Royal Vopak N : Analyst Presentation HY 2020

Storing

vital products with care

Vopak Half Year 2020 financial results

Analyst presentation - 29 July 2020

Forward-looking statement

This presentation contains 'forward-looking statements', based on currently available plans and forecasts. By

their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future, and Vopak cannot guarantee the accuracy and completeness of forward-looking statements.

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

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

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

Vopak HY1 2020 - Analyst presentation 2

Storing

vital products with care

Chairman of the Executive Board and CEO of Royal Vopak

Eelco

Hoekstra

HY1 2020 Key messages

• Prudent COVID-19 response - all 66 terminals operational
• Good financial performance and improved occupancy rates
• Continue to invest in 2020 and 2021 with confidence
• Execution of our strategy progressed well - good progress in LNG & industrial terminals

EBITDA*

EPS*

Occupancy rate

Terminal network

In EUR million

In EUR

In percent

In million cbm

subsidiaries

86

Growth

1.5

2020-2022

403

1.31

only

program

Proportional 88

Today 34.4

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

Vopak HY1 2020 - Analyst presentation 4

COVID-19 update

We are in control and our governance structures are functioning well. We continuously monitor the developments and remain alert.

• We will manage this crisis to the best of our ability to ensure we protect our people and support society by storing vital products with care.
• All terminals are operational to serve our customers. If and where possible, we do not procrastinate and keep an attitude of business as usual.
• Our attention is on the short-term delivery and protection of the long term value.
• We continue to manage our performance in line with our original business plan and unchanged strategy despite growth projects delay and remaining uncertainty.

Vopak HY1 2020 - Analyst presentation 5

Value creation and short-term performance

Continue the course set in previous years

Strategic

Objectives

Delivering Performance

HY1 2020

Influencing

Developments

• Deliver strategic portfolio transformation
• Pursue opportunities in new energies
• Deliver Vopak's digital transformation
• Grow EBITDA over time and replace the EBITDA from divested terminals
• Operate terminal portfolio with occupancy rate between 85% and 95%
• Generate portfolio return of capital employed between 10% and 15%
• COVID-19and market conditions in oil and chemicals
• Cost management
• Operational capacity and growth project delivery

Vopak HY1 2020 - Analyst presentation 6

Business environment update

Long-term sustainable portfolio, well positioned for opportunities

Chemicals

Stable storage, lagging throughput	Oil products	Benefit from contango and IMO 2020
 Demand for chemicals varies for		 Oil hubs: strong storage demand
durable and non-durable products			driven by contango oil markets
 Feedstock price differential impact		 Fuel oil: IMO capacity rented out
global supply and trade flows			Import-distribution markets: Solid
			throughputs despite lockdowns

Gas

Resilient infrastructure demand

• Access to LNG regasification is key in supply driven market with low LNG price
• Lockdowns spur residential LPG demand; Petrochemical players favor naphtha cracking over LPG

New energies

Momentum in opportunities

• Significant global growth in renewable energies
• Exploring hydrogen and ammonia possibilities with our partners

Vopak HY1 2020 - Analyst presentation 7

Storing

vital products with care

Global Director Commercial &

Business Development

of Royal Vopak

Michiel

Gilsing

Well-balanced global portfolio

Gas markets update

	Gas			Industrial		Chemical		Oil
	terminals			terminals		terminals		terminals
	5-20 years			5-20 years		0-5 years		0-5 years
	10-15%		25-30%	25-30%	35-40%

Typical contract duration per product / terminal category

Share of proportionate revenues 2019*

Americas

Asia & Middle East

China & North Asia

Europe & Africa

LNG

~20%	~25%	~10%	~35%	~10%	Share of
proportionate
					revenues 2019*
*Joint ventures, associates and subsidiaries with non-controlling interests are consolidated based		Vopak HY1 2020 - Analyst presentation 9
on the economic ownership interests of the Group in these entities.

