Royal Vopak N : Vopak Report HY1 2019

July 29, 2020 at 01:10 am EDT

Storing vital products with care

1/2YEAR REPORT 2020

Contents

Interim	Key events HY1 2020	3
Management	Key performance figures	7
Report	Business and other highlights	8
Financial review	9

	Risks and risk management	12
	Product market developments	13
	Sustainability review	15
	Terminal portfolio and storage capacity developments	16
	Results HY1 2020 by division	18
	Statement by the Executive Board	21

Interim	Interim Consolidated Financial Statements	23
Financial	Consolidated Statement of Income	23
Statements	Consolidated Statement of Comprehensive Income	23
Consolidated Statement of Financial Position	24

	Consolidated Statement of Changes in Equity	25
	Consolidated Statement of Cash Flows	26
	Segmentation	27
	Notes to the Interim Consolidated Financial Statements	28

Enclosures	Non-IFRS proportional financial information	43
	Key results second quarter	46
	Glossary	48

About Royal Vopak

Royal Vopak is the world's leading independent tank storage company. We store vital products with care. With over 400 years of history and a focus on sustainability, we ensure safe, clean and efficient storage and handling of bulk liquid products and gases for our customers. By doing so, we enable the delivery of products that are vital to our economy and daily lives, ranging from chemicals, oils, gases and LNG to biofuels and vegoils. We are determined to develop key infrastructure solutions for the world's changing energy systems, while simultaneously investing in digitalization and innovation. Vopak is listed on Euronext Amsterdam and is headquartered in Rotterdam, the Netherlands. Including our joint ventures and associates, we employ an international workforce of over 5,500 people. As of 29 July 2020, Vopak operates a global network of 66 terminals in 23 countries located at strategic locations along major trade routes, with a combined storage capacity of 34.4 million cbm.

Forward-looking statements

This document 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.

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.

Financial calendar

06 November 2020	Publication of 2020 third-quarter interim update
17 February 2021	Publication of 2020 annual results
21 April 2021	Publication of 2021 first-quarter interim update
21 April 2021	Annual General Meeting
23 April 2021	Ex-dividend quotation
26 April 2021	Dividend record date
29 April 2021	Dividend payment date

3 | Vopak | Half year report 2020 | Interim Management Report

Key events HY1 2020

Q2 2020	Q1 2020	Q2 2019	In EUR millions	HY1 2020	HY1 2019	HY1 '20 -'19
292.4	296.9	316.8	Revenues	589.3	641.4	- 8%

			Results -excluding exceptional items-
202.4	200.2	208.0	Group operating profit before depreciation and amortization (EBITDA)	402.6	422.6	- 5%
129.8	127.0	137.4	Group operating profit (EBIT)	256.8	274.4	- 6%
83.4	82.7	89.6	Net profit attributable to holders of ordinary shares	166.1	172.9	- 4%
0.66	0.65	0.70	Earnings per ordinary share (in EUR)	1.31	1.35	- 3%

			Results -including exceptional items-
235.4	198.5	224.4	Group operating profit before depreciation and amortization (EBITDA)	433.9	440.1	- 1%
162.8	125.3	153.8	Group operating profit (EBIT)	288.1	291.9	- 1%
116.4	81.0	106.0	Net profit attributable to holders of ordinary shares	197.4	190.4	4%
0.91	0.64	0.83	Earnings per ordinary share (in EUR)	1.55	1.49	4%

264.7	142.7	192.9	Cash flows from operating activities (gross)	407.4	351.7
- 171.4	29.8	- 151.8	Cash flows from investing activities (including derivatives)	- 141.6	- 331.8

			Additional performance measures
34.4	34.3	36.9	Storage capacity end of period (in million cbm)	34.4	36.9
88%	84%	84%	Occupancy rate subsidiaries	86%	85%	1pp
90%	86%	84%	Proportional occupancy rate	88%	84%	4pp
245.6	241.0	239.3	Proportional EBITDA -excluding exceptional items-	486.6	479.4	2%

12.1%	11.5%	12.5%	Return on capital employed (ROCE)	11.8%	12.6%
4,105.2	4,252.0	4,246.5	Average capital employed	4,190.1	4,246.5
2,450.4	2,321.9	2,618.4	Net interest-bearing debt	2,450.4	2,618.4
2.81	2.65	2.99	Senior net debt : EBITDA (for debt covenant)	2.81	2.99

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Highlights for HY1 2020 -excluding exceptional items-:

EBITDA of EUR 403 million (HY1 2019: EUR 423 million pre-divestments). Adjusted for EUR 3 million negative currency translation effects and the impact of the divestments of the terminals in Algeciras, Amsterdam and Hamburg (EUR 35 million decrease), EBITDA increased by EUR 18 million (4%), reflecting resilient business performance including the effect of contango oil markets, IMO 2020 converted capacity and reduced chemicals throughput.
Occupancy rate subsidiaries of 86% (HY1 2019: 85%) reflects support from contango developments in the oil markets in Q2, whereas storage demand in other market segments remained robust. Planned inspection and maintenance out-of-service capacity at subsidiaries was 1.4 million cbm in Q2 2020.
Proportional occupancy rate of 88% (HY1 2019: 84%) included good performance of joint venture oil terminals and continued strong performance of our joint venture gas and industrial terminals.
In response to COVID-19 conditions, cost control measures were implemented to manage and reduce Vopak's cost base; the cost level for HY1 2020 amounted to EUR 295 million and as a result we now aim to be at some EUR 600 million for the year.
EBIT of EUR 257 million (HY1 2019: EUR 274 million pre-divestments).
Return on capital employed (ROCE) of 11.8% (HY1 2019: 12.6%).
Net profit attributable to holders of ordinary shares of EUR 166 million (HY1 2019: EUR 173 million) resulting in earnings per ordinary share (EPS)
of EUR 1.31 (HY1 2019: EUR 1.35).
Vopak's balance sheet is robust with a senior net debt to EBITDA ratio of 2.81 at the end of HY1 2020. The balance sheet flexibility was further strengthened with the successful completion of the USD 350 million and EUR 150 million US Private Placement Notes Program in July 2020.
Share buyback program to return EUR 100 million to shareholders is progressing with 55% completed at the end of HY1 2020.
First half year portfolio developments were the delivery of 275,000 cbm of new capacity from growth projects in Malaysia, Panama and Vietnam and the completion of the divestment of the terminal in Algeciras, Spain.

Impact of COVID-19 pandemic:

The pandemic spread of COVID-19 (Coronavirus) has a significant impact on all people and organizations around the world. Our main focus is on the health of the people working for our company in all locations and to limit the spread of the Coronavirus, to manage the impact on our business and to assess the impact on the economy and society. Therefore we have put global and local measures into place to protect our employees, their families and our operations based on information provided by the World Health Organization, national and local health authorities. To date, we have observed a limited impact on our operations. All our 66 terminals are operational and there have been no significant disruptions to business continuity.

Vopak's strategy is robust and unchanged. An effective control and governance structure to respond to the impact of the global pandemic, with continued decision-making to support business execution and well-being of people, has been put in place. Operational and financial performance, cash flows and our financial position have not been significantly affected. Our financial results reflect our resilient business performance. Timing of some growth projects execution is affected by generic local lockdown measures in various countries.

Our focus in these circumstances is on the short-term delivery and protection of long-term value. Vopak plays an important role within society by storing vital products with care. We are doing our utmost during the COVID-19 pandemic to continue to fulfill this role in all our locations around the world.

Although the pandemic brings a lot of uncertainty and the estimates remain subject to future events, we expect to continue to manage our performance in line with our original business plan and unchanged strategy.

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Exceptional items HY1 2020:

On 31 January 2020, Vopak completed the earlier announced divestment of its 100% shareholding in the terminal in Algeciras, Spain, generating a cash inflow of EUR 135 million. The recognized exceptional loss before taxation was EUR 1.7 million. This completed the divestment program of the terminals in Algeciras, Amsterdam and Hamburg with a total exceptional gain of EUR 200 million recognized in the periods 2019 and Q1 2020.
In Q2 2020, Vopak recognized a EUR 33 million exceptional gain for the remaining consideration relating to the December 2019 divestment of its 49% equity share in the joint venture Vopak SDIC Yangpu Terminal in Hainan, China. Of this amount, EUR 16.3 million is expected to be received in the second half of 2020.

Subsequent events:

On 22 July 2020, Vopak announced to have signed agreements for a new debt issuance of over USD 500 million equivalent in the US Private Placement (USPP) market consisting of senior tranches with a total value of USD 150 million and EUR 150 million and subordinated tranches with a total value of USD 200 million.
In July 2020, Vopak Terminals Singapore completed its refinancing by entering into a new financing of SGD 300 million (approximately EUR 190 million), consisting of a term loan and a revolving credit facility.

Looking ahead:

We aim to grow EBITDA over time with new contributions from growth projects, further cost and revenue management to replace the EBITDA from divested terminals, subject to general market conditions and currency exchange movements.
We will continue to invest in growth of our global terminal portfolio with growth investments for 2020 that could amount up to EUR 500 million.
Cost management continues in 2020 to compensate at least for annual inflation and operating expenses will be further managed this year with the aim to be at some EUR 600 million in 2020.
We are prepared to respond to different economic scenarios focused on revenues, costs and cash flows to deliver performance and protect long-term value.

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Royal Vopak Chief Executive Officer Eelco Hoekstra comments:

Prudent COVID-19 response - all 66 terminals operational
Good financial performance and improved occupancy rates
Continue to invest in 2020 and 2021 with confidence

"In the first half of 2020, we delivered good financial performance in a more volatile business environment.

We captured opportunities in our oil storage portfolio, resulting in improved occupancy rates. At the same time, we experienced reduced throughput for chemicals in particular in Houston and Singapore. We initiated a further response in cost management to protect earnings. Relative to our original plan, we missed some contributions due to delays in growth projects and out of service capacity as construction work was restricted in the second quarter.

The value of these growth projects are not affected.

I am proud of all people working for Vopak and appreciate their extraordinary efforts and commitment to safely serve our customers and society by storing vital products with care during the COVID-19 pandemic. We remain focused on ensuring the health, safety and well-being of our employees and to keep our company performing well.

Vopak's strategy remains unchanged and has proven to be robust. The delivery of our strategy has progressed well in 2020 and we continue to invest in 2020 and 2021 with confidence. Complementary to our investments in growth, service and IT capex, we continue executing our share buyback program to increase distribution to shareholders.

To meet new customer demand and support our portfolio transformation we have taken new capacity into operations in Malaysia, Panama and Vietnam and completed the divestment program of some of our European assets. This year, we announced the construction of a new chemical gases terminal in the US and capacity expansion for an industrial terminal in China, both fully rented out under long-term contracts with reputable customers. We are further upgrading our chemical terminals in the port of Rotterdam and Antwerp to continuously improve our service capabilities.

Good progress has also been made with the development of our LNG and industrial terminal portfolio.

Our digital transformation is progressing well. The roll-out of our new cloud-based system for our terminals has continued in an efficient virtual manner.

We remain focused on short-term delivery and protecting long-term value by executing our strategy. Vopak plays an important role within society by storing vital products with care. We are proud to fulfill this role and are keen to grasp opportunities to deliver on our strategy in the current dynamic market circumstances."

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Key performance figures

	HY1 2020	HY1 2019
Safety performance
Total Injury Rate (TIR), own employees and contractors
(per 200,000 hours worked)	0.44	0.43
Lost-time Injury Rate (LTIR), own employees and contractors
(per 200,000 hours worked)	0.22	0.26
Process Safety Event Rate (PSER), own employees and
contractors (per 200,000 hours worked)	0.14	0.12

Financial performance (in EUR millions)
Revenues	589.3	641.4
Group operating profit before depreciation and amortization (EBITDA)	433.9	440.1
Group operating profit before depreciation and amortization (EBITDA)
-excluding exceptional items-	402.6	422.6
Group operating profit (EBIT)	288.1	291.9
Group operating profit (EBIT) -excluding exceptional items-	256.8	274.4
Net profit attributable to holders of ordinary shares	197.4	190.4
Net profit attributable to holders of ordinary shares
-excluding exceptional items-	166.1	172.9
Cash flows from operating activities (gross)	407.4	351.7
Cash flows from investing activities (including derivatives)	- 141.6	- 331.8
Average capital employed	4,190.1	4,246.5
Return on capital employed (ROCE)	11.8%	12.6%
Return on equity (ROE)	11.8%	13.2%
EBITDA margin excluding result joint ventures and associates	50.9%	52.9%

Capital and financing (in EUR millions)
Equity attributable to owners of parent	2,955.0	2,629.2
Net interest-bearing debt	2,450.4	2,618.4
Senior net debt : EBITDA	2.81	2.99
Interest cover (EBITDA : net finance costs)	9.9	9.1

	HY1 2020	HY1 2019
Key figures per ordinary share (in EUR)
Basic earnings	1.55	1.49
Basic earnings -excluding exceptional items-	1.31	1.35
Diluted earnings	1.55	1.49
Diluted earnings -excluding exceptional items-	1.30	1.35
Basic weighted average number of ordinary shares	127,192,530	127,650,561
Total number of ordinary shares outstanding	127,835,430	127,835,430

Business performance
Storage capacity end of period (in million cbm)	34.4	36.9
- subsidiaries	18.1	19.7
- joint ventures and associates	12.4	13.3
- operatorships	3.9	3.9
Occupancy rate subsidiaries	86%	85%
Total number of employees end of period (in FTE)	5,574	5,564

Information on proportional basis
Proportional EBITDA -excluding exceptional items-	486.6	479.4
Proportional occupancy rate	88%	84%
Net interest-bearing debt	3,410.2	3,443.0
Sustaining, service improvement and IT capex	140.0	137.5

Exchange rates (per EUR 1.00)
US dollar average	1.10	1.13
US dollar end of period	1.12	1.14
Singapore dollar average	1.54	1.54
Singapore dollar end of period	1.57	1.54

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Business and other highlights

HY1 2020 events:

In January 2020, the associate industrial terminal PT2SB in Malaysia repaid part of its preference share capital, following the completion of financing arrangements for the associate terminal, which resulted in a cash inflow of EUR 85 million for Vopak.
On 31 January 2020, Vopak completed the earlier announced divestment of its
100% shareholding in the terminal in Algeciras, Spain, generating a cash inflow of EUR 135 million. This completed the divestment program of the terminals in Algeciras, Amsterdam and Hamburg with a total exceptional gain of EUR 200 million recognized in the periods 2019 and Q1 2020.
On 12 February 2020, Vopak announced the expansion of the Vopak Shanghai - Caojing Terminal with 65,000 cbm for chemical gas products. This industrial terminal serves the chemical plants that are located in the Shanghai Chemicals Industry Park (SCIP) and its adjacent areas. The additional storage capacity has been fully rented out under long-term contracts.
On 12 February 2020, Vopak announced the start of a share buyback program to return EUR 100 million to shareholders. The share buyback program started on 13 February 2020 and is expected to be completed within 2020. At the end of HY1 2020, 55% of the program was completed.
On 20 April 2020, Vopak and Keppel Data Centres Holding Pte Ltd signed a MoU to conduct a feasibility study to investigate the commercial viability of establishing LNG and possibly hydrogen infrastructure for LNG-to-power infrastructure in Singapore, which will form part of the possible Floating Data Centre Park (FDCP) development.
On 21 April 2020, Vopak announced its initial investment in the 50/50 joint venture Vopak Moda Houston terminal located in the Houston Ship Channel. The investment includes 46,000 cbm of various gas tanks and a new jetty for the storage and handling of chemical gases. The storage capacity has been fully rented out under long-term contracts.

