Stolt-Nielsen Limited · OSL:SNI
Stolt-Nielsen — Investor Day (June 2024)
132 slides from Stolt-Nielsen's investor day presentation, Jun 12, 2024
Slide 1: Capital Markets Day
Capital Markets Day JUNE 12, 2024 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Included in this presentation are various ‘forward-looking statements’, including statements regarding the intent, opinion, belief or current expectations of the Company or its management with respect to, among other things, (i) goals and strategies, (ii) plans for new dev
Slide 3: Agenda
Agenda 10:00 Opening Niels G. Stolt-Nielsen, Chairman, Stolt-Nielsen Strategy Udo Lange, Chief Executive Officer, Stolt-Nielsen Maren Schroeder, Chief Operating Officer, Stolt Tankers Stolt Tankers Bjarke Nissen, Chief Commercial Officer, Stolt Tankers Stolthaven Terminals Guy Bessant, President, St
Slide 4: Speakers
Speakers Niels G. Stolt-Nielsen Udo Lange Maren Schroeder Bjarke Nissen Guy Bessant Chairman Chief Executive Officer Chief Operating Officer Chief Commercial Officer President Stolt-Nielsen Stolt-Nielsen Stolt Tankers Stolt Tankers Stolthaven Terminals Hans Augusteijn Jordi Trias Alex Ng Jens F. Grü
Slide 5: We are trusted, Stolt-Nielsen global pioneers
We are trusted, Stolt-Nielsen [§] global pioneers
Slide 6: Aspiring to be… Simply the Best
Aspiring to be… Simply the Best Udo Lange Chief Executive Officer 6
Slide 7: SNL at a Glance: A Leading Liquid Logistics and Aquaculture Provider
SNL at a Glance: A Leading Liquid Logistics and Aquaculture Provider US $2.8bn US $863m US $2.7bn US $5.6bn 7,000 1 2 LTM Revenue Adjusted LTM EBITDA Market Cap Assets 3 People LIQUID LOGISTICS SUPPLY CHAIN SOLUTIONS AQUACULTURE INVESTMENTS STOLT STOLTHAVEN STOLT TANK STOLT STOLT TANKERS TERMINALS C
Slide 8: We are trusted, global pioneers in liquid logistics and land-based aquaculture
We are trusted, global pioneers in liquid logistics and land-based aquaculture LIQUID LOGISTICS AQUACULTURE We move today’s products for We ensure that future generations tomorrow’s possibilities continue to enjoy wonderful seafood Capital Markets Day 2024 8
Slide 9: Corporate Video
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Slide 10: What Drives our Logistics Businesses
What Drives our Logistics Businesses Key Shipping lanes Stolthaven Terminals Stolt Tank Containers’ depots Capital Markets Day 2024 10
Slide 11: We Serve Diverse Markets
We Serve Diverse Markets Packaging, Electronics Textiles Paint & Coatings Commodity chemicals Commodity chemicals Commodity chemicals Speciality chemicals Speciality chemicals Speciality chemicals Oleo chemicals Oleo chemicals Automotive Construction Agriculture Commodity chemicals Commodity chemica
Slide 12: The Case for Investing
The Case for Investing VALUE 5 STRATEGY AND 6 DRIVERS EXECUTION 1 2 3 SIMPLY THE BEST FOR EXCEPTIONAL LEADERS IN STRONG LIQUID OUR: TRACK LOGISTICS AND BALANCE ATTRACTIVE RECORD SHEET LAND-BASED ▪ SHAREHOLDERS AQUACULTURE OUTLOOK ▪ CUSTOMERS ▪ PEOPLE 4 STRONG MARKET FUNDAMENTALS Capital Markets Day
Slide 13: We are Delivering on Years of Focused Strategy
1 We are Delivering on Years of Focused Strategy REVENUE PROFITABILITY RETURNS (US $ m) (Adjusted EBITDA US $ m)1 (Adjusted Return on Capital Employed)1 Robust revenue growth as SNL … becoming a more profitable … with an unrelenting focus on has capitalised on tightening organisation in the process…
Slide 14: Our Portfolio Gets Stronger
1 Our Portfolio Gets Stronger STOLT-NIELSEN SEGMENT ASSETS ADJUSTED EBITDA DEVELOPMENT (US $m) 2016 2023 STOLT TANKERS Corp. & +89% Corp. & SSF 3% Others Others 5% SSF 3% 14% 527 STC 12% 279 US US 42% ST STC 13% 53% ST 2016 2023 $4.4bn $5.0bn SHVN 27% NON-TANKERS BUSINESSES +80% SHVN 28% 339 12%
Slide 15: Evolving Importance of Supply Chain Solutions in our Favour
2 Evolving Importance of Supply Chain Solutions in our Favour LEGACY THINKING… …IMPACT OF A VUCA1 WORLD… …LOGISTICS TODAY GEOPOLITICS C-SUITE FOCUS ENERGY TRANSITION PLANNING TRADE BARRIERS REGULATION VISIBILITY DIGITALISATION RESILIENCE/ BLACK-SWAN EVENTS FLEXIBILITY Capital Markets Day 2024 1. Vol
Slide 16: We are a Leading Strategic Partner in Liquid Logistics
2 We are a Leading Strategic Partner in Liquid Logistics LEADING DRY GOODS INTEGRATED >70% OF OUR TOP 50 CUSTOMERS USE MORE LOGISTICS PLAYERS THAN ONE OF OUR LIQUID LOGISTICS SERVICES TOP 50 CUSTOMERS – 20231 72% > 1 SNL Service 28% Standalone Service Capital Markets Day 2024 1. Based on FY 2023 rev
Slide 17: Delighting Customers With Quality, Reliability and Flexibility Since 1959
2 Delighting Customers With Quality, Reliability and Flexibility Since 1959 ▪ Long-standing relationships with world-leading chemical manufacturers and end-users ▪ An industrial logistics partner cemented through more than 60 years of collaboration ▪ >70% of our top customers buy more than one of ou
Slide 18: Customer Testimonial
Customer Testimonial Carsten Weers Vice President Logistics Procurement Maritime & Air Transportation, Tank Storage BASF
Slide 19: Strong Balance Sheet: Significant Financial Flexibility to Support Growth
3 Strong Balance Sheet: Significant Financial Flexibility to Support Growth REDUCING LEVERAGE1 AND NET DEBT Net Debt (US $ m) 2,237 2,270 2,313 2,039 1,763 1,800 ▪ Conservative balance sheet management >$ 1.2bn of additional debt capacity 2 5.1x 4.7x ▪ Disciplined capital allocation strategy 4.3x Ta
