Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Non-Deal Roadshow (September 2022)
62 slides from Royal Vopak Nv's roadshow presentation, September 2022
Slide 1: Roadshow Presentation HY1 2022
Roadshow Presentation HY1 2022 Vopak Roadshow Presentation HY1 2022 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: Shaping the future: Strategic priorities
Shaping the future Vopak HY1 2022 Roadshow Presentation Strategic priorities
Slide 4: Shaping the future
Shaping the future Leading global platform Unparalleled access to growth opportunities IMPROVE GROW ACCELERATE performance of our our base in industrial towards new energies & portfolio & gas terminals sustainable feedstocks Improve performance of existing portfolio Commitment to ESG >10% EUR 1 bill
Slide 5: We serve multiple end markets through different products and customer offerings
We serve multiple end markets through different products and customer offerings End markets Energy Manufacturing New energies Products Gas & sustainable Oil Chemicals feedstocks Customer offerings Industrial Multifunctional Distribution Vopak Roadshow Presentation HY1 2022 5 Gas product segment incl
Slide 6: Unrivalled network of strategic locations, capabilities and partnerships
Unrivalled network of strategic locations, capabilities and partnerships Network Capabilities Partnerships Strong base in industrial clusters1 Safely and efficiently design, build and Vital infrastructure partner, developer around the globe operate global infrastructure and operator 78 250+ 1,000+ L
Slide 7: Shaping the future: Improve performance of our portfolio
Shaping the future: Improve performance of our portfolio Fit for purpose financial framework • Operating cash return of at least 10% by 2025 • Progressive dividend policy • Actively manage the portfolio Ambitious sustainability roadmap • Strong progress towards sustainability ambitions • Enable our
Slide 8: Shaping the future: Grow our base in industrial & gas terminals
Shaping the future: Grow our base in industrial & gas terminals Grow our position as market leader in industrial terminals Grow in gas with potential to complement with low carbon alternatives EUR 1 billion to be invested in gas and industrial terminals as growth capex by 2030 Vopak Roadshow Present
Slide 9: Strategically positioned industrial terminals in the world's key seaports and hubs
Strategically positioned industrial terminals in the world’s key seaports and hubs SabTank (Saudi Arabia) Chemtank (Saudi Arabia) Chemiehaven Plaquemine (Netherlands) Caojing St. Charles (USA) (China) (USA) Tarragona (Spain) Haiteng 18 Thai Tank Gulei Corpus (Thailand) Freeport (China) Christi (USA)
Slide 10: Shaping the future: Grow our base in gas terminals
Shaping the future: Grow our base in gas terminals LNG LPG 80% Residential of LNG demand growth will occur in the next 15 Sector accounts for 50% of global demand and years as global LNG peaks close to 2050 is a cleaner alternative Asia 75% will be the largest growth market of LPG demand growth will
Slide 11: EUR 1 billion in new energies
EUR 1 billion in new energies ~80-90% Allocated towards building new energies infrastructure in existing or new locations with gas-like returns ~10-20% Allocated towards more early-stage and projects such as our investments in Xycle and Hydrogenious Vopak Roadshow Presentation HY1 2022 11
Slide 12: Key trends shaping our markets in the coming decades
Key trends shaping our markets in the coming decades +13% 4.5% +10% World population Gas demand projected growth by 2030 CAGR increase by 2030, with the regional shift of gas Global manufacturing demand to Asia expected market growth to continue Sustainability & decarbonization Energy 5x Increasing
Slide 13: Markets remain volatile due to an uncertain economic outlook
Markets remain volatile due to an uncertain economic outlook New energies & Gas Oil Chemicals sustainable feedstocks • Record high LNG • Ammonia and liquid • Global oil flows are • China lockdown impacts Market dynamics volumes to Europe due to hydrogen accelerate rebalancing following the manufactu
