Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — H1 2019 Earnings Presentation
30 slides from Royal Vopak Nv's earnings presentation, Jul 31, 2019
Slide 1: Storing vital products with care
Storing vital products with care Vopak Half Year 2019 financial results Analyst presentation – 31 July 2019
Slide 2: Forward-looking statement
Forward-looking statement This presentation contains ‘forward-looking statements’, based on currently available plans and forecasts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the
Slide 3: Storing vital products with care
Storing vital products with care Chairman of the Executive Board and Eelco CEO of Royal Vopak Hoekstra
Slide 4: Key messages
Key messages Solid financial performance and significant increase in earnings per share Vopak’s strategy delivery is well on track Further steps in the delivery of our strategy and alignment of our portfolio Significant new capacity taken into operations to meet new customers demand Capacity c
Slide 5: Key figures HY1 2019
RIPET - Prince Rupert, British Columbia, Canada Key figures HY1 2019 EBITDA* CFFO (gross) EPS* In EUR million In EUR million In EUR 423 352 1.35 ROCE* Occupancy rate** Terminal network In percent In percent In million cbm Growth HY1 2019 1.0 12.6 85 HY1 2019: 36.9 * Including net result from joint v
Slide 6: Business environment update
Business environment update Diversified portfolio, well positioned for future opportunities Chemicals Focus on operational delivery Oil products On track for IMO 2020 transition Growing global demand for Oil hubs: solid long-term demand chemicals drivers despite short-term weakness Continued p
Slide 7: Strategy execution well on track
Strategy execution well on track Strategic direction is set towards growth and productivity improvements 3.2 million cbm to be commissioned in 2018 and 2019 Capture growth Projects in line with long-term market developments Spend EUR 750 million on sustaining and Sustaining and service improve
Slide 8: Portfolio transformation
Portfolio transformation Shift towards industrial terminals, chemical and gas terminals Key projects Proportionate revenue per product ~10% ~10% 10-15% LNG, LPG & Chemical • ETPL LNG - Pakistan ~15% 20-25% 25-30% LNG, LPG & gases • RIPET LPG - Canada Chemical gases 35-40% • Vlissingen LPG - the Neth
Slide 9: Key messages
Key messages Solid financial performance and significant increase in earnings per share Vopak’s strategy delivery is well on track Further steps in the delivery of our strategy and alignment of our portfolio Significant new capacity taken into operations to meet new customers demand Capacity c
Slide 10: Storing vital products with care
Storing vital products with care Member of the Executive Board and Gerard CFO of Royal Vopak Paulides
Slide 11: Summary financial performance
Summary financial performance strategic direction HY1 2019 key messages Capture growth EBITDA of EUR 423 million, including positive IFRS 16 effects, positive currency translation effects and good performance from Spend EUR 750m joint ventures and associates on sustaining and service capex Earni
Slide 12: HY1 2019 vs HY1 2018 EBITDA
HY1 2019 vs HY1 2018 EBITDA Pro forma EBITDA increased by EUR 27 million, mainly from good contributions from joint ventures 422.6 24.3 5.5 0.9 1.3 398.3 7.8 378.4 370.9 9.5 7.5 5.1 HY1 2018 FX-effect Adjusted Europe & Asia & China & Americas LNG Global pro forma IFRS 16 HY1 2019 HY1 2018 Africa Mid
Slide 13: Divisional segmentation
Divisional segmentation Europe & Africa and Asia & Middle East reflect temporary IMO conversion; Americas and LNG benefit from strong chemical and gas markets Europe & Africa Asia & Middle East Americas 86 85 86 85 85 92 83 82 83 80 90 89 89 89 91 74.5 77.2 70.3 73.6 76.2 66.5 59.6 65.9 77.5 66.9 39
Slide 14: Q2 2019 vs Q1 2019 EBITDA
Q2 2019 vs Q1 2019 EBITDA Q2 reflects planned temporary conversion activities related to IMO 2020 214.6 0.2 214.8 10.7 208.0 3.5 0.6 2.7 1.4 0.3 Q1 2019 FX-effect Adjusted Asia & China & LNG Europe & Americas Global Q2 2019 Q1 2019 Middle East North Asia Africa functions, corporate activities and ot
Slide 15: Cash flow overview
Cash flow overview Investment momentum driven by growth project phasing towards 2019 HY1 2019 HY1 2018 In EUR million In EUR million 341 352 313 321 28 31 108 125 205 196 119 29 115 212 5 CFFO Tax & other CFFO Sustaining, FCF Growth Other Free Cash -11 (gross) operating (net) service & IT before inv
