Royal Vopak Nv · EURONEXT:VPK
Royal Vopak Nv — Investor Day (2018)
21 slides from Royal Vopak Nv's investor day presentation, 2018
Slide 1: Clear and robust financial framework
Storing vital products with care PT2SB - Pengerang, Malaysia Clear and robust financial framework Gerard Paulides – Member of the Executive Board & CFO
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: Key messages
Key messages 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 on capital emplo
Slide 4: Financial framework
Financial framework Focus on cash flow generation to create shareholder value Cash Flow From Operations (CFFO) Consolidated terminals: EBITDA -/- tax + asset disposals Joint ventures: dividends received + shareholder loans repaid Cash Flow From Investments (CFFI) Consolidated terminals: sustaining +
Slide 5: Well-balanced global portfolio
Well-balanced global portfolio Strong resilient cash flow generation Oil Chemical Industrial LNG, LPG & products products terminals Chemical Gases Typical contract 0-5 years 0-5 years 5-20 years 10-20 years duration per product / terminal category Share of 40-45% 25-30% 20-25% ~10% proportionate rev
Slide 6: Significant capacity to be delivered in 2019
Significant capacity to be delivered in 2019 EUR 950 million investments in 2017-2019 to further grow operational cash flow generation Vlissingen German LNG 9,200 cbm RIPET Deer Park* Botlek Open season completed 96,000 cbm EETPL PT2SB* 138,000 cbm 63,000 cbm Panama* 151,000 cbm 1,496,000 cbm Sebaro
Slide 7: Capacity commissioning developments
Capacity commissioning developments Expansion program with high commercial coverage to be delivered in 2019 Vopak’s Capacity Country Terminal ownership Products (cbm) 2013 2014 2015 2016 2017 2018 2019 2020 Existing terminals United States Deer Park 100% Chemicals 138,000 Malaysia Pengerang Independ
Slide 8: Balanced portfolio approach
Balanced portfolio approach Growth opportunities, New Business Development and value creating M&A Investments Assets with material Portfolio management Growth assets FCF and significant •1 Strategic fit investments •2 Do-ability Assets with •3 Valuation Assets with base FCF & Future options material
Slide 9: Significant projects in LNG and LPG
Significant projects in LNG and LPG Delivery of LNG and LPG growth projects in line with strategy Tianjin Lingang Gate Vlissingen Gate Vlissingen EETPL 240,000 cbm Break bulk 9,200 cbm 540,000 cbm 36,800 cbm 151,000 cbm 2011 2012 2013 2014 2015 2016 2017 2018 Altamira Banyan Richards Bay Gate RIPET
Slide 10: Leading operator of industrial terminals
Leading operator of industrial terminals Capture industrial opportunities Industrial terminals Haiteng PT2SB Chemtank 896,000 cbm 1,496,000 cbm 549,000 cbm 2014 2015 2016 2017 2018 2019 Vopak has more than 40 years of experience in industrial terminalling and is the leading independent operator of i
Slide 11: Global fuel oil network
Global fuel oil network EUR 40 million investments to be fully ready to support new market requirements in 2020 Hamburg Rotterdam Strategic review Fuel Oil capacity Conversion Estonia 10% ~35% Los Angeles Strategic review 15% 45% Algeciras Singapore 55% ~65% Panama Strategic review 45% MGO Expansion
Slide 12: Cash flow from investments
Cash flow from investments Balanced approach for growth, sustaining, service improvement and IT investments Investments 2008-2019 Investments 2017-2019 Investments In EUR million In EUR million Growth investments with clear 2,012 New return criteria based on future 1,899 1,729 projects* cash flow
Slide 13: Maintain a return on capital
Maintain a return on capital Expected ROCE between 10% and 15% Capital employed Return on capital employed In EUR billion In percent 12.0% 12.3% 11.8% 11.5% 10-15% 4.1 4.0 4.0 4.0 2017 Q1 Q2 Q3 2019 2020 2021 2017 Q1 Q2 Q3 2019 2020 2021 2018 2018 2018 2018 2018 2018 Disciplined capital for sustai
Slide 14: Priorities for cash
Priorities for cash Balanced approach between allocating capital to growth opportunities, an efficient and robust capital structure and distributions to shareholders 1 Debt servicing EUR 1.6 billion, remaining maturity ~7 years, average interest 3.8% 2 Growth opportunities Value accretive growth Sha
Slide 15: Robust balance sheet
Robust balance sheet Target leverage of 2.5 to 3.0 times net debt to EBITDA Net debt to 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 2.83 2.73 Strategic considerations 2.04 2.02 1.99 2.18 2.22 Timing of growth opportunities 2014 2015 2016 2017 Q1 Q2 Q3 Targe
Slide 16: Funding secured
Funding secured Balanced maturity profile to realize strategic objectives Debt repayment schedule In EUR million Outstanding debt 1,300 (EUR 1.7 billion) RCF flexibility (900m) 1,200 100m RCF drawn 75m Other 90m Subordinated loans 400 150m Asian PP 1.3bn US PP 300 200 100 0 2018 2019 2020 2021 2022
Slide 17: Shareholder distribution
Shareholder distribution Updated dividend policy Dividend and EPS Dividend policy: In EUR 2.73 2.45 2.55 2.56 Annual stable to rising cash dividend in 2.31 2.25 2.08 2.16 1.92 balance with a management view on a payout 1.62 ratio of 25-75% of net profit and subject to 1.00 1.05 1.05 market circums
Slide 18: Key messages
Key messages 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 on capital emplo
Slide 19: IFRS 16 Leases
IFRS 16 Leases No changes in economics, only changes in accounting (reporting) IFRS 16 Leases Indicative impact Vopak1 No changes in economics and cash flows only in Key figures accounting (reporting) EBITDA 40 – 50 IFRS implementation is substantially completed Net profit 0 – (10) and Vopak is
Slide 20: IFRS 16 Leases
IFRS 16 Leases No changes in economics, only changes in accounting (reporting) Current situation 2019 (IFRS 16)1 Finance Operating All Indicative Important sensitivities and assumptions Balance sheet Leases Leases Leases impact2 Total assets 750 – 800 Impact is based on the lease contract portfoli
Slide 21: Storing vital products with care
Storing vital products with care The world’s leading independent tank Clear and robust financial framework storage company building on an Questions & Slide Presented by: Gerard Paulides impressive history of more than 400 years Title Answers