Slide 14: Grow in industrial and gas terminals
Grow in industrial and gas terminals Gate terminal Increase in truck loading capabilities, increase in send-out and open season for an additional 4 bcm send-out Aegis Vopak terminals Largest independent storage company for LPG and chemicals in India with 1.5 million cbm of capacity Caojing terminal
Slide 15: Accelerate in new energies and sustainable feedstocks
Accelerate in new energies and sustainable feedstocks Projects per focus area Ammonia – ACE, import terminal for green ammonia as a LOHC – green liquid organic hydrogen carrier pilot (LOHC) Liquid hydrogen – green liquid hydrogen supply chain between hydrogen carrier from Germany to the Netherlands
Slide 16: Vopak company profile in 2030
Vopak company profile in 2030 Successful in existing Handling energy and and new value chains materials society needs and partnerships IMPROVE GROW ACCELERATE performance of our our base in industrial towards new energies & portfolio & gas terminals sustainable feedstocks Continuously reducing A glo
Slide 17: Financial framework and performance
Shaping the future Vopak HY1 2022 Roadshow Presentation Financial framework and performance
Slide 18: Financial focus areas
Financial focus areas Improve performance of the portfolio Stronger focus on Actively manage our portfolio and Improve operating cash return cash flow generation create headroom to grow Focus on cost efficiency and Disciplined capex approach to Progressive dividend policy reduce overhead costs deliv
Slide 19: Actively managing our portfolio
Actively managing our portfolio Looking back Proportional capital employed per product category • Increased gas and industrial exposure over the last 5 years 10-15% 15-20% 20-25% Gas and new energies ~25% 25-30% Industrial 15-20% • Lowered oil exposure with 15% by material divestments 20-25% Chemica
Slide 20: Impact of market structure is limited and shrinking
Impact of market structure is limited and shrinking Oil and oil products Oil per location type Oil by market structure exposure As part of total proportional revenue Middle distillates Hub Crude 2021: 30-35% Oil Gasoline Distribution 1. Non-exposed: industrial connection or strategic storage in hubs
Slide 21: Growth investment supporting long-term profile of cash flow
Growth investment supporting long-term profile of cash flow Growth investments Major growth investments EUR million 525 Industrial terminals 500 341 269 • Acquisition of Dow assets in the US Gulf Coast with a capacity of 127 Divestment 737,000 cbm -38 Growth capex • Greenfield terminal in Qinzhou, C
Slide 22: Joint ventures continue to drive EBITDA and cash flow growth
Joint ventures continue to drive EBITDA and cash flow growth Reported EBITDA Proportional EBITDA EUR million EUR million 830 780 827 981 961 1,000 21% 21% 22% 39% 42% 42% 79% 79% 78% 61% 58% 58% 2019 2020 2021 2025E 2019 2020 2021 2025E Result joint ventures EBITDA subsidiaries EBITDA joint ventures
Slide 23: Improving operating cash return drives value creation
Improving operating cash return drives value creation Operating cash return1 on a portfolio level ~9.5% • Operating cash return is expected to be Target of at least 10% 12.8% 11.7% 10.2% 11.4% operating cash return around 9.5% for the full year, as the majority 2019 2020 2021 HY1 2022 by 2025 of pro
Slide 24: Actively managing our portfolio towards higher operating cash returns
Actively managing our portfolio towards higher operating cash returns Increase portfolio operating cash return Rationalize the portfolio • Portfolio rationalization underpinned by the strategic fit in Vopak portfolio • Potential proceeds to be used to create headroom for growth investments Repurpose
Slide 25: Robust balance sheet allows for a progressive dividend policy
Robust balance sheet allows for a progressive dividend policy Senior net debt : reported EBITDA Covenant level of 3.75x Maintain a healthy leverage ratio with a 2.93 range of around 2.5-3.0x senior net debt 2.75 2.58 to reported EBITDA 2019 2020 2021 EPS and dividend EUR per share 2.80 2.37 2.38 2.2