Corporate governance events:

At the Annual General Meeting held on 21 April 2020, Mr. Ben Noteboom was re-appointed as a member of the Supervisory Board for a new term of 4 years.

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Financial review

Operating results

Revenues

In the first half year of 2020, Vopak generated revenues of EUR 589.3 million, compared to EUR 641.4 million in the first half year of 2019. Excluding the negative currency translation effect of EUR 4.7 million, the decrease amounted to EUR 47.4 million (-7%). Higher revenues were generated by the additional capacity rented out due to contango oil markets and IMO 2020 converted capacity whereas divestments of the terminals in Algeciras, Amsterdam and Hamburg lowered revenues by EUR 61.2 million.

The average occupancy rate for Vopak's subsidiaries (i.e. excluding joint ventures and associates) for the first six months of 2020 was 86% compared to 85% in the first half year of 2019. The increase is caused by contango developments in the oil markets, whereas other market segments remained solid.

Vopak's worldwide storage capacity decreased with 2.5 million cbm from 36.9 million cbm per the end of June 2019 to 34.4 million cbm per the end of June 2020 reflecting divestments of 3.6 million cbm and new capacity of 1.1 million cbm.

Expenses

Operating expenses -excluding exceptional items- decreased by EUR 12.5 million (-4%) to EUR 295.3 million (HY1 2019: EUR 307.8 million). Excluding the positive currency translation effect of EUR 1.3 million, the decrease amounted to EUR 11.2 million.

The decrease was for an amount of EUR 26.5 million caused by the divestments of the terminals in Algeciras, Amsterdam and Hamburg whereas expenses related to new capacity, business development projects and IT projects increased. Combined with cost savings, in response to the loss of variable throughput revenues, total costs are aimed to be at some EUR 600 million for 2020.

In the first half of 2020 an exceptional item of EUR 1.7 million was recorded (HY1 2019: EUR 0.3 million) related to the divestment of Algeciras which was completed in January 2020. Including exceptional items, total expenses in the first half of 2020 amounted to EUR 297.0 million compared to EUR 308.1 million in the first half of 2019.

Result joint ventures and associates

In the first half of 2020, the result of joint ventures and associates amounted to

EUR 96.8 million, an increase of EUR 19.9 million (26%) compared to EUR 76.9 million in the first half of 2019. The currency translation effect was immaterial. This increase was mainly due to strong and full period contributions of the Ridley Island Propane Export Terminal in Canada and the in 2019 acquired SPEC LNG terminal in Colombia, as well as better results from our joint venture oil terminals in the Asia & Middle East division.

Group operating profit before depreciation and amortization

Group operating profit before depreciation and amortization (EBITDA) -excluding exceptional items- and including the net result of joint ventures and associates, decreased by EUR 20.0 million (-5%) to EUR 402.6 million (HY1 2019: EUR 422.6 million). Excluding the negative currency translation effect of EUR 3.3 million, the decrease amounted to EUR 16.7 million. Adjusted for the effect of the divestments of the terminals in Algeciras, Amsterdam and Hamburg (EUR 35.2 million decrease), EBITDA increased by EUR 18.5 million, reflecting resilient business performance including the effects of newly commissioned capacity, contango oil markets, IMO 2020 converted capacity and reduced chemicals throughput.

Including exceptional items, Group operating profit before depreciation and amortization (EBITDA) for HY1 2020 amounted to EUR 433.9 million compared to EUR 440.1 million in HY1 2019. The exceptional items for 2020 include the result of the divestment

of Algeciras and EUR 33.0 million relating to the 2019 divestment of the 49% equity share in the joint venture Vopak SDIC Yangpu Terminal in Hainan.

Group operating profit

Group operating profit (EBIT) -excluding exceptional items- amounted to EUR 256.8 million; a decrease of EUR 17.6 million (-6%) compared to EUR 274.4 million in the same period of 2019. Excluding the negative currency translation effect of EUR 2.2 million, the decrease amounted to EUR 15.4 million.

Including exceptional items, Group operating profit (EBIT) for HY1 2020 amounted to EUR 288.1 million compared to EUR 291.9 million in HY1 2019.

ROCE -excluding exceptional items- of 11.8% compared to 12.6% in the first half year of 2019.

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Cash flows from operating activities and working capital

Cash flows from operating activities (gross) amounted to EUR 407.4 million in the first half of 2020 (HY1 2019: EUR 351.7 million). This increase of EUR 55.7 million was mainly related to net cash inflows from non-hedging derivatives positions held for intra-group financing positions as well as positive working capital developments. Business related cash flows from operating activities including dividends received from joint ventures and associates was resilient and reflect the divestments of the terminals in Algeciras, Amsterdam and Hamburg.

Strategic investments and divestments

Cash flows from investing activities

Total cash flows from investing activities (including derivatives) for the first half year of 2020 amounted to a net cash outflow of EUR 141.6 million (HY1 2019: net cash outflow of EUR 331.8 million). Cash outflows for total investments increased with EUR 39.0 million reflecting continued capital allocation to growth. Cash flows from proceeds of disposals and repayments increased with EUR 222.6 million compared to the first half year of 2019.

Total investments amounted to EUR 378.5 million (HY1 2019: EUR 339.5 million), of which EUR 312.9 million was invested in property, plant and equipment

(HY1 2019: EUR 267.7 million). Investments in joint ventures and associates as well as

other equity investments amounted to EUR 49.8 million (HY1 2019: EUR 57.7 million).

Vopak continued to invest in growth of its global terminal portfolio and invested EUR 237.9 million in the expansion of existing terminals and the construction of new terminals in South Africa, the US and China in the first half of 2020

(HY1 2019: EUR 212.2 million). Total growth investment for 2020 could amount in the range of EUR 300 million to EUR 500 million. The impact of governmental restrictions related to COVID-19 resulted in construction delays for some developments, most noticeably South African projects Lesedi and Durban which were already delayed.

As part of the strategic direction for the period 2020-2022, Vopak indicated to spend annually EUR 30 million to EUR 50 million in IT capex to complete Vopak's digital terminal management system. In the first half of 2020, EUR 17.0 million was invested in new technology, innovation programs and IT projects (HY1 2019: EUR 16.0 million).

Vopak indicated to spend EUR 750 million to EUR 850 million for sustaining and service improvement capex, subject to additional discretionary decisions, policy changes and regulatory environment, for the period 2020-2022. The sustaining and service improvement capex for the first half year of 2020 amounted to EUR 114.8 million (HY1 2019: EUR 109.2 million).

Divestments and repayments

In January 2020, the associate industrial terminal PT2SB in Malaysia repaid part of its preference share capital following the completion of financing arrangements resulting in a cash inflow of EUR 85 million for Vopak.

On 31 January 2020, Vopak completed the earlier announced divestment of its 100% shareholding in the terminal in Algeciras, Spain, generating a cash inflow of EUR 135 million.

In Q2 2020, Vopak recognized as an exceptional item the remaining consideration of

EUR 33 million relating to the 2019 divestment of its 49% equity share in the joint venture Vopak SDIC Yangpu Terminal in Hainan, China in December 2019. The cash inflow for Vopak in the first half year of 2020 was EUR 16.7 million, and EUR 16.3 million is expected to be received in the second half of 2020.

Total cash flows from disposals and repayments for the first half year of 2020 amounted to EUR 235.9 million (HY1 2019: EUR 13.3 million).

Depreciation and amortization

Depreciation and amortization charges amounted to EUR 145.8 million, which was

EUR 2.4 million (-2%) lower than prior half year (EUR 148.2 million). Excluding the positive currency translation effect of EUR 1.1 million, the decrease amounted to EUR 1.3 million. Lower depreciation and amortization charges due to the divestments of the terminals

in Algeciras, Amsterdam and Hamburg (EUR 9.7 million decrease) were partly offset by higher depreciation and amortization charges from completed projects compared to HY1 2019.

Capital Structure

Equity

The equity attributable to holders of ordinary shares decreased by EUR 92.3 million to EUR 2,955.0 million (31 December 2019: EUR 3,047.3 million). The decrease mainly resulted from the ordinary shareholder dividend payments in cash of EUR 146.1 million (EUR 1.15 per ordinary share with a nominal value of EUR 0.50) as well as the impact of purchases of treasury shares of EUR 54.9 million and the other comprehensive income of EUR 88.5 million. This decrease was partly compensated by the addition of the net profit for the period of EUR 197.4 million.

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Debt

The total interest-bearing debt increased with EUR 115.1 million to EUR 2,450.4 million

(31 December 2019: EUR 2,335.3 million), reflecting increased lease liabilities as a result of new extensions of long-term land lease contracts.

The Senior net debt: EBITDA ratio was 2.81 as at 30 June 2020 (31 December 2019: 2.75), well below the maximum agreed ratios in the covenants with the lenders.

Net finance costs

In the first half of 2020, the Group's net finance costs amounted to EUR 43.4 million (HY1 2019: EUR 43.1 million).

The average interest rate over the reporting period, including the effect of hedge accounting, was 3.1% (HY1 2019: 3.3%). Of the long-terminterest-bearing loans, including interest rate swaps, 78% was at fixed interest rates at 30 June 2020.

Net profit attributable to holders of ordinary shares

In the first six-month period of 2020 the net profit attributable to holders of ordinary shares -excluding exceptional items- decreased by EUR 6.8 million (-4%) to EUR 166.1 million from EUR 172.9 million in the same period of 2019.

Net profit attributable to holders of ordinary shares -including exceptional items- amounted to EUR 197.4 million, an increase of EUR 7.0 million (4%) compared to EUR 190.4 million in the first half of 2019.

Earnings per ordinary share -excluding exceptional items- decreased by 3% to EUR 1.31 (HY1 2019: EUR 1.35). The weighted average number of outstanding ordinary shares was 127,192,530 for HY1 2020 (HY1 2019: 127,650,561).

Including exceptional items, the earnings per ordinary share increased by 4% to EUR 1.55 (HY1 2019: EUR 1.49).

Cash flows from financing activities

The cash outflow from financing activities amounted to EUR 200.6 million (HY1 2019: inflow of EUR 23.8 million). This amount consisted mainly of dividend payments of EUR 146.1 million to ordinary shareholders, dividend payments of EUR 11.8 million to non-controlling interests, repurchases of own shares of EUR 54.9 million, finance costs payments of EUR 49.2 million and lease payments of EUR 26.3 million. Net proceeds from interest-bearing loans and short-term financing were EUR 57.5 million (HY1 2019: payments of EUR 242.8 million).

Income taxes

Income tax expense -excluding exceptional items- for the first half year of 2020 amounted to EUR 31.7 million, compared to EUR 39.7 million in the first half of 2019. The effective tax rate -excluding exceptional items- for the first half year of 2020 was 14.9% compared to 17.2% in HY1 2019. This decrease is primarily caused by the higher results from

joint ventures and associates in HY1 2020.

The effective tax rate -including exceptional items for the first half year of 2020 was 13.0% compared to 16.0% in HY1 2019.

Joint ventures and associates

Joint ventures and associates are an important part of the Group for which equity accounting is applied. In Enclosure 1 in this first half year report the effects of non-IFRS proportional consolidation on the statement of financial position and statement of income of the Group are presented.

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Risks and risk management

Vopak's enterprise risk management program, which is coordinated by the Global Risk Committee, provides the Executive Board with a periodic and comprehensive understanding of the Group's principal risks and uncertainties, their development and the actions taken by management to mitigate these risks and uncertainties.

As part of the company's regular periodic risk management assessment, the Global Risk Committee has coordinated and monitored the risk management process during the first half of 2020. The outcome and conclusions of this process have been reported to and discussed with the Executive Board and subsequently discussed with the Audit Committee of the Supervisory Board.

Vopak recognizes strategic, operational, financial and compliance / regulatory risk categories. Whilst our principal risks have not changed as compared to those disclosed within the 2019 Annual Report, the pandemic spread of COVID-19 has led to higher levels of uncertainty in areas that were already addressed by our principal risks.

Given the significant uncertainty the COVID-19 pandemic has on the expected general operating and market conditions, as well as currency movements and growth project delivery, the company is monitoring the latest developments closely. Scenario based contingency plans and other mitigating actions have been prepared and are ready to put in place when needed.

