Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Non-Deal Roadshow (February 2024)
65 slides from Royal Vopak Nv's roadshow presentation, Feb 23, 2024
Slide 1: FY 2023 Roadshow presentation
FY 2023 Roadshow presentation Shaping the future to help the world flow forward
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: We help the world flow forward
We help the world We deliver flow forward We provide safe storage and infrastructure for vital liquids and gases. Our trusted professionals ensure that they are available in the right place, at the right time. We drive progress We create connections We proudly serve a growing world We are entreprene
Slide 4: Well-positioned to leverage strong market fundamentals and energy transition opportunities
Well-positioned to leverage the strong market fundamentals and energy transition opportunities Macroeconomic and end market developments Business impact Additional storage requirements to optimize supply chains Global energy demand Energy and supply security > +8% by 20301 > As result of geopolitica
Slide 5: Well-diversified portfolio supports energy security and energy transition
Well-diversified portfolio supports energy security and energy transition We deliver We create connections an independent network partnerships that matter 76 23 5,500+ terminals countries professionals around the 1,000+ customers world We drive progress future focused capabilities 35+ joint venture
Slide 6: Grow LNG and LPG infrastructure for today's energy security and growing energy demand
Grow LNG and LPG infrastructure for today’s energy security and growing energy demand Grow Market opportunities Network that delivers Capabilities to drive progress Global energy demand and imbalance in gas Reputation and proven track record in developing, Investing and expanding the network by ensu
Slide 7: Unique assets positioned to capture opportunities in LNG and LPG
Unique assets strategically positioned to capture opportunities in LNG and LPG Hub terminal Terminal Market opportunities in LNG and LPG 7 Vopak FY 2023 roadshow presentation
Slide 8: Growing our footprint in industrial clusters
Growing our footprint in industrial clusters Grow Market opportunities Network that delivers Capabilities to drive progress Global manufacturing market will continue to grow Reputation and proven track record in developing Expansion opportunities in existing locations, exploring terminals in the big
Slide 9: Unique assets positioned to capture opportunities in industrial terminals
Unique assets strategically positioned to capture opportunities in industrial terminals Hub terminal Terminal Market opportunities in Industrial 9 Vopak FY 2023 roadshow presentation
Slide 10: Opportunities in all phases of decarbonization journey
Opportunities in all phases of Next generation fuels decarbonization journey Ammonia as H2 carrier Renewable fuels & Hydrogen feedstocks electrolysis Generating wind & solar New Hydrogen carriers Electricity storage Large-scale electrification Carbon capture Gas replacing coal New gas capacity Repur
Slide 11: Unique assets positioned to capture opportunities in biofuels
Unique assets strategically positioned to capture opportunities in biofuels Hub terminal Terminal Market opportunities in biofuels Vopak FY 2023 roadshow presentation 11
Slide 12: Unique assets positioned to capture opportunities in ammonia
Unique assets strategically positioned to capture opportunities in ammonia Hub terminal Terminal Market opportunities in ammonia Vopak FY 2023 roadshow presentation 12
Slide 13: 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 14: 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 15: 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 29.9 inclusion or exclusion of the use phase emissions of the 4 Rank in the Refiners & LNG we store an
Slide 16: Our capability to be a partner in low-carbon storage
Our capability to be a partner in low-carbon storage OUR STRENGTH OUR PLAN Infrastructure in highly strategic Strengthen our existing network to deliver by locations repurposing some of the current infrastructure Extensive connections with partners Leverage the connections to develop and customers b
Slide 17: Vopak FY 2023 Shaping the future
Vopak FY 2023 Shaping the future Vopak FY 2023 roadshow presentation 17
Slide 18: 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 19: 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 20: Improved portfolio performance
Improved portfolio performance EBITDA In EUR million EBITDA performance Improve Grow Excluding exceptional items +83 EUR million • Strong EBITDA increase by EUR 12 77 million to EUR 964 million, a 9% increase year-on-year 26 50 964 11 • Increase in expenses driven by higher personnel costs and other
Slide 21: 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 22: Delivering on our industrial footprint in China
