Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Q1 2021 Earnings Presentation
33 slides from Royal Vopak NV's earnings presentation, Nov 2, 2021
Slide 1: Storing vital products with care
Storing vital products with care Q1 2021 – Roadshow Presentation Royal Vopak
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: Vopak at a glance
Vopak at a glance at year-end 2020 Number of Number of Storage capacity terminals countries In million cbm ▪ World’s leading independent tank storage company 70 23 35.6 34.4 35.6 ▪ Diversified customer base including all major 2019 2020 chemical producers and global oil & gas companies Market Number
Slide 4: Investment Highlights
Investment Highlights World’s leading independent tank storage company Highly diversified portfolio of terminals across regions and product lines Solid drivers for demand New expansion projects Well positioned for the shift towards a more sustainable & digital world Blue chip customer base Long term
Slide 5: Products and Customers
Products and Customers Playing a vital link in the supply chain for gas, chemicals and oil Gas Chemical Oil products LNG, LPG, Handling and storing Methanol, xylenes, Crude oil, gasoline, vital products… ethylene, butadiene, styrene, MEG, vegoils naphtha, diesel, fuel oil ammonia Blue-chip customer
Slide 6: Strategic terminal types
Strategic terminal types New Energy & Industrial Gas Chemical Oil feedstock terminals terminals terminals terminals Petrochemical clusters are Vopak actively pursues becoming larger and more Vopak is expanding its gas Demand for chemicals storage storage – in response to is growing. Vopak operates a
Slide 7: External developments
External developments Structural business drivers influenced by two global trends Storage ▪ Structural demand drivers for Energy ▪ Facilitate the introduction of demand storage of vital products, driven by transition lighter, cleaner fuels drivers growth in population and global ▪ Pursue potential i
Slide 8: Portfolio transformation
Portfolio transformation Shift towards industrial terminals, chemicals and gas terminals Key projects Proportional revenue by product category ~10% ~10% 10-15% ~15% Gas • SPEC LNG - Colombia ~15% 20-25% 25-30% Gas terminals • ETPL LNG - Pakistan 25-30% Industrial terminals 35-40% • RIPET LPG - Canad
Slide 9: Digital transformation
Digital transformation Improve safety performance, better service for our customers and more efficient use of our assets resulting in lower costs ▪ Centralized cyber security Digital ▪ Replacing and modernizing our Cyber security program to protect our systems Modernization company-wide IT and OT sy
Slide 10: Overview financial framework
Overview financial framework Performance delivery and managing value ▪ Clear financial framework to support strategy ▪ Balanced portfolio management with focus on strong operational cash flow generation with a disciplined capital investment approach ▪ Aimed towards a strong investment case • Return
Slide 11: UN Sustainable Development Goals (SDGs)
UN Sustainable Development Goals (SDGs) 5 selected SDGs to create a focus on where we can contribute to society Description Ambitions / targets Vopak contributes to facilitating energy security and the energy transition by creating reliable access to energy and developing infrastructure solutions fo
Slide 12: Benchmark scores
Benchmark scores Ratings based on Environmental, Social and Governance Safety MSCI ESG Ratings ▪ Leading safety performance in storage industry ▪ Rating: AAA (Scale: CCC to AAA) Personnel Safety (TIR) Total injuries per 200,000 hours worked 1.0 0.37 0.5 ISS 0.0 ▪ Rating (scale: 10 high risk to 1 low
Slide 13: Key messages Q1 2021
Key messages Q1 2021 Start of the year impacted by the Texas winter storm – full year growth project contribution improved to high end of the outlook range Cost efficiency measures are progressing well and tracking below our cost outlook of EUR 615 million for the year Strategy execution – goo
Slide 14: Continued portfolio positioning
Continued portfolio positioning Strategic transformation toward more sustainable forms of energy & feedstocks Majority of growth investments will be allocated Vopak growth capital allocation towards industrial, gas and new energies 10-15% 15-20% 25-30% infrastructures 20-25% 10-15% 35-40% Gas, new
Slide 15: Strategy execution
Strategy execution Good progress with greenfield industrial terminals construction Industrial terminal delivery Industrial terminal focus areas Significant new industrial terminal capacity delivery including acquisitions, greenfield and brownfield development Industrial terminal capacity deliver
Slide 16: New energy & feedstocks
New energy & feedstocks Vopak will play an important role in developing infrastructure for new energy ▪ Vopak is well positioned to capture opportunities in ammonia and hydrogen ▪ Strong and unique locations in global key energy centers ▪ Knowhow and experience in energy infrastructure and storage V
Slide 17: Vopak's roadmap to hydrogen