Reference is made to the 2019 Annual Report, which describes in detail our risk management framework and the main risks per pillar of the Group's strategy that could adversely affect the achievement of the company's strategic objectives and our (future) operating results, cash flows and financial position.

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Product market developments

In the first half of 2020, the world witnessed the COVID-19 pandemic and consumer behaviour across the world changed in ways that can be considered unparalleled in recent history. Lockdowns, loss of jobs and greater uncertainty impacted consumer demand and set in motion a worldwide economic contraction. On the one hand, consumers cut back spendings on durable goods and reduced travel whereas consumption of food and other non-durable goods continued. On the other hand, the crisis triggered the increased use of healthcare and pharmaceutical products.

The combination of the economic contraction and the OPEC+ conflict on curtailment of crude production led to a massive drop in oil price and affected the profitability of the oil and chemicals industry, as well as budget deficit in oil and gas producing countries.

Though OPEC+ has now agreed to a sustained production cut and oil price has recovered, it remains to be seen whether this will continue. The stock building of the past quarter has led to surpluses that still need to be absorbed and demand recovery will need to happen before economics in refining and petchem start to improve.

There are signs of improvement in some regions of the world while the spreading of the virus is still increasing in others. As China re-opened its markets and ended lockdowns, its economy started to regain some of its strength. However, the environment continues to be uncertain with infection rates still flashing around the world and, with no vaccine in sight at the moment, the volatility is expected to continue into 2021.

Chemicals

Demand for chemicals varied based on consumption patterns for durable and non-durable goods. Products with a longer life span, such as automotive, construction, textile, were deeply affected; while demand for non-durable goods such as packaging, health care, pharma and personal care products increased during the same period. Also, as naphtha became cheaper (due to low oil price), ethane crackers had more difficulty in operating at competitive cost levels, which affected inter-regional trade flows from export oriented producers in the US and Middle East.

Chemical demand in China started to recover as well as in other parts of Asia though high inventories are limiting prices and margins increases. In Europe, chemical margins were at their highest levels as a result of the drop in naphtha prices in the second quarter of 2020.

Chemical margins in the Middle East and the US were affected by the low oil price,

the slowing of demand and the lower chemical prices. Still, production in the US remains ahead of the demand and operating rates might decline going forward.

Oil

The second quarter has been unparalleled as the continued spreading of COVID-19 led to a 20% reduction in global oil demand for the quarter. For the full year 2020, the oil demand forecast went from 101.5 mln b/d originally expected to 92.1 mln b/d anticipated in the latest IEA update. OPEC+ reached an agreement on the curtailment of production which re-balanced the markets with an oil price moving from low $20s/bbl beginning of April to $40+/bbl at the end of June.

The refining response lagged the decline in demand arising from the COVID-19 lockdown measures, and product stocks are estimated to have built substantially since April. Storage providers benefited from the extreme market structure and unrest as the world was scrambling for physical capacity for excess cargoes. The oil markets have now returned to more normal levels, however volatility and consequently demand for storage is expected to be high until a reliable vaccine for COVID-19 is found.

LPG and chemical gases

Global LPG supply from the two key LPG export regions, the US and the Middle East, is falling due to shale shut-ins and upstream production cuts, as well as the OPEC+ coalition agreement in April to cut oil production. A lower shale production outlook is impacting export growth in the US with export expansion plans being pushed back.

On the demand side, residential LPG use surged in the second quarter as countries announced lockdowns, especially in countries such as India, Indonesia, and Brazil.

LPG (propane) demand has also been strong from Chinese PDH plants which benefited from demand for fibre-grade polypropylene (PP) used for medical supplies, as well as the return of cheaper US imports since the signing of the US-China Phase 1 trade deal. Propane demand for steam cracking in Asia and Europe has been reduced as naphtha has been the preferable feedstock due to its competitive pricing.

14 | Vopak | Half year report 2020 | Interim Management Report

LNG

The first half year was mainly characterized by a deepening of oversupply, with spot and long-term(oil-linked) prices falling steadily. European (TTF) and Asian (JKM) prices declined by ~50% since the beginning of the year and are now hovering around $2/mmbtu.

Low LNG prices have resulted in increased levels of coal-to-gas switching and record high LNG storage levels.

This low-price environment mainly has an impact on liquefaction projects, for which all FIDs for 2020 are now off the table. A lack of investment could lead to a shortage of new LNG in the middle of this decade as demand is expected to be resilient in the medium to long-term. The IEA recently confirmed that LNG is the driving force behind the growth

in global gas trade, with the industry growing by 21% towards 2025.

Emerging Asian markets remain the driving force behind the expansion of LNG imports, led by China and India, while the United States and Qatar account for the majority of the net growth on the export side. China is expected to become the largest LNG buyer in 2023 and the United States the largest LNG seller in 2025.

15 | Vopak | Half year report 2020 | Interim Management Report

Sustainability review

Vopak stores vital products with care. Our services enable people to meet basic needs and to live comfortable lives. Today, the vital products we store are chemicals, oil, gases, biofuels and edible oils; in the future, we may well store products like hydrogen and CO2. While the products in our tanks are crucial to people's daily lives and the economy, they can endanger their health and the environment if stored or handled inappropriately. This comes with a huge responsibility; our role is to ensure safe, clean and efficient storage. Our commitment to care extends to all our stakeholders, including our own people, our customers and the communities in which we operate. In our view, sustainability is about caring for people, planet and profit. This means keeping our company relevant, healthy and fit for the future. Our choices today must contribute to our long-term relevance in society and the well-being and development of future generations.

We strive to be a responsible member of the communities in which we operate, a company that our employees and contractors are proud to work for. This is why we commit to maximizing safety. We work hard to reduce our environmental footprint and minimize any negative impact of our operations on people's safety, health and wellbeing. We invest in training, talent development and a diverse and inclusive workforce. To contribute to a more sustainable economy, we explore ways to facilitate the introduction of more sustainable technologies, processes and products and facilitate the energy transition.

In this half year report we provide an update on our safety performance and progress on prevention of environmental releases. The comprehensive annual sustainability disclosures will be reported in our 2020 Annual Report.

Impact of COVID-19 pandemic

As per HY1 2020, Vopak has observed a limited impact on its operations. All of its 66 terminals are operational, there have been no significant disruptions to business continuity and the new circumstances did not lead to a deteriorated performance on safety and environmental impacts.

Safety performance

			Lost Time	Process Safety
	Total Injury Rate	Injury Rate	Event Rate

	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019
Americas	0.63	0.21	0.16	0.05	0.08	-
Asia & Middle East	0.26	0.19	0.13	0.14	0.16	0.08
China & North Asia	0.07	-	-	-	-	-
Europe & Africa	0.96	1.30	0.61	0.81	0.24	0.42
LNG	-	-	-	-	-	-
Global HQ	-	-	-	-	-	-
Total Vopak	0.44	0.43	0.22	0.26	0.14	0.12

Total Injury Rate (per 200,000 working hours) of 0.44 is slightly higher compared to

HY1 2019 (0.43). The combined absolute number of total injuries (between own employees and contractors) in the first half of 2020 decreased to 36 (HY1 2019: 40).

The Lost Time Injuries decreased to 18 (HY1 2019: 24) resulting in a decreased Lost Time Injury Rate (per 200,000 working hours) for own employees and contractors of 0.22 (HY1 2019: 0.26). Process Safety Events decreased to 10 (HY1 2019: 11).

Environmental releases to soil and water

			HY1 2020			HY1 2019


		Contained	Uncontained	Total	Contained	Uncontained	Total
Total number of reportable spills	26	9	35	20	9	29
Total amount of reportable
spills (metric tons)	136	25	161	109	9	118

4 of the uncontained spills were into surface and sewage water, with a total of 11 metric tons of product being spilled (HY1 2019: 5 spills with a total of 4 metric tons spilled).

In total, 85% of the metric tons spilled during HY1 2020 (HY1 2019: 92%) was contained. All spills were remediated immediately.

16 | Vopak | Half year report 2020 | Interim Management Report

Terminal portfolio and storage capacity developments

	End	Net change	Divestments		Net change	Divestments	End
	HY1 2019	HY2 2019	HY2 2019	End 2019	HY1 2020	HY1 2020	HY1 2020
Subsidiaries	19.7	0.4	- 1.9	18.2	0.3	- 0.4	18.1
Joint ventures and associates	13.3	0.3	- 1.3	12.3	0.1	-	12.4
Operatorships	3.9	-	-	3.9	-	-	3.9
Total capacity	36.9	0.7	- 3.2	34.4	0.4	- 0.4	34.4

Since year-end 2019, we commissioned 0.4 million cbm of new capacity from growth projects in Malaysia, Panama and Vietnam. Combined with the divestment of the oil terminal in Algeciras in Spain, our worldwide storage capacity amounted to 34.4 million cbm at the end of HY1 2020.

Storage capacity development

Country	Terminal	Vopak's ownership	Products	Capacity (cbm)	Commissioned

Storage capacity at 31 December 2019			34.4
New and existing terminals
Malaysia	Pengerang Independent Terminals (PITSB)	44.1%	Oil products	215,000	Q1 2020
Vietnam	Vopak Vietnam	100%	Chemicals	20,000	Q1 2020
Panama	Panama Atlantic	100%	Oil products	40,000	Q2 2020
Various				80,000

Divestments
Spain	Algeciras	100%	Oil products	- 403,000	Q1 2020
Net change for the period at 30 June 2020			0.0	million cbm
Storage capacity at 30 June 2020				34.4	million cbm

Note: Storage capacity is defined as total available storage capacity (jointly) operated by the Group at the end of the reporting period, being storage capacity for subsidiaries, joint ventures, associates (with the exception of Maasvlakte Olie Terminal in the Netherlands, which is based on attributable capacity), and other (equity) interests and operatorships, and including currently out of service capacity due to maintenance and inspection programs.

17 | Vopak | Half year report 2020 | Interim Management Report

Announced storage capacity developments

Country	Terminal	Vopak's ownership	Products	Capacity (cbm)	2017	2018	2019	2020	2021	2022


Existing terminals
Indonesia	Jakarta	49%	Oil products	100,000

Indonesia	Merak	95%	Chemicals	50,000

Netherlands	Vlissingen	100%	LPG & chemical gases	9,200

South Africa	Durban	70%	Oil products	130,000

Netherlands	Rotterdam - Botlek	100%	Chemicals	63,000

Mexico	Veracruz	100%	Oil products	79,000

United States	Houston - Deer Park	100%	Chemicals	33,000
Australia	Sydney	100%	Oil products	105,000
Belgium	Antwerp - Linkeroever	100%	Chemicals	50,000
Mexico	Altamira	100%	Chemicals	40,000
China	Shanghai - Caojing Terminal	50%	Industrial terminal	65,000

New terminals
South Africa	Lesedi	70%	Oil products	100,000

United States	Vopak Moda Houston	50%	Chemical gases	46,000
China	Qinzhou	51%	Industrial terminal	290,000
United States	Corpus Christi	100%	Industrial terminal	130,000

start construction

expected to be commissioned expected commissioning at start of 2020

18 | Vopak | Half year report 2020 | Interim Management Report

Results HY1 2020 by division

Americas

In EUR millions	HY1 2020	HY1 2019
Revenues	163.5	152.6
Results -excluding exceptional items-
Group operating profit before depreciation and amortization
(EBITDA)	96.3	79.8
Group operating profit (EBIT)	64.6	52.3
Results -including exceptional items-
Group operating profit before depreciation and amortization
(EBITDA)	96.3	79.8
Group operating profit (EBIT)	64.6	52.3
Average capital employed	841.5	584.3
Storage capacity end of period (in million cbm)	4.5	4.1
Occupancy rate subsidiaries	91%	90%
Proportional occupancy rate	90%	90%
Proportional EBITDA -excluding exceptional items-	95.7	79.3

Asia & Middle East

In EUR millions	HY1 2020	HY1 2019
Revenues	147.9	161.0
Results -excluding exceptional items-
Group operating profit before depreciation and amortization
(EBITDA)	155.1	153.3
Group operating profit (EBIT)	124.0	121.5
Results -including exceptional items-
Group operating profit before depreciation and amortization
(EBITDA)	155.1	153.3
Group operating profit (EBIT)	124.0	121.5
Average capital employed	1,140.1	1,192.5
Storage capacity end of period (in million cbm)	15.4	14.9
Occupancy rate subsidiaries	87%	86%
Proportional occupancy rate	91%	87%
Proportional EBITDA -excluding exceptional items-	166.1	160.4

In the Americas division, the revenues in the first half year of 2020 of EUR 163.5 million were EUR 10.9 million (7%) higher than the revenues of the same period prior year (HY1 2019: EUR 152.6 million). Excluding the negative currency translation effect of EUR 1.1 million, the increase amounted to EUR 12.0 million. This increase is mainly related to the commissioned capacity in Mexico, Brazil and Panama in 2019 offset by some lower chemicals throughput revenues in Houston.

The average occupancy rate for the division was 91% versus 90% in HY1 2019.

Group operating profit -excluding exceptional items- increased by EUR 12.3 million

(24%) to EUR 64.6 million (HY1 2019: EUR 52.3 million). Excluding the negative currency translation effect of EUR 0.9 million, the increase amounted to EUR 13.2 million as a result of contributions from completed growth projects.

Additional capacity of 0.3 million cbm in total is currently under construction.

Revenues of the Asia & Middle East division decreased by EUR 13.1 million (-8%) to EUR 147.9 million (HY1 2019 EUR 161.0 million). Excluding the negative currency translation effect of EUR 1.7 million, the revenues decreased by EUR 11.4 million.

This was the result of lower revenues from chemical terminals and out-of-service capacity in Singapore, partly offset by improved performance of our oil terminals as a result of the contango and IMO converted capacity.

