Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Q3 2024 Earnings Presentation
38 slides from Royal Vopak Nv's earnings presentation, Oct 30, 2024
Slide 1: Q3 2024 Analyst presentation
Q3 2024 Analyst presentation Shaping the future to help the world flow forward 30 October 2024
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 Q3 2024 Results - CEO Dick Richelle
Vopak Q3 2024 Results CEO - Dick Richelle Vopak Q3 2024 Analyst presentation 3
Slide 4: Delivering on our strategy
Delivering on our strategy >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 Proportional EBITDA increased to EUR 8
Slide 5: Improved portfolio performance
Improved portfolio performance Proportional EBITDA In EUR million Prop. EBITDA performance Excluding exceptional items Grow Improve +30 EUR million • Healthy proportional occupancy rate 22 18 of 92% driven by favorable demand 7 894 across different product markets 16 872 10 • Higher expenses driven
Slide 6: Funding growth in our joint venture in India
Funding growth in our joint venture in India Kandla 2022 Together with Aegis we created the largest independent tank storage operator in India Pipavav Mumbai Haldia 1.5m cbm Existing capacity in 6 ports, strategically located along the Indian coast Mangalore Funding growth Liquid products capacity A
Slide 7: Commissioning new industrial terminal
Commissioning new industrial terminal Huizhou terminal, China Commissioning new industrial capacity… … growing in industrial terminals in China… … and expanding the industrial network worldwide • Greenfield 560k cbm terminal in a new location • A total of 4 industrial terminals in China with 2.3 mil
Slide 8: Portfolio transition leading to high quality earnings
Portfolio transition leading to high quality earnings ~5% Operating Cash Return ~5% On proportional basis ~25% ~30% Average Average 16.2% Capital prop. capital prop. capital 14.4% ~50% employed employed employed 12.6% 12.3% YTD 2014 ~40% YTD 2024 11.1% 11.3% ~25% ~20% Gas & New Energies Industrial C
Slide 9: Accelerating towards new energies
Accelerating towards new energies Redeveloping and preparing a strategic and well-connected plot of land in Antwerp February, 2023 October, 2024 Access to strategic plot of land Developing for green methanol and ammonia • Acquiring Gunvor refinery of 105 hectares in size with deep-sea, river, road •
Slide 10: 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 • Continued strong results year to date • Reached an agreement for primary equity issue and continuing to explore options to fund growth in
Slide 11: Vopak Q3 2024 Results - CFO Michiel Gilsing
Vopak Q3 2024 Results CFO – Michiel Gilsing Vopak Q3 2024 Analyst presentation 11
Slide 12: Delivering on our Shaping the future strategy
Delivering on our Shaping the future strategy Improve The performance of our portfolio Delivering on performance improvement >12% operating cash return Grow Strong and long-term cash flows our base in industrial & gas terminals EUR 1 billion growth capex by 2030 Strong long-term fundamentals Acceler
Slide 13: Delivering on performance improvement
Delivering on performance improvement Proportional EBITDA Proportional Operating Excluding exceptional items EBITDA occupancy rate Cash Return Excluding exceptional items 894 872 735 +1 p.p. 720 63 +11% 64 92% +7% 91% +1.8 p.p. 16.2% 809 671 14.4% YTD Q3 2023 YTD Q3 2024 YTD Q3 2023 YTD Q3 2024 YTD
Slide 14: Q3 2024 key messages
Q3 2024 key messages Prop. Occupancy – Q3 2024 Revenues – Q3 2024 In % In EUR million 92% 325 +0 p.p. vs. Q2 2024 -0.3% vs. Q2 2024 Stable proportional occupancy, Stable revenues on the back of driven by strong performance in favorable energy markets, despite energy markets some weaknesses in chemic
Slide 15: Delivering on performance improvement
Delivering on performance improvement Proportional EBITDA In EUR million EBITDA performance Excluding exceptional items 1 5 8 • Healthy demand for our 8 7 894 services across main 2 7 geographies 872 15 • Strong performance in Asia & Middle East, driven by favorable energy markets 63 62 • Strong con
Slide 16: Strong business performance leading to improved returns
Strong business performance leading to improved returns Proportional EBITDA YTD Q3 2024 in EUR million % change YoY vs YTD Q3 2023 – adjusted for divestment impact +5% +11% 894 +3% 355 90 +2% 221 +42% 172 236 Gas Industrial Chemicals Oil Other Total • Gas terminals showed • Solid throughput levels i
Slide 17: Strong cash flow generation supporting capital allocation policy
Strong cash flow generation supporting capital allocation policy Cashflow YTD Q3 2024 in EUR million Cash flow performance % of CFFO gross +8% 21% 736 • EBITDA growth when 680 20% adjusted for divestments 158 578 supported cash flow 29% 504 148 518 • Strong dividend upstreaming 215 33% from joint-ve
Slide 18: Unlocking value in our joint-venture in India
Unlocking value in our joint-venture in India 3.4% Of AVTL share sold in a primary equity issue 88 EUR mln. Transaction amount 47.3% Vopak’s shareholding following primary equity issue Vopak Q3 2024 Analyst presentation 18 18
Slide 19: Creating value per share
Creating value per share Earnings per share (EPS) Proportional free operating Excluding exceptional items cash flow per share • Strong increase of EPS over the last years, despite divestments +36% +54% 2.67 5.33 • Continued focus on cash-flow resulting 2.42 4.91 in more than 50% increase over the 1.
