Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Non-Deal Roadshow (2021)
39 slides from Royal Vopak NV's roadshow presentation, Nov 3, 2021
Slide 1: Storing vital products with care
Storing vital products with care Half Year 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: Data-driven digital transformation
Data-driven digital transformation IT multi-year program expected to be completed by end of 2023 ▪ Centralized cyber security Digital ▪ Replacing and modernizing our Cyber security company-wide IT and OT program to protect our systems Modernization systems ▪ Significant reduction in response ▪ Devel
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: HY1 2021 Key messages
HY1 2021 Key messages Good strategic delivery and financial performance - EBITDA of EUR 407 million Growth projects contribution in HY1 2021 of EUR 20 million in line with the higher end of the expected EUR 30 million to EUR 50 million range for 2021 Cost efficiency measures progressing well,
Slide 14: Deliver sustainable shareholder value and profit
Deliver sustainable shareholder value and profit Value creation and resilient performance Measure Drive Create Grow EBITDA over time and replace the EBITDA from Safety: Ensuring high standards divested terminals of safety in all our processes Deliver portfolio transformation Generate portfol
Slide 15: 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 15-20% 25-30% 10-15% towards industrial, gas and new energies 20-25% 10-15% 35-40% infrastructures Gas, new
Slide 16: HY1 Portfolio highlights: Aegis India
HY1 Portfolio highlights Aegis and Vopak joining forces for LPG and chemical storage in India LPG & chemicals transaction in India LPG spheres in Pipavav, India Creating one of the largest independent tank storage companies for LPG and chemicals in India, with presence in 5 key ports along the Ind
Slide 17: HY1 Portfolio highlights: industrial terminals
HY1 Portfolio highlights Strengthening our leading position in industrial terminals Industrial terminals in China and US Investing in India, China and US Successful start of operations of the greenfield industrial terminal in Qinzhou, China, with an initial capacity of 290k cbm Awarded contract
Slide 18: Our New Energy focus areas
Our New Energy focus areas Vopak currently pursues 10+ infrastructure projects and studies Hydrogen New feedstocks H-vision: blue hydrogen in Netherlands Import green ammonia from Morocco or Middle East Pilot: green liquid organic hydrogen (LOHC) from Germany Xycle: chemical recycling of pla
Slide 19: Summary financial performance
Summary financial performance EBITDA of EUR 407 million in HY1 2021. Adjusted for EUR 15 million negative currency translation effects, EBITDA increased by EUR 19 million (5%) Growth project contribution for the first half 2021 is driving positive EBITDA performance in soft business conditions
Slide 20: HY1 2021 vs HY1 2020 EBITDA
HY1 2021 vs HY1 2020 EBITDA EBITDA performance driven by growth project contribution Business environment Performance changes delivery 5-10 10-15 406.6 402.6 15 25-35 20 8 HY1 2020 Oil Chemicals FX-effect Expenses Growth HY1 2021 Markets Markets projects Figures in EUR million, excluding exceptional
Slide 21: HY1 2021 vs HY1 2020 EBITDA
HY1 2021 vs HY1 2020 EBITDA EBITDA performance supported by strong performance in Europe & Africa and China & North Asia 0.9 2.8 3.5 11.9 406.6 402.6 1.7 27.8 15.2 387.4 HY1 2020 FX-effect Adjusted Europe & China & Americas LNG Asia & Global HY1 2021 HY1 2020 Africa North Asia Middle East functions,
Slide 22: Divisional performance
Divisional performance Americas reflects soft market conditions; Asia & ME stable performance; Europe & Africa benefit from growth projects; China & North Asia resilient Americas Asia & Middle East China & North Asia 89 92 90 87 86 93 94 93 92 92 90 88 88 90 89 48.7 44.9 47.2 42.4 46.3 77.1 70.0 69.