The average occupancy rate for the division was 87% versus 86% in HY1 2019.

Group operating profit -excluding exceptional items- increased by EUR 2.5 million (2%) to EUR 124.0 million (HY1 2019: EUR 121.5 million). Excluding a negative currency translation effect of EUR 0.7 million, the increase amounted to EUR 3.2 million. This was primarily caused by better results from joint ventures and associates mainly related to the oil terminals.

Additional capacity of 0.3 million cbm in total is currently under construction.

19 | Vopak | Half year report 2020 | Interim Management Report

China & North Asia

In EUR millions	HY1 2020	HY1 2019
Revenues	20.2	20.3
Results -excluding exceptional items-
Group operating profit before depreciation and amortization
(EBITDA)	27.5	29.2
Group operating profit (EBIT)	21.6	23.4
Results -including exceptional items-
Group operating profit before depreciation and amortization
(EBITDA)	60.5	30.3
Group operating profit (EBIT)	54.6	24.5
Average capital employed	428.1	389.1
Storage capacity end of period (in million cbm)	2.8	4.2
Occupancy rate subsidiaries	77%	81%
Proportional occupancy rate	88%	72%
Proportional EBITDA -excluding exceptional items-	43.4	45.9

Europe & Africa

In EUR millions	HY1 2020	HY1 2019
Revenues	254.9	305.7
Results -excluding exceptional items-
Group operating profit before depreciation and amortization
(EBITDA)	125.5	159.5
Group operating profit (EBIT)	56.5	84.1
Results -including exceptional items-
Group operating profit before depreciation and amortization
(EBITDA)	123.8	175.9
Group operating profit (EBIT)	54.8	100.5
Average capital employed	1,367.4	1,798.2
Storage capacity end of period (in million cbm)	10.4	12.6
Occupancy rate subsidiaries	85%	83%
Proportional occupancy rate	85%	83%
Proportional EBITDA -excluding exceptional items-	127.0	159.9

In the China & North Asia division, the revenues for the first half year of 2020 were comparable with the revenues in the same period of prior year and amounted to EUR 20.2 million (HY1 2019: EUR 20.3 million). The currency translation effect was immaterial.

The average occupancy rate for the division was 77% versus 81% in HY1 2019.

Group operating profit -excluding exceptional items- decreased by EUR 1.8 million (-8%) to EUR 21.6 million (HY1 2019: EUR 23.4 million). Excluding the negative currency translation effect of EUR 0.3 million, the decrease amounted to EUR 1.5 million which included resilient performance from joint ventures and associates.

Additional capacity of 0.4 million cbm in total is currently under construction.

Revenues of the Europe & Africa division amounted to EUR 254.9 million for the first half year of 2020, a decrease of EUR 50.8 million (-17%) compared to the same period prior year (EUR 305.7 million). Excluding the negative currency translation effect of EUR 1.7 million, the decrease amounted to EUR 49.1 million. Revenues benefited from improved performance for oil storage as a result of the contango market and IMO 2020 converted capacity offset by the effect of the divestments of the terminals in Algeciras, Amsterdam and Hamburg (EUR 61.2 million decrease).

The average occupancy rate for the division was 85% versus 83% in HY1 2019.

Group operating profit -excluding exceptional items- decreased by EUR 27.6 million (-33%) to EUR 56.5 million (HY1 2019: EUR 84.1 million). Excluding the negative currency translation effect of EUR 0.6 million, the decrease amounted to EUR 27.0 million. The decrease was mainly the result of the divestments of the terminals in Algeciras, Amsterdam and Hamburg (EUR 25.5 million decrease).

Additional capacity of 0.3 million cbm in total is currently under construction. For the South African projects Lesedi and Durban delays were experienced.

20 | Vopak | Half year report 2020 | Interim Management Report

LNG

In EUR millions	HY1 2020	HY1 2019
Results -excluding exceptional items-
Group operating profit before depreciation and amortization
(EBITDA)	22.0	19.1
Group operating profit (EBIT)	22.0	19.1
Results -including exceptional items-
Group operating profit before depreciation and amortization
(EBITDA)	22.0	19.1
Group operating profit (EBIT)	22.0	19.1
Average capital employed	365.9	250.6
Storage capacity end of period (in million cbm)	1.2	1.0
Proportional occupancy rate	97%	96%
Proportional EBITDA -excluding exceptional items-	78.2	52.2

The LNG division only comprises joint venture and associate terminals and therefore has no revenues recognized at subsidiaries.

Group operating profit -excluding exceptional items- from global LNG activities amounted to EUR 22.0 million, which is EUR 2.9 million (15%) higher compared to prior half year (HY1 2019: EUR 19.1 million). This net increase after development costs was primarily related to the contribution of the SPEC LNG terminal in Colombia that was acquired in 2019.

There is currently no additional capacity under construction.

Global functions and corporate activities

The global operating costs increased by EUR 5.9 million (23%) to EUR 31.9 million (HY1 2019: EUR 26.0 million). The increase related to a large extent to higher costs in connection with business development and IT projects.

21 | Vopak | Half year report 2020 | Interim Management Report

Statement by the Executive Board

In accordance with the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht), section 5:25d, paragraph 2 sub c, the Executive Board confirms that, to the best of its knowledge:

the interim consolidated financial statements for the six months ended 30 June 2020 have been prepared in accordance with IAS 34 (Interim Financial Reporting) as adopted by the European Union and give a true and fair view of the assets, liabilities, financial position and profit or loss of Koninklijke Vopak N.V. and its consolidated companies (jointly referred to as the 'Group'); and
the interim management report for the six months ended 30 June 2020 gives a true and fair view of the information required pursuant to section 5:25d, subsections 8 and 9 of the Dutch Financial Markets Supervision Act.

Rotterdam, 28 July 2020

The Executive Board

Eelco Hoekstra (Chairman of the Executive Board and CEO)

Frits Eulderink (Member of the Executive Board and COO)

Gerard Paulides (Member of the Executive Board and CFO)

Auditor's involvement

The content of this report has not been audited or reviewed by an external auditor.

Interim Financial Statements

Interim Consolidated Financial Statements	Notes to the Interim Consolidated
	Financial Statements
Consolidated Statement of Income	1.	General
Consolidated Statement of Comprehensive Income	2.	Acquisitions, divestments and newly established entities
Consolidated Statement of Financial Position	3.	Financial risk management
Consolidated Statement of Changes in Equity	4.	Exceptional items
Consolidated Statement of Cash Flows	5.	Revenues
Segmentation	6.	Intangible assets, property, plant & equipment -owned assets-
		and financial assets
	7.	Leases
	8.	Joint ventures and associates
	9.	Issued capital, share premium and treasury shares
	10.	Borrowings
	12.	Related party disclosures
	13.	Subsequent events

23 | Vopak | Half year report 2020 | Interim Financial Statements

Interim Consolidated Financial Statements

Consolidated Statement of Income				Consolidated Statement of Comprehensive Income
In EUR millions	Note	HY1 2020	HY1 2019		In EUR millions	HY1 2020	HY1 2019
Revenues	5	589.3	641.4		Net profit	213.0	209.1
Other operating income		44.8	29.9		Exchange differences on translation of foreign operations	- 77.0	24.0
Total operating income		634.1	671.3
		Net investment hedges	1.5	- 5.0
Personnel expenses		167.2	167.9
		Use of exchange rate differences on translation of foreign operations
Depreciation and amortization	6, 7	145.8	148.2
	and use of net investment hedges	- 0.1	- 7.4
Other operating expenses		129.8	140.2		Effective portion of changes in fair value of cash flow hedges	7.8	0.3
Total operating expenses		442.8	456.3		Use of effective portion of cash flow hedges to statement of income	- 0.8	- 1.1
Operating profit		191.3	215.0		Share in other comprehensive income of joint ventures and associates	- 18.5	- 19.8
Result joint ventures and associates	8.1	96.8	76.9		Other comprehensive income that may be reclassified to statement	- 87.1	- 9.0
Group operating profit		288.1	291.9		of income in subsequent periods

Interest and dividend income		2.9	4.2		Fair value change other investments	-	0.1
Finance costs		- 46.3	- 47.3		Remeasurement of defined benefit plans	- 9.7	- 5.1

Net finance costs

Profit before income tax

Income tax

Net profit

Non-controlling interests

Net profit holders of ordinary shares

Basic earnings per ordinary share (in EUR) Diluted earnings per ordinary share (in EUR)

- 43.4 - 43.1

244.7 248.8

- 31.7 - 39.7

213.0 209.1

- 15.6 - 18.7

197.4 190.4

1.55 1.49

Other comprehensive income that will not be reclassified	- 9.7	- 5.0
to statement of income in subsequent periods
Other comprehensive income, net of tax	- 96.8	- 14.0
Total comprehensive income	116.2	195.1
Attributable to:
Holders of ordinary shares	108.9	174.4
Non-controlling interests	7.3	20.7
Total comprehensive income	116.2	195.1

Note: All amounts are net of tax.

24 | Vopak | Half year report 2020 | Interim Financial Statements

Consolidated Statement of Financial Position

In EUR millions	Note	30-Jun-20	31-Dec-19
ASSETS
Intangible assets	6	170.6	164.8
Property, plant & equipment - owned assets	6	3,695.2	3,640.8
Property, plant & equipment - right-of-use assets	7	634.4	503.0
- Joint ventures and associates	8	1,208.1	1,272.8
- Finance lease receivable		27.9	28.5
- Loans granted		87.9	86.7
- Other financial assets		36.6	30.1
Financial assets	6	1,360.5	1,418.1
Deferred taxes		30.6	30.8
Derivative financial instruments		29.8	19.4
Other non-current assets		2.5	6.3
Total non-current assets		5,923.6	5,783.2
Trade and other receivables		336.6	296.1
Prepayments		60.4	27.3
Derivative financial instruments		4.7	28.5
Cash and cash equivalents	10	150.9	94.5
Assets held for sale		-	143.9
Total current assets		552.6	590.3

Total assets

6,476.2

6,373.5

In EUR millions	Note	30-Jun-20	31-Dec-19
EQUITY
- Issued capital		63.9	63.9
- Share premium		194.4	194.4
- Treasury shares		- 61.9	- 8.9
- Other reserves		- 194.4	- 105.9
- Retained earnings		2,953.0	2,903.8
Equity attributable to owners of parent	9	2,955.0	3,047.3
Non-controlling interests		143.3	147.8
Total equity		3,098.3	3,195.1
LIABILITIES
Interest-bearing loans	10	1,530.9	1,394.5
Lease liabilities	7, 10	660.4	534.7
Pensions and other employee benefits		56.7	42.4
Deferred taxes		173.3	181.5
Provisions		26.3	35.9
Other non-current liabilities		15.3	20.8
Total non-current liabilities		2,462.9	2,209.8
Bank overdrafts and short-term borrowings	10	283.3	184.5
Interest-bearing loans	10	95.4	285.9
Lease liabilities	7, 10	31.3	30.2
Derivative financial instruments		40.9	38.3
Trade and other payables		374.4	344.1
Taxes payable		64.2	42.1
Pensions and other employee benefits		1.0	1.3
Provisions		24.5	24.2
Liabilities related to assets held for sale		-	18.0
Total current liabilities		915.0	968.6
Total liabilities		3,377.9	3,178.4
Total equity and liabilities		6,476.2	6,373.5

25 | Vopak | Half year report 2020 | Interim Financial Statements

Consolidated Statement of Changes in Equity

		Equity attributable to owners of parent
	Issued	Share	Treasury	Other	Retained		Non-controlling	Total
In EUR millions	capital	premium	shares	reserves	earnings	Total	interests	equity
Balance at 31 December 2018	63.9	194.4	- 7.3	- 124.5	2,556.3	2,682.8	161.5	2,844.3
Initial application IFRS 16	-	-	-	-	- 85.1	- 85.1	- 9.4	- 94.5
Balance at 1 January 2019	63.9	194.4	- 7.3	- 124.5	2,471.2	2,597.7	152.1	2,749.8
Net profit	-	-	-	-	190.4	190.4	18.7	209.1
Other comprehensive income, net of tax	-	-	-	- 10.9	- 5.1	- 16.0	2.0	- 14.0
Total comprehensive income	-	-	-	- 10.9	185.3	174.4	20.7	195.1
Step-acquisition subsidiaries	-	-	-	-	-	-	1.9	1.9
Dividend paid in cash	-	-	-	-	- 140.5	- 140.5	- 19.3	- 159.8
Purchase treasury shares	-	-	- 2.6	-	-	- 2.6	-	- 2.6
Measurement of equity-settledshare-based payment arrangements	-	-	-	-	0.2	0.2	-	0.2
Vested shares under equity-settledshare-based payment arrangements	-	-	1.0	-	- 1.0	-	-	-
Total transactions with owners	-	-	- 1.6	-	- 141.3	- 142.9	- 17.4	- 160.3
Balance at 30 June 2019	63.9	194.4	- 8.9	- 135.4	2,515.2	2,629.2	155.4	2,784.6
Balance at 31 December 2019	63.9	194.4	- 8.9	- 105.9	2,903.8	3,047.3	147.8	3,195.1
Net profit	-	-	-	-	197.4	197.4	15.6	213.0
Other comprehensive income, net of tax	-	-	-	- 88.5	-	- 88.5	- 8.3	- 96.8
Total comprehensive income	-	-	-	- 88.5	197.4	108.9	7.3	116.2
Dividend paid in cash	-	-	-	-	- 146.1	- 146.1	- 11.8	- 157.9
Purchase treasury shares	-	-	- 54.9	-	-	- 54.9	-	- 54.9
Measurement of equity-settledshare-based payment arrangements	-	-	-	-	1.9	1.9	-	1.9
Vested shares under equity-settledshare-based payment arrangements	-	-	1.9	-	- 4.0	- 2.1	-	- 2.1
Total transactions with owners	-	-	- 53.0	-	- 148.2	- 201.2	- 11.8	- 213.0
Balance at 30 June 2020	63.9	194.4	- 61.9	- 194.4	2,953.0	2,955.0	143.3	3,098.3

