Royal Vopak : Analyst Presentation FY 2019

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Vopak Full Year 2019 financial results

Analyst presentation - 12 February 2020

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 future, and Vopak cannot guarantee the accuracy and completeness of forward-looking statements.

These risks and uncertainties include, but are not limited to, factors affecting the realization of ambitions and financial expectations, developments regarding the potential capital raising, exceptional income and expense items, operational developments and trading conditions, economic, political and foreign exchange developments and changes to IFRS reporting rules.

Vopak's outlook does not represent a forecast or any expectation of future results or financial performance.

Statements of a forward-looking nature issued by the company must always be assessed in the context of the events, risks and uncertainties of the markets and environments in which Vopak operates. These factors could lead to actual results being materially different from those expected, and Vopak does not undertake to publicly update or revise any of these forward-looking statements.

Vopak FY 2019 - Analyst presentation 2

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Chairman of the Executive Board and CEO of Royal Vopak

Eelco

Hoekstra

Key messages

• Strong EBITDA and significant increase in earnings per share
• Execution of our strategy with portfolio transformation and growing new digital capabilities
• Continued growth investments for 2020 and EUR 100 million share buyback program
• Portfolio well-positioned for future opportunities

	EBITDA*		Occupancy rate**		EPS*		Terminal network
	In EUR million		In percent		In EUR		In million cbm
	830		84		2.80		Today 34.0
				Under	1.5
							construction
* Including net result from joint ventures and associates and excluding exceptional items
** Occupancy rate include subsidiaries only				Vopak FY 2019 - Analyst presentation 4

Business environment update

Long-term sustainable portfolio, well positioned for future opportunities

Chemicals

Gas

Focus on operational performance Oil products

• Long-termgrowth in global demand for chemicals
• Investments in petrochemical complexes provide industrial terminal opportunities

Strong growing markets	New
 Continued growth in LNG trade	energies
increasing imports in Asia
 Growing demand in LPG for
residential and petrochemical
markets

IMO 2020 capacity delivered

• Oil hubs: short-term weakness from backwardated markets structures
• Fuel oil: IMO 2020 capacity rented out
• Import-distributionmarkets: Solid growth in markets with structural deficits

Opportunities for storage business

• Significant global growth in renewable energies
• First investments in hydrogen and solar

Vopak FY 2019 - Analyst presentation 5

2017-2019 strategy delivered

Transformative portfolio changes and digital strategy is being rolled out

	Capture growth		EUR 1 billion growth investment program in line with
		long-term market developments
	Spend EUR 750 million on sustaining and		Sustaining and service improvement capex programs
	service improvement capex		remained within the spending limit
	Invest EUR 100 million in new technology,		Build and global roll-out of Vopak's digital cloud-based
	innovation programs and replacing IT systems		terminal management software in progress
	Drive productivity and reduce the cost base		Efficiency program delivered - cost base for 2019
		is EUR 633 million

Vopak FY 2019 - Analyst presentation 6

Key messages

• Strong EBITDA and significant increase in earnings per share
• Execution of our strategy with portfolio transformation and growing new digital capabilities
• Continued growth investments for 2020 and EUR 100 million share buyback program
• Portfolio well-positioned for future opportunities

Vopak FY 2019 - Analyst presentation 7

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Member of the Executive Board and CFO of Royal Vopak

Gerard

Paulides

Summary financial performance

• EBITDA of EUR 830 million reflect good aggregate business performance including new asset performance and positive IFRS 16 effects
• Earnings Per Share (EPS) significantly increased to EUR 2.80
• Cost savings program is delivered - 2019 cost base is EUR 633 million
• Continued growth investments
• EUR 100 million share buyback program and (proposed) dividend increased of 5%

Vopak FY 2019 - Analyst presentation 9

2019 vs 2018 EBITDA

Pro forma EBITDA increased reflected good aggregate business performance including new asset performance