Slide 20: Strong Market Fundamentals
4 Strong Market Fundamentals DEMAND FUNDAMENTALS (INDEX 2000 = 100) SUPPLY FUNDAMENTALS Covid STOLT TANKERS 280 +4.0% CAGR ▪ ~2% net fleet growth expected in 260 GLOBAL CHEMICAL 2024-2026E GLOBAL CHEMICAL DEMAND DEMAND 240 ▪ Strong MR markets limiting swing tonnage 220 1.1-1.2x ~3% MULTIPLIER OF GDP
Slide 21: Aspiring to be Simply the Best for our Shareholders, Customers and People
5 Aspiring to be Simply the Best for our Shareholders, Customers and People WHAT WE WANT TO ACHIEVE… …HOW WE DO IT Best investment Safety first choice for shareholders Commit to Collaborate go Further for Success Best solution The for customers Stolt Way Act Pragmatically Create Solutions Best emplo
Slide 22: We are Delivering Exceptional Value for our Shareholders, Customers and People
5 We are Delivering Exceptional Value for our Shareholders, Customers and People SHAREHOLDERS CUSTOMERS PEOPLE SHARE PRICE GROWTH (NOK)1 NET PROMOTER SCORE SUSTAINABLE EMPLOYEE ENGAGEMENT +484% +5% NPS 485 89 35 85 83 2020 2024 2024 Customer Survey, n = 340 2020 2024 CASH RETURNS CUSTOMER & INDU
Slide 23: We are Outperforming Tankers and Logistics Peers
5 We are Outperforming Tankers and Logistics Peers INDEXED SHARE PRICE DEVELOPMENT SINCE SEPTEMBER 20231 200 180 175 160 164 Indexed to SNI 140 120 100 87 80 60 01-Sep-23 01-Oct-23 01-Nov-23 01-Dec-23 01-Jan-24 01-Feb-24 01-Mar-24 01-Apr-24 01-May-24 01-Jun-24 1 2 SNL Tankers Peers Logistics Peers T
Slide 24: Our Strategy Elevates Business Performance and Unlocks Group-Wide Synergies
6 Our Strategy Elevates Business Performance and Unlocks Group-Wide Synergies BUSINESS STRATEGIES CONNECTOR STRATEGIES LIQUID LOGISTICS STOLT TANKERS OPERATIONAL EXCELLENCE STOLTHAVEN TERMINALS CUSTOMER EXCELLENCE STOLT TANK CONTAINERS PEOPLE EXCELLENCE DIGITALISATION STOLT SEA FARM SUSTAINABILITY C
Slide 25: We are a Pioneer in Digital Innovation…
6 We are a Pioneer in Digital Innovation… ▪ 1995: Stolt Tankers’ Operators Workstation (STOW) won first prize at the Microsoft Windows World Open ▪ Microsoft Chairman and CEO Bill Gates presented the award ▪ STOW was an internally developed system for cargo stowing processes Pictured L-R: Stan Speer
Slide 26: …and Continue to Lead Digital Innovation in our Industry
6 …and Continue to Lead Digital Innovation in our Industry DIGITALISATION PLANET ternally Facing ▪ One digitalisation strategy x E S er XP ustainab tom ility us C a Scienc C y Oper t ▪ Maximising synergies by connecting our IT & a be e hitecture e D c businesses’ digital strategies r Se nan atio n s
Slide 27: Focused on Sustainability for our People, Planet and Customers
6 Focused on Sustainability for our People, Planet and Customers Sustainability Strategy We help reduce the Innovation is in our DNA, We support the global CO2 impact for our and a key driver of our energy transition customers and provide sustainability efforts sustainability insights Stolt-Nielsen’
Slide 28: A Positive Outlook for the Foreseeable Future
6 A Positive Outlook for the Foreseeable Future WINNING IN TODAY’S MARKETS… CAPABILITY TO OUTPERFORM THE MARKET SHORT TERM MEDIUM TERM New Continuous Margins Strong prices ‘plateau’ contract bottomed, and ▪ Quarterly TCE ▪ VUCA events make TCE levels optimisation scalable production guidance to cont
Slide 29: Delivering Now for the Next Generation
Delivering Now for the Next Generation Maren Schroeder Chief Operating Officer, Stolt Tankers 29
Slide 30: Agenda
Agenda 1. Introduction 2. Our Fleet 3. Commercial Overview 4. Customer-centric Approach 5. Market Dynamics 6. Sustainable Growth Capital Markets Day 2024 30 30
Slide 31: Stolt Tankers at a Glance
1 Stolt Tankers at a Glance 160 US $1.7bn Chemical tankers Operating revenue 600+ The leading global operator US $527m of deepsea and regional EBITDA Products shipped chemical tankers 2.9m US $2.1bn Deadweight tonnes Asset base 12.0 Mt Silver Deepsea volumes 1 EcoVadis rating Note: Information for F
Slide 32: Chemical Tankers 101: our Specialised Service Offering
1 Chemical Tankers 101: our Specialised Service Offering OUR DIFFERENTIATED MARKET FLEXIBLE STAINLESS STEEL CHEMICAL TANKERS Crude Clean Commodity Specialised ▪ Smaller parcel sizes compared to crude Oil Petroleum Chemicals Chemicals and product tankers Crude Tanker ▪ Multiple segregations – several
Slide 33: Our Fleet: Unparalleled Size and Reach
1 Our Fleet: Unparalleled Size and Reach STOLT TANKERS FLEET SIZE (# OF VESSELS) 2023 REVENUE (US $) 16% Deepsea Regional Total Deepsea # Tankers # Tankers # Tankers 1.7bn Regional 76x 84x 160x 84% 8 3 9 16 160 12 36 2023 OPERATING DAYS3 76 Age1 Age1 45% Deepsea 52,560 55% 16.1 16.5 Regional Deepsea
Slide 34: World's Largest Operator of Chemical Tankers
1 World’s Largest Operator of Chemical Tankers BENEFITS OF SCALE Platform advantage: focus on digitalisation reduces costs, improves productivity and enhances customer experience Network flexibility: for our customers and partners Strategically important to our customers: industrial partnership to s
Slide 35: Commercial Overview
Commercial Overview Bjarke Nissen Chief Commercial Officer, Stolt Tankers 35