26 | Vopak | Half year report 2020 | Interim Financial Statements

Consolidated Statement of Cash Flows

In EUR millions	HY1 2020	HY1 2019		In EUR millions	HY1 2020	HY1 2019
Cash flows from operating activities (gross)	407.4	351.7		Financing:
Interest received	2.7	0.5		Repayment of interest-bearing loans	- 345.0	- 98.2
Dividend received from investments	-	1.7		Proceeds from interest-bearing loans	300.5	144.0
Income tax paid	- 9.4	- 33.1		Repayment of lease liabilities	- 15.8	- 15.3
Cash flows from operating activities (net)	400.7	320.8		Interest expenses paid on lease liabilities	- 10.5	- 11.3
Investments:				Finance costs paid	- 49.2	- 48.4
Intangible assets	- 13.6	- 12.0		Settlement of derivative financial instruments	30.2	18.4
Property, plant and equipment - growth capex	- 194.7	- 154.5		Dividend paid in cash	- 146.1	- 140.5
Property, plant and equipment - sustaining,	- 118.2	- 113.2		Dividend paid to non-controlling interests	- 11.8	- 19.3
service improvement and IT capex		Purchase treasury shares	- 54.9	- 2.6
Joint ventures and associates	- 43.2	- 41.6
	Proceeds and repayments in short-term financing	102.0	197.0
Other equity investments	- 6.6	-
	Cash flows from financing activities	- 200.6	23.8
Loans granted	- 1.9	- 1.9
	Net cash flows	58.5	12.8
Other non-current assets	- 0.3	- 0.2
Acquisitions of subsidiaries including goodwill	-	1.5		Exchange rate differences	- 1.4	0.3
Acquisitions of joint ventures and associates	-	- 17.6		Net change in cash and cash equivalents due to assets held for sale	2.5	- 4.5
Total investments	- 378.5	- 339.5		Net change in cash and cash equivalents	59.6	8.6
Disposals and repayments:				(including bank overdrafts)

Property, plant and equipment	0.5	0.7		Net cash and cash equivalents (including bank overdrafts)	88.0	54.6
Joint ventures and associates	101.7	10.2		at 1 January

Finance lease receivable	2.4	2.4		Net cash and cash equivalents (including bank overdrafts)	147.6	63.2
Assets held for sale/divestments	131.3	-		at 30 June

Total disposals and repayments	235.9	13.3
Cash flows from investing activities (excluding derivatives)	- 142.6	- 326.2
Settlement of derivatives (net investment hedges)	1.0	- 5.6
Cash flows from investing activities (including derivatives)	- 141.6	- 331.8

27 | Vopak | Half year report 2020 | Interim Financial Statements

Segmentation

Statement of income

					Asia &	of which							of which					Global functions
			of which	China &	Europe &						and corporate
	Americas	United States	Middle East	Singapore	North Asia	Africa		Netherlands		LNG		activities		Total
In EUR millions
HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019		HY1 2020	HY1 2019		HY1 2020	HY1 2019		HY1 2020	HY1 2019		HY1 2020	HY1 2019
Revenues	163.5	152.6	94.2	94.8	147.9	161.0	114.9	125.0		20.2	20.3		254.9	305.7	198.1	218.3		-	-	2.8	1.8	589.3	641.4
Other operating income	1.4	-	-	-	6.1	5.6	0.6	1.0		1.5	1.3		0.8	3.2	0.9	1.5	1.9	2.0	0.1	-	11.8	12.1
Operating expenses	- 74.7	- 74.9	- 43.5	- 44.4	- 47.8	- 48.1	- 31.5	- 32.8		- 9.7	- 9.6		- 131.7	- 150.6	- 98.5	- 102.7	- 4.7	- 4.6	- 26.7	- 20.0	- 295.3	- 307.8
Result joint ventures	6.1	2.1	0.1	0.4	48.9	34.8	0.4	0.3		15.5	17.2		1.5	1.2	0.4	0.3	24.8	21.7		-	- 0.1	96.8	76.9
and associates
EBITDA	96.3	79.8	50.8	50.8	155.1	153.3	84.4	93.5		27.5	29.2		125.5	159.5	100.9	117.4	22.0	19.1	- 23.8	- 18.3	402.6	422.6
Depreciation and amortization	- 31.7	- 27.5	- 16.4	- 14.8	- 31.1	- 31.8	- 22.4	- 23.5		- 5.9	- 5.8		- 69.0	- 75.4	- 52.4	- 53.9		-	-	- 8.1	- 7.7	- 145.8	- 148.2
EBIT excluding exceptional
items	64.6	52.3	34.4	36.0	124.0	121.5	62.0	70.0		21.6	23.4		56.5	84.1	48.5	63.5	22.0	19.1	- 31.9	- 26.0	256.8	274.4
Exceptional items	-	-			-	-				33.0	1.1		- 1.7	16.4					-	-		-	-	31.3	17.5
EBIT including exceptional

items	64.6	52.3			124.0	121.5				54.6	24.5		54.8	100.5				22.0	19.1	- 31.9	- 26.0	288.1	291.9
Reconciliation consolidated net profit
Net finance costs																								- 43.4	- 43.1
Profit before income tax																								244.7	248.8
Income tax																								- 31.7	- 39.7
Net profit																								213.0	209.1
Non-controlling interests																								- 15.6	- 18.7
Net profit holders of ordinary shares																							197.4	190.4
Occupancy rate subsidiaries	91%	90%			87%	86%				77%	81%		85%	83%										86%	85%

Statement of financial position


					Asia &	of which								of which					Global functions
			of which		China &	Europe &						and corporate
	Americas	United States	Middle East	Singapore		North Asia	Africa		Netherlands		LNG			activities		Total
In EUR millions
30-Jun-2031-Dec-19	30-Jun-2031-Dec-19	30-Jun-2031-Dec-19	30-Jun-2031-Dec-19 30-Jun-2031-Dec-19 30-Jun-2031-Dec-19 30-Jun-2031-Dec-19 30-Jun-2031-Dec-19		30-Jun-2031-Dec-19		30-Jun-2031-Dec-19

Assets of subsidiaries	1,097.2	1,066.7	451.0	404.3	1,282.8	1,282.0		853.4	883.1	226.6	220.9		2,301.7	2,265.4	1,654.9	1,477.0	10.1	1.2	349.7	264.5	5,268.1	5,100.7
Joint ventures and associates	148.4	140.0	63.7	49.7	395.8	472.4		0.9	1.2	284.6	287.1		20.5	19.1	1.9	1.6	358.8	354.7		-	- 0.5	1,208.1	1,272.8

Total assets	1,245.6	1,206.7	514.7	454.0	1,678.6	1,754.4	854.3	884.3	511.2	508.0	2,322.2	2,284.5	1,656.8	1,478.6	368.9	355.9	349.7	264.0	6,476.2	6,373.5
Total liabilities	257.7	252.3	154.9	126.4	601.7	616.5	458.2	487.7	37.9	36.1	558.1	412.8	414.1	258.3	2.1	1.8	1,920.4	1,858.9	3,377.9	3,178.4

28 | Vopak | Half year report 2020 | Interim Financial Statements

Notes to the Interim Consolidated Financial Statements

1. General

Koninklijke Vopak N.V. ('Vopak') is a listed company registered in the Netherlands with activities in 23 countries. These interim consolidated financial statements for the first half year of 2020 contain the figures of the company and its subsidiaries (jointly referred to as the 'Group'), as well as the interests of the Group in joint ventures and associates.

The Executive Board approved these interim consolidated financial statements on 28 July 2020.

1.1 Basis of preparation

These interim consolidated financial statements for the six months period ended

30 June 2020 have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not contain all the information and disclosures required in the annual financial statements and should be read in conjunction with the audited financial statements included in the 2019 Annual Report, which have been prepared in accordance with IFRS as adopted by the European Union.

1.2 New standards, interpretations and amendments adopted by the Group

The applied accounting principles adopted in the preparation of the interim consolidated financial statements are consistent with those described in Vopak's 2019 Annual Report.

The group did not implement any other new standards, amendments to existing standards or new IFRIC interpretations that materially impact the consolidated financial statements of the Group for the financial year 2020.

1.3 New standards not yet adopted by the Group

There are no new standards, amendments to existing standards or new IFRIC interpretations that are not yet effective that are expected to have a material impact on the Group.

1.4 Critical accounting estimates and judgments

The preparation of the interim consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these interim consolidated financial statements, the significant estimates and judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2019, except for the following:

(a) Taxes

Taxes on income in the interim consolidated financial statements are accrued using the weighted average tax rates that would be applicable to the expected annual profit before income tax.

(b) Recoverable value of non-current assets

The carrying amount of goodwill is tested for impairment annually in the fourth quarter unless there is a reason to do so more frequently. All other non-current assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amounts of those assets may not be recoverable.

There were no impairments recognized in the first half year of 2020.

There were no assets held for sale as at the end of the first half year of 2020.

Changes in judgments and estimates with regards to legal cases and other provisions
There were no material changes in the facts and circumstances after year-end 2019 regarding certain legal cases and other provisions, other than disclosed in note 11.
Key accounting considerations related to COVID-19

The COVID-19 pandemic did not significantly affect operational and financial performance, cash flows and the financial position of the Vopak Group. As a result, the interim consolidated financial statements were not materially affected by the pandemic.

29 | Vopak | Half year report 2020 | Interim Financial Statements

2. Acquisitions, divestments and newly established entities

During the first half of 2020, there were no material changes in the composition of the Vopak Group, apart from the earlier announced divestment of its 100% shareholding in the terminal in Algeciras, Spain which was completed on 31 January 2020.

For a list of the principal subsidiaries, joint ventures, associates and investments, we refer to note 9.11 of the 2019 Annual Report.

3. Financial risk management

The Group's financial risk management objectives and policies are consistent with those disclosed in Section 6 Financial risk management of the 2019 Annual Report.

The interim consolidated financial statements do not contain all financial risk management information and disclosures required in the annual financial statements.

3.1 Financial instruments

Set out below is an overview of carrying amounts and fair values of financial instruments held by the Group as at 30 June 2020.

Where available, fair value measurements are derived from quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1). In the absence of such information, other observable inputs, either directly (i.e. as prices) or indirectly (i.e. derived from prices), are used to estimate fair values (level 2). Level 3 is based on valuation techniques for which the lowest input that is significant to the fair value measurement is unobservable.

During the six-month period ended 30 June 2020, almost all fair values of financial instruments measured at fair value in the statement of financial position are level 2 fair values. There are no material level 1 or level 3 financial instruments. Therefore, there were no material transfers between level 1 and level 2 fair value measurements and no material transfers into or out of level 3 fair value measurement.

The disclosed fair value of the Private Placements, revolving credit facility and other long-term bank loans are measured by discounting the future cash flows using observable market interest information (level 2) as no similar instrument is available due to the specific profile of the instruments.

The fair value of interest rate swaps, cross currency interest rate swaps and forward exchange contracts are determined by discounting the future cash flows using the applicable period-end yield curve (level 2).

There were no changes in valuation techniques used during the periods.

	HY1 2020
In EUR millions	Carrying amount	Fair value
Currency derivatives	- 6.4	- 6.4
Other financial assets	36.6	36.6
Financial instruments at fair value	30.2	30.2
Loans granted	87.9	87.9
Finance lease receivable	27.9	27.9
Trade and other receivables	336.6	336.6
Cash and cash equivalents	150.9	150.9
Loans and receivables	603.3	603.3
US Private Placements	- 1,105.5	- 1,337.2
Asian Private Placements	- 165.4	- 226.8
Bank loans	- 71.9	- 73.8
Lease liabilities	- 691.7	- 691.7
Credit facility and other long-term loans	- 283.5	- 287.5
Bank overdrafts and short-term borrowings	- 283.3	- 283.3
Trade creditors	- 61.2	- 61.2
Other creditors	- 98.6	- 98.6
Other financial liabilities	- 2,761.1	- 3,060.1
Net at amortized cost	- 2,157.8	- 2,456.8
Standby credit facility		781.2
Standby bank loans		125.0
Unrecognized financial instruments		906.2

30 | Vopak | Half year report 2020 | Interim Financial Statements

3.2 Liquidity risk

The Group's net interest bearing debt (including lease liabilities) position at 30 June 2020 amounted to EUR 2,450.4 million (31 December 2019: EUR 2,335.3 million).

The Senior net debt : EBITDA ratio increased to 2.81 compared to 2.75 per year-end 2019, which is well below the maximum agreed ratios in the covenants with the lenders.

The available credit facilities of the group are listed in the table below:

			30-Jun-2020			31-Dec-2019
In EUR millions	Maturity	Total facility 1	Used	Unused	Total facility 1	Used	Unused
Royal Vopak - Revolving credit facility	< 3 years	1,000.0	250.0	750.0	1,000.0	100.0	900.0
VTS - Revolving credit facility	< 1 year	63.8	32.6	31.2	66.2	39.7	26.5
Total committed facilities		1,063.8	282.6	781.2	1,066.2	139.7	926.5
Royal Vopak - Bank loan facility	< 1 year	405.0	280.0	125.0	330.0	178.0	152.0
Total uncommitted facilities		405.0	280.0	125.0	330.0	178.0	152.0
Total facilities		1,468.8	562.6	906.2	1,396.2	317.7	1,078.5
1 At nominal value.

4. Exceptional items

In EUR millions	HY1 2020	HY1 2019
Gain on sale of Hainan Yangpu	33.0	-
Loss on sale of Algeciras	- 1.7	-
Step-acquisition 35% Ningbo	-	1.1
Gain on sale of Vopak EOS	-	16.7
Expenses related with sale of Vopak EOS	-	- 0.3

The items in the statement of income include items related to events that are exceptional by nature from a management perspective. For the definition of exceptional items applied by the company, reference is made to the Glossary of the 2019 Annual Report.

