Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Q3 2021 Earnings Presentation
31 slides from Royal Vopak NV's earnings presentation, Nov 12, 2021
Slide 1: Storing vital products with care
Storing vital products with care Vopak Interim Update Q3 2021 – Analyst Presentation Eelco Hoekstra – Chairman and CEO of Royal Vopak Gerard Paulides – CFO of Royal Vopak
Slide 2: Forward-looking statement
Forward-looking statement This presentation contains ‘forward-looking statements’, based on currently available plans and forecasts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the
Slide 3: Storing vital products with care – Eelco Hoekstra
Storing vital products with care Chairman of the Executive Board Eelco and CEO of Royal Vopak Hoekstra
Slide 4: CEO succession
CEO succession Eelco Hoekstra to be succeeded by Dick Richelle ▪ Eelco Hoekstra decided to not seek a fourth term, after having served 11 years as Chairman of the Executive Board and CEO of Royal Vopak. ▪ The Supervisory Board nominated Dick Richelle to become Chairman of the Executive Board and tak
Slide 5: Long-term sustainable portfolio
Long-term sustainable portfolio Continuous portfolio developments ▪ Strong global demand recovery in all product market combinations has resulted in high commodity prices Market ▪ Chemical, oil and gas markets are tight resulting in soft markets for storage services conditions ▪ We believe 2022 will
Slide 6: Storing vital products with care – Gerard Paulides
Storing vital products with care Member of the Executive Board Gerard and CFO of Royal Vopak Paulides
Slide 7: YTD Q3 2021 Key messages
YTD Q3 2021 Key messages ▪ Strong financial performance with EBITDA growth of 5% YoY, adjusted for currency effect ▪ Growth project contribution of EUR 35 million and efficiency are driving positive EBITDA performance in soft business conditions ▪ Cost efficiency measures are tracking well including
Slide 8: YTD Q3 2021 vs YTD Q3 2020 EBITDA
YTD Q3 2021 vs YTD Q3 2020 EBITDA EBITDA increased by EUR 29 million (+5% YoY) adjusted for currency effects, strong performance in Europe & Africa 4.5 4.4 4.6 11.2 619.1 2.6 602.7 33.3 13.0 YTD Q3 FX-effect Europe & Americas China & LNG Asia & Global YTD Q3 2020 Africa North Asia Middle East functi
Slide 9: Q3 2021 vs Q2 2021 EBITDA
Q3 2021 vs Q2 2021 EBITDA EBITDA growth across all regions 0.7 0 1.3 212.5 1.3 2.6 2.9 206.2 0.2 Q2 2021 FX-effect Asia & Americas Europe & LNG China & Global Q3 2021 Middle East Africa North Asia functions, corporate activities and others Figures in EUR million, excluding exceptional items includin
Slide 10: Divisional performance
Divisional performance Americas benefits from growth projects; Asia & ME reflects soft market conditions; Europe & Africa benefits from South Africa; China & North Asia resilient Americas Asia & Middle East China & North Asia 92 90 87 86 87 94 93 92 90 88 88 84 90 89 90 44.9 47.2 42.4 46.3 48.9 70.0
Slide 11: YTD Q3 2021 vs YTD Q3 2020 EBITDA
YTD Q3 2021 vs YTD Q3 2020 EBITDA EBITDA performance driven by growth project contribution in soft markets and negative currency effects Business environment Performance changes delivery 619 10-15 5-10 603 13 35 25-35 9 YTD Q3 Oil Chemicals FX-effect Expenses Growth YTD Q3 2020 Markets Markets proje
Slide 12: Cash flow from operations growth
Cash flow from operations growth FCF before financing impacted by derivatives, working capital movements and lack of cash flows from portfolio effects YTD Q3 2021 YTD Q3 2020 In EUR million In EUR million +5% YoY 562 553 535 58 40 524 44 29 84 434 48 386 +16 203 168 -128 321 318 257 222 164 86 226 6
Slide 13: Investments supporting future growth
Investments supporting future growth Vopak has grown EBITDA historically and aims to grow EBITDA by EUR 110-125 million in 2023 from committed growth projects Capital employed and equity* (in EUR million) CAGR (In %) Growth project contribution to reported EBITDA (in EUR million) 5,000 Average Capit
Slide 14: Q3 Portfolio highlights
Q3 Portfolio highlights Strengthening our position on the U.S. Gulf Coast Industrial Terminal – Corpus Christi Gas Terminal – Moda Houston ▪ Successfully and timely delivered a new Vopak industrial terminal in ▪ During Q3 Vopak commissioned ammonia operations in the the U.S. Gulf Coast with a total
Slide 15: Q3 Portfolio highlights
Q3 Portfolio highlights Vopak aims to grow in the regasification of LNG Strong existing LNG portfolio… …with the ambition for growth Existing assets • Netherlands, Gate – very high utilization in 2021, successful maintenance turnaround program and regasification capacity expansion of 12.5% Netherlan
Slide 16: Environmental, Social & Governance (ESG)