Slide 36: Demand for Chemicals Trade Closely Tracks GDP Growth
2 Demand for Chemicals Trade Closely Tracks GDP Growth GLOBAL GDP VS SPECIALISED PRODUCTS TRADE GROWTH = 0.9 CORRELATION 400 120 350 100 Trade Growth (Million Tonnes) 300 Global GDP (US $ Trillions) 80 250 200 60 150 40 100 20 50 0 0 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2
Slide 37: Favourable Supply Levers: Healthy MR Markets and Limited Orderbook
2 Favourable Supply Levers: Healthy MR Markets and Limited Orderbook RATES REBOUND – LIMITING SWING TONNAGE 50 Avg MR Earnings ($/Day) 20 1Y TC Rates ($/Day) 40 15 30 10 20 10 5 0 0 May-19 Sep-19 Jan-20 May-20 Sep-20 Jan-21 May-21 Sep-21 Jan-22 May-22 Sep-22 Jan-23 May-23 Sep-23 Jan-24 May-24 MR Rat
Slide 38: A Significant Percentage of the Global Fleet can be Easily Retired
2 A Significant Percentage of the Global Fleet can be Easily Retired STAINLESS STEEL TANKER AGE DISTRIBUTION IN 2027 1.6 17% 31% 1.4 14% 1.2 DWT (million) 1.0 0.8 0.6 0.4 0.2 0.0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 30+ Age (Years) Source: Grieg Shipbrok
Slide 39: Demand Drivers: 3-6% Growth in Chemical Tonne-Mile Forecasted
2 Demand Drivers: 3-6% Growth in Chemical Tonne-Mile Forecasted in 2024 and 2025 CLARKSONS – 3.3% GROWTH MSI – 4.6% GROWTH RLA – 6.3% GROWTH Billion Tonne-Miles Billion Tonne-Miles Tonne-Mile/Day 1,670 7,540 1,627 10% 1,303 8% 10% 1,564 1,262 6,984 1,600 1,191 7,000 6,671 1,200 8% 6% 8% 1,400 6,000
Slide 40: Diverse Customer Base Drives our Resilient Business Model
3 Diverse Customer Base Drives our Resilient Business Model CARGO STOLT TANKERS CUSTOMERS’ CUSTOMERS’ END SEGMENTS PARTICIPATION1 INDUSTRIES B2B CUSTOMERS B2C MARKETS Packaging Organic 4.6m Chemicals Chemicals Tonnes (38%) Automotive Oil & Gas 3.2m Electronics Petrochemicals Tonnes (27%) Distributio
Slide 41: Adjusting Contract Portfolio to Optimise Earnings
4 Adjusting Contract Portfolio to Optimise Earnings STJS COA VS SPOT SHARE (%) Flexibility to increase spot COA SPOT exposure to participate in upside 100% 32% 29% 30% 28% 29% 33% 34% 35% 35% 37% 80% 38% 38% 43% 50% 55% 49% 54% 60% 40% 72% 68% 71% 70% 71% 67% 66% 66% 65% 63% 62% 62% 57% 50% 45% 51%
Slide 42: Our Objective is to be Profitable in any Market
4 Our Objective is to be Profitable in any Market CHEMICAL TANKERS CYCLE (2014-2024) PROFITABILITY DRIVERS / LEVERS million $35,000 $150 ▪ Industrialised nature of relationships – long-standing, diversified customer base $130 $30,000 $110 ▪ Contract nature of chemicals trade – $25,000 we optimise fo
Slide 43: Favourable Dynamics Supporting Strong Chemical Tanker Market Outlook
4 Favourable Dynamics Supporting Strong Chemical Tanker Market Outlook KEY SUPPLY AND DEMAND DRIVERS 1 Demand growth 2 MR market expected to stay strong 3 Favourable supply development Capital Markets Day 2024 43
Slide 44: Continuing to Deliver Results
Continuing to Deliver Results Maren Schroeder Chief Operating Officer, Stolt Tankers 44
Slide 45: Our Multi-Faceted Fleet Strategy Ensures Optimal Capital Allocation
5 Our Multi-Faceted Fleet Strategy Ensures Optimal Capital Allocation NEWBUILDS SECONDHAND FLEET REPLACEMENTS ▪ Modern, fuel-efficient ships driving lower ▪ Strategic and opportunistic M&A operational costs ▪ Trade attractive on-the-water tonnage with ▪ Replacement tonnage to maintain deepsea establ
Slide 46: We are Actively Managing the Evolving Regulatory Landscape
5 We are Actively Managing the Evolving Regulatory Landscape Maersk Mc-Kinney Cargo Emissions Industry Bodies ITOPF Ship Recycling Møller Center Reporting ▪ Stolt Tankers is ▪ Hong Kong Convention ▪ Our secondees share ▪ Partnering with ▪ Global Maritime represented on the for Ship Recycling knowled
Slide 47: Protecting People and the Planet
5 Protecting People and the Planet AMBITIONS ACTIONS HIGHLIGHTS Safety Operate the safest ships and eliminate Behavioural Safety Safety for people serious incidents through our behavioural Programme Slashed Zero and planet since 2015, focusing on safety programme Leadership, Competency and Care Dive
Slide 48: Well Prepared to Meet Emissions Regulations
5 Well Prepared to Meet Emissions Regulations KEY ENVIRONMENTAL AND INTERNATIONAL REGULATIONS IMO EU Global Pricing Mechanism for adoption in late 2025 EU ETS in place since January 2024 CII revision due in 2026 Fuel EU Maritime to come into effect in 2025 Target of Net Zero Greenhouse Gas Emissions
Slide 49: Key Sustainability Features of our Newer Ships
5 Key Sustainability Features of our Newer Ships ▪ Modern, stainless-steel design ▪ Fuel-efficient ▪ Can be retrofitted for methanol propulsion ▪ Wide range of energy-saving devices ▪ Shore power connection ready ▪ Graphene-coated propellers ▪ Modern accommodation and working environment Capital Mar
Slide 50: Stolt Ludwigshafen: Innovative Low-Water Barge
5 Stolt Ludwigshafen: Innovative Low-Water Barge In partnership with BASF, we have built an innovative chemical tanker that can operate under extreme low-water conditions on the River Rhine ▪ High-load bearing capacity ▪ Special lightweight construction ▪ Designed for shallow draught ▪ Hydrodynamica
Slide 51: Innovating for a Digital World With our Customers, People and Partners
