Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Q1 2024 Earnings Presentation
71 slides from Royal Vopak Nv's earnings presentation, May 13, 2024
Slide 1: Q1 2024 Roadshow presentation
Q1 2024 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 the 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 77 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 strategically 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 Q1 2024 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 strategically 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 Q1 2024 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 strategically positioned to capture opportunities in biofuels
Unique assets strategically positioned to capture opportunities in biofuels Hub terminal Terminal Market opportunities in biofuels Vopak Q1 2024 roadshow presentation 11
Slide 12: Unique assets strategically positioned to capture opportunities in ammonia
Unique assets strategically positioned to capture opportunities in ammonia Hub terminal Terminal Market opportunities in ammonia Vopak Q1 2024 roadshow presentation 12
Slide 13: 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 (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 27.9 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: Shaping the future Vopak Q1 2024
Shaping the future Vopak Q1 2024 Vopak Q1 2024 roadshow presentation 17
Slide 18: Q1 2024 Key Highlights
Q1 2024 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 Favorable storage markets resulting in a s
Slide 19: Market dynamics
Solid market demand for our services Gas New energies & Energy Manufacturing sustainable feedstocks Market dynamics Lower LNG demand in Europe and Asia High demand for low-carbon fuels Market fundamentals remain healthy Chemical markets continued to be mainly due to mild winter infrastructure driven
Slide 20: Improved portfolio performance
Improved portfolio performance Proportional EBITDA EBITDA performance In EUR million Excluding exceptional items Improve Grow • Adjusted for divestment impact +12 EUR million EBITDA increased to EUR 298 million a 9% increase compare to 298 Q1 2023 294 • Healthy proportional occupancy 18 rate of 93%
Slide 21: Continuous effort to improve on our sustainability goals
Continuous effort to improve on our sustainability goals Reduce emissions Renewable energy Renewable electricity Scope 1 & 2 emissions (in MT) Renewable energy as % of Number of terminals total energy using green electricity 577 63 66 35 517 31 55 433 21 2021 2022 2023 2021 2022 2023 2022 2023 YTD 2
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 870k cbm + 28k cbm Distribution terminal for gas (LPG) ~1.8M cbm Six distribution terminals storing and ~1.3M cbm +38% handling chemicals, gas (LPG) and vegoils Pipavav 117k cbm + 96k cbm 2021 2025E Distribution terminal storing and ha
Slide 24: 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 is being market in the USA repurposed Los Angeles, the USA Commissioned repurposed infrastructure for low-carbon Vopak Ener
Slide 25: Strong cash generation to return cash to shareholders and finance growth
Strong cash generation to return cash to shareholders and finance growth Robust balance sheet Shareholder distribution Confirming growth outlook • Low leverage of 1.76x creates opportunities to capture • Approved dividend of EUR 1.50 per share • Confirming consolidated growth capex outlook of growth
Slide 26: 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 Q1 2024 results driven by favorable storage demand indicators in all markets • Actively managing our portfolio towards healthy and
Slide 27: Financial framework Vopak Q1 2024
Financial framework Vopak Q1 2024 Vopak Q1 2024 roadshow presentation 27
Slide 28: Delivering on performance improvement
Delivering on performance improvement Proportional EBITDA Proportional Operating Excluding exceptional items EBITDA occupancy rate Cash Return Excluding exceptional items +1 p.p. 93% 92% +1.6 p.p. 294 298 249 17.0% 21 +9% 235 21 +3% 15.4% 273 228 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 20
Slide 29: Q1 2024 key messages
Q1 2024 key messages Prop. Occupancy – Q1 2024 Revenues – Q1 2024 In % In EUR million 93% 328 +2 p.p vs. Q4 2023 -7.0% vs. Q4 2023 Increased proportional occupancy Adjusted for divestment impact of rates mainly related to reduced EUR 26 million revenues base capacity in Europoort remained stable Ope
Slide 30: Delivering on performance improvement
Delivering on performance improvement Proportional EBITDA In EUR million EBITDA performance Excluding exceptional items 298 • Robust demand for our services 294 mainly driven by a higher 5 demand for energy, and 18 rerouting of supply chains • Proportional EBITDA growth in most of the Business Units
Slide 31: Strong cash flow generation
Strong cash flow generation Cashflow Q1 2024 in EUR million Cash flow performance % of CFFO gross 276 31% • Cash generation improvements sufficient to fund company needs 220 86 • Share buyback program and 14% growth capex funded by strong 153 190 cash generation 40 3% 23% • Dividend upstream from jo
Slide 32: Financial framework Vopak FY 2023
Financial framework Vopak FY 2023 Vopak Q1 2024 roadshow presentation 32
Slide 33: 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 34: 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 35: 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 36: 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 37: 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 38: 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 39: 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 40: Returning value to shareholders