Key messages

Gas markets update

• Resilient storage and handling demand for LNG and LPG despite COVID-19
• Vopak's global gas network is underpinned by long-termtake-or-pay contracts
• Vopak has a unique portfolio of LNG and gas storage infrastructure combined with a proven track-record of safe, sustainable and reliable operations
• Growth projects and developments for LNG and gas terminals are on track, however COVID-19 may affect the speed of developments of some growth projects
• Strong global gas market fundamentals are supported by short-term resilience in gas infrastructure demand

Vopak HY1 2020 - Analyst presentation 10

Gas markets developments

Resilient storage demand in LNG and LPG despite COVID-19

HY1 2020 - LNG developments

• LNG demand reduced and oversupply deepens as lockdowns caused a reduction in industrial and power consumption, the main use of LNG
• Spot and oil-linked LNG prices dropped, global arbitrage opportunities closed and liquefaction FIDs are postponed beyond 2020
• Low LNG prices have resulted in increased levels of coal-to-gas switching and high gas inventories in the EU

HY1 2020 - LPG developments

• Residential LPG demand surged amid lockdowns
• COVID-19related medical demand (including personal protective equipment) supported LPG intake from propane dehydrogenation (PDH) plants
• Price-sensitiveLPG demand for cracking has been reduced as naphtha has been the preferred feedstock due to low crude prices and weak gasoline demand

Vopak HY1 2020 - Analyst presentation 11

Vopak's global gas footprint

LNG and chemical gases revenues underpinned by long-termtake-or-pay contracts

RIPET
		Gate terminal
		Vlissingen

Tianjin Lingang	Ulsan

Altamira LNG

18 terminals

Panama

SPEC

Lanshan

Sabtank (Jubail)

Caojing

Haiteng

Engro Vopak

ThaiTank

ETPL

Kertih

Banyan

PT2SB

12 countries

2.2 million cbm

LNG onshore storage and regasification

LNG floating storage and regasification unit (FSRU)

Refrigerated storage - LPG and chemical gases

Pressurized storage - LPG and chemical gases

Vopak HY1 2020 - Analyst presentation 12

Growth developments in gas are on track

Focus on growth in LNG regasification, LPG import/export and industrial use of LPG and chemical gases

Vopak Moda

Constructing 46,000 cbm chemical gases

	GermanLNG
	Permitting
Vlissingen	continuesand		Vopak Sucheng LNG
	EPCtender
Constructing		Jetty construction
9,200 cbm LPG &
	ETPL	completed
chemical gases
		Increasing FSRU	Caojing
	Pakistan LNG	regas capacity	Constructing new
		capacity for
	Onshore LNG -
		chemical gases
	Start openseason
		Singapore	Keppel Vopak
		Singapore LNG-to-power
		Ammonia bunkering
		(feasibility study)
		(feasibility study)

LNG

LPG & chemical gases

Vopak HY1 2020 - Analyst presentation 13

Gas markets outlook

Strong global gas market fundamentals supported by short-term resilience in infrastructure demand

LNG market outlook

• In a supply driven market with a low LNG price, access to regasification terminals is key
• In the short-term, global arbitrage is closed and less LNG (spot) cargoes are expected to come to Europe
• Future LNG demand growth is based on strong fundamentals and the best positioned alternative during the energy transition

LPG market outlook

• LPG production growth is linked to oil demand and price recovery
• Normalized naphtha prices will improve competitiveness of LPG as cracking feedstock
• Growing LPG imbalances and trade require supporting infrastructure globally in the medium to long-term

Vopak HY1 2020 - Analyst presentation 14

Storing

vital products with care

Global Chemicals Director of Royal Vopak

Ismail

Mahmud

Well-balanced global portfolio

Industrial terminals and chemical products market update

Gas			Industrial		Chemical			Oil
terminals			terminals		terminals			terminals
5-20 years		5-20 years		0-5 years			0-5 years
10-15%			25-30%		25-30%		35-40%

Typical contract duration per product / terminal category

Share of proportionate revenues 2019*

Americas

Asia & Middle East

China & North Asia

Europe & Africa

LNG

~20%	~25%	~10%	~35%	~10%	Share of
proportionate
					revenues 2019*
*Joint ventures, associates and subsidiaries with non-controlling interests are consolidated based		Vopak HY1 2020 - Analyst presentation 16
on the economic ownership interests of the Group in these entities.