5 Innovating for a Digital World With our Customers, People and Partners te rna lly Fa cing Ex r XP Sus ta tome ina bili us ty C Cy Ope Scienc & ata IT be Gove r nance hite cture r Se ions D e r at curity & (Master) Data Ar c f f ic e ac NL & ST kO S HV S N B STC SS F Appli ca ti ons Enhance custome
Slide 52: Winning in a Strong Market, Well-Positioned for the Future
Winning in a Strong Market, Well-Positioned for the Future ASPIRING TO BE… SIMPLY THE BEST MARKET-LEADING INDUSTRIAL INVESTING FOR STRONG MARKET POSITION PARTNER GROWTH OUTLOOK ▪ Largest player in ▪ Core supply chain ▪ Multiple levers for ▪ Supportive supply / chemical tankers partner for our fleet
Slide 53: Leading Provider of Storage Services for Bulk Liquids and Gas
Leading Provider of Storage Services for Bulk Liquids and Gas Guy Bessant President, Stolthaven Terminals 53
Slide 54: Agenda
Agenda 1. Introduction 2. Market Dynamics 3. Business Performance and Strategy 4. Sustainable Growth Capital Markets Day 2024 June 24 54 54
Slide 55: Stolthaven Terminals at a Glance
1 Stolthaven Terminals at a Glance 14 US $300m Bulk-liquid storage Operating revenue terminals1 250 A leading global provider of US $ 169m storage services for bulk EBITDA Products stored liquids and gases 5.0m US $ 1.4bn m3 storage capacity Asset base2 540 Silver People2 EcoVadis rating Capital Mar
Slide 56: We are a Leading Infrastructure Player
1 We are a Leading Infrastructure Player AN INFRASTRUCTURE PLAYER… …BUT DIFFERENT ▪ One of a few truly independent global storage providers with strong brand recognition ▪ Strong parent company committed to long- term sustainable growth of the business ▪ Owner and operator of infrastructure servicin
Slide 57: We Operate a Truly Global Terminal Network
1 We Operate a Truly Global Terminal Network STRATEGICALLY LOCATED Antwerp (hub), Dagenham IN KEY LOCATIONS1 (chemical and biofuels), Moerdijk One of Asia’s largest networks: (chemicals) Significant presence in Houston Ulsan (hub), Westport (biofuel), (hub) and New Orleans 22% Singapore (chemicals).
Slide 58: Favourable Fundamentals Expected to Support Storage Demand
2 Favourable Fundamentals Expected to Support Storage Demand CHEMICAL MARKET PETROLEUM MARKET ENERGY TRANSITION AND CIRCULARITY Dynamics support chemical Strong storage demand for Energy transition driving demand storage demand petroleum products in developing for renewable energies markets, especia
Slide 59: Macroeconomic Tailwinds to Drive Global Demand for Chemical Products
2 Macroeconomic Tailwinds to Drive Global Demand for Chemical Products GROWTH DRIVERS GLOBAL CHEMICAL SALES1/2 Increased demand for sustainable fuels and feedstocks EUROPE Growth in emerging market economies ASIA AMERICAS 1.0 1.9% 0.8 3.2 Population growth and increasing size 3.8% 5.9% of the middle
Slide 60: Dagenham: Designed for the Energy Transition
2 Dagenham: Designed for the Energy Transition INCREASING FOCUS ON RENEWABLE ENERGY, EVOLUTION OF DAGENHAM STORAGE MIX REDUCING DEPENDENCE ON CPP MARKET +15.0% Revenue ▪ Assessed and rebalanced our product and customer portfolio ▪ Released capacity replaced by higher-margin 33% and more sustainabl
Slide 61: Our Strategy is Supported by our Focus on Sustainability
3 Our Strategy is Supported by our Focus on Sustainability AMBITIONS ACTIONS HIGHLIGHTS Sustainability Operate the safest terminals and EcoVadis Silver, ranking in top Safety for people and planet eliminate serious incidents 3% for sustainability and top 5% for sustainable Offer rewarding careers to
Slide 62: Enhanced Digital Capabilities Optimise Costs and Improve End-User Experience
3 Enhanced Digital Capabilities Optimise Costs and Improve End-User Experience te rna lly Fa cing Ex r XP Sus ta tome ina bili us ty C Cy Ope Scienc & ata IT be Gove r nance hite cture r Se ions D e r at curity & (Master) Data Ar c f f ic e ac NL & ST kO S HV S N B STC SS F Appli ca ti ons Focus on
Slide 63: We are Implementing Operational Improvements to Lower Costs and Drive Earnings
4 We are Implementing Operational Improvements to Lower Costs and Drive Earnings REVENUE / LEASED CAPACITY (INDEX 2018 = 100) ▪ Commercial excellence Houston New Orleans programme focused on customer centricity, margin improvement, and portfolio +41% +52% optimisation 152 ▪ Operational and safet
Slide 64: Stolthaven Terminals' Platform Drives Long-Term Earnings Growth
4 Stolthaven Terminals’ Platform Drives Long-Term Earnings Growth TOTAL CAPACITY (million m3) REVENUE / CAPACITY1 (US $) PROPORTIONAL EBITDA2 (US $m) +6.4% Ow ned +11.3% Joint Ventures +21.0% 5.0 15.0 207 13.5 171 4.7 2018 2023 2018 2023 2018 2023 EBITDA Margin3 42.5% 47.7% ADDING SCALE TO OUR
Slide 65: Focused Growth Capex Allocation Drives Value Creation
5 Focused Growth Capex Allocation Drives Value Creation PRIORITISATION CURRENT PROJECTS FUTURE POTENTIAL Houston and New 1.5m m3 potential ▪ Organic Growth capacity expansions Orleans (USA) (existing sites) Further expansion and ▪ Greenfield Growth Taiwan, Turkey1 pipeline of new projects under revi
Slide 66: To be the Most Respected Global Storage Provider
To be the Most Respected Global Storage Provider ASPIRING TO BE… SIMPLY THE BEST INFRASTRUCTURE CUSTOMER INVESTING FOR STRONG MARKET MODEL CENTRICITY GROWTH OUTLOOK ▪ Stable infrastructure ▪ Strong focus on safe ▪ Significant expansion ▪ Strong market operating model… and efficient operations potent