Delivering on our industrial footprint in China Position in China Reduced exposure Growing our core Solid EBITDA contribution with long-term Through divestments of chemical Investing in industrial terminals contracts and expansions ongoing distribution and oil terminals with long-term contracts 2012
Slide 23: Creating connections in India
Creating connections in India Hindustan Aegis LPG Kandla 50k cbm ~1.8M cbm 855k cbm + 28k cbm Distribution terminal for gas (LPG) ~1.3M cbm +38% Six distribution terminals storing and handling chemicals, gas (LPG) and vegoils 2021 2025E Pipavav 117k cbm + 96k cbm • Expanding in a fast growing market
Slide 24: Growing our footprint in industrial and gas
Growing our footprint in industrial and gas Industrial terminal expansion LPG export facility LNG capacity In the USA in Canada in the Netherlands • Supporting energy security of supply in North • Expanding in our industrial terminal with our • Good progress in strengthening Canada-Asia West Europe
Slide 25: 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 26: 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 27: 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 28: Vopak FY 2023 Financial framework
Vopak FY 2023 Financial framework Vopak FY 2023 roadshow presentation 28
Slide 29: 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 30: Growing earnings and return to shareholders
Growing earnings and return to shareholders Earnings per Total net debt Dividend per Robust fundamentals share (EPS) to EBITDA share Excluding exceptional items • Growing earnings through projects and autonomous growth of the +40% +15% business 3.29 -0.86x 2.85x 1.50 • Reduced leverage driven by hea
Slide 31: Q4 2023 key messages
Q4 2023 key messages Occupancy – Q4 2023 Revenue – Q4 2023 In % In EUR million 91% 353 QoQ 0p.p QoQ +0.3% Remaining high occupancy rates, Divestment impact offset by negatively impacted by stronger performance in oil and chemicals markets and China industrial terminals Costs – Q4 2023 EBITDA – Q4 20
Slide 32: Delivering on performance improvement
Delivering on performance improvement Proportional EBITDA In EUR million EBITDA performance Excluding exceptional items 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 chem
Slide 33: 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 34: 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 35: 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 36: 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 37: Growth capex allocated towards accretive investments
Growth capex allocated towards accretive investments Return Allocation Timing Investments multiples1 per segment EUR 1 billion towards new energies & Of allocating EUR 2 billion in growth and brownfield and greenfield (excl. M&A) sustainable feedstocks accelerate Gas 5-7x 80-90% Majority of growth c
Slide 38: Growth capex allocated towards accretive investments
Growth capex allocated towards accretive investments >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 In Belgium,
Slide 39: Adapting the portfolio to evolving market dynamics
Adapting the portfolio to evolving market dynamics Proportional capital employed per product category1 in % • Portfolio well-positioned to capture opportunities 10-15% 20-25% 25-30% 25-30% • Share of oil and chemical expected to 15-20% 35-40% reduce overtime as new energies 20-25% 20-25% investments
Slide 40: Well-positioned towards higher cash returns
Well-positioned towards higher cash returns Operating cash return1 average by terminal type Development in %, excluding the corporate cost allocation and FY 2022 FY 2023 other • Average returns per terminal type improved ~20% ~18% • Chemical terminal performance improved ~16% ~16% due to portfolio a
Slide 41: Creating value per share
Creating value per share Earnings per Proportional EBITDA Proportional free Proportional debt share (EPS) per share operating cash flow per share Excluding exceptional items per share +38% +15% +44% -10% 3.29 9.20 6.34 31.67 33.56 7.97 8.52 5.46 28.58 2.38 2.35 4.41 2021 2022 2023 2021 2022 2023 202
Slide 42: Returning value to shareholders
Returning value to shareholders Shareholder returns over time Dividend Share buy back program Dividend payout ratio Proposed 41% 51% 53% 55% 46% 489 246 300 100 163 +29% 157 189 151 146 2019 2020 2021 2022 2023 • Stable to progressive dividend policy, increasing dividend payout since 2019 • Share bu
Slide 43: FY24 EBITDA outlook drivers
FY24 EBITDA outlook drivers Proportional EBITDA Consolidated EBITDA In EUR million In EUR million +92 1,170 1,154 +32 1,120 964 76 920 1,078 76 888 880 Prop. Divestments Adjusted Low end of High end EBITDA Divestments Adjusted Low end of High end EBITDA Prop. FY 2024 of FY 2024 FY 2023 EBITDA FY 202
Slide 44: Outlook
Outlook Proportional EBITDA For FY 2024 is expected to be in the range of EUR 1,120 – 1,170 million Consolidated EBITDA For FY 2024 is expected to be in the range of EUR 880 – 920 million Short-term Consolidated growth capex For FY 2024 is expected to be around EUR 300 million Consolidated operating
Slide 45: 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 46: Appendix
