Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — HY1 2023 Earnings Presentation
37 slides from Royal Vopak Nv's earnings presentation, Jul 28, 2023
Slide 1: Shaping the future - Analyst Presentation
Shaping the future Analyst Presentation 28 July 2023 Vopak HY1 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 HY1 2023 Results - CEO
Shaping the future Vopak HY1 2023 Results Dick Richelle CEO of Royal Vopak
Slide 4: HY1 2023 Key Highlights
HY1 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 EBITDA increased by EUR 61 Solidifying ou
Slide 5: Solid market demand across our services
Solid market demand across our services New energies Gas & sustainable Energy Manufacturing feedstocks ● LNG market normalized ● Momentum for hydrogen ● Volatile oil markets ● Growth in global industrial during the first half of 2023. continues to accelerate. resulting from new patterns production c
Slide 6: Actively managing our portfolio
Actively managing our portfolio Solid market demand across our services Rationalize the Transform the portfolio portfolio Completed the divestments of Savannah Transforming our Eurotank terminal by chemical terminals and Agencies business. rebuilding 41k cbm. Received offers for the divestment of th
Slide 7: Improve portfolio performance
Improve portfolio performance Improve Grow EBITDA EBITDA performance In EUR million • EBITDA of EUR 494 million in HY1 2023, supported 9 by improved market conditions. 30 6 494 30 • Improved performance of oil and chemicals. 433 53 • Gas continue to perform well in normalized market. 2 5 • Energy an
Slide 8: Improving our sustainability performance
Improving our sustainability performance 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 Continuous effort to further reduce GHG Improved perf
Slide 9: Solidifying our leading position in industrial clusters
Solidifying our leading position in industrial clusters Repurposing existing capacity into vegetable oil Solidifying our leading industrial terminal storage in Deer Park terminal position in Singapore Creating a long-term industrial integration between Repurposing and expanding current capacity to B
Slide 10: Growing Vopak's footprint in gas terminals
Growing Vopak’s footprint in gas terminals A new partnership with EemsEnergy Terminal (8 bcma) AltaGas for LPG and bulk New floating LNG terminal in Eemshaven to enhance liquids export facility in gas supply security, operational since September 2022. +40% Prince Rupert, West Gate terminal (16+4 bcm
Slide 11: Accelerating in new energies and sustainable feedstocks
Accelerating in new energies and sustainable feedstocks 4 focus areas Hydrogen Low carbon fuels and feedstocks CO2 infrastructure Commissioned new Long duration energy storage Redeveloping capacity for biofuels land in Antwerp in Vlaardingen Vopak HY1 2023 - Analyst Presentation 11
Slide 12: HY1 2023 Key Highlights
HY1 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 “We continued to make good progress on ou
Slide 13: Vopak HY1 2023 Results - CFO
Shaping the future Vopak HY1 2023 Results Michiel Gilsing CFO of Royal Vopak
Slide 14: Financial focus areas
Financial focus areas Strong financial business Improved cash flow Solid Disciplined capital performance generation balance sheet allocation Improve performance of the portfolio Vopak HY1 2023 - Analyst Presentation 14
Slide 15: Delivering on performance improvement in first half year 2023
Delivering on performance improvement in first half year 2023 Revenue EBITDA Proportional occupancy EUR 721 m. EBITDA +9% EURoperating Prop. 494 m. cash+14% flow 91% Prop. +5 return operating cash %p. Operating Cash Return Growth capital expenditures1 Total net debt to EBITDA 14.6% +3.2 p.p. EUR 149
Slide 16: Q2 2023 Key messages
Q2 2023 Key messages EBITDA – Q2 ‘23 Occupancy – Q2 ‘23 Costs – Q2 ‘23 OCR – Q2 ‘23 In EUR million % In EUR million % 245QoQ -2% 91 QoQ -1%p 174QoQ ~0% 13.7 QoQ -1.7%p Stable financial Proportional occupancy Costs remained stable, Proportional operating performance, QoQ trend slightly down due to ou
Slide 17: Strong EBITDA performance driven by organic growth
Strong EBITDA performance driven by organic growth across most divisions EBITDA In EUR million EBITDA performance 494 4 0 0 • Strong EBITDA performance driven by growth 33 in most of the regions due to favorable market developments in both oil and chemicals. • In China & North Asia, the performance
Slide 18: HY1 2023 Terminal type performance
HY1 2023 Terminal type performance Proportional Revenue In EUR million +21% +2% +10% +11% +9% 4 967 324 • Good performance across all terminals types 328 as market dynamics remain favorable. 132 179 • Vegetable oils & Biofuels is the fastest Gas Industrial Chemicals Oil Other Total growing product s
Slide 19: Portfolio transformation improving earnings quality
Portfolio transformation improving earnings quality Contract duration as a share of proportional revenue Vopak Proportional EBITDA margin In % In % 100% 100% 12% < 1 year 25% + 1 p.p. 27% 1-3 years 22% 56% 57% 16% 3-5 years 13% 11% 5-10 years 17% 34% > 10 years 23% 2015 2022 HY1 2022 HY1 2023 Improv