Slide 16: Robust balance sheet
Robust balance sheet Target leverage of 2.5 to 3.0 times senior net debt to EBITDA Senior net debt : EBITDA ratio net debt to EBITDA ratio scenarios 3.75 2.0-2.5 2.5-3.0 3.0-3.5 2.5-3.0 2.84 2.73 2.49 2.58 2.99 Strategic considerations 2.04 2.02 • Timing of growth opportunities 2014 2015 2016 2017 2
Slide 17: Investment phasing
Investment phasing Balanced approach for growth, sustaining, service improvement and IT investments Investments 2008-2019 Investments 2017-2019 Investments In EUR million In EUR million 2,012 1,899 New Growth investments with clear 1,729 projects* return criteria based on future cash flow and risk
Slide 18: Global fuel oil network
Global fuel oil network Fuel oil capacity conversions for the IMO 2020 bunker fuels will support new market requirements as from Q4 2019 Hamburg Rotterdam Fuel Oil capacity Held for sale Conversion ongoing Estonia 10% ~35% Los Angeles Divested 15% 45% Algeciras Singapore 55% ~65% Panama Held for sal
Slide 19: Non-IFRS proportionate information
Non-IFRS proportionate information Occupancy rate EBITDA Maintenance, Service In percent In EUR million & IT Capex IFRS BASED In EUR million 394 371 398 91 86 85 108 125 99 Non-IFRS proportionate HY1 HY1 HY1 HY1 HY1 Pro forma HY1 HY1 HY1 information provides 2017 2018 2019 2017 2018 HY1 2019 2017 20
Slide 20: Summary financial performance
Summary financial performance strategic direction HY1 2019 key messages Capture growth EBITDA of EUR 423 million, including positive IFRS 16 effects, positive currency translation effects and good performance from Spend EUR 750m joint ventures and associates on sustaining and service capex Earni
Slide 21: Looking ahead
Looking ahead Vopak’s expansion program will add in total 3.2 million cbm in 2018 and 2019, of which 2.1 million cbm was commissioned up to the end of June 2019 Growth investments amount to approximately EUR 1 billion for the period 2017-2019 Fuel oil capacity conversions for the IMO 2020 bunk
Slide 22: Questions & Answers
Storing vital products with care Vopak Half Year 2019 Questions & financial results Answers
Slide 23: Vopak HY1 2019 financial results
For more information please contact: Upcoming events: Investor Relations contact: Publication of Q3 2019 interim update Laurens de Graaf, Head of Investor Relations 04 November 2019 Telephone: +31 (0)10 400 2776 e-mail: investor.relations@vopak.com Publication of annual results 12 February 2020 Medi
Slide 24: Europe & Africa developments
Europe & Africa developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million 1.3 Total Q2 2019 83 86 85 82 83 155.8 158.2 153.2 153.8 151.9 12.6 million cbm Subsidiaries 11.3 Joint ventures & associates Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 2018 2
Slide 25: Asia & Middle East developments
Asia & Middle East developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million Total Q2 2019 92 84.5 3.3 86 85 85 80 76.4 77.2 79.1 76.5 4.2 14.9 million cbm Subsidiaries Joint ventures & associates 7.4 Operatorship Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 20
Slide 26: China & North Asia developments
China & North Asia developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million Total Q2 2019 79 83 79 0.8 73 73 4.2 million cbm 10.5 9.8 8.6 7.9 8.3 Subsidiaries 3.4 Joint ventures & associates Operatorship Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 2
Slide 27: Americas developments
Americas developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million Total Q2 2019 90 89 89 89 91 75.6 77.0 0.2 0.5 4.1 million cbm 71.5 70.3 71.1 Subsidiaries 3.4 Joint ventures & associates Operatorship Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 201
Slide 28: JVs & associates developments
JVs & associates developments Net result JVs and associates* Europe & Africa* Asia & Middle East* In EUR million In EUR million In EUR million 40.3 37.7 36.6 19.8 25.0 26.9 16.0 0.9 10.7 0.6 0.7 0.6 0.6 7.7 6.6 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 2018 2018 2018 2019
Slide 29: Project timelines
Project timelines Vopak HY1 2019 - Analyst presentation 29
Slide 30: IFRS 16 Leases
IFRS 16 Leases IFRS 16 Leases Impact Vopak 2019 No commercial impact Key figures In EUR million EBITDA 40 – 50 Accounting change only, no net cash impact Net profit 0 – (10) No economic impact on the business and IFRS 16 Lease liabilities (jan 1st) ~675 how we manage it reported on Return on C