Key messages

Industrial terminals and chemical products market update

• Chemical capacity build up, combined with Covid-19 demand destruction and low oil prices impacted chemical industry margins and trade flows
• End market demand for chemicals varies widely between durable and consumable goods mainly affected by change in behavior
• Tank storage demand for chemicals and industrial terminals is stable although throughput activity levels have come down
• Short-term,chemical industry margins are expected to remain depressed as markets are well supplied. Demand for storage expected to remain stable, throughputs lagging
• Medium to long-term, trade flows are expected to recover as growing demand absorbs new capacity. Vopak industrial terminal developments supported by customer demand

Vopak HY1 2020 - Analyst presentation 17

Well supplied chemical markets

COVID-19 demand destruction led to further length in chemical markets

Global base chemicals cash earnings	Global base chemical capacity growth by market
In US$ billion	In million ton

250

200

150

100

50

0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Americas

Europe

Middle East & Africa

Asia

40
30					Demand growth
					Paraxylene
20					Benzene
					Chlorine
10					Methanol
				Propylene (PG/CG)
0					Ethylene
2015	2016	2017	2018	2019	2020
-10

Source: IHS Markit, Vopak analyses

Vopak HY1 2020 - Analyst presentation 18

End markets developments

Changing consumer behavior: more consumables, less durable goods

Durable goods		Consumable goods

End markets	Construction Automotive	Textiles	Electronics Agriculture	Packaging	Consumer	Home &	Healthcare
					products	personal care
Size of end markets
HY1 2020
demand trend

Typical chemicals products

Alpha Olefins

Ammonia

Base oils

Benzene

Caustic Soda

Glycols

Isocyanates

Methanol

Oxo-alcohols

Xylenes

Vopak HY1 2020 - Analyst presentation 19

Vopak's global chemicals footprint

Balanced portfolio with stable demand for storage but lower activity in HY1

Occupancy rate and throughput

95%

85%

100

										94
	Proportional revenues chemicals and industrial terminals
	by terminal type	by region		HY1	HY2	HY1 HY2	HY1 HY2	HY1
			2017	2018	2019	2020
Industrial terminals	15-20%	15-20%
	30-35%	Asia & Middle East			Proportional occupancy rate
Chemicals hub terminals	50-60%
25-30%	Europe & Africa	chemicals and industrial terminals combined
Chemicals distribution terminals	25-30%	Throughput activity (indexed 2019)
25-30%	Americas
			chemicals and industrial terminal combined

China & North Asia

Vopak HY1 2020 - Analyst presentation 20

Outlook chemical markets and Vopak performance

Outlook chemical markets		Outlook Vopak performance

• Chemical demand seem to have bottomed in Q2
• Short-term,chemical industry margins are expected to remain depressed as markets are well supplied
• It will take time for markets to balance as demand has to absorb new production capacity coming on stream over next 18 months
• Medium to long-term, chemical demand, margins and trade flows are expected to recover

• Demand for storage is expected to remain stable in the short-term
• Healthy customer portfolio and contract structure will allow Vopak to ride the downturn successfully
• Majority of revenues is take-or-pay, lower customer activity could impact ancillary and throughput revenues
• Vopak's new industrial terminal developments are fully supported by customer demand

Vopak HY1 2020 - Analyst presentation 21

Storing

vital products with care

Global Oil Director of Royal Vopak

Hari

Dattatreya

Well-balanced global portfolio

Oil markets update

Gas		Industrial		Chemical			Oil
terminals		terminals		terminals			terminals
5-20 years		5-20 years		0-5 years		0-5 years
10-15%	25-30%	25-30%			35-40%

Typical contract duration per product / terminal category

Share of proportionate revenues 2019*

Americas

Asia & Middle East

China & North Asia

Europe & Africa

LNG

~20%	~25%	~10%	~35%	~10%	Share of
proportionate
					revenues 2019*
*Joint ventures, associates and subsidiaries with non-controlling interests are consolidated based		Vopak HY1 2020 - Analyst presentation 23
on the economic ownership interests of the Group in these entities.