Slide 67: Lunch: Next Session Starts at 12:30
LUNCH: NEXT SESSION STARTS AT 12:30 Capital Markets Day 2024 67
Slide 68: Leading Operator with Scalable Platform for Growth
Leading Operator with Scalable Platform for Growth Hans Augusteijn President, Stolt Tank Containers 68
Slide 69: Agenda
Agenda 1. Introduction 2. Market Dynamics 3. Unrivaled Global Platform 4. Digital Capabilities 5. Scalable Growth Platform Capital Markets Day 2024 69 69
Slide 70: Stolt Tank Containers at a Glance
1 Stolt Tank Containers at a Glance 51,000 US $700m Tank containers Operating revenue 150,000 Operator of the world’s largest US $166m fleet of ISO tank containers Adjusted EBITDA4 Shipments1 21 US $666m Depots and hubs 2 Asset base 100+ Gold Countries reached3 EcoVadis rating Note: Information for
Slide 71: ISO Tanks 101: The Preferred Mode of Transportation
1 ISO Tanks 101: The Preferred Mode of Transportation KEY NUMBERS1 ~10% 95% Global tank container fleet Of tank materials are recycled CAGR (2010-2024) at end of life 60% 50% More cargo space than a Lower carbon footprint using container filled with drums ISO tanks than alternatives KEY FACTORS DRIV
Slide 72: We Move Any Liquid
1 We Move Any Liquid CARGO STC CUSTOMERS’ CUSTOMERS’ END-MARKET SEGMENTS INDUSTRIES B2B CUSTOMERS B2C Packaging Chemicals Chemicals Automotive Oil & Gas Lubricants Electronics Distribution & Trading Construction Consumers New Energies Agriculture & Textiles Fertilisers Agriculture Other Liquids Indu
Slide 73: Market Leader in a Highly Fragmented Market
1 Market Leader in a Highly Fragmented Market GLOBAL TANK OPERATORS FLEET (‘000 Tanks) Global operators 290 fleet of ~590k tank containers (~850k including lessors) 51% 51 Top 10 largest players 42 39 make up ~50% of 33 global operator fleet 28 24 23 21 20 18 ~60 operators control >1,000 ISO tanks –
Slide 74: Rapidly Growing Market
2 Rapidly Growing Market GLOBAL ISO TANK FLEET AND GDP GROWTH (INDEX 1992 = 100) ~10% annual growth in the global ISO tank 1,200 GLOBAL ISO TANK FLEET GROWTH fleet over the past decade (vs <5% growth 1,000 ~4.2x in dry container market) MULTIPLIER OF GDP 800 (1992-2024) Number of tank 600 operators
Slide 75: Recent Growth Driven by Containerisation
2 Recent Growth Driven by Containerisation ISO TANK MARKET EXPECTED TO KEEP OUTPACING GDP/CHEMICAL PRODUCTION DUE TO MODALITY SHIFT DEGREE OF CONVERSION Traditional Cargo (Non-Bulk) Containerised (Dry) ~99% Reefer Cargo Containerised (Reefers) ~90% Breakbulk Containerised (FTs & OTs) ~40% Liquid Bul
Slide 76: Recent Margin Softening Appears to Have Bottomed
2 Recent Margin Softening Appears to Have Bottomed MARGINS DEVELOPMENT (2017-2024) Per Day $100,000 $2,500 $90,000 $80,000 $2,000 $70,000 $60,000 $1,500 $50,000 $40,000 $1,000 $30,000 $20,000 $500 $10,000 $0 $0 STC Gross Profit Per Shipment (RHS) Average Containership Earnings Source: Clarksons Capi
Slide 77: Asset-Light Business
2 Asset-Light Business AVERAGE CAPEX SPEND AVERAGE CAPEX-TO- (US $ m) REVENUE (%) $27.4m Per Annum (2014-2023) 4.7% Per Annum (2014-2023) Capital Markets Day 2024 77
Slide 78: Leading Global Network
3 Leading Global Network WORLDWIDE NETWORK SERVICING KEY MARKETS 51,000 TANK CONTAINERS 26 OFFICES 21 Office DEPOTS AND HUBS Depot and hub Capital Markets Day 2024 78
Slide 79: Global Scale and Platform Key to Continuous Efficiencies
3 Global Scale and Platform Key to Continuous Efficiencies PLATFORM BENEFITS NETWORK BENEFITS – TRIANGULATION EFFECT ▪ Local contacts in each market ▪ Centralised operations ▪ Sector-leading digital capabilities ▪ Unrivalled global expertise COST TO SERVE 1/2 SHIPMENTS (‘000) -2% CAGR +7% CAGR 1
Slide 80: Serving Customers with Unrivalled Global Capacity, Cost Base and Quality
3 Serving Customers with Unrivalled Global Capacity, Cost Base and Quality PLATFORM SCALE SCALE FOR CAPACITY SCALE FOR COST SCALE FOR QUALITY Global reach – we can move Global network drives Top 5% of companies in our any liquid to any market economies of scale industry1 for overall ESG performance
Slide 81: Safe and Sustainable Operations
3 Safe and Sustainable Operations AMBITIONS ACTIONS HIGHLIGHTS Assure safe transport of customers’ Safety Safety first during transport and at products and safe operations on our 2023: LTIF = 0.31 and our depots depots; eliminate serious incidents strong safety culture and processes in place Ensure
Slide 82: Digital Transformation Provides Simplicity for Customers and Efficiency for Us
4 Digital Transformation Provides Simplicity for Customers and Efficiency for Us te rna lly Fa cing Ex P Sus ta er X ina s tom bili ty u C Cy Ope Scienc IT & ata be r ations Gove r nance hite cture r Se D e curity / (Master) Data Ar c f f ic e ac NL & ST kO S HV S N B STC SS F Applica ti ons Digital
Slide 83: Significant Digital Capabilities to Integrate With our Customers' Supply Chains
4 Significant Digital Capabilities to Integrate With our Customers’ Supply Chains CUSTOMER BOOKINGS BY CHANNEL BILL OF LADING DIGITAL AMENDMENTS 20% 30% 35% Digital bookings via mySTC or B2B 13% integration 35% 5% 1% mySTC B2B Integration Manual 3Q23 4Q23 1Q24 2Q24 70% CUSTOMER BOOKINGS IN 2024 VIA
Slide 84: Predictive Track and Trace