Slide 23: Cash flow overview
Cash flow overview Free cash flow before financing impacted by working capital movements and lack of cash flows from portfolio effects HY1 2021 HY1 2020 In EUR million In EUR million 407 401 311 6 45 266 351 56 232 132 151 34 269 238 259 147 77 85 146 1 -60 CFFO Derivatives CFFO Tax & other CFFO Sus
Slide 24: Investment phasing
Investment phasing Strategic investments aiming to capture growth In 2021, growth investment is expected to be at the low end of the range EUR 300-350 million. The allocation of these investments will be Investments through existing committed projects, new business development and In EUR million p
Slide 25: 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 26: 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 27: Non-IFRS proportional information
Non-IFRS proportional information Recently added JVs 2020 and 2021: China and United States EBITDA Operating income Occupancy rate In EUR million In EUR million In percent – subsidiaries only IFRS BASED 202 200 189 200 206 299 302 314 306 312 88 91 90 88 87 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1
Slide 28: Proportional EBITDA
Proportional EBITDA Performance of joint ventures and associates is becoming more important Proportional EBITDA In EUR million +9% CAGR Proportional EBITDA has grown at a CAGR 972 of 9% from 2018 to 2020 Proportional consolidated information 822 provides transparency considering increase joint v
Slide 29: Summary financial performance
Summary financial performance EBITDA of EUR 407 million in HY1 2021. Adjusted for EUR 15 million negative currency translation effects, EBITDA increased by EUR 19 million (5%) Growth project contribution for the first half 2021 is driving positive EBITDA performance in soft business conditions
Slide 30: Looking ahead
Looking ahead In 2021, reported 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 In 2023, reported EBITDA contribution from 2020 and currently a
Slide 31: Storing vital products with care - Appendix
Storing vital products with care 1H 2021 Roadshow Presentation Appendix
Slide 32: Americas developments
Americas developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 0.5 Total Q2 2021 93 94 93 90 89 79.5 81.1 78.3 77.6 79.2 5.3 million cbm 0.9 Subsidiaries 3.9 Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2020 2020 2020
Slide 33: Asia & Middle East developments
Asia & Middle East developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Total Q2 2021 92 92 90 88 88 73.0 70.3 71.1 69.9 70.7 3.3 4.2 15.5 million cbm Subsidiaries Joint ventures & associates 8.0 Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2020
Slide 34: China & North Asia developments
China & North Asia developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million Total Q2 2021 89 92 90 87 86 0.8 3.1 million cbm 10.4 10.6 11.2 10.7 10.9 Subsidiaries 2.3 Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2020 2020
Slide 35: Europe & Africa developments
Europe & Africa developments Storage capacity Proportional occupancy rate Revenues* In million cbm In percent In EUR million 1.3 Total Q2 2021 88 91 91 88 87 136.2 141.8 140.8 141.2 128.1 10.7 million cbm Subsidiaries 9.4 Joint ventures & associates Operatorships Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2020 2
Slide 36: JVs & associates developments
JVs & associates developments Net result JVs and associates* Americas* Asia & Middle East* In EUR million In EUR million In EUR million 45.9 43.4 43.4 42.5 24.1 25.8 20.6 19.6 19.0 4.0 3.0 3.1 2.1 2.1 0.7 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2020 2020 2020 2021 2021 2020 2020 2020 2021 2021
Slide 37: Q2 2021 vs Q1 2021 EBITDA
Q2 2021 vs Q1 2021 EBITDA EBITDA growth driven by positive performance in Europe & Africa and Americas 0.4 1.5 206.2 3.6 2.5 2.4 2.9 200.9 200.4 0.5 Q1 2021 FX-effect Adjusted Europe & Americas China & Asia & LNG Global Q2 2021 Q1 2021 Africa North Asia Middle East functions, corporate activities an
Slide 38: Occupancy rate developments
Occupancy rate developments Lower occupancy rate in first half of 2021 due to soft business conditions Subsidiary occupancy rate and out-of-service capacity In percent 90-95% 85-90% 91 90 84 88 88 87 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 0.6 0.8 1.0 1.6 1.6 1.4 1.1
Slide 39: Project timelines
Project timelines Vopak’s Capacity Country Terminal ownership Products (cbm) 2018 2019 2020 2021 2022 2023 2024 Growth projects Existing terminals United States Deer Park 100% Chemicals 33,000 Netherlands Rotterdam - Botlek 100% Chemicals 15,000 Australia Sydney 100% Oil products 105,000 Belgium Ant