Key messages

Oil markets update

• 2020: an unprecedented year for oil markets with high volatility in price, supply and demand
• Vopak oil terminals in the hubs Rotterdam, Fujairah and Singapore Straits are logistic, trading and refining centers with sustainable storage demand that was boosted by a positive market environment
• Vopak oil distribution terminals that are located in large deficit markets have, so far, seen relatively limited impact of COVID-19 on throughputs
• After the drop in supply and demand during the second quarter, oil market fundamentals have turned more positive for the period 2021-2022
• Oil markets are expected to remain volatile in 2021-2022, supporting demand for tank storage

Vopak HY1 2020 - Analyst presentation 24

Oil price and market structure 2020

An unprecedented year in terms of events and volatility

70		Brent spot price
		(US$/bbl)						 2020 started with OPEC+ and geopolitics
60									as key drivers for oil price
50								 COVID-19 added a new factor
							5		Events
40
				3					1. KSA announcement (March 8)
30			1	2					2.	COVID-19 declared pandemic (March 11)
20									3.	President Trump tweet OPEC+ deal (April 2)
				4
								4. Negative WTI settlement (April 20)
10	Market structure							5.	OPEC+ extends cuts (June 6)
	M7-M1 (US$/bbl)						 Sustained recovery and continued volatility
0
-10	Jan	Feb	Mar	Apr	May	Jun		Jul

Source: ICE Brent futures, Vopak analyses

Vopak HY1 2020 - Analyst presentation 25

Oil storage: global capacity & Vopak network

Market leader in oil hubs and presence in key distribution markets

Global crude storage capacity*

800-900mcbm

15-20%

20-25%55-65%

ARA region

Hub size: 22-23m cbm**

27% Vopak 6.0m cbm

Vopak largest player
main competitors:
Koole, VTTI, Oiltanking	Fujairah
Hub size: 8-9m cbm**

Singapore Straits

Hub size: 17-18m cbm**

Global oil products storage capacity*

500-600mcbm

10-15%

15-20%

30% Vopak 2.6m cbm

Vopak largest player main competitors:

BPGIC, IL&FS

23%Vopak 4.1m cbm

Vopak largest player

main competitors:

Oiltanking, Universal

65-75%		Commercial storage (primairy & secondary)

Refinery storage

Strategic and exploration & production storage

Vopak oil hub terminal

Vopak oil distribution terminal

Vopak market share at hub location Competitors

* Vopak analyses - range due to non-transparency and different definitions between sources

** Vopak analyses - based on commercial storage capacity

Vopak HY1 2020 - Analyst presentation 26

Crude supply/demand outlook

Oil market fundamentals look positive post COVID-19

Global oil supply and demand balance

mb/d

mb/d

 Biggest drop in oil demand ever seen

105

10.0

 Massive stock building as a result

95

5.0

 Supply response will catch up with

85

0.0

demand

 Stock draws expected to start in Q3

75

-5.0

2020 initially impacting floating

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

storage

2019

2020

2021

Global oil supply*		Global oil demand

Global oil stock changes & misc (RHS)

* Assumes 100% compliance with OPEC+ deal
Source: IEA OMR July 2020, Vopak analyses	Vopak HY1 2020 - Analyst presentation 27

Oil product demand outlook

Volatility expected in the period 2021-2022 - drives demand for tank storage

	Main uncertainty on product demand is COVID-19
	Impact COVID-19 differs per product group:
	• Middle distillate demand is most impacted,

Year-on-year oil demand change per product in 2020

mb/d

5

	with diesel bouncing back and jet expected
	to see the longest term impact
•	Fast recovery in gasoline demand
•	Impact on marine fuels relatively limited

J F M A M

0 -5

-10-15

J J A S O N D

• Market volatility, due to COVID-19 and crude supply, in the period 2021-2022 is expected to drive demand for tank storage.

