Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — FY2019 Earnings Presentation
32 slides from Royal Vopak Nv's earnings presentation, Feb 12, 2020
Slide 1: Storing vital products with care
Storing vital products with care Vopak Full Year 2019 financial results Analyst presentation – 12 February 2020
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
Storing vital products with care Chairman of the Executive Board Eelco and CEO of Royal Vopak Hoekstra
Slide 4: Key messages
Key messages Strong EBITDA and significant increase in earnings per share Execution of our strategy with portfolio transformation and growing new digital capabilities Continued growth investments for 2020 and EUR 100 million share buyback program Portfolio well-positioned for future opportun
Slide 5: Business environment update
Business environment update Long-term sustainable portfolio, well positioned for future opportunities Chemicals Focus on operational performance Oil products IMO 2020 capacity delivered Long-term growth in global Oil hubs: short-term weakness from demand for chemicals backwardated markets struct
Slide 6: 2017-2019 strategy delivered
2017-2019 strategy delivered Transformative portfolio changes and digital strategy is being rolled out EUR 1 billion growth investment program in line with Capture growth long-term market developments Spend EUR 750 million on sustaining and Sustaining and service improvement capex programs servi
Slide 7: Key messages
Key messages Strong EBITDA and significant increase in earnings per share Execution of our strategy with portfolio transformation and growing new digital capabilities Continued growth investments for 2020 and EUR 100 million share buyback program Portfolio well-positioned for future opportun
Slide 8: Storing vital products with care
Storing vital products with care Member of the Executive Board Gerard and CFO of Royal Vopak Paulides
Slide 9: Summary financial performance
Summary financial performance EBITDA of EUR 830 million reflect good aggregate business performance including new asset performance and positive IFRS 16 effects Earnings Per Share (EPS) significantly increased to EUR 2.80 Cost savings program is delivered – 2019 cost base is EUR 633 million
Slide 10: 2019 vs 2018 EBITDA
2019 vs 2018 EBITDA Pro forma EBITDA increased reflected good aggregate business performance including new asset performance 829.8 5.2 45.0 7.9 784.8 5.8 22.5 5.6 734.3 733.8 26.8 14.4 14.9 2018 FX-effect Divested Adjusted Asia & Americas China & LNG Europe & Global pro forma IFRS 16 2019 terminals
Slide 11: Q4 2019 vs Q3 2019 EBITDA
Q4 2019 vs Q3 2019 EBITDA Q4 reflected positive effects from settlements, good performance from IMO 2020 capacity and growth projects replacing divested EBITDA 1.2 0.9 204.8 202.4 7.2 2.2 3.0 0.1 15.7 14.1 186.6 Q3 2019 FX-effect Divested Adjusted Asia & China & Americas Europe & LNG Global Q4 2019
Slide 12: Divisional segmentation
Divisional segmentation Europe & Africa reflect divestments; Asia & Middle East and China benefit from settlements; Americas and LNG show continued robust gas and chemical markets Europe & Africa Asia & Middle East Americas 85 84 84 85 92 92 82 83 80 82 89 89 91 90 71 70.3 73.6 76.2 72.8 65.9 77.5 6
Slide 13: Occupancy rate developments
Occupancy rate developments Occupancy rate trended upwards following contracted IMO 2020 capacity coming into operations; Adverse market conditions at oil hub terminals continued Occupancy rate* In percent 90-95% 85-90% 86 84 82 84 IMO related out-of-service capacity 2010 2011 2012 2013 2014 2015 20
Slide 14: Global fuel oil network
Global fuel oil network Good performance from contracted IMO 2020 capacity Fuel Oil capacity Rotterdam IMO contracted ~35% ~3.5m cbm 15% Los Angeles 55% Singapore ~65% Panama 30% IMO contracted Fujairah 2017 2020 Operational VLSFO IMO contracted Flexible (HSFO/VLSFO/MGO) HSFO Fuel oil hub terminal F
Slide 15: Cash flow overview
Cash flow overview Investment momentum driven by growth project phasing towards 2019 2019 2018 In EUR million In EUR million 710 687 647 640 561 500 63 47 300 266 390 38 347 374 18 341 21 50 CFFO* Tax & other CFFO Sustaining, FCF Divestments Growth Other Free Cash CFFO Tax & other CFFO Sustaining, F
Slide 16: Investment phasing
Investment phasing Balanced approach for growth, sustaining, service improvement and IT investments Investments Investments In EUR million For 2020, growth investment could amount to EUR 300-500 million New projects* In the period 2020-2022, Vopak may invest EUR 750-850 million in sustaining and
Slide 17: Robust balance sheet
Robust balance sheet Target leverage of 2.5 to 3.0 times senior net debt : EBITDA Priorities for cash Senior net debt : EBITDA ratio Senior net debt : EBITDA ratio (frozen GAAP) scenarios Debt servicing 1 average interest 3.5% 3.75 Growth opportunities 2 Value accretive growth 2.0-2.5 2.5-3.0 3.0-3.