Returning value to shareholders Shareholder returns over time Dividend Share buyback program Dividend payout ratio 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 buyback prog
Slide 41: FY24 EBITDA outlook
FY24 EBITDA outlook Updated outlook as Previous outlook as Market indicators per Q1 2024 per FY 2023 Strong start of the year, with firm demand for storage infrastructure Business performance Proportional EBITDA EUR 1,140 – 1,180 EUR 1,120 – 1,170 Continue the momentum in improving financial and sus
Slide 42: Revised 2024 outlook
Revised 2024 outlook Proportional EBITDA For FY 2024 is expected to be in the range of EUR 1,140 – 1,180 million Consolidated EBITDA For FY 2024 is expected to be in the range of EUR 900 – 940 million Short-term Consolidated growth capex For FY 2024 is expected to be around EUR 300 million Consolida
Slide 43: Financial framework Capital allocation
Financial framework Capital allocation Vopak Q1 2024 roadshow presentation 43
Slide 44: 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: 1.76x net debt / EBITDA below target range 2.5x-3.0x We return va
Slide 45: 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
Slide 46: 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 47: 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 48: 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 49: Appendix
Appendix Vopak Q1 2024 roadshow presentation 49
Slide 50: 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 51: 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 20,000 China Caojing 50% Industrial terminal 110,000 India Aegis termi
Slide 52: Well-spread maturity profile
Well-spread maturity profile Debt repayment schedule Per Q1 2024 In EUR million 1,400 1,300 1,200 1,100 1,000 900 800 1,000 700 600 500 400 300 0 137 200 44 270 255 72 100 168 169 163 70 116 118 96 75 123 0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2040 RCF headroom RCF VTS Subordi
Slide 53: 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 54: 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 55: Gas
Gas LNG terminal strengthening supply security EemsEnergyTerminal in the Netherlands 1 Financial metrics are calculated excluding cost of global functions 2 On proportional basis 3 Numbers as per Annual Report 2023 Vopak Q1 2024 roadshow presentation 55
Slide 56: Industrial
Industrial Industrial terminal integrated with petrochemical complex Vopak Shanghai – Caojing Terminal in China 1 Financial metrics are calculated excluding cost of global functions 2 On proportional basis 3 Numbers as per Annual Report 2023 Vopak Q1 2024 roadshow presentation 56
Slide 57: Chemicals
Chemicals Chemical distribution terminal Vopak ACS terminal in Antwerp Belgium 1 Financial metrics are calculated excluding cost of global functions 2 On proportional basis 3 Numbers as per Annual Report 2023 Vopak Q1 2024 roadshow presentation 57
Slide 58: Oil
Oil Oil hub terminal Vopak terminal Europoort in the Netherlands 1 Financial metrics are calculated excluding cost of global functions 2 On proportional basis 3 Numbers as per Annual Report 2023 Vopak Q1 2024 roadshow presentation 58
Slide 59: Well-diversified infrastructure portfolio Business Units
Well-diversified infrastructure portfolio Business Units Asia & Middle East China & North Asia Netherlands 91 91 92 90 93 92 91 92 92 91 85 87 82 82 83 69.5 72.3 77.9 69.3 37.2 57.5 29.5 33.8 32.8 33.3 18.7 17.5 18.1 15.8 15.0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2023 2024 202
Slide 60: Asia & Middle East developments
Asia & Middle East developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 0.8 Q1 2024 1.8 92 91 92 92 91 19.2 18.3 18.1 19.6 19.6 12.2 million cbm Subsidiaries Joint ventures & associates Operatorships 9.6 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2023 2023
Slide 61: China & North Asia developments
China & North Asia developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q1 2024 85 82 82 83 87 0.8 3.2 million cbm 12.2 11.2 11.7 12.8 10.1 Subsidiaries Joint ventures & associates 2.4 Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2023 2023 2023
Slide 62: Netherlands developments
Netherlands developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q1 2024 91 91 92 90 93 1.4 7.8 million cbm 115.5 115.3 119.2 108.9 82.6 Subsidiaries Joint ventures & associates 6.4 Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2023 2023 2023 202
Slide 63: Singapore developments
Singapore developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q1 2024 96 97 93 93 93 71.8 72.8 70.2 70.4 72.0 1.5 4.8 million cbm Subsidiaries 3.3 Joint ventures & associates Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2023 2024
Slide 64: USA & Canada developments
USA & Canada developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q1 2024 95 91 92 95 95 61.0 0.8 2.8 million cbm 57.1 57.9 58.0 53.2 Subsidiaries 2.0 Joint ventures & associates Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2023 2
Slide 65: Other business units developments
Other business units developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q1 2024 94 93 93 93 92 0.5 3.2 million cbm 80.4 82.5 80.1 81.4 81.0 0.5 Subsidiaries 2.2 Joint ventures & associates Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2023 2023
Slide 66: 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 53.0 55.5 54.2 55.3 49.8 12.0 23.4 23.4 11.2 11.0 11.2 11.1 10.3 10.5 11.3 21.8 20.2 10.1 10.0 16
Slide 67: 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 68: 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 69: 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 70: 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
Slide 71: Thank you
Thank you www.vopak.com Royal Vopak HQ Westerlaan 10 3016 CK - Rotterdam The Netherlands 71