Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Non-Deal Roadshow (2021)
39 slides from Royal Vopak NV's roadshow presentation, Nov 2, 2021
Slide 1: Storing vital products with care
Storing vital products with care FY 2020 – 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 2020
Key messages 2020 Effective Covid-19 response - uninterrupted service to customers 3% EBITDA growth post-divestments and good cost performance Delivered on industrial terminals and digital Majority of growth investments will be allocated towards industrial, gas and new energies infrastructur
Slide 14: Effective Covid-19 response
Effective Covid-19 response Uninterrupted service to customers and society We manage this crisis to the best of our ability to ensure we protect the health and well-being of our people and support society by storing vital products with care Effective controls and governance structures have been
Slide 15: Value creation and resilient performance
Value creation and resilient performance Focus on executing our strategy and business plans Deliver portfolio transformation Strategic Pursue opportunities in new energies Objectives Deliver Vopak’s digital transformation Grow EBITDA over time and replace the EBITDA from divested terminals P
Slide 16: Business environment update
Business environment update Long-term sustainable portfolio, well positioned for future opportunities Chemicals Stable storage, reduced throughput Oil products Dynamic oil market in 2020 Different demand patterns for Oil hubs: contango softened, durable and non-durable products solid contract po
Slide 17: Continued portfolio positioning
Continued portfolio positioning Strategic transformation toward more sustainable forms of energy & feedstocks Vopak growth capital allocation Majority of growth investments will be allocated towards industrial, gas and new energies 15-20% 25-30% 10-15% infrastructures 20-25% 10-15% 35-40% Gas, new
Slide 18: Industrial terminal update
Industrial terminal update Established leading position in industrial terminal delivery Dow industrial terminals transaction Industrial terminal focus areas Vopak & BlackRock joint venture acquired three industrial terminals (852,000 cbm) from Dow supported by long-term service agreements Transf
Slide 19: 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 20: 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 h
Slide 21: Financial highlights 2020
Financial highlights 2020 EBITDA post-divestments increased EUR 20 million reflecting growth contributions and resilient business performance in a dynamic environment Cost efficiency measures delivered - cost base below EUR 600 million revised target Growth momentum with EUR 525 million invest
Slide 22: Q4 2020 vs Q3 2020 EBITDA
Q4 2020 vs Q3 2020 EBITDA Excluding EUR 20 million one-off negative accounting result in Malaysia, EBITDA for Q4 2020 would amount in EUR 209 million 1.2 0.4 3.0 200.1 198.8 3.1 1.3 17.4 188.8 0.3 Q3 2020 FX-effect Adjusted Americas Europe & China & LNG Asia & Global Q4 2020 Q3 2020 Africa North Asi
Slide 23: Divisional performance
Divisional performance Americas and Europe & Africa growth and strong oil storage; Asia & Middle East lower chemical throughput and identified item; China and LNG strong demand Americas Asia & Middle East China & North Asia 93 94 94 87 87 87 87 80 84 82 90 88 82 74 64 43.2 47.6 48.7 44.9 47.2 85.0 7
Slide 24: EBITDA growth post-divestments
EBITDA growth post-divestments Delivery of cost efficiency measures and growth projects - despite some construction delays Portfolio Business environment Performance decisions changes delivery 829.8 58 20 791.5 25-35 20-25 35-40 21 ~15 2019 Divested Oil Chemical FX-effect Additional Contribution Mal
Slide 25: 2020 vs 2019 EBITDA
2020 vs 2019 EBITDA EBITDA growth post-divestments absorbing currency headwinds and one-off negative accounting result 829.8 4.9 4.4 32.3 24.6 58.0 791.5 3.2 35.3 20.6 751.2 2019 Divested FX-effect Adjusted Europe & Americas LNG China & Asia & Global 2020 terminals 2019 Africa North Asia Middle East
Slide 26: Cash flow overview
Cash flow overview Investment momentum driven by growth project 2020 2019 In EUR million In EUR million 822 774 48 710 647 561 500 315 63 168 459 300 390 525 347 18 190 88 CFFO Tax & other CFFO Sustaining, FCF Divestments Growth Other Free Cash CFFO Tax & other CFFO Sustaining, FCF Divestments Growt
Slide 27: 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 projects* In the period 2020-2022, Vopak may invest EUR 750-850 million i
Slide 28: 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 29: 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 30: Non-IFRS proportional information
Non-IFRS proportional information Proportional consolidated information provides transparency considering increase joint venture contribution relative to subsidiaries EBITDA Occupancy rate Q4 2020 occupancy per division In EUR million In percent – subsidiaries only In percent – subsidiaries only IFR
Slide 31: Looking ahead
Looking ahead In 2021, new contributions from 2020 and 2021 growth projects, to replace EBITDA from divested terminals, can add between EUR 30 million and EUR 50 million subject to market conditions and currency exchange movements. Cost management continues and we expect to manage the 2021 cost
Slide 32: Storing vital products with care – Appendix
Storing vital products with care FY 2020 Roadshow Presentation Appendix
Slide 33: Americas developments
Americas developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million 0.5 Total Q4 2020 90 93 94 94 84.0 88 81.8 79.5 81.1 5.3 million cbm 78.3 1.0 3.8 Subsidiaries Joint ventures & associates Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2019 2020 2020 2020 2020 20
Slide 34: Asia & Middle East developments
Asia & Middle East developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million Total Q4 2020 87 87 87 87 73.4 74.9 73.0 71.1 3.3 82 70.3 4.2 15.5 million cbm Subsidiaries Joint ventures & associates 8.0 Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2019 2020 2020 2
Slide 35: China & North Asia developments
China & North Asia developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million Total Q4 2020 80 84 82 74 0.8 2.8 million cbm 64 10.4 10.6 11.2 8.9 9.8 2.0 Subsidiaries Joint ventures & associates Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2019 2020 2020 2020 202
Slide 36: Europe & Africa developments
Europe & Africa developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million 1.3 Total Q4 2020 88 91 91 136.2 141.8 84 83 131.9 126.8 128.1 10.7 million cbm Subsidiaries 9.4 Joint ventures & associates Operatorships Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2019 2020 2020 202
Slide 37: JVs & associates developments
JVs & associates developments Net result JVs and associates* Americas* Asia & Middle East* In EUR million In EUR million In EUR million 53.4 50.9 45.9 43.4 24.8 24.8 24.1 20.6 25.8 3.1 3.0 3.1 2.4 2.1 0.7 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2019 2020 2020 2020 2020 2019 2020 2020 2020 2020
Slide 38: Occupancy rate developments
Occupancy rate developments Out-of-service capacity reduced Subsidiary occupancy rate and out-of-service capacity In percent 90-95% 85-90% 91 90 88 86 84 82 84 84 2011 2012 2013 2014 2015 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 0.6 0.8 1.0 1.5 1.8 1.8 1.2 1.6 1.4 1.1 1.0 Out-of-service capa
Slide 39: Project timelines
Project timelines Vopak’s Capacity Country Terminal ownership Products (cbm) 2018 2019 2020 2021 2022 2023 Growth projects Existing terminals Netherlands Rotterdam - Botlek 100% Chemicals 63,000 Mexico Veracruz 100% Oil products 79,000 United States Deer Park 100% Chemicals 33,000 Australia Sydney 1