Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Koninklijke Vopak — Shareholder Meeting (April 2023)
40 slides from Royal Vopak Nv's shareholder meeting presentation, Apr 26, 2023
Slide 1: Storing vital products with care
Storing vital products with care Annual General Meeting of Koninklijke Vopak N.V. 26 April 2023 Vopak AGM 2023 1
Slide 2: Agenda for the Annual General Meeting 26 April 2023
Agenda for the Annual General Meeting of Koninklijke Vopak N.V. – 26 April 2023 1. Opening 8. Re-appointment of Mrs. N. Giadrossi as member of the Supervisory Board 2. Discussion of the management report for the 2022 financial year 9. Amendment Remuneration policy for the Supervisory Board 3. Implem
Slide 3: Dick Richelle, Chairman of the Executive Board and CEO
Storing vital products with care Dick Richelle Chairman of the Executive Board and CEO of Royal Vopak
Slide 4: Emergency exit
Emergency exit Emergency exit Vopak AGM 2023 4
Slide 5: Storing vital products with care
Storing vital products with care
Slide 6: 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 7: 2022 Key Highlights: Improve, Grow, Accelerate
2022 Key Highlights >12% EUR 1 billion EUR 1 billion Operating cash return by 2025 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 Improved performance by reporting an
Slide 8: Diversified portfolio with 78 terminals across 23 countries
Diversified portfolio with 78 terminals across 23 countries around the globe Supporting energy and supply Biggest independent storage security in Europe provider in China and India Accelerating to sustainable feedstocks in LA Industrial terminals showing stable performance in Asia Chemicals and Indu
Slide 9: Serving markets contributing to energy and supply security
Serving markets contributing to energy and supply security New energies & Gas Energy Manufacturing sustainable feedstocks • Rebalancing global oil flows • The chemicals market Market dynamics • Momentum for hydrogen • LNG infrastructure is in high following the international continues to be under co
Slide 10: Actively managing our portfolio
Actively managing our portfolio Looking back Operating cash return1 average by terminal type In % for FY 2022, excluding the corporate cost allocation • Increased gas and industrial exposure over the last 5 years ~16 ~15 ~13 11.4 ~10 • Lowered oil exposure with 20% by material divestments and impair
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 Network Environmental Social Governance GHG emissions Safety performance Diversity & inclusion Achieved 10% CO2 reduction in 2022 Maintained good performa
Slide 12: Our contribution to a net-zero society
Our contribution to a net-zero society Accelerate investments • Invest EUR 1 billion in infrastructure for new energies & sustainable feedstocks in infrastructure for 1 • Contribute actively to decarbonize industrial clusters new energies and • Focus on four areas in new energies and sustainable fee
Slide 13: Accelerating in new energies and sustainable feedstocks
Accelerating in new energies and sustainable feedstocks Ammonia – ACE, import LOHC – green liquid organic Liquid hydrogen – green liquid Sustainable fuels – projects in terminal for green ammonia as a hydrogen carrier pilot (LOHC) hydrogen supply chain between Vlaardingen and Los Angeles hydrogen ca
Slide 14: Invest in cleaner fuels and feedstocks
Invest in cleaner fuels and feedstocks Market need Existing oil assets show huge potential to be Vlaardingen Capacity being built for waste-based repurposed and transformed to store and handle feedstocks sustainable fuels and feedstocks Well positioned We have presence in the locations where import,
Slide 15: Reducing our own environmental and carbon footprint
Reducing our own environmental and carbon footprint Interim GHG emissions reduction target of Decarbonize our existing Our ambition is to be net-zero by 30% by 2030 vs. 2021, which corresponds to and future operations 2050 (scope 1 & 2) a 45-60% reduction of the current asset base GHG emissions in t
Slide 16: 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, steam system segregation, optimization flameless Energy efficiency thermal oxidizer, LED lighting e.g. at Savannah & Botlek Renewable energy Use
Slide 17: 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 New energ
Slide 18: ESG benchmarks
ESG benchmarks “Carbon intensity is 77 % lower than industry average” “Strong efforts to mitigate environmental impacts of operation MSCI relative to peers” ▪ Rating: AAA (Scale: CCC to AAA) “100% of operations from business lines with low injury and fatality rates” ISS Sustainalytics ▪ Rating (scal
Slide 19: 2022 Key Highlights
2022 Key Highlights >12% EUR 1 billion EUR 1 billion Operating cash return by 2025 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 “During 2022, we made good progress i
Slide 20: Michiel Gilsing, Member of the Executive Board and CFO
Storing vital products with care Michiel Gilsing Member of the Executive Board and CFO of Royal Vopak
Slide 21: Delivering on performance improvement
Delivering on performance improvement Revenue EBITDA Operating Cash Return EUR 1,367 m. EBITDA +11% EURoperating Prop. 887 m. cash+7% flow 11.4% Prop. +1.2return operating cash %p. Growth Capital Expenditures Net debt to EBITDA Proposed Dividend EUR 313 m. EBITDA +16% 2.65x Prop. -0.28x operating ca