Slide 20: Strong cash flow generation
Strong cash flow generation Cash flow overview In EUR million 478 440 38 42 436 383 43 340 120 376 54 262 179 179 Dividends 161 from JV Dividends 35 102 from JV 110 201 139 CFFO Derivatives CFFO (gross) CFFO gross Derivatives CFFO (gross) Tax & other CFFO Operating capex Other CFFI Available Dividen
Slide 21: Solid balance sheet allows us to execute our strategy
Solid balance sheet allows us to execute our strategy Maintain a healthy leverage ratio with a range of around Interest-bearing loans 2.5-3.0x net debt to reported EBITDA Composition and average rate Average floating Average fixed rates: 4.5% 21% rates: 3.9% 4.00 Maximum covenant changed from 3.75x
Slide 22: Enhancing balance sheet strength
Enhancing balance sheet strength Updates in corporate debt portfolio Update joint ventures Financing • Successfully amended and aligned all existing Private Placement Note Refinanced the maturing project financing of PITSB programs to new covenant of 4.0x from 3.75x. • The new 10-year non-recourse p
Slide 23: 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 genera
Slide 24: 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 25: Performance indicators
Performance indicators Reported Revenue EBITDA Net interest-bearing debt ROCE In EUR million In EUR million In EUR million In % +6% +12% +3.3 p.p. Reported -11% 362 359 249 245 3,279 12.6% 12.6% 355 3,211 350 3,051 227 228 2,947 10.4% 10.6% 338 219 2,853 9.3% Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q
Slide 26: Outlook drivers
Outlook drivers Market Business Cost Growth indicators performance The storage demand Continue the momentum in indicators in oil markets are Volatility in the energy Capturing growth improved financial expected to remain prices, inflation and opportunities and performance. EBITDA favorable. While in
Slide 27: Confirmed FY 2023 outlook
Confirmed FY 2023 outlook For FY 2023 reported EBITDA is expected to be above EUR 950 million, equivalent to an expected EBITDA FY 2023 proportional EBITDA outlook of above EUR 1,140 million Consolidated operating capex For FY 2023 is expected to be a maximum of EUR 300 million Short-term outlook Co
Slide 28: Save the date for our Analyst & Investor Day
Save the date for our Analyst & Investor Day 1 November 2023 Vopak will host its Analyst & Investor day in Rotterdam, the Netherlands. The Executive Board will provide a comprehensive update on the progress of strategy execution followed by a site visit to Vopak’s recently commissioned capacity for
Slide 29: Appendix
Shaping the future Appendix Vopak
Slide 30: Well diversified infrastructure portfolio
Well diversified infrastructure portfolio Vopak Americas Asia & Middle East 92 95 93 89 90 91 93 94 94 92 90 93 87 84 88 249.0 245.2 83.4 89.9 219.4 226.9 227.8 63.2 76.4 78.4 81.7 54.5 56.2 57.2 58.7 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022 2022 2022 2023 2023 2022 2022 2022 2023 2023 2022
Slide 31: Americas developments
Americas developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 0.5 Q2 2023 93 94 95 94 92 96.3 98.2 97.7 97.2 98.0 4.5 million cbm 0.9 Subsidiaries 3.1 Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022 2022 2022 2023 2
Slide 32: Asia & Middle East developments
Asia & Middle East developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 3.3 Q2 2023 88 90 93 93 85.9 85.8 91.0 91.1 4.1 84 78.8 16.7 million cbm Subsidiaries Joint ventures & associates 9.3 Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022 2022
Slide 33: China & North Asia developments
China & North Asia developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q2 2023 87 85 84 85 82 0.8 3.2 million cbm 13.3 13.5 11.7 12.2 11.2 Subsidiaries Joint ventures & associates 2.4 Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022 2022 2022
Slide 34: Europe & Africa developments
Europe & Africa developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 1.3 Q2 2023 87 87 89 90 90 151.1 158.6 159.7 156.9 147.0 10.7 million cbm Subsidiaries Joint ventures & associates 9.4 Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022 2022 20
Slide 35: JVs & associates developments
JVs & associates developments* Net result JVs and associates Net result Americas Net result Asia & Middle East In EUR million In EUR million In EUR million 51.0 53.2 53.0 49.8 43.4 22.8 23.8 18.4 18.6 16.9 5.4 3.8 3.3 2.9 3.0 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022 2022 2022 2023 2023 2022
Slide 36: Project timelines
Project timelines Vopak’s Capacity Country Terminal ownership Products (cbm) 2020 2021 2022 2023 2024 2025 2026 Growth projects Existing terminals United States Los Angeles 100% Renewable fuels 148,000 Belgium Antwerp 100% Chemicals 41,000 Brazil Alemoa 100% Chemicals 20,000 China Caojing 50% Indust
Slide 37: Well spread maturity profile
Well spread maturity profile HY1 2023 HY1 2022 Debt repayment schedule Debt repayment schedule In EUR million In EUR million 1,300 1,300 1,200 1,200 1,100 1,100 1,000 1,000 575 900 900 800 800 1,000 700 700 600 600 500 500 425 400 400 146 300 300 0 200 43 200 45 268 254 72 287 279 264 100 167 168 16