Slide 26: Vopak reports improved results and asset impairment charges in HY1 2022
Vopak reports improved results and asset impairment charges in HY1 2022 IMPROVE • EBITDA increased to EUR 433 million for HY1 2022 • EBITDA in the range of EUR 830 million to EUR 850 million for FY 2022 IMPROVE GROW ACCELERATE performance of our our base in industrial towards new energies & GROW por
Slide 27: Drivers for assets impairment charges
Drivers for assets impairment charges • Vopak has recorded asset impairment charges of EUR 468 million • The valuations for impaired assets take into account: • Impact on long-term financial projections for revenue and current dynamics related to inflation pressure, utility prices, labor and materia
Slide 28: Improve EBITDA primarily due to Americas performance and currency movements
Improve EBITDA primarily due to Americas performance and currency movements EBITDA EUR million EBITDA performance 2.8 0.1 4.3 17.1 16.0 1.2 432.5 • EBITDA improved in the first half of the year due to positive performance in the Americas and positive currency movements 24.5 403.3 • China & North Asi
Slide 29: Improve EBITDA primarily due to higher net sales in Europe & Africa
Improve EBITDA primarily due to higher net sales in Europe & Africa EBITDA EUR million 0.2 1.2 EBITDA performance 1.9 11.5 8.2 • EBITDA improved in the second quarter 219.4 primarily due to improved results in Europe & 1.9 Africa and positive currency movements 7.8 213.1 • Americas performance was i
Slide 30: Divisional performance
Divisional performance Americas Asia & Middle East China & North Asia 88 86 87 85 85 87 89 90 91 93 93 84 84 84 84 48.2 54.4 58.7 54.5 73.4 76.4 22.0 45.6 68.0 70.9 72.5 15.7 15.6 19.5 18.6 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 2021 2021 2021 2022 2022 2021 2021 2021
Slide 31: Higher proportional operating cash flow is driven by EBITDA and operating capex
Higher proportional operating cash flow is driven by EBITDA and operating capex Proportional operating cash flow reconciliation (HY1 2022) Proportional operating cash flow bridge EUR million EUR million 521 +20% 433 88 127 347 47 347 289 32 3 29 Reported Effects Proportional Proportional IFRS 16 Pro
Slide 32: Consolidated cash flow generation
Consolidated cash flow generation Cash flow overview EUR million Operating cash flow • Reported operating cash flow of EUR 268 million (CFFO gross excl. derivatives – sustaining, service & IT investments) 383 • Proportional operating cash flow of EUR 347 million 43 340 21 Cash Flow 115 • FCF before
Slide 33: 2022 Guidance
2022 Guidance EBITDA • In the range of EUR 830 million to EUR 850 million, subject to market conditions and currency exchange • Factoring continued volatility in the energy market, inflation and utility prices pressure Excluding exceptional items • Around EUR 690 million including additional costs f
Slide 34: Disciplined capital allocation priorities
Disciplined 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 Generate total shareholder retur
Slide 35: Successfully renewed a EUR 1 billion sustainability-linked revolving credit facility
Successfully renewed a EUR 1 billion sustainability-linked revolving credit facility EUR 1 billion 12 Sustainability-linked RCF International relationship banks Safety Gender diversity in Greenhouse gas performance senior management emissions Vopak Roadshow Presentation HY1 2022 35
Slide 36: Vopak's approach to sustainability
Vopak’s approach to sustainability We are ambitious and performance driven with a balanced roadmap focusing on care for people, planet and profit ESG benchmarks Sustainability roadmap MSCI Rating: AAA* (Scale: CCC to AAA) Safety is our first priority Positioned towards the future and ready to
Slide 37: Strong progress towards sustainability ambitions
Strong progress towards sustainability ambitions Network Environmental Social Governance GHG emissions Safety performance Diversity & inclusion Total GHG emissions 3-year rolling average for total injury rate % of women in senior management positions (scope 1 & 2 in metric tons) (TIR)* and process s