The material exceptional items are disclosed separately in the notes when relevant in order to increase transparency.

Total effect on net profit

31.3

17.5

31 | Vopak | Half year report 2020 | Interim Financial Statements

First half year 2020:

On 31 January 2020, Vopak completed the earlier announced divestment of its 100% shareholding in the terminal in Algeciras, Spain, generating a cash inflow of EUR 135 million. The recognized exceptional loss before taxation was EUR 1.7 million. This completed the divestment program of the terminals in Algeciras, Amsterdam and Hamburg with a total exceptional gain of EUR 200 million recognized in the periods 2019 and Q1 2020.

In Q2 2020, Vopak recognized the remaining consideration of EUR 33 million relating to the December 2019 divestment of its 49% equity share in the joint venture Vopak SDIC Yangpu Terminal in Hainan, China. Of this amount, EUR 16.3 million

is expected to be received in the second half of 2020.

First half year 2019:

On 3 April 2019, Vopak completed the divestment of its 50% share in the Estonian terminal Vopak E.O.S. (Europe & Africa division) resulting in an exceptional gain of EUR 16.4 million (including transaction expenses), which was fully recognized in EBITDA

in the second quarter of 2019. This divestment was the outcome of the earlier announced strategic review.

The step-acquisition from 50% to 85% of Vopak Terminal Ningbo (China & North Asia division) by means of which the Group obtained control over the entity, resulted in a minor exceptional item of EUR 1.1 million.

Reconciliation of IFRS figures to income statement -excluding exceptional items-

		HY1 2020		HY1 2019
			Excluding	Excluding
		Exceptional	exceptional	exceptional
In EUR millions	IFRS figures	items	items	items
Revenues	589.3	-	589.3	641.4
Other operating income	44.8	33.0	11.8	12.1
Total operating income	634.1	33.0	601.1	653.5
Personnel expenses	- 167.2	-	- 167.2	- 167.7
Other operating expenses	- 129.8	- 1.7	- 128.1	- 140.1
Result joint ventures and associates	96.8	-	96.8	76.9
Group operating profit before depreciation	433.9	31.3	402.6	422.6
and amortization (EBITDA)
Depreciation and amortization	- 145.8	-	- 145.8	- 148.2
Group operating profit	288.1	31.3	256.8	274.4
Interest and dividend income	2.9	-	2.9	4.2
Finance costs	- 46.3	-	- 46.3	- 47.3
Net finance costs	- 43.4	-	- 43.4	- 43.1
Profit before income tax	244.7	31.3	213.4	231.3
Income tax	- 31.7	-	- 31.7	- 39.7
Net profit	213.0	31.3	181.7	191.6
Non-controlling interests	- 15.6	-	- 15.6	- 18.7
Net profit holders of ordinary shares	197.4	31.3	166.1	172.9
Basic earnings per ordinary share (in EUR)	1.55		1.31	1.35
Diluted earnings per ordinary share (in EUR)	1.55		1.30	1.35

32 | Vopak | Half year report 2020 | Interim Financial Statements

5. Revenues

The table below provides an overview of the revenue per type of service that the Group provides to its customers.

In EUR millions	HY1 2020	HY1 2019
Storage services	468.2	506.1
Product movements	49.1	55.1
Storage and handling related services	42.1	54.7
Other services	29.9	25.5
Revenues	589.3	641.4

The table below provides an overview of the revenues per product type per reportable segment (product-market combinations).

	Americas	Asia & Middle East	China & North Asia	Europe & Africa	Others	Total
In EUR millions	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019
Chemical products	78.8	81.9	64.0	72.8	19.5	20.0	89.5	90.3	-	-	251.8	265.0
Oil products	61.0	46.9	71.0	73.7	0.6	0.2	110.5	157.3	-	-	243.1	278.1
Vegoils & biofuels	17.8	17.8	1.2	1.8	-	-	30.3	32.8	-	-	49.3	52.4
Gas products	-	-	4.8	4.7	0.1	0.1	16.1	15.6	-	-	21.0	20.4
Others	5.9	6.0	6.9	8.0	-	-	8.5	9.7	2.8	1.8	24.1	25.5
Revenues	163.5	152.6	147.9	161.0	20.2	20.3	254.9	305.7	2.8	1.8	589.3	641.4

33 | Vopak | Half year report 2020 | Interim Financial Statements

6. Intangible assets, property, plant & equipment -owned assets- and financial assets

		Property, plant
		and equipment
In EUR millions	Intangible assets	-owned assets-	Financial assets
Carrying amount at 31 December 2019	164.8	3,640.8	1,418.1
Additions	14.1	301.1	38.3
Disposals	-	- 0.5	-
Reclassifications	1.1	- 1.1	-
Depreciation and amortization	- 7.6	- 119.6	-
Share in result of joint ventures	-	-	96.8
Dividends received	-	-	- 77.6
Loans granted	-	-	14.0
Finance lease interest income	-	-	2.4
Repayments	-	-	- 2.5
Redemption share capital	-	-	- 85.2
Other comprehensive income	-	-	- 18.1
Exchange rate differences	- 1.8	- 125.5	- 25.7

Carrying amount at 30 June 2020	170.6	3,695.2	1,360.5

Total investments in property, plant and equipment (including capitalized interest) during the first half year of 2020 were EUR 301.1 million (HY1 2019: EUR 278.7 million).

34 | Vopak | Half year report 2020 | Interim Financial Statements

7. Leases

Set out below, are the carrying amounts of the Group's leased (right of use) assets and lease liabilities and the movements during the period.

			Tankstorage	Machinery &	Total
In EUR millions	Land	Buildings	terminals	equipment	leased assets	Lease liabilities
Carrying amount at 31 December 2019	464.7	26.4	6.0	5.9	503.0	- 564.9
Additions	60.8	0.5	-	4.3	65.6	- 65.6
Reclassifications	3.7	-	-	-	3.7	-
Depreciation	- 14.0	- 2.4	- 0.2	- 2.0	- 18.6	-
Remeasurement	92.0	0.4	-	-	92.4	- 92.4
Unwinding interest	-	-	-	-	-	- 10.5
Lease payments	-	-	-	-	-	26.3
Exchange rate differences	- 11.4	- 0.2	- 0.1	-	- 11.7	15.4
Carrying amount at 30 June 2020	595.8	24.7	5.7	8.2	634.4	- 691.7

The total cash outflows for leases amounted to EUR 30.5 million (HY1 2019: EUR 32.3 million). The weighted average incremental borrowing rate applied to the lease liabilities (including those classified as held for sale) recognized at the end of the first half year of 2020 was 3.4% (HY1 2019: 3.6%). The remaining weighted average lease term was 26.2 years at 30 June 2020 (HY1 2019: 27.1 years).

Set out below are the amounts recognized in the income statement during the period:

In EUR millions	HY1 2020	HY1 2019
Depreciation expenses of leased assets	18.6	16.9
Interest expenses on lease liabilities	10.5	11.3
Lease expenses - low-value assets leases	0.4	0.6
Lease expenses - short-term leases	3.3	3.9
Lease expenses - variable lease payments	0.5	1.2
Total	33.3	33.9

Lease payments associated with short-term leases and low-value leases are recognized as an expense on a straight-line basis over the lease term.

35 | Vopak | Half year report 2020 | Interim Financial Statements

8. Joint ventures and associates

Vopak holds interests in 25 (31 December 2019: 25) unlisted joint ventures and 8

(31 December 2019: 8) unlisted associates. Although the Group conducts a large part of its activities by means of these joint ventures and associates, none of these entities are currently individually material for the Group.

For an overview of the principal joint ventures and associates, we refer to note 9.11 of the 2019 Annual Report.

8.1 Movements in Vopak's share of total comprehensive income and the carrying amount of joint ventures and associates

Vopak's share in the total comprehensive income and the net assets of our joint ventures and associates is as follows:

	Joint ventures		Associates		Total
In EUR millions	2020	2019	2020	2019	2020	2019
Vopak's share in net assets	721.6	700.7	473.9	309.0	1,195.5	1,009.7
Goodwill on acquisition	66.9	66.1	10.4	5.9	77.3	72.0
Initial application IFRS 16	-	- 21.1	-	- 11.1	-	- 32.2
Carrying amount at 1 January	788.5	745.7	484.3	303.8	1,272.8	1,049.5
Share in profit or loss	61.7	52.8	35.1	24.1	96.8	76.9
Other comprehensive income	2.2	- 3.6	- 20.2	- 15.8	- 18.0	- 19.4
Total comprehensive income	63.9	49.2	14.9	8.3	78.8	57.5
Dividends received	- 35.7	- 42.6	- 41.9	-	- 77.6	- 42.6
Investments	35.2	6.1	3.1	21.8	38.3	27.9
Acquisitions	-	-	-	17.6	-	17.6
Redemption share capital	-	-	- 85.2	-	- 85.2	-
Step-acquisition	-	- 6.7	-	-	-	- 6.7
Exchange differences	- 13.2	6.3	- 5.8	4.1	- 19.0	10.4
Carrying amount at 30 June	838.7	758.0	369.4	355.6	1,208.1	1,113.6
Vopak's share in net assets	772.0	691.5	359.1	349.9	1,131.1	1,041.4
Goodwill on acquisition	66.7	66.5	10.3	5.7	77.0	72.2
Carrying amount at 30 June	838.7	758.0	369.4	355.6	1,208.1	1,113.6

36 | Vopak | Half year report 2020 | Interim Financial Statements

8.2 Other arrangements in respect of joint ventures and associates

The Group has the following commitments and contingencies with regards to its joint ventures and associates:

The notional amount of guarantees and securities provided on behalf of participating interests in joint ventures and associates, included in the calculation of the bank covenant ratios, was EUR 84.0 million at 30 June 2020 (31 December 2019: EUR 87.1 million).

Of this amount per 30 June 2020 nil (31 December 2019: nil) was recognized in the statement of financial position.

	Joint ventures	Associates		Total
In EUR millions	30-Jun-20	31-Dec-19	30-Jun-20	31-Dec-19	30-Jun-20	31-Dec-19
Commitments to provide debt or equity funding	78.2	117.5	-	8.6	78.2	126.1
Guarantees and securities provided	104.4	107.4	17.6	11.4	122.0	118.8

8.3 Summarized statement of financial position of joint ventures and associates on a 100% basis

													Total
			Asia &	China &							joint ventures	Of which	Of which
	Americas	Middle East	North Asia	Europe & Africa	LNG	Other		and associates	joint ventures	associates
In EUR millions	30-Jun-2031-Dec-19	30-Jun-2031-Dec-19	30-Jun-2031-Dec-19	30-Jun-2031-Dec-19	30-Jun-2031-Dec-19	30-Jun-2031-Dec-19	30-Jun-2031-Dec-19	30-Jun-2031-Dec-19	30-Jun-2031-Dec-19

Non-current assets	534.9	479.8	3,031.2	3,054.4	728.7	700.3	203.5	205.4	2,104.7	2,137.5	-	-	6,603.0	6,577.4	3,191.5	3,190.5	3,411.5	3,386.9
Cash and cash equivalents	14.2	14.1	318.2	574.0	102.1	119.0	13.2	11.0	90.9	119.6	-	-	538.6	837.7	228.5	219.5	310.1	618.2
Other current assets	8.9	11.5	307.9	268.2	113.8	135.9	19.8	22.2	76.8	53.3	-	-	527.2	491.1	268.2	206.3	259.0	284.8

Total assets	558.0	505.4	3,657.3	3,896.6	944.6	955.2	236.5	238.6	2,272.4	2,310.4	-	-	7,668.8	7,906.2	3,688.2	3,616.3	3,980.6	4,289.9
Financial non-current liabilities	22.8	21.1	1,687.3	1,784.9	154.1	162.1	153.8	155.5	1,258.5	1,328.1	-	-	3,276.5	3,451.7	1,165.6	1,234.5	2,110.9	2,217.2
Other non-current liabilities	-	-	349.3	146.4	30.7	29.9	13.9	13.9	261.6	260.7	-	0.8	655.5	451.7	338.6	219.2	316.9	232.5
Financial current liabilities	-	-	104.5	107.4	25.6	23.2	12.3	17.0	87.0	85.0	-	-	229.4	232.6	129.7	133.2	99.7	99.4
Other current liabilities	64.8	23.8	388.3	433.8	118.3	89.9	11.8	11.1	80.7	56.7	-	0.2	663.9	615.5	331.0	408.9	332.9	206.6
Total liabilities	87.6	44.9	2,529.4	2,472.5	328.7	305.1	191.8	197.5	1,687.8	1,730.5	-	1.0	4,825.3	4,751.5	1,964.9	1,995.8	2,860.4	2,755.7
Net assets	470.4	460.5	1,127.9	1,424.1	615.9	650.1	44.7	41.1	584.6	579.9	-	- 1.0	2,843.5	3,154.7	1,723.3	1,620.5	1,120.2	1,534.2
Vopak's share of net assets	148.4	140.0	390.3	466.8	278.3	280.7	20.5	19.1	293.6	289.4	-	- 0.5	1,131.1	1,195.5	772.0	721.6	359.1	473.9
Goodwill on acquisition	-	-	5.5	5.6	6.3	6.4	-	-	65.2	65.3	-	-	77.0	77.3	66.7	66.9	10.3	10.4

Vopak's carrying amount of net assets

148.4 140.0 395.8 472.4 284.6

287.1

20.5

19.1 358.8 354.7

- 0.5 1,208.1 1,272.8 838.7 788.5 369.4 484.3

37 | Vopak | Half year report 2020 | Interim Financial Statements

8.4 Summarized statement of total comprehensive income of joint ventures and associates on a 100% basis

													Total
			Asia &	China &							joint ventures	Of which	Of which
	Americas	Middle East	North Asia	Europe & Africa	LNG	Other	and associates	joint ventures	associates
In EUR millions	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019