4 Predictive Track and Trace TRACK YOUR CARGO ANYWHERE ANYTIME ▪ Live tracking of a shipments’ current position, status and ETA ▪ Detailed specification, clear highlights of schedule changes and details of short shipments ▪ Share a link to track and trace details with other parties ▪ 24/7 visibility
Slide 85: Relentless Focus on Growth
5 Relentless Focus on Growth PIPELINE OF GROWTH OPPORTUNITIES SERVICE OFFERING MARKETS INORGANIC Continued conversion Intra-regional trades / Asia growth Strategic M&A to reap Product expansion platform synergies (liquid logistics demand) Southern Hemisphere STOLT TANK CONTAINERS’ SCALABLE PLATFORM
Slide 86: Leading Operator with Scalable Platform
Leading Operator with Scalable Platform ASPIRING TO BE… SIMPLY THE BEST MARKET-LEADING STRONG LEVERAGING FOCUS ON POSITION FUNDAMENTALS SCALE DIGITALISATION ▪ Largest fleet of ▪ High-growth, ▪ Scale to serve our ▪ Digital capabilities to dedicated ISO tanks asset-light sector customers with unrivale
Slide 87: Customer Testimonial
Thomas Fuhrken Vice President Logistics & Commercial Operations, Renewable Products Neste
Slide 88: A Profitable, High-Growth Leader in Land-Based Aquaculture
A Profitable, High- Growth Leader in Land-Based Aquaculture Jordi Trias President, Stolt Sea Farm 88
Slide 89: Agenda
Agenda 1. Introduction 2. Market Dynamics 3. Customer Excellence 4. Profitable Operations 5. Ambitious Roadmap Capital Markets Day 2024 89 89
Slide 90: Stolt Sea Farm at a Glance
1 Stolt Sea Farm at a Glance 50+ 30+ Years of aquaculture Sales markets experience 16 A pioneer in land-based aquaculture US $111m Farms, hatcheries and and the premier provider of Operating revenue production facilities high-quality turbot and sole 100% US $32m Land-based EBITDA production 8,500tn
Slide 91: Sustainability at Stolt Sea Farm
1 Sustainability at Stolt Sea Farm THE MOST SUSTAINABLE FISH FARMING METHOD 2030 SUSTAINABILITY AMBITIONS ▪ Aquaculture: the most sustainable way to produce high-quality protein 0% ▪ Land-based: closer fish monitoring and preventive care, Ambition Waste-to-landfill by 2030 exceptional environmental
Slide 92: We Have a Scalable Operations Platform
1 We Have a Scalable Operations Platform PRODUCTION CAPACITY BY Operations in COUNTRY AND SPECIES 6 countries Portugal Norway France Spain 7% 5% 18% 27% 14 farms Turbot Sole 2 hatcheries 6,800tn 1,700tn Spain Iceland Portugal 89% 29% 25% Headquarters Sold in 30+ countries SALES BY COUNTRY (TONNES WF
Slide 93: A Leading Producer of Turbot and Sole
1 A Leading Producer of Turbot and Sole REASONS FOR OUR SPECIALISATION ▪ Highly regarded species – commanding superior prices over other species ▪ Difficult-to-farm species with high biological barriers to entry ▪ Constantly declining wild stock populations with large, global demand Turbot Sole (Pse
Slide 94: Global Premium Seafood
1 Global Premium Seafood Wild Catch SALMON HAKE TUNA SEABASS € 5.9bn SEABREAM €10.0bn Aquaculture EU € 4.2bn SWORDFISH Domestic Production1 We operate in the European premium seafood market, a subset of the wider European fish market SOLE MEAGRE MONKFISH HALIBUT TURBOT Source: FAO, EUMOFA EU Fish Ma
Slide 95: Turbot and Sole Achieve Price Premiums vs Salmon
1 Turbot and Sole Achieve Price Premiums vs Salmon TURBOT SOLE SALMON Segment size (EU Aquaculture) 1 ~12,100tn ~2,500tn ~1,729,700tn % of species farmed (EU)1 ~66.0% ~6.0% ~99.9% Time to maturity 22 months 18 months 18 months Feed conversion ratio 0.97x 1.05x 1.15x Average market price (2024)2 EUR
Slide 96: Global Megatrends Driving Increasing Demand for our Products
2 Global Megatrends Driving Increasing Demand for our Products MEGATRENDS TO DRIVE DEMAND FOR FISH Global population growth driving increased food demand 55% of consumers want Growing middle class in large emerging markets leading to to increase their fish increased protein consumption consumption H
Slide 97: Market Leader Within Turbot and Sole
2 Market Leader Within Turbot and Sole TURBOT AND SOLE ARE HIGHLY VALUED SPECIES WITH 1. TURBOT – WELL ESTABLISHED, LEADING SIGNIFICANT GROWTH OPPORTUNITIES MARKET POSITION EUR/kg1 Turbot Sole Salmon Rest of Sub-segment 20 EU Aquaculture Production of ~12.1k 18 Turbot (2023)3 tonnes 16 14 12 10 2. S
Slide 98: Fully Integrated Value Chain
3 Fully Integrated Value Chain R&D BROODSTOCK HATCHERY ON-GROWING PROCESSING SALES & MARKETING OWNERSHIP OF COMPLETE BREEDING CYCLE – GUARANTEEING HIGH QUALITY AND CONTINUOUS GROWTH Capital Markets Day 2024 98
Slide 99: >500 Active Customers in 30+ Countries
3 >500 Active Customers in 30+ Countries CUSTOMER SPLIT BY SEGMENT DIVERSIFICATION OF MARKETS 6,550tn 8,500tn Production Capacity Production Capacity 2019 2023 12% 28% 41% 23% 65% 72% 59% 2019 2023 Wholesaler Retailer Cash & Carry Traditional Markets New Markets WIDE CUSTOMER BASE ACROSS THREE INC
Slide 100: King Sole: Premium Brand of Larger-Sized Fish
3 King SoleTM: Premium Brand of Larger-Sized Fish USING OUR SCALE ADVANTAGE AND DECADES OF AQUACULTURE EXPERIENCE TO OFFER UNIQUE, DIFFERENTIATED PRODUCTS THAT MEET ALL CUSTOMER NEEDS Fixed size range >500g Economies of scale High-quality broodstock Consistent size Higher premium brand pricing Capit
Slide 101: Customer Testimonial
David Simpson Director of Business Development Wheeler Seafood, Inc.