Slide 38: Our contribution to a climate neutral society
Our contribution to a climate neutral society Provide critical • Contribute actively to decarbonize industrial clusters infrastructure for new 1 energies and sustainable • Enlarge share of investments in new energies and sustainable feedstocks • Focus on four areas in new energies and sustainable fe
Slide 39: Vopak's global GHG emissions in perspective
Vopak’s global GHG emissions in perspective ~2x the emissions of Formula 1 as a full event, ~25% of one coal-fired electricity plant and ~0.3% of the Netherlands GHG emissions Formula 1 0.26 ~2x Formula 1 as a full event per annum as a full event In million Storage & metric tons regasification Vopak
Slide 40: Reduce our own environmental and carbon footprint
Reduce our own environmental and carbon footprint Decarbonize our Interim GHG emissions reduction target of Our ambition is to be climate existing and future 30% by 2030 vs. 2021, which requires a neutral by 2050 operations 45-60% reduction of the current asset base GHG emissions in the Renewable el
Slide 41: Decarbonizing our operations and becoming climate neutral – 6 lines of action
Decarbonizing our operations and becoming climate neutral – 6 lines of action Lines of action Examples Insulation of tanks and pipelines in the Netherlands, boiler economizers, variable speed drives for Energy efficiency pumps, data analytics optimizing compressor efficiency Produce renewable Solar
Slide 42: Appendix
Shaping the future XY Appendix Vopak
Slide 43: Project timelines
Project timelines Vopak’s Capacity Country Terminal ownership Products (cbm) 2020 2021 2022 2023 2024 Growth projects Existing terminals Netherlands Vlaardingen 100% Renewable feedstocks 64,000 Brazil Alemoa 100% Chemicals 20,000 Acquisitions China LNG Hong Kong 49.99% LNG 263,000 New terminals Chin
Slide 44: Non-IFRS proportional information
Non-IFRS proportional information EBITDA Occupancy rate In EUR million In percent – subsidiaries only IFRS BASED 205 211 213 213 219 87 87 86 83 87 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 2021 2021 2021 2022 2022 EBITDA Occupancy rate PROPORTIONAL In EUR million In percent NON-IFRS 26
Slide 45: Asset impairment charges
Asset impairment charges Europoort Botlek SPEC LNG Colombia EUR 240 million EUR 190 million EUR 36 million • Transition in the energy markets and • Below Vopak’s minimum return levels • Due to weather conditions in recent accelerating into new energies which is driven by lower revenue years which ha
Slide 46: Strategic terminal types
Strategic terminal types New energies & Gas terminals Industrial terminals Chemical terminals Oil terminals feedstocks • Accelerate infrastructure • Contribute to the energy • Petrochemical clusters • Vopak operates a global • Hub terminals are located solutions for the world’s transition by introdu
Slide 47: Portfolio characterization
Portfolio characterization Proportional capital employed per terminal type Portfolio characterization with examples 10-15% Gas and new energies • Gate terminal 15-20% 20-25% Gas and new ~25% 25-30% Industrial • Aegis Vopak terminals energies • ACE terminal 15-20% Chemicals 20-25% Oil ~25% • Vopak In
Slide 48: Gate terminal in the Netherlands
LNG as Gate terminal in the Netherlands a marine fuel Product: high-calorific liquefied natural gas (LNG) Open Shareholding: Gasunie (50%) and Vopak (50%) season Services: storage, regasification, truck and vessel loading, for 4th tank* ship-to-ship transfer, bio-LNG End-use: power and industry Pipe
Slide 49: Aegis Vopak terminals in India
Aegis Vopak terminals in India LPG is a cleaner Pipapav terminal cooking fuel Sphered tanks for LPG storage Truck Vopak’s India footprint loading bays for inland Hindustan distribution 6x Kandla Product: LPG and chemicals Network: 11 terminals in 5 strategic ports Haldia Pipapav Shareholding*: Aegis
Slide 50: Product: green ammonia as a hydrogen carrier
