. Opening 8. Re-appointment of Mr. B.J. Noteboom as member of the 2. Discussion of the management report for the 2023 financial Supervisory Board year 9. Appointment of Mr. R.L. de Visser as member of the 3. Implementat
Slide 37: Returning value to shareholders
Returning value to shareholders Shareholder returns over time Dividend Share buyback program Dividend payout ratio Proposed 41% 51% 53% 55% 46% 489 246 300 100 163 157 189 151 146 2019 2020 2021 2022 2023 • Dividend increased to EUR 1.50 from EUR 1.30, a 15% increase • Stable to progressive dividend
Slide 38: Agenda for the Annual General Meeting 24 April 2024
Agenda for the Annual General Meeting of Koninklijke Vopak N.V. – 24 April 2024 1. Opening 8. Re-appointment of Mr. B.J. Noteboom as member of the 2. Discussion of the management report for the 2023 financial Supervisory Board year 9. Appointment of Mr. R.L. de Visser as member of the 3. Implementat
Slide 39: Annual General Meeting of Koninklijke Vopak N.V.
Annual General Meeting of Koninklijke Vopak N.V. Shaping the future to help the world flow forward 24 April 2024
Slide 40: 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 41: Glossary (I)
Glossary (I) Average proportional capital employed Consolidated investment and financial commitment Exceptional items Is defined as proportional total assets excluding assets and Consolidated investment and financial commitment is Exceptional items are non-recurring gains and losses current liabilit
Slide 42: Glossary (II)
Glossary (II) FID Proportional growth capex • Proportional operating cash flow is pre-tax, excludes Final Investment Decision Proportional growth capex is defined as Consolidated growth capex, derivative movements and working growth capex adjusted for: capital movements; IFRS • Investments in proper