Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Q1 2023 Earnings Presentation
30 slides from Royal Vopak Nv's earnings presentation, Apr 26, 2023
Slide 1: Shaping the future – Analyst Presentation
Shaping the future Analyst Presentation 26 April 2023 Vopak Q1 2023 - Analyst Presentation 1
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: Vopak Q1 2023 Results
Shaping the future Vopak Q1 2023 Results Dick Richelle CEO of Royal Vopak
Slide 4: Q1 2023 Key Highlights
Q1 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 our base in industrial towards new energies & portfolio & gas terminals sustainable feedstocks Signed a joint venture for a Progressing t
Slide 5: Solid market demand across our services
Solid market demand across our services Market dynamics Vopak impact • Gate terminal enhancing energy security, in • LNG infrastructure remains in high demand. normalized LNG market. Gas • Supply security concerns expected to continue in • Other LNG terminals performing their role in local 2023. ene
Slide 6: Improve portfolio performance
Improve portfolio performance Improve Grow EBITDA EBITDA performance In EUR million • EBITDA of EUR 249 million in Q1 2023, supported 2 by improved market conditions 16 249 20 3 • Improved performance of oil and chemicals 25 • Gas continue to perform well in normalized market 213 2 4 • Energy and la
Slide 7: Grow our base in gas in West Canada
Grow our base in gas in West Canada A new joint venture with AltaGas for large-scale liquefied petroleum gas (LPG) and bulk liquids export facility in Prince Rupert 2 REEF RIPET 1 10-11 days 25+ 18+ days days Expanding bulk liquid capacity in Canada, in addition to Ridley REEF has a significant logi
Slide 8: Grow our base in gas in West Canada
Grow our base in gas in West Canada Commercially attractive • Long-term commercial agreement for the first phase subject to a positive FID. • Key permits for construction received from Federal and Provincial governments. Strategic location • 77-hectare greenfield site with existing rail trackage. •
Slide 9: Aegis Vopak joint venture expansion
Aegis Vopak joint venture expansion Kandla 855k cbm 1.3M Six distribution terminals storing Hindustan Aegis LPG Cbm current capacity and handling chemicals, gas and 50k cbm vegoils Distribution terminal for LPG +6% Liquid products capacity to be Pipavav added 117k cbm + 200k cbm Haldia 174k cbm + 51
Slide 10: Growing Vopak's LNG footprint
Growing Vopak’s LNG footprint Intention to acquire 50% of the shares Gate terminal successfully closed the No longer make use of the share right of EemsEnergyTerminal open season for the 4th LNG tank of 49.99% FSRU in Hong Kong Regas capacity of 8 bcma, Growing regas capacity by 4 bcma Vopak has bee
Slide 11: Accelerating in new energies and sustainable feedstocks
Accelerating in new energies and sustainable feedstocks Ammonia – ACE, greenfield LOHC – green liquid organic 4 focus areas infrastructure project for import of Sustainable fuels – existing infrastructure in Vlaardingen and hydrogen carrier pilot (LOHC) Liquid hydrogen – green liquid hydrogen supply
Slide 12: Q1 2023 Key Highlights
Q1 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 our base in industrial towards new energies & portfolio & gas terminals sustainable feedstocks “Good progress on our strategy to improve
Slide 13: Vopak Q1 2023 Results – CFO
Shaping the future Vopak Q1 2023 Results Michiel Gilsing CFO of Royal Vopak
Slide 14: Delivering on performance improvement
Delivering on performance improvement Revenue EBITDA Proportional occupancy EUR 362 m. EBITDA +12% EURoperating Prop. 249 m. cash+17% flow 92% Prop. +8 return operating cash %p. Operating Cash Return Growth capital expenditures Net debt to EBITDA 15.4% +3.7 p.p. EUR 54 m. EBITDA +29% 2.49x Prop. -0.