-20
-25		Gasoline		LPG/Ethane
		Gasoil/Diesel		Other products
		Jet

Source: IEA OMR July 2020, Vopak analyses

Vopak HY1 2020 - Analyst presentation 28

Well-diversified portfolio

Irreplaceable and unique global asset footprint serving all liquid product value chains

• World's leading independent tank storage company
• 23 countries, 66 terminals, 300+ jetties
• Diversified customer base including all major chemical producers and global oil & gas companies
• >80% take-or-pay cash flows with multi-year commercial contracts
• Safe, reliable and efficient operator
• Very well positioned to further grow and shift towards a more sustainable and digital world

Proportional revenue per product

~10%	~10%	10-15%
~15%	20-25%
	25-30%
35-40%	25-30%
		25-30%
40-45%	40-45%	35-40%
2014	2017	2019	>2020

Proportional revenue per division

5-10%	5-10%	~10%
~15%	15-20%	~20%
~20%	20-25%
		~25%
	5-10%
		5-10%
45-50%			~10%
40-45%
~35%
2014	2017	2019	>2020

Gas

Industrial terminals Chemicals

Oil

LNG

Americas

Asia & Middle East

China & North Asia

Europe & Africa

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

Vopak HY1 2020 - Analyst presentation 29

Storing

vital products with care

Member of the Executive Board and CFO of Royal Vopak

Gerard

Paulides

Summary financial performance

• Financial framework and priorities for cash are unchanged
• EBITDA - post divestments - increased by EUR 18 million reflecting growth, contango oil markets, lower chemical throughputs and IMO 2020 converted capacity
• Earnings per share (EPS) of EUR 1.31
• Continued capital allocation to growth investments with attractive investment multiples in line with financial framework
• Balance sheet flexibility will be further strengthened with the USD 500 million equivalent US Private Placement program

Vopak HY1 2020 - Analyst presentation 31

Financial framework unchanged

Performance delivery and protecting value

• Clear financial framework to support strategy
• • Balanced portfolio management with focus on strong operational cash flow generation with a disciplined capital investment approach
  • Aimed towards a strong investment case
  • • Return on capital employed (ROCE) between 10% and 15%
    • Long-termsenior net debt to EBITDA ratio between 2.5 and 3.0
    • Annual stable to rising cash dividend in balance with a management view on a payout ratio range of 25-75% of net profit

Vopak HY1 2020 - Analyst presentation 32

Robust balance sheet

The balance sheet flexibility further strengthened with USD 500 million equivalent US Private Placement Notes Program

Senior net debt : EBITDA ratio

for debt covenant

Maximum ratio under private placements programs and syndicated revolving credit facility: 3.75

2.5-3.0

2.02 2.49 2.75 2.65 2.81

2017 2018 2019	Q1	Q2	Target
	2020	2020	range

Debt repayment schedule

In EUR million

Including new VTS financing and new 2020 US PP program (proceeds available end 2020) and maximum RCF flexibility in case 2020 US PP proceeds are used to repay short-term debt and current RCF drawings

RCF flexibility: EUR 1 billion

RCF drawn

Other

Asian PP

US PP existing

US PP 2020

Subordinated debt 2020

	~135
2020	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030	2032	2035	2040

In July 2020,	Vopak signed agreements for a new debt issuance in the US Private Placement market	Vopak HY1 2020 - Analyst presentation 33
In July 2020,	Vopak Terminals Singapore completed its refinancing consisting of a term loan and a revolving credit facility