												829.8
						7.9	5.2			784.8	45.0
								5.8
					22.5			5.6
734.3	14.4	14.9	733.8	26.8
2018	FX-effect	Divested	Adjusted	Asia &	Americas	China &	LNG	Europe &	Global	pro forma	IFRS 16	2019
		terminals	2018	Middle		North Asia		Africa	functions,	2019	effects
				East					corporate
									activities
									and others

Figures in EUR million, excluding exceptional items including net result from joint ventures and associates

Vopak FY 2019 - Analyst presentation 10

Q4 2019 vs Q3 2019 EBITDA

Q4 reflected positive effects from settlements, good performance from IMO 2020 capacity and growth projects replacing divested EBITDA

						1.2	0.9
202.4					7.2			2.2		204.8
						3.0
	0.1
		15.7		14.1
			186.6
Q3 2019	FX-effect	Divested	Adjusted	Asia &	China &	Americas	Europe &	LNG	Global	Q4 2019
		terminals	Q3 2019	Middle East	North Asia		Africa		functions,
									corporate
									activities
									and others

Figures in EUR million, excluding exceptional items including net result from joint ventures and associates

Vopak FY 2019 - Analyst presentation 11

Divisional segmentation

Europe & Africa reflect divestments; Asia & Middle East and China benefit from settlements; Americas and LNG show continued robust gas and chemical markets

Europe & Africa			Asia & Middle East			Americas
85	82	83	84	84	85	92	80		82	89	89	91	92	90
	71

70.3	73.6	76.2	72.8	59.1	65.9	77.5	66.9	66.3	80.4	28.5	35.9	39.6	40.1	41.0

Q4	Q1	Q2	Q3	Q4	Q4	Q1	Q2	Q3	Q4	Q4	Q1	Q2	Q3	Q4
2018	2019	2019	2019	2019	2018	2019	2019	2019	2019	2018	2019	2019	2019	2019

China & North Asia			LNG
73	83	79	73	64	95	96	96	96	97
						Occupancy rate (in percent) for subsidiaries

only, with the exception of LNG

19.0	15.1	13.7	12.8	20.1	10.2	9.8	9.5	10.7	11.0

Q4	Q1	Q2	Q3	Q4	Q4	Q1	Q2	Q3	Q4
2018	2019	2019	2019	2019	2018	2019	2019	2019	2019

(pro forma) EBITDA (in EUR million) excluding exceptional items and including net result from JVs & associates and currency effects

Vopak FY 2019 - Analyst presentation 12

Occupancy rate developments

Occupancy rate trended upwards following contracted IMO 2020 capacity coming into operations; Adverse market conditions at oil hub terminals continued

Occupancy rate*

In percent

90-95%

85-90%

86 84 82 84

IMO related out-of-service capacity

2010

2011

2012

2013

2014

2015

2016

2017

2018

Q1

Q2

Q3

Q4

2019

*Occupancy rate figures include subsidiaries only

Vopak FY 2019 - Analyst presentation 13

Global fuel oil network

Good performance from contracted IMO 2020 capacity

Fuel Oil capacity

~35% ~3.5m cbm

15%

55%

~65%

30%

2017 2020

VLSFO

Flexible (HSFO/VLSFO/MGO)

HSFO

Rotterdam

IMO contracted

Los Angeles

Panama

Operational

Fuel oil hub terminal

Fuel oil bunker terminal

Singapore

Fujairah	IMOcontracted
IMO contracted

Vopak FY 2019 - Analyst presentation 14

Cash flow overview

Investment momentum driven by growth project phasing towards 2019

2019	2018
In EUR million	In EUR million

710		647
					500
	63				561
			300					390
				347
						18
CFFO* Tax & other	CFFO	Sustaining,	FCF	Divestments	Growth	Other	Free Cash
(gross)	operating	(net)	service & IT before	investments	CFFI	Flow
	items		investments growth				before
								financing