Slide 20: Updated FY24 outlook
Updated FY24 outlook Market indicators Updated outlook as Previous outlook as Strong start of the year, with firm demand for storage infrastructure per Q3 2024 per Q2 2024 Business performance Proportional EBITDA EUR 1,160 – 1,180 EUR 1,150 – 1,180 Continue the momentum in improving financial and su
Slide 21: Updated 2024 outlook
Updated 2024 outlook Proportional EBITDA For FY 2024 is expected to be in the range of EUR 1,160 – 1,180 million Consolidated EBITDA For FY 2024 is expected to be in the range of EUR 930 – 950 million Short-term Consolidated growth capex For FY 2024 is expected to be around EUR 350 million Consolida
Slide 22: Capital Markets Day 2025
Capital Markets Day 2025 Vopak will host its Capital Markets Day on 13 March 2025 Registration for the in-person event is required. Analysts and institutional investors interested in attending should contact Vopak investor relations to register at investor.relations@vopak.com. Vopak Q3 2024 Analyst
Slide 23: 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 • New capital raised to support our growth ambitions in India We c
Slide 24: Vopak Q3 2024 Results Appendix
Vopak Q3 2024 Results Appendix Vopak Q3 2024 Analyst presentation 24
Slide 25: Well-diversified infrastructure portfolio Business Units
Well-diversified infrastructure portfolio Business Units Asia & Middle East China & North Asia Netherlands 92 90 93 94 95 92 92 91 91 91 87 82 83 83 81 77.9 69.3 46.5 39.3 57.5 56.3 58.3 33.8 32.8 33.3 17.5 18.1 17.7 15.0 14.6 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024 2024 202
Slide 26: Asia & Middle East developments
Asia & Middle East developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 0.8 Q3 2024 1.8 92 92 91 91 91 18.1 19.6 19.6 19.9 19.4 12.2 million cbm Subsidiaries Joint ventures & associates Operatorships 9.6 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2023
Slide 27: China & North Asia developments
China & North Asia developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q3 2024 82 83 87 83 0.7 81 3.6 million cbm 12.8 10.1 11.7 11.3 9.6 Subsidiaries Joint ventures & associates 2.9 Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2
Slide 28: Netherlands developments
Netherlands developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q3 2024 95 119.2 108.9 1.4 92 90 93 94 7.8 million cbm 82.6 81.9 84.5 Subsidiaries Joint ventures & associates 6.4 Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024
Slide 29: Singapore developments
Singapore developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q3 2024 93 93 93 95 93 70.2 70.4 72.0 73.0 72.7 1.5 4.8 million cbm Subsidiaries 3.3 Joint ventures & associates Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024 2024
Slide 30: USA & Canada developments
USA & Canada developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q3 2024 92 95 95 95 97 57.9 58.0 58.0 57.6 0.8 2.7 million cbm 53.2 Subsidiaries 1.9 Joint ventures & associates Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024 2
Slide 31: Other business units developments
Other business units developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q3 2024 93 93 81.4 0.5 92 90 91 80.1 81.0 79.1 78.7 3.3 million cbm 0.5 Subsidiaries 2.3 Joint ventures & associates Operatorships Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2023
Slide 32: JVs & associates developments
JVs & associates developments Result JVs and associates Result JVs & Associates Result JVs & Associates Result JVs & Associates In EUR million Asia & Middle East China & North Asia Netherlands In EUR million In EUR million In EUR million 67.7 55.5 54.2 55.3 60.1 12.0 33.7 12.3 10.5 11.3 10.6 10.1 11
Slide 33: 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 1,068 107% 961 1,000 684 127% 894 648 186 42% 558 553 166 42% 52% 42% 42% 57% 54% 82% 47% 60% 65% 81%
Slide 34: 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 2027 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
Slide 35: Well-spread maturity profile
Well-spread maturity profile Debt repayment schedule In EUR million 1,200 1,100 1,000 900 800 700 850 600 500 400 300 140 150 200 261 67 247 70 100 164 164 163 112 115 95 75 126 0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2040 RCF headroom RCF VTS Subordinated loans Asian PP US PP
Slide 36: 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 37: Glossary (I)
Glossary (I) Average proportional capital employed Is defined as proportional total assets excluding assets and current EBIT - Earnings Before Interest and Tax Events for which a threshold of EUR 10 million is applied: liabilities not related to operational activities, excluding IFRS 16 lessee Net i
Slide 38: Glossary (II)
Glossary (II) Proportional Divided by 12-month rolling proportional EBITDA, excluding: Storage capacity Proportional is defined as the economic interest Vopak has in a joint • IFRS 16 adjustments in operating expenses for former operating Storage capacity at the end of the period consists of 100% ca