Environmental, Social & Governance (ESG) Ambition to be sustainability leader ESG benchmarks Vopak Solar Park Eemshaven • Vopak, Groningen Seaports and Whitehelm joined forces to open 25 MSCI MW solar park in the Netherlands ▪ Rating: AAA (Scale: CCC to AAA) • The opening of the park marks Vopak’s t
Slide 17: Our New Energy focus areas
Our New Energy focus areas Vopak currently pursues 10+ infrastructure projects and studies Sustainable Hydrogen feedstocks ▪ H-vision: low-carbon hydrogen in Netherlands to decarbonize ▪ Import green ammonia from Morocco, Middle East and industry Australia ▪ Pilot: green liquid organic hydrogen carr
Slide 18: Vopak Ventures
Vopak Ventures An overall positive valuation effect in Vopak Ventures of EUR 39 million Vopak Ventures New Energies, Feedstock Operational Excellence & Platforms, Data & & Sustainability Asset Management Digitalization Vopak Q3 2021 - Analyst presentation 18
Slide 19: Non-IFRS proportional information
Non-IFRS proportional information Increased EBITDA, both IFRS and non-IFRS, due to growth projects in soft markets EBITDA Occupancy rate In EUR million In percent – subsidiaries only IFRS BASED 200 200 206 213 91 90 88 87 87 189 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2020 2020 2021 2021 2021 2020 2020 2021 2
Slide 20: Debt repayment schedule
Debt repayment schedule Debt repayment schedule In EUR million 1,500 Priorities for cash RCF headroom RCF drawn Debt servicing Other 1 average interest rate 2020: 3.7% 1,000 Subordinated loans Asian PP Growth opportunities 2 Value accretive growth US PP Shareholder dividend 3 Stable to rising cash d
Slide 21: Looking ahead
Looking ahead ▪ In 2021, reported EBITDA contributions from 2020 and 2021 growth projects are expected to be at the higher end of the EUR 30 million to EUR 50 million range, subject to market conditions and currency exchange movements ▪ In 2023, reported EBITDA contribution from 2020, and currently
Slide 22: YTD Q3 2021 Key messages
YTD Q3 2021 Key messages ▪ Strong financial performance with EBITDA growth of 5% YoY, adjusted for currency effect ▪ Growth project contribution of EUR 35 million and efficiency are driving positive EBITDA performance in soft business conditions ▪ Cost efficiency measures are tracking well including
Slide 23: Questions & Answers
Storing vital products with care Vopak Q3 2021 Questions & Interim Update Answers
Slide 24: Vopak Q3 2021 Interim Update
For more information please contact: Upcoming events: Investor Relations contact: Extraordinary General Meeting Fatjona Topciu, Head of Investor Relations 17 December 2021 Telephone: +31 (0)10 400 2776 Publication of 2021 annual results e-mail: investor.relations@vopak.com 16 February 2022 Publicati
Slide 25: Americas developments
Americas developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 0.5 Total Q3 2021 94 93 90 89 90 83.1 81.1 79.2 5.5 million cbm 78.3 77.6 1.0 4.0 Subsidiaries Joint ventures & associates Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2020 2020 2021
Slide 26: Asia & Middle East developments
Asia & Middle East developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Total Q3 2021 92 90 88 88 70.3 71.1 69.9 70.7 68.9 3.3 84 4.2 15.5 million cbm Subsidiaries Joint ventures & associates 8.0 Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2020
Slide 27: China & North Asia developments
China & North Asia developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Total Q3 2021 92 90 87 86 87 0.8 3.1 million cbm 10.6 11.2 10.7 10.9 11.2 Subsidiaries 2.3 Joint ventures & associates Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2020 2020
Slide 28: Europe & Africa developments
Europe & Africa developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 1.3 Total Q3 2021 91 91 88 87 88 136.2 141.8 140.8 141.2 142.7 10.7 million cbm Subsidiaries 9.4 Joint ventures & associates Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2020 2
Slide 29: JVs & associates developments
JVs & associates developments Net result JVs and associates* Americas* Asia & Middle East* In EUR million In EUR million In EUR million 43.4 43.4 42.5 42.2 20.6 22.1 25.8 19.6 19.0 4.0 3.1 2.1 2.1 1.5 0.7 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2020 2020 2021 2021 2021 2020 2020 2021 2021 2021
Slide 30: Occupancy rate developments
Occupancy rate developments Lower occupancy rate YTD Q3 2021 due to soft market conditions Subsidiary occupancy rate and out-of-service capacity In percent and million cbm 90-95% 85-90% 91 90 84 88 88 87 87 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 0.6 0.8 1.0 1.6 1
Slide 31: Project timelines
Project timelines Vopak’s Capacity* Country Terminal ownership Products (cbm) 2018 2019 2020 2021 2022 2023 2024 Growth projects Existing terminals Australia Sydney 100% Oil products 105,000 United States Deer Park 100% Chemicals 23,500 Mexico Altamira 100% Chemicals 40,000 China Shanghai - Caojing