Slide 18: Increase in shareholder returns
Increase in shareholder returns 5% increase in dividend and EUR 100 million share buyback program Dividend and EPS* Share Buyback Program In EUR 2.80 2.55 2.56 2.31 2.25 2.27 Vopak will start a share buyback program to return EUR 100 million to shareholders 1.05 1.05 1.10 1.15 0.90 1.00 2014 2015 20
Slide 19: Non-IFRS proportionate information
Non-IFRS proportionate information EBITDA Occupancy rate Maintenance, Service In EUR million In percent & IT Capex IFRS BASED In EUR million 763 785 90 86 84 734 266 300 239 Non-IFRS proportionate information provides 2017 2018 Pro forma 2017 2018 2019 2017 2018 2019 2019 transparency in Vopak’s und
Slide 20: Summary financial performance
Summary financial performance EBITDA of EUR 830 million reflect good aggregate business performance including new asset performance and positive IFRS 16 effects Earnings Per Share (EPS) significantly increased to EUR 2.80 Cost savings program is delivered – 2019 cost base is EUR 633 million
Slide 21: Looking ahead
Looking ahead We aim to grow EBITDA over time with new contributions from growth projects and IMO 2020 converted capacity and replace the EBITDA from divested terminals, subject to general market conditions. In the period 2020-2022, Vopak may invest EUR 750 million to EUR 850 million in sustaini
Slide 22: Questions & Answers
Storing vital products with care Vopak Full Year 2019 Questions & financial results Answers
Slide 23: Vopak FY 2019 financial results
For more information please contact: Upcoming events: Investor Relations contact: Publication of Q1 2019 interim update Laurens de Graaf, Head of Investor Relations 21 April 2020 Telephone: +31 (0)10 400 2776 e-mail: investor.relations@vopak.com Annual General Meeting 21 April 2020 Media contact: Ex
Slide 24: Europe & Africa developments
Europe & Africa developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million 1.3 Total Q4 2019 85 82 83 84 84 158.2 153.8 151.9 152.7 10.8 million cbm 131.9 Subsidiaries 9.5 Joint ventures & associates Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2018 2019 2019 201
Slide 25: Asia & Middle East developments
Asia & Middle East developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million Total Q4 2019 92 84.5 3.3 85 80 82 79.1 76.5 73.4 4.2 15.1 million cbm 71 70.6 Subsidiaries Joint ventures & associates 7.6 Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2
Slide 26: China & North Asia developments
China & North Asia developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million Total Q4 2019 83 79 73 73 0.8 2.8 million cbm 64 10.5 9.8 9.7 8.3 8.9 2.0 Subsidiaries Joint ventures & associates Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019
Slide 27: Americas developments
Americas developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million Total Q4 2019 89 89 91 92 90 81.8 77.0 79.3 0.2 0.5 4.4 million cbm 75.6 71.1 Subsidiaries 3.7 Joint ventures & associates Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019 20
Slide 28: JVs & associates developments
JVs & associates developments Net result JVs and associates* Europe & Africa* Asia & Middle East* In EUR million In EUR million In EUR million 56.5 46.8 40.3 37.7 25.3 36.6 22.9 19.8 16.0 10.7 0.7 0.6 0.6 0.6 0.4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019 2018 2019 2019 20
Slide 29: Project timelines
Project timelines Vopak’s Capacity Country Terminal ownership Products (cbm) 2017 2018 2019 2020 2021 2022 Growth projects Existing terminals Malaysia Pengerang Independent Terminals (PITSB) 44.1% Oil products 215,000 Vietnam Vopak Vietnam 100% Chemicals 20,000 South Africa Durban 70% Oil products 1
Slide 30: Growth investments
Growth investments Shift towards industrial terminals, chemical and gas terminals Botlek Vietnam Vlissingen RIPET Caojing 63,000 cbm Deer Park 20,000 cbm 9,200 cbm German LNG 96,000 cbm* Qinzhou 65,000 cbm* 33,000 cbm Corpus Christi Antwerp PT2SB Open season completed Veracruz 290,000 cbm ETPL 130,0
Slide 31: Portfolio transformation
Portfolio transformation Shift towards industrial terminals, chemicals and gas terminals Key projects 2019 Proportionate revenue per product ~10% ~10% 10-15% Gas • SPEC LNG - Colombia ~15% 20-25% 25-30% Gas • ETPL LNG - Pakistan Industrial terminals 35-40% • RIPET LPG - Canada 25-30% 25-30% Chemical
Slide 32: IFRS 16 Leases
IFRS 16 Leases Significant impact from long-term land leases IFRS 16 Leases Impact Vopak No economic impact on the business and how we Key figures* In EUR million manage it, accounting change only EBITDA 40 – 50 Net profit 0 – (10) Sizeable portfolio of long-term land leases IFRS 16 Lease liabil