687		640
	47
			266		38
				374
						341
							21	50
CFFO	Tax & other	CFFO	Sustaining,	FCF	Divestments	Growth	Other	Free Cash
(gross)	operating	(net)	service & IT before	investments	CFFI	Flow
	items		investments growth				before
								financing

Figures in EUR million
* IFRS 16 classifies lease payments mostly as financing cash flows versus operating cash flows in prior years	Vopak FY 2019 - Analyst presentation 15

Investment phasing

Balanced approach for growth, sustaining, service improvement and IT investments

Investments

In EUR million

			New
			projects*
		~500	Growth
		investments**
	~340
~125
~240	~265	~300	Other
investments***
2017	2018	2019	>2019

Investments

• For 2020, growth investment could amount to
  EUR 300-500 million
• In the period 2020-2022, Vopak may invest EUR 750-850million in sustaining and service improvement capex, subject to additional discretionary decisions, policy changes and regulatory environment
• in the period 2020-2022, Vopak expects to spend annually EUR 30-50million in IT capex

• For illustration purposes only, new announcements might increase future growth investments
• Growth capex at subsidiaries and equity injections for JV's and associates

*** Sustaining, service improvement and IT capex

Vopak FY 2019 - Analyst presentation 16

Robust balance sheet

Target leverage of 2.5 to 3.0 times senior net debt : EBITDA

Priorities for cash

Senior net debt : EBITDA ratio	Senior net debt : EBITDA ratio
(frozen GAAP)	scenarios

1	Debt servicing
average interest 3.5%
	Growth opportunities
2
Value accretive growth
3	Shareholder dividend

3.75

2.5-3.0

2.0-2.52.5-3.03.0-3.5

	Stable to rising cash dividend
	Capital optimization
4
Efficient robust capital structure

2.83	2.73	2.04	2.02	2.49	2.75		Strategic considerations
					•	Timing of growth opportunities
2014	2015	2016	2017	2018	2019	Target	•	Shareholder distributions

Maximum ratio under private placements programs and syndicated revolving credit facility - 'frozen GAAP'

Vopak FY 2019 - Analyst presentation 17

Increase in shareholder returns

5% increase in dividend and EUR 100 million share buyback program

Dividend and EPS*

Share Buyback Program

In EUR

2.80

2.55 2.56

2.31

2.25

2.27

Vopak will start a share buyback program to return EUR 100 million to shareholders

0.90	1.00	1.05	1.05	1.10	1.15

2014	2015	2016	2017	2018	2019
39%	39%	41%	47%	48%	41% payout ratio

* Including net result from joint ventures and associates and excluding exceptional items

Vopak FY 2019 - Analyst presentation 18

Non-IFRSproportionate information

	EBITDA
BASEDIFRS	In EUR million
763	734	785
	2017	2018 Pro forma
			2019

Occupancy rate

In percent

90	86	84
2017	2018	2019

Maintenance, Service & IT Capex

In EUR million

239	266	300
2017	2018	2019

Non-IFRS proportionate information provides transparency in Vopak's

underlying performance

NON-IFRSPROPORTIONATE

EBITDA

In EUR million

853	822	930
2017	2018	Pro forma
		2019

Occupancy rate*

In percent

90	86	86
2017	2018	2019

Maintenance, Service & IT Capex

In EUR million

245	280	322
2017	2018	2019

and free cash flow generating capacity

Excluding exceptional items

* Proportionate occupancy rate excluding divested joint venture in Estonia and Hainan that were fully impaired in 2018

Vopak FY 2019 - Analyst presentation 19

Summary financial performance

• EBITDA of EUR 830 million reflect good aggregate business performance including new asset performance and positive IFRS 16 effects
• Earnings Per Share (EPS) significantly increased to EUR 2.80
• Cost savings program is delivered - 2019 cost base is EUR 633 million
• Continued growth investments
• EUR 100 million share buyback program and (proposed) dividend increased of 5%

