Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — H1 2024 Earnings Presentation
42 slides from Royal Vopak Nv's earnings presentation, Jul 26, 2024
Slide 1: HY1 2024 Analyst presentation
HY1 2024 Analyst presentation Shaping the future to help the world flow forward 26 July 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 HY1 2024 Results - CEO
Vopak HY1 2024 Results CEO - Dick Richelle Vopak HY1 2024 Analyst presentation 3
Slide 4: Delivering on our shaping the future strategy
Delivering on our shaping the future strategy Key highlights HY1 2024 Strategic pillars Key achievements last 2 years • Proportional occupancy of 92% driven by favorable storage markets Improve The performance of our portfolio • Proportional EBITDA increased to EUR 599 million (+10%YoY) Actively man
Slide 5: Market dynamics
Solid market demand for our services Gas New energies & Energy Manufacturing sustainable feedstocks LNG demand growth driven by Asian Oversupply of low-carbon products in the Market fundamentals remain healthy, Chemical markets continued to be Market dynamics markets, Europe remains well-supplied ma
Slide 6: Improved portfolio performance
Improved portfolio performance Proportional EBITDA Prop. EBITDA performance In EUR million Excluding exceptional items • Healthy proportional occupancy Grow Improve rate of 92% driven by favorable +19 EUR million demand across different product markets 9 15 599 5 • Higher expenses driven by 6 increa
Slide 7: Continuous commitment to improve our sustainability performance
Continuous commitment to improve our sustainability performance Safety Emissions Women in management Personal & Process safety Scope 1 & 2 emissions in Percentage of women in senior 1,000 MT CO2e management HY1 2023 HY1 2024 -15% 0.16 225 20.4 20.0 0.15 0.14 191 0.07 TIR PSER HY1 2023 HY1 2024 HY1 2
Slide 8: Growing our base in industrial and gas terminals
Growing our base in industrial and gas terminals Gate terminal, the Netherlands 891 EUR million Growth in gas terminals Industrial expansions • Terminals provide security of supply of • Supporting our customers in key Committed investments energy and feedstocks industrial clusters around the world s
Slide 9: Delivering growth with strategic investments in gas terminals
Delivering growth with strategic investments in gas terminals Increase capital employed in gas terminals Large scale LPG export facility in Prince Rupert, Western Canada Proportional capital employed in gas terminals In EUR million 95K cbm Fully committed capacity and underpinned by a long-term comm
Slide 10: Delivering growth by investing in industrial terminals
Delivering growth by investing in industrial terminals Expanding Chemtank terminal in Saudi Arabia • Additional 44k cbm, supporting customer for export of gas and chemical products • Leveraging existing assets and operational expertise • Underpinned with a long-term contract, delivering attractive c
Slide 11: Strong footprint in India
Strong footprint in India Hindustan Aegis LPG Kandla 50k cbm 870k cbm + 28k cbm Distribution terminal for gas (LPG) Six distribution terminals storing and handling chemicals, gas (LPG) and vegoils Pipavav 117k cbm + 96k cbm Distribution terminal storing and handling chemicals and gas Mumbai +102k cb
Slide 12: Portfolio transition leading to high quality earnings
Portfolio transition leading to high quality earnings Capital employed Operating Cash Return Average proportional capital employed On proportional basis 16.7% ~5% ~5% ~20% ~25% 14.0% 12.8% ~40% ~15% 11.7% 11.4% ~25% 10.2% ~25% ~20% ~50% ~40% ~30% 2014 2019 HY1 2024 2019 2020 2021 2022 2023 HY1 2024
Slide 13: Accelerating towards new energies and low-carbon fuels and feedstocks
Accelerating towards new energies and low-carbon fuels and feedstocks Capturing opportunities around the world Entering next phase of open-acces CO2 infrastructure in Rotterdam, the Netherlands Commissioned repurposed capacity in Alemoa, Brazil for renewable feedstock Accelerate projects Vopak HY1 2
Slide 14: 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 HY1 2024 results notwithstanding divestment impact, driven by favorable storage demand indicators in all markets • Actively managi
Slide 15: Vopak HY1 2024 Results - CFO
Vopak HY1 2024 Results CFO – Michiel Gilsing Vopak HY1 2024 Analyst presentation 15
Slide 16: 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 Strong and long-term cash flows Grow our base in industrial & gas terminals Strong long-term fundamentals EUR 1 billion growth capex by 2030 Acceler
Slide 17: Delivering on performance improvement
Delivering on performance improvement Proportional EBITDA Proportional Operating Excluding exceptional items EBITDA occupancy rate Cash Return Excluding exceptional items 599 586 494 +1 p.p. 487 43 +10% 43 +8% 92% 2.1 p.p. 91% 16.7% 543 451 14.6% HY1 2023 HY1 2024 HY1 2023 HY1 2024 HY1 2023 HY1 2024
Slide 18: Q2 2024 key messages
Q2 2024 key messages Prop. Occupancy – Q2 2024 Revenues – Q2 2024 In % In EUR million 92% 326 -1 p.p. vs. Q1 2024 -0.8% vs. Q1 2024 Slightly decreased, driven by Stable revenues on the back of lower occupancy in China and out favorable oil markets, partly offset of service capacity in the by weaker
Slide 19: Delivering on performance improvement
Delivering on performance improvement Proportional EBITDA In EUR million EBITDA performance Excluding exceptional items • Healthy demand for our services mainly across 3 5 geographies 2 5 5 599 2 7 • One-off item of total EUR 7 586 9 million, related to an unconditional success fee related to FID ta