Vopak’s roadmap to hydrogen Target to deliver infrastructure projects in new energy, including ammonia and hydrogen developments, in the coming years ▪ Vopak currently pursues 10+ infrastructure projects and studies Projects pursued in first half of the decade •Various pilot projects for regional hy
Slide 18: Hydrogen bromine flow battery
Hydrogen bromine flow battery Joint development between Elestor and Vopak Hydrogen bromine flow battery Vopak terminal Vlissingen Joint ambition to scale up the electricity storage Vopak terminal Vlissingen, the Netherlands, brought capacity of Hydrogen bromine flow batteries from 9,200 cbm of p
Slide 19: Q1 2021 vs Q4 2020 EBITDA
Q1 2021 vs Q4 2020 EBITDA Start of the year impacted by the Texas winter storm – full year growth project contribution improved to high end of the outlook range 0.1 0.4 1.6 4.5 200.4 16.5 1.7 190.5 188.8 Q4 2020 FX-effect Adjusted Asia & LNG China & Europe & Americas Global Q1 2021 Q4 2020 Middle Ea
Slide 20: Divisional performance
Divisional performance Americas impacted by Texas winter storm; Asia & ME normalized PT2SB performance; Europe & Africa less rented capacity; China and LNG resilient Americas Asia & Middle East China & North Asia 86 89 92 90 87 93 94 93 90 92 92 90 88 87 90 47.6 48.7 44.9 47.2 42.4 78.0 77.1 70.0 69
Slide 21: Investment phasing
Investment phasing Balanced approach for growth, sustaining, service improvement and IT investments Investments In EUR million ▪ For 2021, Vopak has the ambition to allocate some EUR 300-350 million to growth investments New ▪ In the period 2020-2022, Vopak may invest projects* EUR 750-850 million i
Slide 22: Robust balance sheet
Robust balance sheet Target leverage of 2.5 to 3.0 times senior net debt : EBITDA Priorities for cash Senior net debt : EBITDA ratio Growth investment multiples for covenant (frozen GAAP) Invested capital / normalized projected EBITDA* Debt servicing 1 average interest rate 2020: 3.7% 10x • Acquisit
Slide 23: Increase in shareholder returns
Increase in shareholder returns Continued rising cash dividend Dividend and EPS* Dividend policy In EUR 2.80 Dividend policy targets to pay an annual 2.55 2.56 2.25 2.27 2.42 stable to rising cash dividend in balance with a management view on a payout ratio range of 25-75% of the net profit excludin
Slide 24: Non-IFRS proportional information
Non-IFRS proportional information Proportional consolidated information provides transparency considering increase joint venture contribution relative to subsidiaries EBITDA Operating income Occupancy rate In EUR million In EUR million In percent – subsidiaries only IFRS BASED 200 202 200 189 200 30
Slide 25: Looking ahead
Looking ahead In 2021, EBITDA contributions from 2020 and 2021 growth projects are expected to be at the higher end of the EUR 30 million to EUR 50 million range, subject to market conditions and currency exchange movements. Cost management continues and we expect to manage the 2021 cost base in
Slide 26: Appendix
Storing vital products with care Q1 2021 Roadshow Presentation Appendix
Slide 27: Americas developments
Americas developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 0.5 Total Q1 2021 93 94 93 90 84.0 87 79.5 81.1 5.4 million cbm 78.3 77.6 1.0 3.9 Subsidiaries Joint ventures & associates Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2020 2020 2020
Slide 28: Asia & Middle East developments
Asia & Middle East developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Total Q1 2021 90 92 92 90 88 74.9 73.0 71.1 3.3 70.3 69.9 4.2 15.5 million cbm Subsidiaries Joint ventures & associates 8.0 Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2020
Slide 29: China & North Asia developments
China & North Asia developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Total Q1 2021 89 92 90 86 87 0.8 2.8 million cbm 10.4 10.6 11.2 10.7 9.8 2.0 Subsidiaries Joint ventures & associates Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2020 2020
Slide 30: Europe & Africa developments
Europe & Africa developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 1.3 Total Q1 2021 88 91 91 88 136.2 141.8 140.8 82 126.8 128.1 10.7 million cbm Subsidiaries 9.4 Joint ventures & associates Operatorships Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2020 2
Slide 31: JVs & associates developments
JVs & associates developments Net result JVs and associates* Americas* Asia & Middle East* In EUR million In EUR million In EUR million 50.9 45.9 43.4 43.4 24.8 24.1 20.6 19.6 25.8 3.1 3.0 3.1 2.1 2.1 0.7 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2020 2020 2020 2020 2021 2020 2020 2020 2020 2021
Slide 32: Cash flow overview
Cash flow overview Free cash flow before financing impacted by working capital movements and lack of cash flows from portfolio effects Q1 2021 Q1 2020 In EUR million In EUR million 171 143 141 124 2 84 108 57 16 84 65 43 132 135 71 3 -31 CFFO Tax & other CFFO Sustaining, FCF Growth Other Free Cash C
Slide 33: Project timelines
Project timelines Vopak’s Capacity Country Terminal ownership Products (cbm)* 2018 2019 2020 2021 2022 2023 Growth projects Existing terminals Mexico Veracruz 100% Oil products 18,000 United States Deer Park 100% Chemicals 33,000 Netherlands Rotterdam - Botlek 100% Chemicals 15,000 Australia Sydney