Capital disciplined growth

Value creation from attractive growth projects - investments of EUR 300-500 million for 2020 - and shareholder distributions

Priorities for cash

1	Debt servicing
HY1 2020 average interest 3.1%

Growth investment multiples

Invested capital / normalized projected EBITDA*

10x

Senior net debt : EBITDA ratio scenarios

2	Growth opportunities
Value accretive growth

~7.0x

• Acquisitions

• Greenfield

development

• Brownfield

2.0-2.52.5-3.03.0-3.5

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

4- 6x expansions

Growth	Range of
investment	typical project
portfolio	investment
2017-2022	multiples

Strategic considerations

• Timing of growth opportunities
• Shareholder distributions

• Invested capital reflects growth capex at subsidiaries and equity injections for JV's and associates
  Normalized projected EBITDA reflects Vopak's EBITDA contribution in normalized operating and market conditions

Vopak HY1 2020 - Analyst presentation 34

HY1 2020 vs HY1 2019 EBITDA

EBITDA - post divestments - increased by EUR 18 million reflecting growth, contango oil markets, chemical throughputs and IMO 2020 converted capacity

422.6
						2.7	2.4
					2.8				402.6
	35.2						1.4
									5.6
				17.6
			384.1
		3.3
HY1 2019	Divested	FX-effect	Adjusted	Americas	LNG	Asia &	Europe &	China &	Global	HY1 2020
	terminals		HY1 2019			Middle East	Africa	North Asia	functions,
									corporate
									activities
									and others

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

Vopak HY1 2020 - Analyst presentation 35

Divisional performance

Americas reflect growth projects; Asia & Middle East and Europe & Africa maintenance, contango and chemical throughput; China shows more demand

Americas				Asia & Middle East			China & North Asia
91	92	90	88	93	80	71	82	87	87	79	73	64	74	80

41.7	42.2	43.2	47.6	48.7	71.4	70.8	85.0	78.0	77.1	13.9	13.0	20.2	13.8	13.7

Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q1
2019	2019	2019	2020	2020	2019	2019	2019	2020	2020	2019	2019	2019	2020	2020

Europe & Africa			LNG
83	84	84	83	88	96	96	97	97	97

81.1	77.6	62.8	60.7	64.8	9.4	10.6	8.4	12.6	9.4

Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2
2019	2019	2019	2020	2020	2019	2019	2019	2020	2020

Occupancy rate (in percent) for subsidiaries only, with the exception of LNG

EBITDA (in EUR million) excluding exceptional items and including net result from joint ventures and associates and currency effects

Vopak HY1 2020 - Analyst presentation 36

Q2 2020 vs Q1 2020 EBITDA

Resilient performance influenced by contango, out-of-service capacity and lower chemical throughput levels

						0.1
					2.1		0.4	3.3		202.4
200.2									1.1
			5.4
	1.1
		1.7	197.4
Q1 2020	Divested	FX-effect	Adjusted	Europe &	Americas	China &	Asia &	LNG	Global	Q2 2020
	terminals		Q1 2020	Africa		North Asia	Middle East		functions,
									corporate
									activities
									and others

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

Vopak HY1 2020 - Analyst presentation 37

Occupancy rate developments

Occupancy rate trends up following support from contango oil markets; Out-of-service capacity reduced, though behind schedule due to work restrictions

Subsidiary occupancy rate and out-of-service capacity

In percent

														90-95%
														85-90%
								86	84	82	84	84	88
2011	2012	2013	2014	2015	2016	2017	2018	Q1	Q2	Q3	Q4	Q1	Q2
									2019				2020
					0.6	0.8	1.0	1.5	1.8	1.8	1.2	1.6	1.4	Out-of-service capacity

Occupancy rate (in percent) for subsidiaries only
Out-of-service capacity (in million cbm) for subsidiaries only, not corrected for divestments	Vopak HY1 2020 - Analyst presentation 38