Vopak FY 2019 - Analyst presentation 20

Looking ahead

• We aim to grow EBITDA over time with new contributions from growth projects and IMO 2020 converted capacity and replace the EBITDA from divested terminals, subject to general market conditions.
• In the period 2020-2022, Vopak may invest EUR 750 million to EUR 859 milliom in sustaining and service improvement capex, subject to additional discretionary decisions, policy changes and regulatory environment.
• To complete the Vopak's digital terminal management system build and roll-out, Vopak expects to spend annually EUR 30-50 million in IT capex over the period 2020-2022.
• We continue with further strengthening our cost culture and expect to compensate for annual inflation in our cost performance.
• We will continue to look for attractive ventures in new energies and innovative technologies.
• Growth investment for 2020 could amount to EUR 300 million to EUR 500 million.

Vopak FY 2019 - Analyst presentation 21

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Vopak Full Year 2019 financial results

Questions & Answers

For more information please contact:

Investor Relations contact:

Laurens de Graaf, Head of Investor Relations Telephone: [phone]

e-mail: [e-mail]

Media contact:

Liesbeth Lans, Manager External Communications Telephone: [phone]

e-mail: [e-mail]

Royal Vopak

Westerlaan 10

3016 CK Rotterdam The Netherlands www.vopak.com

Upcoming events:

Publication of Q1 2019 interim update

21 April 2020

Annual General Meeting

21 April 2020

Ex-dividend quotation

23 April 2020

Dividend record date

24 April 2020

Dividend payment date

29 April 2020

Capital Markets Day

10 June 2020

Royal Vopak

12 February 2020 Analyst presentation

Vopak FY 2019

financial results

Europe & Africa developments

Storage capacity		Occupancy rate*				Revenues*
In million cbm		In percent					In EUR million
1.3	Total Q4 2019	85	82	83	84	84	158.2	153.8	151.9	152.7
	10.8 million cbm									131.9

Subsidiaries

9.5 Joint ventures & associates

Operatorships

Q4	Q1	Q2	Q3	Q4	Q4	Q1	Q2	Q3	Q4
2018	2019	2019	2019	2019	2018	2019	2019	2019	2019

16 Terminals (4 countries)

EBITDA**	EBIT**
In EUR million	In EUR million

70.3	73.6	76.2	72.8
	59.1
						44.7	40.9
						35.5
					31.3			28.0
Q4	Q1	Q2	Q3	Q4	Q4	Q1	Q2	Q3	Q4
2018	2019	2019	2019	2019	2018	2019	2019	2019	2019

* Subsidiaries only	Vopak FY 2019 - Analyst presentation	24
** Pro forma EBIT(DA) - including net result from joint ventures and associates and excluding exceptional items

Asia & Middle East developments

Storage capacity	Occupancy rate*	Revenues*
In million cbm	In percent	In EUR million

3.3		Total Q4 2019	85	92	80		82	79.1	84.5	76.5	70.6	73.4
4.2	15.1 million cbm		71
		Subsidiaries
7.6		Joint ventures & associates
	Operatorships
			Q4	Q1	Q2	Q3	Q4	Q4	Q1	Q2	Q3	Q4
			2018	2019	2019	2019	2019	2018	2019	2019	2019	2019

19 Terminals (9 countries)

EBITDA**	EBIT**
In EUR million	In EUR million

65.9	77.5	66.9	66.3	80.4
		52.4	64.5	53.9	53.5	67.5
Q4	Q1	Q2	Q3	Q4	Q4	Q1	Q2	Q3	Q4
2018	2019	2019	2019	2019	2018	2019	2019	2019	2019

* Subsidiaries only	Vopak FY 2019 - Analyst presentation	25
** Pro forma EBIT(DA) - including net result from joint ventures and associates and excluding exceptional items

China & North Asia developments

Storage capacity	Occupancy rate*	Revenues*
In million cbm	In percent	In EUR million