Product: green ammonia as a hydrogen carrier Partners: Gasunie, HES International and Vopak Possible services: storage, cracking, break-bulk, pipeline integration with North West European industrial areas End-use: industry and mobility Vopak Roadshow Presentation HY1 2022 50
Slide 51: Vopak Industrial Infrastructure
Vopak Industrial Infrastructure 1. Serves feedstock and rundown from/to Refineries, Crackers and Single or multi-customer Industrial Terminal Chemical Plants 2. Handles all shipping operations: loading and unloading of vessels 3. Transfers between terminal and plant(s), built to specific needs of pl
Slide 52: Typical ITL contracting
Typical ITL contracting Lease • Long-term between 10 to 25 years Term • Stable revenues with fixed “take-or-pay”, Fee variable OPEX and energy & utilities Structure (pass-through or with markup) • Fixed Fee adjustment in consideration of Renewal investment capex recovery Vopak Roadshow Presentation
Slide 53: Vopak Industrial Infrastructure Americas
Vopak Industrial Infrastructure Americas Product: chemicals, oil products, biofuels, base oils and Freeport lubricants Shareholding: BlackRock (50%) and Vopak (50%) Services: storage, blending, integrated pipeline systems with industrial complex End-use: manufacturing, wide range of consumer goods S
Slide 54: Vopak Sakra terminal in Singapore
Vopak Sakra terminal in Singapore 10+ Industrial terminal integrated with petrochemical complex customers Asahi Kasei Chevron Oronite Ineos Phenol Singapore Methyl Methacrylate Sumitomo Chemical Celanese Evonik Nippon Shokubai Kuraray Toagosei Performance Specialty Products Product: chemicals and ba
Slide 55: Vopak TTR terminal in the Netherlands
Vopak TTR terminal in the Netherlands 15 different products Break-bulk with railcar 6 berths loading capabilities Products: chemicals, oil products and biofuels Services: storage, blending, heating and break-bulk End-use: manufacturing, wide range of consumer goods Storage: 325 thousand cbm (89 tank
Slide 56: Vopak Sebarok terminal in Singapore
Vopak Sebarok terminal in Singapore Multifunctional, i.e. hub Berths for Hub the largest function sea going Blending vessels capabilities Products: crude and oil products Services: storage, blending and heating End-use: industry and mobility Storage: 1.3 million cbm (79 tanks) Vopak Roadshow Present
Slide 57: Vopak Lesedi terminal in South Africa
Vopak Lesedi terminal in South Africa Distribution Truck loading bays for inland distribution Solar panels Fuel supply to Johannesburg via pipeline connection with Vopak’s terminal Products: oil products in Durban Services: storage, distribution and truck loading End-use: mobility Storage: 100 thous
Slide 58: Americas developments
Americas developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 0.5 Q2 2022 89 90 91 93 93 94.8 96.3 0.9 4.7 million cbm 83.1 86.7 79.2 3.3 Subsidiaries Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2
Slide 59: Asia & Middle East developments
Asia & Middle East developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q2 2022 88 84 84 84 84 74.6 78.2 78.8 3.3 4.2 70.7 68.9 16.9 million cbm 9.4 Subsidiaries Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2021 2021
Slide 60: China & North Asia developments
China & North Asia developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Q2 2022 86 87 85 85 87 0.8 3.2 million cbm 11.2 11.9 13.0 13.3 10.9 2.4 Subsidiaries Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2021 2021 2021
Slide 61: Europe & Africa developments
Europe & Africa developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 1.3 Q2 2022 87 88 86 87 141.2 142.7 141.3 147.0 79 136.7 10.6 million cbm 9.3 Subsidiaries Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2021 2021 20
Slide 62: JVs & associates developments
JVs & associates developments Net result JVs and associates* Americas* Asia & Middle East* In EUR million In EUR million In EUR million 57.6 42.5 42.2 47.1 43.4 22.1 23.2 19.0 19.2 18.4 4.0 4.4 4.5 3.8 1.5 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 2021 2021 2021 2022 2022