Slide 102: A Decade of Strong Volume Growth to Meet Growing Demand
4 A Decade of Strong Volume Growth to Meet Growing Demand STRONG SALES VOLUME GROWTH, ‘000 TONNES (WFE) REVENUE (US $ m) TURBOT SOLE SSF CONSOLIDATED1 +5% CAGR +21% CAGR +8% CAGR 6,820 1,728 111 4,202 51 260 2013 2023 2013 2023 2013 2023 INCREASING PRODUCTION CAPACITY TO MEET HIGH DEMAND AND I
Slide 103: Improved Turbot Productivity and Reached Profitable Production of Sole
4 Improved Turbot Productivity and Reached Profitable Production of Sole OPERATIONAL EBIT/KG (EUR) IMPROVED UNIT ECONOMICS TURBOT SOLE ▪ Driving more turbot productivity – producing +1,700 more tonnes1 on the +9% CAGR PROFITABLE same farms ▪ Continued development of selective breeding programme
Slide 104: Significant Capacity for Growth
5 Significant Capacity for Growth GROWTH ASPIRATIONS, TONNES (WFE) +8.1% CAGR € 1.6/kg € 2.3/kg VALUE CREATION Operational EBIT ‘18 Operational EBIT ‘23 Operational EBIT +88% +52% +41% ~24,610 25,000 20,000 ~12,230 15,000 ~13,100 ~8,500 ~4,600 10,000 ~6,110 ~1,700 5,000 ~710 ~12,380 ~6,800 ~8,500 ~5
Slide 105: Our Sole RAS Module: A Success Story
5 Our Sole RAS Module: A Success Story PROPRIETARY RAS MODULE DESIGN IS PROVEN TECHNOLOGY FOR SUSTAINABLE FARMING OF SOLE PROPRIETARY ▪ Designed internally using our 20+ years of expertise in recirculation ▪ Robust biological safety, energy optimisation OPTIMISED and fish handling technology – all d
Slide 106: Premium Seafood Production With Maximum Returns Through Digital Innovation
5 Premium Seafood Production With Maximum Returns Through Digital Innovation te rna lly Fa cing Ex P Sus ta er X ina s tom bili ty u C Cy Ope Scienc & ata IT be Gove r nance hite cture r Se ions D e r at curity & (Master) Data Ar c f f ic e ac NL & ST kO S HV S N B STC SS F Appli ca ti ons Operation
Slide 107: Ensuring Future Generations Continue to Enjoy Wonderful Seafood
Ensuring Future Generations Continue to Enjoy Wonderful Seafood ASPIRING TO BE… SIMPLY THE BEST AQUACULTURE PROFITABLE DRIVING GROWTH EXPERT OPERATIONS INNOVATION POTENTIAL ▪ 50+ years of land- ▪ Achieved profitable ▪ In-house developed ▪ Significant growth based experience commercial farming RAS te
Slide 108: Enabling the Simply the Best Strategy
Enabling the Simply the Best Strategy Alex Ng VP Corporate Development & Strategy 108
Slide 109: Agenda
Agenda 1. Investment Framework 2. Stolt Investments Portfolio Capital Markets Day 2024 June 24 109 109
Slide 110: A Clear and Disciplined Investment Strategy
1 A Clear and Disciplined Investment Strategy PROVIDE GROWING LONG-TERM PROCESS AND EXECUTION CASH FLOW TO SHAREHOLDERS ▪ EXECUTION EXPERTISE ▪ FOCUSED PIPELINE DEEP SECTOR VALUE ▪ PROCESS PLAYBOOK CREATION EXPERTISE INNOVATION STRATEGIC AND AND ▪ PORTFOLIO MANAGEMENT ALIGNMENT INDUSTRY TECHNOLOGY K
Slide 111: Portfolio Management for Today and for the Future
1 Portfolio Management for Today and for the Future OWNERSHIP IN STOLT STRATEGICALLY ALIGNED INVESTMENTS HIGH-QUALITY BUSINESSES ▪ LONG-TERM OWNERSHIP ▪ STRATEGIC ALIGNMENT ORGANIC GROWTH ▪ LONG-TERM TRENDS BUSINESS UNITS INORGANIC / BOLT-ON M&A CAPITAL RECYCLING OF NON-STRATEGIC ASSETS Capital Mark
Slide 112: Stolt Investments are Unlocking Significant Value
2 Stolt Investments are Unlocking Significant Value EQUITY INVESTMENTS STOLT-NIELSEN GAS STOLT VENTURES Investments in liquid logistics, Our investment arm dedicated Sustainable technologies land-based aquaculture and to investments within LNG contributing productivity and sustainable technologies s
Slide 113: Case Study: Stolt Ventures Investment in GIT Coatings
2 Case Study: Stolt Ventures Investment in GIT Coatings THE ANTIFOULING PROBLEM GIT’s graphene solution Traditional coatings are Biofouling impairs fuel offers operational harmful for the efficiency performance and environment sustainability benefits COMMERCIALLY ATTRACTIVE SOLUTION Stolt Tankers’ t
Slide 114: Case Study: Avenir LNG: A Leading Small-Scale LNG Company
2 Case Study: Avenir LNG: A Leading Small-Scale LNG Company THE LEADING PUREPLAY SMALL-SCALE SHIPPING COMPANY CAPTURING A UNIQUELY ATTRACTIVE ▪ Vessels that can carry LNG, Bio-LNG and e-LNG MARKET OPPORTUNITY ▪ Ability to unlock stranded LNG demand, bringing clean, affordable and reliable energy 7,5
Slide 115: An Important Tool for Incremental Value Creation
An Important Tool for Incremental Value Creation ASPIRING TO BE… SIMPLY THE BEST ATTRACTIVE CLEAR DRIVING RETURN PORTFOLIO STRATEGY INNOVATION FOCUSED ▪ Strong companies ▪ Leverage our deep ▪ Proven DNA of ▪ Disciplined investment understanding and innovation approach to preserve ▪ Attractive long-t