Appendix Vopak FY 2023 roadshow presentation 46
Slide 47: 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 Operation
Slide 48: Project timelines of new capacity
Project timelines of new capacity Vopak’s Capacity Country Terminal ownership Products (cbm) 2020 2021 2022 2023 2024 2025 2026 Growth projects Existing terminals Belgium Antwerp 100% Chemicals 41,000 Brazil Alemoa 100% Chemicals 30,000 China Caojing 50% Industrial terminal 110,000 India Aegis termi
Slide 49: Well-spread maturity profile
Well-spread maturity profile Debt repayment schedule In EUR million 1,400 1,200 1,000 800 1,000 600 400 0 137 200 43 263 249 71 164 113 166 115 95 163 128 0 68 75 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2040 RCF headroom RCF VTS Subordinated loans Asian PP US PP Vopak FY 2023 roa
Slide 50: Vopak's role in the value chain
Vopak’s role in the value chain How we help the world Supply chain links where Vopak plays a role flow forward We provide independent, open-access storage Gas (LNG + LPG) and regasification infrastructure for LNG. Gas production and liquefaction Storage Transport Storage Regasify LNG Distribution to
Slide 51: Strategic terminal types
Strategic terminal types Energy Manufacturing New energies & Gas terminals Industrial terminals Chemical terminals Oil terminals feedstocks • Accelerate infrastructure • Contribute to the energy • Petrochemical clusters are • Vopak operates a global • Hub terminals are located solutions for the worl
Slide 52: Gas
Gas LNG terminal strengthening supply security EemsEnergyTerminal in the Netherlands Vopak FY 2023 roadshow presentation 52
Slide 53: Industrial
Industrial Industrial terminal integrated with petrochemical complex Vopak Shanghai – Caojing Terminal in China Vopak FY 2023 roadshow presentation 53
Slide 54: Chemicals
Chemicals Chemical distribution terminal Vopak ACS terminal in Antwerp Belgium Vopak FY 2023 roadshow presentation 54
Slide 55: Oil
Oil Oil hub terminal Vopak terminal Europoort in the Netherlands Vopak FY 2023 roadshow presentation 55
Slide 56: Well-diversified infrastructure portfolio Business Units
Well-diversified infrastructure portfolio Business Units Asia & Middle East China & North Asia Netherlands 90 91 91 92 90 92 91 92 92 85 90 84 82 82 83 69.5 72.3 77.9 69.3 36.8 37.2 58.1 29.5 33.8 32.8 16.7 18.7 17.5 15.8 15.0 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2022 2023 2023 2023 2023 202
Slide 57: Asia & Middle East developments
Asia & Middle East developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 0.8 Q4 2023 1.8 90 92 91 92 92 18.5 19.2 18.3 18.1 19.6 12.1 million cbm Subsidiaries Joint ventures & associates Operatorships 9.5 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2022 2023
Slide 58: China & North Asia developments
China & North Asia developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q4 2023 84 85 82 82 83 0.8 3.2 million cbm 11.7 12.2 11.2 11.7 10.1 Subsidiaries Joint ventures & associates 2.4 Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2022 2023 2023
Slide 59: Netherlands developments
Netherlands developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q4 2023 90 91 91 92 90 1.4 8.2 million cbm 116.4 115.5 115.3 119.2 108.9 Subsidiaries Joint ventures & associates 6.8 Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2022 2023 2023 20
Slide 60: Singapore developments
Singapore developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q4 2023 96 97 93 93 71.8 72.8 70.2 70.4 88 67.5 1.5 4.8 million cbm Subsidiaries 3.3 Joint ventures & associates Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2022 2023 2023 2023 2023
Slide 61: USA & Canada developments
USA & Canada developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q4 2023 96 95 91 92 95 61.0 2.8 million cbm 59.2 0.8 57.1 57.9 53.2 Subsidiaries 2.0 Joint ventures & associates Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2022 2023 2023 2023 2
Slide 62: Other business units developments
Other business units developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q4 2023 93 94 93 93 93 0.5 3.3 million cbm 80.5 80.4 82.5 80.1 81.4 0.5 Subsidiaries 2.3 Joint ventures & associates Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2022 2023
Slide 63: JVs & associates developments
JVs & associates developments Net result JVs and associates Net result Asia & Middle East Net result China & North Asia Net result Netherlands In EUR million In EUR million In EUR million In EUR million 53.2 53.0 55.5 54.2 49.8 12.9 23.0 23.4 23.4 21.8 11.2 11.0 11.2 12.0 10.2 10.1 10.0 10.3 10.5 16
Slide 64: Stable cash flow generation across the portfolio
Stable cash flow generation across the portfolio Proportional EBITDA Proportional Operating Cash Flow JV dividend upstream In EUR million In EUR million As % of JV & Associates net income 1,154 795 195 213 1,068 981 961 1,000 684 177 186 604 166 42% 558 553 107% 42% 52% 82% 40% 42% 42% 57% 57% 81% 7
Slide 65: Thank you
Thank you www.vopak.com Royal Vopak HQ Westerlaan 10 3016 CK - Rotterdam The Netherlands 65