	Total Q4 2019	73	83	79	73
0.8	2.8 million cbm
		64
					10.5	9.8	9.7
							8.3	8.9
2.0	Subsidiaries
	Joint ventures & associates
	Operatorships
		Q4	Q1	Q2	Q3	Q4	Q4	Q1	Q2	Q3	Q4
		2018	2019	2019	2019	2019	2018	2019	2019	2019	2019

8 Terminals (3 countries)

EBITDA**	EBIT**
In EUR million	In EUR million

19.0				20.1
	15.1	13.7	12.8		16.6				17.3
				12.4
					11.0
						10.1
Q4	Q1	Q2	Q3	Q4	Q4	Q1	Q2	Q3	Q4
2018	2019	2019	2019	2019	2018	2019	2019	2019	2019

* Subsidiaries only	Vopak FY 2019 - Analyst presentation	26
** Pro forma EBIT(DA) - including net result from joint ventures and associates and excluding exceptional items

Americas developments

Storage capacity		Occupancy rate*				Revenues*
In million cbm		In percent					In EUR million
	Total Q4 2019	89	89	91	92	90			79.3	81.8
0.2 0.5	4.4 million cbm	75.6	77.0
							71.1

Subsidiaries

3.7 Joint ventures & associates

Operatorships

Q4	Q1	Q2	Q3	Q4	Q4	Q1	Q2	Q3	Q4
2018	2019	2019	2019	2019	2018	2019	2019	2019	2019

19 Terminals (6 countries)

EBITDA**	EBIT**
In EUR million	In EUR million

	35.9	39.6	40.1	41.1
							28.5
28.5						24.3	26.9	26.9
					16.9
Q4	Q1	Q2	Q3	Q4	Q4	Q1	Q2	Q3	Q4
2018	2019	2019	2019	2019	2018	2019	2019	2019	2019

* Subsidiaries only	Vopak FY 2019 - Analyst presentation	27
** Pro forma EBIT(DA) - including net result from joint ventures and associates and excluding exceptional items

JVs & associates developments

Net result JVs and associates*	Europe & Africa*	Asia & Middle East*
In EUR million	In EUR million	In EUR million
	56.5

	40.3		46.8											25.3
36.6	37.7											22.9
									19.8
											16.0
										10.7
					0.7	0.6	0.6	0.4	0.6
Q4	Q1	Q2	Q3	Q4	Q4	Q1	Q2	Q3	Q4	Q4	Q1	Q2	Q3	Q4
2018	2019	2019	2019	2019	2018	2019	2019	2019	2019	2018	2019	2019	2019	2019

China & North Asia*	Americas*	LNG*
In EUR million	In EUR million	In EUR million

14.5				15.6
												12.0	12.6
										10.5	10.8	11.1
	8.8	8.4	8.6
							1.7	2.9	2.4
					0.2	0.3
Q4	Q1	Q2	Q3	Q4	Q4	Q1	Q2	Q3	Q4	Q4	Q1	Q2	Q3	Q4
2018	2019	2019	2019	2019	2018	2019	2019	2019	2019	2018	2019	2019	2019	2019

* Excluding exceptional items	Vopak FY 2019 - Analyst presentation 28

Project timelines

Vopak's

Capacity

2017

2018

2019

2020

2021

2022

Country

Terminal

ownership

Products

(cbm)