Slide 20: Strong business performance leading to improved returns
Strong business performance leading to improved returns Proportional EBITDA HY 2024 in EUR million % change YoY vs HY1 2023 – adjusted for divestment impact +4% +10% 599 +4% 236 56 -3% 149 +44% 110 160 Gas Industrial Chemicals Oil Other Total • Gas terminals showed • Solid throughput levels in • Sta
Slide 21: Strong cash flow generation
Strong cash flow generation Cashflow YTD 2024 in EUR million % of CFFO gross Cash flow performance +18% 24% 517 • EBITDA growth when 440 123 18% adjusted for divestments 394 76% supported cash flow 331 92 338 Dividend • Strong dividend upstream 204 from joint-ventures Dividends 186 Ongoing Share buy
Slide 22: Creating value per share
Creating value per share Earnings per share (EPS) Proportional free operating Excluding exceptional items cash flow per share • Increase of EPS of 80% since HY1 2022, despite divestments +80% +32% 1.84 3.63 • Continued focus on cash-flow resulting 1.65 1.64 3.31 in a 32% increase of proportional fre
Slide 23: Executing our finance strategy in order to support the growth strategy
Executing our finance strategy in order to support the growth strategy Total net debt to EBITDA Proportional leverage 4.00 3.59 3.06 3.16 3.00 2.85 2.85 2.67 2.46 2.28 2.45 2.50 1.99 HY1 2022 FY 2022 HY1 2023 FY 2023 HY1 2024 HY1 2022 FY 2022 HY1 2023 FY 2023 HY1 2024 • Increase in net debt to EBITD
Slide 24: Disciplined capital allocation policy
Disciplined capital allocation policy We focus on a robust balance sheet – Maintain a healthy leverage ratio We return value to shareholders – By a progressive dividend policy Invest in growth projects Huizhou terminal, China Vopak HY1 2024 Analyst presentation 24
Slide 25: Updated FY24 outlook
Updated FY24 outlook Updated outlook as Previous outlook as Market indicators per Q2 2024 per Q1 2024 Strong start of the year, with firm demand for storage infrastructure Proportional EBITDA EUR 1,150 – 1,180 EUR 1,140 – 1,180 (excluding exceptional items) million million Business performance Conti
Slide 26: Updated 2024 outlook
Updated 2024 outlook Proportional EBITDA For FY 2024 is expected to be in the range of EUR 1,150 – 1,180 million Consolidated EBITDA For FY 2024 is expected to be in the range of EUR 920 – 950 million Short-term Consolidated growth capex For FY 2024 is expected to be around EUR 350 million Consolida
Slide 27: 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 28: Vopak HY1 2024 Results Appendix
Vopak HY1 2024 Results Appendix Vopak HY1 2024 Analyst presentation 28
Slide 29: Well-diversified infrastructure portfolio Business Units
Well-diversified infrastructure portfolio Business Units Asia & Middle East China & North Asia Netherlands 91 92 90 93 94 91 92 92 91 91 87 82 82 83 83 72.3 77.9 69.3 46.5 57.5 56.3 29.5 33.8 32.8 33.3 17.5 18.1 17.7 15.8 15.0 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2023 2023 2023 2024 2024 202
Slide 30: Asia & Middle East developments
Asia & Middle East developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 0.8 Q2 2024 1.8 91 92 92 91 91 18.3 18.1 19.6 19.6 19.9 12.2 million cbm Subsidiaries Joint ventures & associates Operatorships 9.6 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2023 2023
Slide 31: China & North Asia developments
China & North Asia developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q2 2024 82 82 83 87 83 0.7 3.1 million cbm 11.2 11.7 12.8 11.3 10.1 Subsidiaries Joint ventures & associates 2.4 Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2023 2023 2023
Slide 32: Netherlands developments
Netherlands developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q2 2024 94 115.3 119.2 108.9 1.4 91 92 90 93 7.8 million cbm 82.6 81.9 Subsidiaries Joint ventures & associates 6.4 Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2023 2023 2023 2024
Slide 33: Singapore developments
Singapore developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q2 2024 97 93 93 93 95 72.8 70.2 70.4 72.0 73.0 1.5 4.8 million cbm Subsidiaries 3.3 Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2023 2023 2023 2024 2024
Slide 34: USA & Canada developments
USA & Canada developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q2 2024 91 92 95 95 95 57.9 58.0 58.0 57.1 0.8 2.7 million cbm 53.2 Subsidiaries 1.9 Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2023 2023 2023 2024 2
Slide 35: Other business units developments
Other business units developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q2 2024 93 93 93 82.5 0.5 92 90 80.1 81.4 81.0 79.1 3.3 million cbm 0.5 Subsidiaries 2.3 Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2023 2023
Slide 36: 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 67.7 49.8 55.5 54.2 55.3 12.0 11.3 33.7 11.0 11.2 11.1 12.3 10.3 10.5 10.0 10.1 23.4 21.8 20.2 16
Slide 37: 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 1,154 795 107% 1,068 961 1,000 684 186 166 42% 558 553 151% 42% 52% 82% 42% 42% 599 57% 447 60% 81% 72% 213 65%
Slide 38: 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 39: Well-spread maturity profile
Well-spread maturity profile Debt repayment schedule Per Q2 2024 In EUR million 1,200 1,100 1,000 900 800 700 900 600 500 400 300 138 200 100 272 257 73 100 170 170 163 70 117 118 97 75 116 0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2040 RCF headroom VTS Asian PP RCF Subordinated
Slide 40: 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 41: 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 42: 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