Slide 15: Strong EBITDA performance driven by organic growth across all divisions
Strong EBITDA performance driven by organic growth across all divisions EBITDA In EUR million 0 1 2 249 EBITDA performance 22 • Favorable storage demands in Asia & Middle East and Europe & Africa drive improved performance. 12 • Steady improvements across the other 213 4 2 1 divisions. • Positive cu
Slide 16: Well diversified infrastructure portfolio
Well diversified infrastructure portfolio Vopak Americas Asia & Middle East 92 95 93 89 90 93 93 94 94 90 87 88 84 84 84 249.0 83.4 89.9 213.1 219.4 226.9 227.8 73.4 76.4 78.4 58.7 54.5 56.2 57.2 58.7 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2022 2022 2022 2022 2023 2022 2022 2022 2022 2023 2022
Slide 17: Strong cash flow generation
Strong cash flow generation Cash flow overview In EUR million • CFFO improved driven by a positive business +51% performance, working capital movement and 227 7 220 derivatives offset by lower dividend received 50 150 28 142 8 from joint ventures 184 86 Dividends 54 • Other CFFI and CFFF include int
Slide 18: Capital allocation driving strategy execution
Capital allocation driving strategy execution >12% EUR 1 billion EUR 1 billion Operating cash return 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 In Belgium, Vopak i
Slide 19: Solid balance sheet allows us to execute our strategy
Solid balance sheet allows us to execute our strategy Net debt : EBITDA Agreement for new debt issuance Senior net debt : EBITDA Total net debt : EBITDA • US Private Placement of in total EUR 400 million equivalent, 4.00 consisting of USD 225 and EUR 193 million with maturities Maximum covenant leve
Slide 20: Progress on our capital allocation priorities
Progress on our 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 Focus on cash flow generatio
Slide 21: Outlook drivers
Outlook drivers Market Business Cost Growth indicators performance Continue the momentum in Normalized energy costs in The storage demand is Capturing growth improved financial Q1 2023. Volatility in the expected to remain opportunities and performance. EBITDA energy prices, inflation and favorable
Slide 22: Increased FY 2023 outlook of EBITDA and operating cash return
Increased FY 2023 outlook of EBITDA and operating cash return For FY 2023 is expected to be above EUR 950 million compared to the prior EBITDA communicated range of EUR 910 million to EUR 950 million Short term Consolidated operating capex For FY 2023 is expected to be a maximum of EUR 300 million o
Slide 23: Appendix
Shaping the future Appendix Vopak
Slide 24: Americas developments
Americas developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 0.5 Q1 2023 93 93 94 95 94 96.3 98.2 97.7 97.2 94.8 0.9 4.7 million cbm 3.3 Subsidiaries Joint ventures & associates Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2022 2022 2022 2022 2
Slide 25: Asia & Middle East developments
Asia & Middle East developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q1 2023 88 90 93 85.9 85.8 91.0 3.3 4.2 84 84 78.2 78.8 16.8 million cbm 9.3 Subsidiaries Joint ventures & associates Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2022 2022
Slide 26: China & North Asia developments
China & North Asia developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q1 2023 85 87 85 84 85 0.8 3.2 million cbm 13.0 13.3 13.5 11.7 12.2 2.4 Subsidiaries Joint ventures & associates Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2022 2022 2022
Slide 27: Europe & Africa developments
Europe & Africa developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 1.3 Q1 2023 87 87 89 90 151.1 158.6 159.7 79 136.7 147.0 10.6 million cbm 9.3 Subsidiaries Joint ventures & associates Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2022 2022 20
Slide 28: JVs & associates developments
JVs & associates developments* Net result JVs and associates Americas Asia & Middle East In EUR million In EUR million In EUR million 51.0 53.2 53.0 47.1 43.4 22.8 23.8 19.2 18.4 18.6 4.5 3.8 3.3 2.9 3.0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2022 2022 2022 2022 2023 2022 2022 2022 2022 2023 2
Slide 29: Project timelines
Project timelines Vopak’s Capacity Country Terminal ownership Products (cbm) 2020 2021 2022 2023 2024 2025 Growth projects Existing terminals United States Los Angeles 100% Renewable fuels 148,000 Netherlands Vlaardingen 100% Renewable feedstocks 64,000 Belgium Antwerp 100% Chemicals 41,000 Brazil A
Slide 30: Well spread maturity profile
Well spread maturity profile Debt repayment schedule In EUR million 1,300 1,200 1,100 1,000 900 700 800 700 600 500 400 300 138 300 200 43 274 267 253 100 165 117 96 138 69 72 46 75 0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2040 RCF headroom RCF VTS Subordinated loans Asian