Revenues	19.2	5.8	336.0	288.6	98.4	107.3	23.9	29.8	166.2	160.5	-	-	643.7	592.0	363.8	354.2	279.9	237.8
Other income	17.4	4.4	2.0	3.0	2.2	2.8	- 0.3	0.1	37.7	0.1	-	0.5	59.0	10.9	1.9	3.0	57.1	7.9
Operating expenses	- 17.8	- 5.2	- 68.1	- 67.9	- 22.8	- 26.7	- 8.2	- 14.5	- 44.7	- 56.6	0.1	- 0.8	- 161.5	- 171.7	- 88.0	- 96.2	- 73.5	- 75.5
EBITDA	18.8	5.0	269.9	223.7	77.8	83.4	15.4	15.4	159.2	104.0	0.1	- 0.3	541.2	431.2	277.7	261.0	263.5	170.2
Depreciation and amortization	- 0.4	- 0.2	- 73.4	- 68.9	- 23.0	- 26.0	- 6.4	- 6.9	- 48.8	- 27.4	-	-	- 152.0	- 129.4	- 81.7	- 84.3	- 70.3	- 45.1
Operating profit (EBIT)	18.4	4.8	196.5	154.8	54.8	57.4	9.0	8.5	110.4	76.6	0.1	- 0.3	389.2	301.8	196.0	176.7	193.2	125.1
Net finance costs	1.7	1.3	- 26.0	- 32.0	- 3.3	- 0.5	- 4.5	- 4.8	- 38.8	- 22.1	-	-	- 70.9	- 58.1	- 18.9	- 25.8	- 52.0	- 32.3
Income tax	- 0.1	- 0.1	- 20.1	- 14.6	- 14.9	- 16.4	- 0.8	- 0.6	- 24.8	- 13.4	-	-	- 60.7	- 45.1	- 42.5	- 37.1	- 18.2	- 8.0
Net profit	20.0	6.0	150.4	108.2	36.6	40.5	3.7	3.1	46.8	41.1	0.1	- 0.3	257.6	198.6	134.6	113.8	123.0	84.8
Other comprehensive income	-	-	- 79.7	- 60.0	-	-	-	-	6.2	- 6.8	-	-	- 73.5	- 66.8	2.8	- 7.1	- 76.3	- 59.7
Total comprehensive income	20.0	6.0	70.7	48.2	36.6	40.5	3.7	3.1	53.0	34.3	0.1	- 0.3	184.1	131.8	137.4	106.7	46.7	25.1
Vopak's share of net profit	6.1	2.1	48.9	34.8	15.5	17.2	1.5	1.2	24.8	21.7	-	- 0.1	96.8	76.9	61.7	52.8	35.1	24.1
Vopak's share of other comprehensive
income	-	-	- 21.5	- 16.0	-	-	-	-	3.5	- 3.4	-	-	- 18.0	- 19.4	2.2	- 3.6	- 20.2	- 15.8
Vopak's share of total comprehensive
income	6.1	2.1	27.4	18.8	15.5	17.2	1.5	1.2	28.3	18.3	-	- 0.1	78.8	57.5	63.9	49.2	14.9	8.3

The information above reflects the amounts present in the financial statements of the joint ventures and associates adjusted for differences in accounting policies between the group and the joint ventures and associates and, when applicable, the effects of the purchase price allocation performed by the Group with regards to the acquisition of the joint venture or associate.

38 | Vopak | Half year report 2020 | Interim Financial Statements

9. Issued capital, share premium and treasury shares

Movements in the number of shares, the issued capital and the share premium were as follows:

			Numbers			Amounts in EUR millions
		Issued	Financing		Treasury	Issued	Share	Treasury
		ordinary shares	preference shares	Total shares	shares	capital	premium	shares
Balance at 31	December 2018	127,835,430	-	127,835,430	- 170,597	63.9	194.4	- 7.3
Purchase treasury shares	-	-	-	- 65,370	-	-	- 2.6
Vested shares under equity-settledshare-based payment arrangements	-	-	-	25,983	-	-	1.0
Balance at 30	June 2019	127,835,430	-	127,835,430	- 209,984	63.9	194.4	- 8.9
Balance at 31	December 2019	127,835,430	-	127,835,430	- 209,984	63.9	194.4	- 8.9
Purchase treasury shares1	-	-	-	-1,145,247	-	-	- 54.9
Vested shares under equity-settledshare-based payment arrangements	-	-	-	44,248	-	-	1.9
Balance at 30	June 2020	127,835,430	-	127,835,430	-1,310,983	63.9	194.4	- 61.9

1 All treasury shares purchased in 2020 relate to the share buyback program.

A dividend of EUR 1.15 per ordinary share (HY1 2019: EUR 1.10 per ordinary share) with

a nominal value of EUR 0.50, or EUR 146.1 million in total (HY1 2019: EUR 140.5 million), was paid in cash on 29 April 2020.

Share-based payments arrangements:

During the first half year of 2020, 44,248 (2019: 25,983) shares were transferred to employees in relation to the settlement of Long-Term Incentive Plans. In 2020 a new Long-Term Incentive Plan, for the period 2020-2022, has been granted to the Executive Board and senior management.

Share buyback transaction:

On 12 February 2020, Vopak announced the start of a share buyback program to return EUR 100 million to shareholders. The share buyback program started on 13 February 2020 and is expected to be completed within 2020. At the end of HY1 2020, 55% was completed. The share buyback program is executed with the intention to reduce the issued capital.

39 | Vopak | Half year report 2020 | Interim Financial Statements

10. Borrowings

10.1 Net debt reconciliation

The movements in the net interest-bearing debt were as follows:

	Cash and cash	Short-term	Interest-	Net interest-	Interest-bearing loans	Total interest-
In EUR millions	equivalents	borrowings	bearing loans	bearing debt	- lease liabilities	bearing debt
Carrying amount at 31 December 2018	54.6	- 59.0	- 1,820.6	- 1,825.0	-	- 1,825.0
Initial application IFRS 16	-	-	23.1	23.1	- 677.6	- 654.5
Carrying amount at 1 January 2019	54.6	- 59.0	- 1,797.5	- 1,801.9	- 677.6	- 2,479.5
Cash flows	12.8	- 197.0	- 45.8	- 230.0	26.6	- 203.4
Other non-cash movements	- 4.5	-	22.6	18.1	68.1	86.2
Exchange rate differences	0.3	-	- 16.8	- 16.5	- 5.2	- 21.7
Carrying amount at 30 June 2019	63.2	- 256.0	- 1,837.5	- 2,030.3	- 588.1	- 2,618.4
Carrying amount at 31 December 2019	88.0	- 178.0	- 1,680.4	- 1,770.4	- 564.9	- 2,335.3
Cash flows	58.5	- 102.0	44.5	1.0	26.3	27.3
Other non-cash movements	2.5	-	- 0.6	1.9	- 168.5	- 166.6
Exchange rate differences	- 1.4	-	10.2	8.8	15.4	24.2
Carrying amount at 30 June 2020	147.6	- 280.0	- 1,626.3	- 1,758.7	- 691.7	- 2,450.4
Current assets	150.9	-	-	150.9	-	150.9
Non-current liabilities	-	-	- 1,530.9	- 1,530.9	- 660.4	- 2,191.3
Current liabilities	- 3.3	- 280.0	- 95.4	- 378.7	- 31.3	- 410.0
Carrying amount at 30 June 2020	147.6	- 280.0	- 1,626.3	- 1,758.7	- 691.7	- 2,450.4

During the first half year of 2020, EUR 345.0 million (HY1 2019: EUR 98.2 million) of debt repayments took place.

40 | Vopak | Half year report 2020 | Interim Financial Statements

10.2 Debt overview

		Interest-bearing loans
								Interest-bearing
								loans - lease	Total interest-
In EUR millions	USPPs	Asian PPs	VTS Bankloan	RCFs	Other	Bank loans	Total	liabilities	bearing loans
Non-current	1,123.2	164.0	-	100.0	7.3	-	1,394.5	534.7	1,929.2
Current	180.0	-	66.2	39.7	-	178.0	463.9	30.2	494.1
Carrying amount at 31 December 2019	1,303.2	164.0	66.2	139.7	7.3	178.0	1,858.4	564.9	2,423.3
Average remaining terms (in years)	4.5	21.0	0.7	2.6	3.1	-	5.2	26.6
Non-current	1,106.5	165.4	-	250.0	9.0	-	1,530.9	660.4	2,191.3
Current	- 1.0	-	63.8	32.6	-	280.0	375.4	31.3	406.7
Carrying amount at 30 June 2020	1,105.5	165.4	63.8	282.6	9.0	280.0	1,906.3	691.7	2,598.0
Average remaining terms (in years)	4.7	20.5	0.2	2.6	2.3	-	5.6	26.2
Required ratios
Senior net debt : EBITDA (maximum)	3.75	3.75	3.75	3.75	3.75	3.75
Interest cover (minimum)1	3.5	3.5	3.5	3.5	3.5	3.5

1 Interest cover is the ratio of the EBITDA and the net finance costs.

Reference is made to the subsequent events for more details on new financing arrangements obtained in July 2020.

41 | Vopak | Half year report 2020 | Interim Financial Statements

10.3 Financial ratios reconciliation			12. Related party disclosures
In EUR millions	HY1 2020	HY1 2019	For the details on the nature of the Group's related parties, reference is made to section
7.3 in our 2019 Annual Report. No significant changes have occurred in the nature of our
EBITDA past 12 months	1,032.4	827.8
related party transactions.
-/- Result joint ventures and associates	196.5	140.4

+ Gross dividend received from joint ventures and associates	108.9	72.7	There were no changes in arrangements with major shareholders in addition to the ones
+ IFRS 16 adjustment in operating expenses for former operating
		disclosed in the 2019 Annual Report. Besides the dividend distribution, no related party
leases	- 53.6	- 25.5
-/- Exceptional items	222.7	41.8	transactions have been entered into with the major shareholders during the first half of
-/- Divestments full year adjustment	22.2	-	this year.

EBITDA for ratio calculation	646.3	692.8
Total interest-bearing debt	- 2,450.4	- 2,618.4
-/- IFRS 16 adjustment in lease liabilities for former operating leases	- 691.7	- 565.0
+	Derivative financial instruments (currency)	26.3	59.6
+	Credit replacement guarantees	- 84.0	- 85.5

No related party transactions, which might reasonably affect any decisions of the users of these consolidated financial statements, were entered into during the first half year of 2020.

+ Cash and cash equivalents held for sale	-	4.5
Senior net debt for ratio calculation	- 1,816.4	- 2,074.8
Financial ratios
Senior net debt : EBITDA	2.81	2.99
Interest cover1	9.9	9.1

1 Interest cover is the ratio of the EBITDA and the net finance costs.

13. Subsequent events

On 22 July 2020, Vopak announced to have signed agreements for a new debt issuance of over USD 500 million equivalent in the US Private Placement (USPP) market consisting of senior tranches with a total value of USD 150 million and EUR 150 million and subordinated tranches with a total value of USD 200 million.
In July 2020, Vopak Terminals Singapore completed its refinancing by entering into a new financing of SGD 300 million (approximately EUR 190 million), consisting of a term loan and a revolving credit facility.

11. Contingent assets and liabilities

The investment commitments undertaken for subsidiaries amounted to EUR 350.8 million at 30 June 2020 (31 December 2019: EUR 329.9 million). For more information, reference is made to the 'Terminal portfolio and storage capacity developments' section.

For an overview of the commitments to provide debt or equity funding for joint ventures and associates, and for guarantees and securities provided on behalf of participating interests in joint ventures and associates, we refer to note 8.2.

There are no other significant changes in the contingent assets and liabilities per the end of June 2020 compared to the contingent liabilities disclosed in note 9.8 in the 2019 Annual report.

42 | Vopak | Half year report 2020 | Enclosures

Enclosures

Enclosure 1. Non-IFRS proportional financial information Enclosure 2. Key results second quarter

Enclosure 3. Glossary

43 | Vopak | Half year report 2020 | Enclosures

Enclosure 1. Non-IFRS proportional financial information

Basis of preparation

Vopak provides non-IFRS proportional financial information -excluding exceptional items- in response to requests by multiple investors to provide additional operational performance insights on a comparable basis for subsidiaries, joint ventures and associates. In this disclosure, the joint ventures and associates and the subsidiaries with non-controlling interests are consolidated based on the economic ownership interests of the Group in these entities.

In the tables in this section, we provide the proportional financial information for the statement of income, the statement of financial position, and the segment information for each of our reportable segments. Where applicable, we show a reconciliation with our IFRS figures in order to create comparability with the proportional information. Other information is based on the same principles as applied for the proportional financial information.