Slide 22: High EBITDA primarily due to strong performance of Americas division
High EBITDA primarily due to strong performance of Americas division EBITDA In EUR million 8 EBITDA performance 23 22 887 1 3 • EBITDA improved due to improved results in 12 5 our Americas division with mainly the US and Brazil performing well 58 • Positive currency effects also contributed to impro
Slide 23: Strong cash flow generation
Strong cash flow generation Cash flow overview In EUR million +18% YoY • CFFO improved driven by higher dividends from 872 47 825 741 joint ventures and lower operating capex 291 664 • Other CFFI and CFFF include interest expenses 608 160 374 and interest component of leases Dividends 190 from JV 13
Slide 24: Inflation protection through indexation clauses
Inflation protection through indexation clauses Proportional revenues containing indexation clauses Indexation clauses are mostly applied in January looking at average CPI from previous year Active management of the exposure by applying energy surcharges to the customers and having more frequent con
Slide 25: Portfolio transformation continues to improve earnings quality
Portfolio transformation to industrial and gas terminals continue to improve earnings quality Share of proportional revenue with Contract duration as a share of a contract duration > 10 years proportional revenue (%) 100% 100% 12% < 1 year 25% 27% 1-3 years 22% 34% 13% 16% 3-5 years 11% 5-10 years 1
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: Renewed 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 AGM 2023 28
Slide 28: Progressive dividend policy
Progressive dividend policy Dividend and EPS* In EUR 41% 47% 48% 41% 2.80 51% 53% 55% Progressive dividend policy 2.56 2.25 2.27 2.37 2.38 2.35 aims to maintain or grow our annual dividend subject 1.15 1.20 1.25 1.30 to market conditions 1.05 1.05 1.10 2016 2017 2018 2019 2020 2021 2022 EPS* Dividen
Slide 29: Agenda for the Annual General Meeting 26 April 2023
Agenda for the Annual General Meeting of Koninklijke Vopak N.V. – 26 April 2023 1. Opening 8. Re-appointment of Mrs. N. Giadrossi as member of the Supervisory Board 2. Discussion of the management report for the 2022 financial year 9. Amendment Remuneration policy for the Supervisory Board 3. Implem
Slide 30: Item 5. Dividend
Item 5. XY Dividend Vopak
Slide 31: Progressive dividend policy
Progressive dividend policy Dividend and EPS* In EUR 41% 47% 48% 41% 2.80 51% 53% 55% Progressive dividend policy 2.56 2.25 2.27 2.37 2.38 2.35 aims to maintain or grow our annual dividend subject 1.15 1.20 1.25 1.30 to market conditions 1.05 1.05 1.10 2016 2017 2018 2019 2020 2021 2022 EPS* Dividen
Slide 32: Agenda for the Annual General Meeting 26 April 2023
Agenda for the Annual General Meeting of Koninklijke Vopak N.V. – 26 April 2023 1. Opening 8. Re-appointment of Mrs. N. Giadrossi as member of the Supervisory Board 2. Discussion of the management report for the 2022 financial year 9. Amendment Remuneration policy for the Supervisory Board 3. Implem
Slide 33: Item 9. Amendment Remuneration policy for the Supervisory Board
Item 9. Amendment Remuneration policy for the Supervisory Board (voting item)
Slide 34: Supervisory Board remuneration as of 2023
Supervisory Board remuneration as of 2023 It is proposed to adjust the Supervisory Board fees to the 2022 market median Supervisory Board fee levels of the company’s peer group as follows: The overall amount of the adjustments is < EUR 100K The policy is not a ‘mechanical’ increase, but corresponds
Slide 35: Agenda for the Annual General Meeting 26 April 2023
Agenda for the Annual General Meeting of Koninklijke Vopak N.V. – 26 April 2023 1. Opening 8. Re-appointment of Mrs. N. Giadrossi as member of the Supervisory Board 2. Discussion of the management report for the 2022 financial year 9. Amendment Remuneration policy for the Supervisory Board 3. Implem
Slide 36: Item 10. Amendment Remuneration policy for the Executive Board
Item 10. Amendment Remuneration policy for the Executive Board (voting item)
Slide 37: Linking Executive Board remuneration to the company's strategy
Shaping the future: Linking Executive Board remuneration to the company’s strategy Executive Board annual bonus as of 2023 (STIP): • Reward cash flow generation: ○ EBITDA replaces EBIT ○ Operating Capex replaces Cost • Reward performance on Safety (TIR and PSER) and Customer Service (NPS) • Specific
Slide 38: Other amendments
Other amendments Additionally, the following amendments are proposed for Executive Board remuneration policy for 2023 and beyond: • Method joining and leaving the company in good standing applied within the long-term incentive programs of Executive Board members will reflect the actual time served d
Slide 39: Agenda for the Annual General Meeting 26 April 2023
Agenda for the Annual General Meeting of Koninklijke Vopak N.V. – 26 April 2023 1. Opening 8. Re-appointment of Mrs. N. Giadrossi as member of the Supervisory Board 2. Discussion of the management report for the 2022 financial year 9. Amendment Remuneration policy for the Supervisory Board 3. Implem
Slide 40: Shaping the future
Shaping the future XY Vopak