Slide 116: Disciplined Approach to Capital Allocation
Disciplined Approach to Capital Allocation Jens F. Grüner-Hegge Chief Financial Officer 116
Slide 117: Agenda
Agenda 1. Allocating our Capital 2. Managing our Balance Sheet 3. Investing in the Business 4. Dividends Capital Markets Day 2024 117 117
Slide 118: Disciplined Capital Management
1 Disciplined Capital Management CASH GENERATED FROM OPERATIONS (US $m) HISTORICAL CAPITAL ALLOCATION (2019–2023) +208% 1,000 854 35% Debt Service1 800 Balance Sheet 600 620 16% Strengthening Capital Expenditure 400 278 353 324 39% Investments2 200 0 10% Dividend Payments 2019 2020 2021 2022 2023
Slide 119: Disciplined Capital Management
1 Disciplined Capital Management MAINTAIN STRONG INVEST IN OUR EXPLORE NEW RETURN CASH TO BALANCE SHEET CORE BUSINESSES AREAS OF GROWTH SHAREHOLDERS Strong balance sheet with Deployment of capital in Aligned with core logistics Consistent dividend sufficient debt capacity high-return projects and aq
Slide 120: Financial Flexibility to Support Growth
2 Financial Flexibility to Support Growth REDUCING LEVERAGE1 AND NET DEBT HEALTHY LIQUIDITY POSITION Net Debt (US $ m) 2,237 2,270 2,313 2,039 1,763 1,800 Cash Undrawn RCF Includes cash build-up for MSC Flaminia >$1.2bn of additional 609 debt capacity2 5.1x 506 515 4.7x 473 4.3x Target <3.5x 446 434
Slide 121: Focused Approach to Debt Management
2 Focused Approach to Debt Management DEBT MATURITY PROFILE (US $ m) Key Financial Covenants: ▪ Debt/TNW: <2.25x 478 ▪ EBITDA/Interest expense: >2.0x ▪ Min. TNW: US $600m 358 241 73 276 276 257 201 47 144 162 226 143 183 236 141 48 114 50 68 18 39 2024 2025 2026 2027 2028 2029 2030+ Loan Balloon Pay
Slide 122: ~US $1.0bn Invested Into our Businesses in the Past Five Years
3 ~US $1.0bn Invested Into our Businesses in the Past Five Years GROSS CAPITAL EXPENDITURE (US $ m) EXPANDING OUR ASSET BASE1 350 6% +24 +0.3m 300 13% Chemical Tankers2 Storage Capacity3 (m3) 270 48% 250 33% 208 +12k +2,250tn 200 189 ISO Tank Containers Production Capacity 168 150 DELIVERING A BETTE
Slide 123: A Balanced Portfolio
3 A Balanced Portfolio STOLT-NIELSEN SEGMENT ASSETS 2016 2023 ▪ Shaped by capital allocation, the Corp. & Others Stolt-Nielsen portfolio has evolved SSF 3% Corp. & Others 5% SSF 3% 14% STC 12% ▪ Continued growth investments US STC 13% US 42% ST have grown our asset base and 53% ST diversified our po
Slide 124: Investing to Meet ESG-Related Regulatory Requirements
3 Investing to Meet ESG-Related Regulatory Requirements COMPLIANT SUPPORTIVE FUTURE-PROOF We meet local and We consider We are well- international stakeholder positioned for a regulations expectations carbon-neutral future Strong cashflow supports our ability to meet existing and upcoming ESG-regula
Slide 125: We Have Delivered Attractive Returns to Shareholders for Decades
4 We Have Delivered Attractive Returns to Shareholders for Decades STOLT-NIELSEN DIVIDEND POLICY DIVIDENDS PAID FOR 20 YEARS We strive to make regular distributions to shareholders in the form of dividends. Dividends are influenced by… US $1.2bn US $2.50 Dividends Paid Since 2005 2023 Dividend Per S
Slide 126: Value Creation Through Balance Sheet Discipline and Efficiency
Value Creation Through Balance Sheet Discipline and Efficiency ASPIRING TO BE… SIMPLY THE BEST CAPITAL BALANCE SHEET EFFICIENCY RETURNING CASH ALLOCATION STRENGTH TO SHAREHOLDERS ▪ Disciplined approach ▪ Maintain a robust ▪ Parent company ▪ Diversified cash flows balance sheet corporate structure ▪
Slide 127: [Placeholder – Udo Wrap-Up Cover Photo]
[Placeholder – Udo Wrap-Up Cover Photo] Capital Markets Day 2024 127
Slide 128: Customer Testimonial
Customer Testimonial Nestor de Mattos Corporate Vice President, Integrated Supply Chain & Chief Supply Chain Officer Dow >
Slide 129: Conclusion
Conclusion LEADING MARKET LASER- FOCUSED POSITIONS IN OUR STRATEGY EXECUTION BUSINESSES WITH STRONG TRACK RECORD SIMPLY THE BEST IN ▪ LIQUID LOGISTICS CAPABILITY TO ▪ LAND-BASED AQUACULTURE OUTPERFORM THE EXCEPTIONAL CULTURE MARKET AND LEADERSHIP FOR PROFITABLE GROWTH ▪ OUR SHAREHOLDERS ▪ OUR CUSTOM
Slide 130: Q&A Panel
Q&A Panel Niels G. Stolt-Nielsen Udo Lange Maren Schroeder Bjarke Nissen Guy Bessant Chairman Chief Executive Officer Chief Operating Officer Chief Commercial Officer President Stolt-Nielsen Stolt-Nielsen Stolt Tankers Stolt Tankers Stolthaven Terminals Hans Augusteijn Jordi Trias Alex Ng Jens F. Gr
Slide 131: We are trusted, Stolt-Nielsen global pioneers
We are trusted, Stolt-Nielsen [§] global pioneers
Slide 132: Contact
Contact: [email protected] +44 20 7611 8926 [email protected] +44 20 7611 8913 www.stolt-nielsen.com 137