Proportional information

Statement of income

		HY1 2020			HY1 2019
		Exclusion	Effects			Exclusion	Effects
	IFRS	exceptional	proportional	Proportional	IFRS	exceptional	proportional	Proportional
In EUR millions	figures	items	consolidation	consolidated	figures	items	consolidation	consolidated
Revenues	589.3	-	206.9	796.2	641.4	-	185.6	827.0
Other operating income	44.8	33.0	21.3	33.1	29.9	17.8	- 0.6	11.5
Operating expenses	- 297.0	- 1.7	- 47.4	- 342.7	- 308.1	- 0.3	- 51.3	- 359.1
Results joint ventures and associates	96.8	-	- 96.8	-	76.9	-	- 76.9	-
Group operating profit before depreciation and amortization (EBITDA)	433.9	31.3	84.0	486.6	440.1	17.5	56.8	479.4
Depreciation and amortization	- 145.8	-	- 51.5	- 197.3	- 148.2	-	- 41.1	- 189.3
Group operating profit (EBIT)	288.1	31.3	32.5	289.3	291.9	17.5	15.7	290.1
Net finance costs	- 43.4	-	- 24.1	- 67.5	- 43.1	-	- 18.0	- 61.1
Income tax	- 31.7	-	- 24.0	- 55.7	- 39.7	-	- 16.4	- 56.1
Net profit	213.0	31.3	- 15.6	166.1	209.1	17.5	- 18.7	172.9
Non-controlling interests	- 15.6	-	15.6	-	- 18.7	-	18.7	-
Net profit owners of parent	197.4	31.3	-	166.1	190.4	17.5	-	172.9

44 | Vopak | Half year report 2020 | Enclosures

Statement of financial position

		30-Jun-20			31-Dec-19
		Effects			Effects
	IFRS	proportional	Proportional	IFRS	proportional	Proportional
In EUR millions	figures	consolidation	consolidated	figures	consolidation	consolidated
Non-current assets (excl. joint ventures and associates)	4,715.5	2,240.2	6,955.7	4,510.4	2,222.2	6,732.6
Joint ventures and associates	1,208.1	- 1,208.1	-	1,272.8	- 1,272.8	-
Current assets	552.6	445.0	997.6	590.3	504.7	1,095.0
Total assets	6,476.2	1,477.1	7,953.3	6,373.5	1,454.1	7,827.6
Non-current liabilities	2,462.9	1,292.2	3,755.1	2,209.8	1,342.4	3,552.2
Current liabilities	915.0	328.2	1,243.2	968.6	259.5	1,228.1
Total liabilities	3,377.9	1,620.4	4,998.3	3,178.4	1,601.9	4,780.3
Equity attributable to owners of parent	2,955.0	-	2,955.0	3,047.3	-	3,047.3
Non-controlling interests	143.3	- 143.3	-	147.8	- 147.8	-
Total equity	3,098.3	- 143.3	2,955.0	3,195.1	- 147.8	3,047.3

Net interest-bearing debt

In EUR millions	30-Jun-20	31-Dec-19
Non-current portion of interest-bearing loans	3,244.7	3,109.7
Current portion of interest-bearing loans	210.2	340.1

Total interest-bearing loans	3,454.9	3,449.8
Short-term borrowings	288.6	185.9
Bank overdrafts	3.3	6.5
Cash and cash equivalents	- 336.6	- 362.0
Net interest-bearing debt	3,410.2	3,280.2

Other information

	HY1 2020	HY1 2019
EBITDA margin -excluding exceptional items-	58.7%	57.2%
Proportional occupancy rate	88%	84%
Sustaining, service improvement and IT capex (in EUR millions)	140.0	137.5

45 | Vopak | Half year report 2020 | Enclosures

Segment information -excluding exceptional items-

								of which							of which					Global functions
			of which		Asia &		China &		Europe &					and corporate
	Americas	United States		Middle East	Singapore		North Asia		Africa	Netherlands		LNG		activities		Total
In EUR millions
HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019	HY1 2020	HY1 2019		HY1 2020	HY1 2019		HY1 2020	HY1 2019

Revenues	170.1	154.7	94.1	94.8	220.1	214.6	80.6	87.6	60.0	64.0	259.5	311.0	199.6	219.8	83.7	80.9	2.8	1.8	796.2	827.0
Other operating income	6.6	1.4	0.1	0.1	4.2	3.4	-	-	1.5	1.6	0.4	2.9	0.5	1.1	20.4	2.0		-	0.2	33.1	11.5
Operating expenses	- 81.0	- 76.8	- 44.1	- 44.7	- 58.2	- 57.6	- 22.1	- 22.8	- 18.1	- 19.7	- 132.9	- 154.0	- 98.4	- 102.8	- 25.9	- 30.7	- 26.6	- 20.3	- 342.7	- 359.1
EBITDA	95.7	79.3	50.1	50.2	166.1	160.4	58.5	64.8	43.4	45.9	127.0	159.9	101.7	118.1	78.2	52.2	- 23.8	- 18.3	486.6	479.4
Depreciation and amortization	- 31.9	- 27.6	- 16.6	- 14.9	- 48.1	- 46.7	- 15.5	- 16.3	- 14.6	- 16.6	- 70.3	- 76.3	- 52.8	- 54.2	- 24.3	- 14.4	- 8.1	- 7.7	- 197.3	- 189.3
EBIT excluding exceptional
items	63.8	51.7	33.5	35.3	118.0	113.7	43.0	48.5	28.8	29.3	56.7	83.6	48.9	63.9	53.9	37.8	- 31.9	- 26.0	289.3	290.1
Proportional occupancy rate	90%	90%			91%	87%			88%	72%	85%	83%			97%	96%				88%	84%

Revenue per product type per reporting segment

				Asia &		China &		Europe &					Global functions and
	Americas		Middle East		North Asia		Africa		LNG		corporate activities		Total

In EUR millions	HY1 2020	HY1 2019		HY1 2020	HY1 2019		HY1 2020	HY1 2019		HY1 2020	HY1 2019		HY1 2020	HY1 2019		HY1 2020	HY1 2019	HY1 2020	HY1 2019
Chemical products	79.6	82.8	92.6	94.0	50.3	56.1	93.1	93.6		-	-		-	-	315.6	326.5
Oil products	60.9	46.9	107.5	100.1	0.3	1.5	109.7	157.4		-	-		-	-	278.4	305.9
Vegoils & biofuels	17.8	17.8	1.2	1.8		-	-	30.8	33.2		-	-		-	-	49.8	52.8
Gas products	4.5	1.2	8.5	7.9	9.2	6.2	16.1	15.6	83.7	80.9		-	-	122.0	111.8
Others	7.3	6.0	10.3	10.8	0.2	0.2	9.8	11.2		-	-	2.8	1.8	30.4	30.0
Revenues	170.1	154.7	220.1	214.6	60.0	64.0	259.5	311.0	83.7	80.9	2.8	1.8	796.2	827.0

46 | Vopak | Half year report 2020 | Enclosures

Enclosure 2. Key results second quarter

Q2 2020 versus Q2 2019

Statement of income

																								Global
						Asia &		of which								of which					functions and
				of which			China &	Europe &						corporate
	Americas		United States	Middle East		Singapore		North Asia	Africa		Netherlands		LNG		activities		Total
In EUR millions
Q2 2020	Q2 2019		Q2 2020	Q2 2019	Q2 2020	Q2 2019		Q2 2020	Q2 2019		Q2 2020	Q2 2019	Q2 2020	Q2 2019		Q2 2020	Q2 2019		Q2 2020	Q2 2019		Q2 2020	Q2 2019		Q2 2020	Q2 2019

Revenues	79.5	77.0	45.4	47.5	73.0	76.5	56.6	58.4	10.4	9.8		128.1	151.9	101.6	107.7		-	-	1.4	1.6	292.4	316.8
Other operating income	1.4	-		-	-	2.7	2.7	0.2	0.4	1.0	0.7		0.2	2.7	0.4	1.0	0.9	1.1	0.1	-	6.3	7.2
Operating expenses	- 35.2	- 37.1	- 20.0	- 21.4	- 22.7	- 23.3	- 14.6	- 15.7	- 4.8	- 5.0		- 64.4	- 74.1	- 49.3	- 50.4	- 2.4	- 2.8	- 12.7	- 10.9	- 142.2	- 153.2
Result joint ventures	3.0		0.1		24.1		0.2		7.1			0.9		0.2		10.9		- 0.1		45.9
and associates	1.8	0.2	15.5	0.1	8.4		0.6	0.2	11.1	- 0.2	37.2
EBITDA	48.7	41.7	25.5	26.3	77.1	71.4	42.4	43.2	13.7	13.9		64.8	81.1	52.9	58.5	9.4	9.4	- 11.3	- 9.5	202.4	208.0
Depreciation and amortization	- 15.0	- 14.3	- 7.6	- 7.5	- 15.3	- 15.9	- 10.7	- 11.8	- 2.9	- 2.9		- 35.3	- 33.7	- 27.0	- 24.8		-	-	- 4.1	- 3.8	- 72.6	- 70.6
EBIT excluding exceptional
items	33.7	27.4	17.9	18.8	61.8	55.5	31.7	31.4	10.8	11.0		29.5	47.4	25.9	33.7	9.4	9.4	- 15.4	- 13.3	129.8	137.4
Exceptional items	-	-				-	-				33.0	-	-	16.4					-	-		-	-	33.0	16.4
EBIT including exceptional

items	33.7	27.4				61.8	55.5				43.8	11.0		29.5	63.8				9.4	9.4	- 15.4	- 13.3	162.8	153.8
Reconciliation consolidated net profit
Net finance costs																										- 20.2	- 19.4
Profit before income tax																										142.6	134.4
Income tax																										- 18.3	- 19.7
Net profit																										124.3	114.7
Non-controlling interests																										- 7.9	- 8.7
Net profit holders of ordinary shares																									116.4	106.0
Occupancy rate subsidiaries	93%	91%				87%	80%				80%	79%		88%	83%										88%	84%

47 | Vopak | Half year report 2020 | Enclosures

Q2 2020 versus Q1 2020

Statement of income

																								Global
						Asia &		of which								of which					functions and
				of which			China &	Europe &						corporate
	Americas		United States	Middle East		Singapore		North Asia	Africa		Netherlands		LNG		activities		Total
In EUR millions
Q2 2020	Q1 2020		Q2 2020	Q1 2020	Q2 2020	Q1 2020		Q2 2020	Q1 2020		Q2 2020	Q1 2020	Q2 2020	Q1 2020		Q2 2020	Q1 2020		Q2 2020	Q1 2020		Q2 2020	Q1 2020		Q2 2020	Q1 2020

Revenues	79.5	84.0	45.4	48.8	73.0	74.9	56.6	58.3	10.4	9.8		128.1	126.8	101.6	96.5		-	-	1.4	1.4	292.4	296.9
Other operating income	1.4	-		-	-	2.7	3.4	0.2	0.4	1.0	0.5		0.2	0.6	0.4	0.5	0.9	1.0	0.1	-	6.3	5.5
Operating expenses	- 35.2	- 39.5	- 20.0	- 23.5	- 22.7	- 25.1	- 14.6	- 16.9	- 4.8	- 4.9		- 64.4	- 67.3	- 49.3	- 49.2	- 2.4	- 2.3	- 12.7	- 14.0	- 142.2	- 153.1
Result joint ventures	3.0		0.1		24.1		0.2		7.1			0.9		0.2		10.9		- 0.1		45.9
and associates	3.1	-	24.8	0.2	8.4		0.6	0.2	13.9	0.1	50.9
EBITDA	48.7	47.6	25.5	25.3	77.1	78.0	42.4	42.0	13.7	13.8		64.8	60.7	52.9	48.0	9.4	12.6	- 11.3	- 12.5	202.4	200.2
Depreciation and amortization	- 15.0	- 16.7	- 7.6	- 8.8	- 15.3	- 15.8	- 10.7	- 11.7	- 2.9	- 3.0		- 35.3	- 33.7	- 27.0	- 25.4		-	-	- 4.1	- 4.0	- 72.6	- 73.2
EBIT excluding exceptional
items	33.7	30.9	17.9	16.5	61.8	62.2	31.7	30.3	10.8	10.8		29.5	27.0	25.9	22.6	9.4	12.6	- 15.4	- 16.5	129.8	127.0
Exceptional items	-	-				-	-				33.0	-	-	- 1.7					-	-		-	-	33.0	- 1.7
EBIT including exceptional

items	33.7	30.9				61.8	62.2				43.8	10.8		29.5	25.3				9.4	12.6	- 15.4	- 16.5	162.8	125.3
Reconciliation consolidated net profit
Net finance costs																										- 20.2	- 23.2
Profit before income tax																										142.6	102.1
Income tax																										- 18.3	- 13.4
Net profit																										124.3	88.7
Non-controlling interests																										- 7.9	- 7.7
Net profit holders of ordinary shares																									116.4	81.0
Occupancy rate subsidiaries	93%	88%				87%	87%				80%	74%		88%	83%										88%	84%

48 | Vopak | Half year report 2020 | Enclosures

Enclosure 3. Glossary

EBIT - Earnings Before Interest and Tax

Net income, before income taxes, and before net finance costs. This performance measure is used by the company to evaluate the operating performance of its operating entities.

EBITDA - Earnings Before Interest,Tax, Depreciation and Amortization

Net income, before income taxes, before net finance cost, and before amortization and depreciation expenses. EBITDA is a rough accounting approximate of gross cash flows generated. This measure is used by the company to evaluate the financial performance of its operating entities.

Exceptional items

A limited set of events pre-defined by the company which are not reflective of the normal business of the company and which are exceptional by nature from a management perspective. These exceptional items include impairments, reversed impairments, additions to and releases from provisions for restructuring, results on assets sold, gains on the sale of subsidiaries, joint ventures and associates, any other provisions being formed or released and any significant change in estimates.

The Group does not apply a threshold for impairments, reversal of impairments, disposal of investments and discontinued operations. For the other items, the Group considers an event exceptional when the effect exceeds the threshold of EUR 10.0 million.

ROCE - Return On Capital Employed Before Interest and Tax

EBIT -excluding exceptional items- as a percentage of the average capital employed. This performance measure is used by the company to assess the profitability and the efficiency of its operations in relation to the capital that is employed. The ROCE is calculated based on the accounting requirements of the previous lease accounting standard IAS 17, meaning that the EBIT includes the operating expenses of the former operating leases and that the capital employed excludes right of use assets related to these former operating leases.

ROE - Return On Equity After Interest and Tax

Net income -excluding exceptional items- as a percentage of the average equity employed. This performance measure is used by the company to assess the return that the company generates with the equity funds provided by its shareholders.

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Royal Vopak NV published this content on 29 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2020 05:10:34 UTC

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Mar. 19	Aegis' Logistics Arm to Buy Specialized Storage Terminals in Mangalore, India	MT
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