Growth projects

Existing terminals

Malaysia

Pengerang Independent Terminals (PITSB) 44.1%

Oil products

215,000

Vietnam

Vopak Vietnam

100%

Chemicals

20,000

South Africa

Durban

70%

Oil products

130,000

Indonesia

Jakarta

49%

Oil products

100,000

Indonesia

Merak

95%

Chemicals

50,000

Netherlands

Vlissingen

100%

LPG & Chemical gases

9,200

Netherlands

Rotterdam - Botlek

100%

Chemicals

63,000

Mexico

Veracruz

100%

Oil products

79,000

Australia

Sydney

100%

Oil products

105,000

United States

Deer Park

100%

Chemicals

33,000

Belgium

Antwerp - Linkeroever

100%

Chemicals

50,000

Mexico

Altamira

100%

Chemicals

40,000

China

Shanghai - Caojing Terminal

50%

Industrial Terminal

65,000

New terminals

Panama

Panama Atlantic

100%

Oil products

40,000

South Africa

Lesedi

70%

Oil products

100,000

China

Qinzhou

51%

Industrial Terminal

290,000

United States

Corpus Christi

100%

Industrial Terminal

130,000

start construction

expected to be commissioned

Vopak FY 2019 - Analyst presentation 29

Growth investments
Shift towards industrial terminals, chemical and gas terminals
			Botlek			Vietnam
RIPET		Vlissingen					Caojing
		63,000 cbm
	Deer Park				20,000 cbm
96,000 cbm*		9,200 cbm	German LNG		Qinzhou	65,000 cbm*
Corpus Christi	33,000 cbm	Antwerp					PT2SB
	Openseason completed
			290,000 cbm
	Veracruz
		ETPL
130,000 cbm		50,000 cbm				1,496,000 cbm*
Altamira	110,000cbm*		151,000 cbm*			Sebarok	PITSB
40,000 cbm	SPEC	Lesedi				67,000 cbm*	430,000 cbm*
					Jakarta
Panama					Merak
	170,000 cbm*
		100,000 cbm
360,000 cbm*							100,000 cbm
Gas	Alemoa		50,000 cbm	Sydney
Industrial terminals
	Durban
Chemicals
					105,000 cbm
Oil	106,000 cbm*
		130,000 cbm
* Fully or partly commissioned in 2019						Vopak FY 2019 - Analyst presentation	30

Portfolio transformation

Shift towards industrial terminals, chemicals and gas terminals

Key projects 2019

Gas	• SPEC LNG - Colombia
	• ETPL LNG - Pakistan
	• RIPET LPG - Canada
Industrial	• Corpus Christi - US
terminals
•	Qinzhou - China
	•	PT2SB - Pengerang, Malaysia
Chemicals	• Houston Deer Park - US
	•	Antwerp - Belgium
	• Rotterdam Botlek - the Netherlands
	•	IMO 2020 conversion
Oil
	•	Mexico - Veracruz
	•	Divestments Algeciras, Amsterdam,
		Hamburg, Hainan and Tallinn

Proportionate revenue per product

~10%	~10%	10-15%
~15%	20-25%
	25-30%
35-40%	25-30%
		25-30%
40-45%	40-45%	35-40%
2014	2017	2019	>2019

Proportionate revenue per division

5-10%	5-10%	~10%
~15%	15-20%	~20%
~20%	20-25%
		~25%
	5-10%
		5-10%
45-50%			~10%
40-45%
~35%
2014	2017	2019	>2019

Gas

Industrial terminals Chemicals

Oil

LNG

Americas

Asia & Middle East

China & North Asia

Europe & Africa

Note: keeping market conditionals equal and only taking announced projects into account

Vopak FY 2019 - Analyst presentation 31

IFRS 16 Leases

Significant impact from long-term land leases

IFRS 16 Leases		Impact Vopak

• No economic impact on the business and how we manage it, accounting change only
• Sizeable portfolio of long-term land leases (explains more than 90% of the lease liability)
• Modified retrospective method
• Pro forma -excluding IFRS 16- figures presented for comparison purposes

Key figures*	In EUR million
EBITDA	40 - 50
Net profit	0 - (10)
IFRS 16 Lease liabilities	~675
Return on Capital Employed (ROCE)	reported on
consistent basis
Net debt to EBITDA ratio	'Frozen GAAP'
Cash Flows*
Cash flows from operating activities	45 - 55
Cash flows from financing activities	(45) - (55)
Total cash flows	No impact

* Impact is based on the lease contract portfolio, foreign currency rates and discount rates per the end of 2019,	Vopak FY 2019 - Analyst presentation 32
Actual financial impact may change due to sensitivities, new projects, acquisitions and divestments