Cash flow overview

Cash momentum driven by divestment and capital repayment

HY1 2020

In EUR million

407		401
	6
			132		151
				269		238		259
							77
CFFO Tax & other	CFFO	Sustaining,	FCF	Divestments	Growth	Other	Free Cash
(gross)	operating	(net)	service & IT	before	investments	CFFI	Flow
	items		investments growth		incl capital	before
						repayments financing

HY1 2019

In EUR million

352
		321
	31
			125
				196
					212
						5
							-11
CFFO	Tax & other	CFFO	Sustaining,	FCF	Growth	Other	Free Cash
(gross)	operating	(net)	service & IT before investments	CFFI	Flow
	items		investments growth			before
							financing

Vopak HY1 2020 - Analyst presentation 39

Non-IFRS proportional information

Proportional consolidated information provides transparency considering increase joint venture contribution relative to subsidiaries

IFRS BASED

EBITDA	Occupancy rate
In EUR million	In percent - subsidiaries only

208	202	205	200	202	84	82	84	84	88
Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2
2019	2019	2019	2020	2020	2019	2019	2019	2020	2020

Q2 2020 occupancy per division

In percent - subsidiaries only

93	87	80	88
		n/a
Americas	Asia &	China	Europe LNG
	Middle	& North	& Africa
	East	Asia

NON-IFRSPROPORTIONAL

EBITDA	Occupancy rate
In EUR million	In percent

239	232	270	241	246	84	84	85	86	90
Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2
2019	2019	2019	2020	2020	2019	2019	2019	2020	2020

Q2 2020 occupancy per division

In percent

93	92	89	88	97
Americas	Asia &	China	Europe	LNG
	Middle	& North	& Africa
	East	Asia

Vopak HY1 2020 - Analyst presentation 40

Summary financial performance

• Financial framework and priorities for cash are unchanged
• EBITDA - post divestments - increased by EUR 18 million reflecting growth, contango oil markets, lower chemical throughputs and IMO 2020 converted capacity
• Earnings per share (EPS) of EUR 1.31
• Continued capital allocation to growth investments with attractive investment multiples in line with financial framework
• Balance sheet flexibility will be further strengthened with the USD 500 million equivalent US Private Placement program

Vopak HY1 2020 - Analyst presentation 41

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 investment 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

Vopak HY1 2020 - Analyst presentation 42

HY1 2020 Key messages

• Prudent COVID-19 response - all 66 terminals operational
• Good financial performance and improved occupancy rates
• Continue to invest in 2020 and 2021 with confidence
• Execution of our strategy progressed well - good progress in LNG & industrial terminals

EBITDA*

EPS*

Occupancy rate

Terminal network

In EUR million

In EUR

In percent

In million cbm

subsidiaries

86

Growth

1.5

2020-2022

403

1.31

only

program

Proportional 88

Today 34.4

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

Vopak HY1 2020 - Analyst presentation 43

Storing

vital products with care

Vopak Half Year 2020 financial results

Questions & Answers

For more information please contact:

Investor Relations contact:

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

e-mail: [e-mail]

Media contact:

Liesbeth Lans, Manager External Communications Telephone: [phone]

e-mail: [e-mail]

Royal Vopak

Westerlaan 10

3016 CK Rotterdam The Netherlands www.vopak.com

Upcoming events:

Publication of Q3 2020 interim update

06 November 2020

Publication of 2020 annual results

17 February 2021

Publication of Q1 2021 interim update

21 April 2021

Annual General Meeting

21 April 2021

Royal Vopak

29 July 2020 Analyst presentation

Vopak HY1 2020

financial results

Americas developments

Storage capacity		Occupancy rate*				Revenues*
In million cbm		In percent					In EUR million
	Total Q2 2020	91	92	90	88	93			81.8	84.0
			79.3
0.2 0.5	4.5 million cbm						77.0		79.5

Subsidiaries

3.8 Joint ventures & associates

Operatorships

Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2
2019	2019	2019	2020	2020	2019	2019	2019	2020	2020

19 Terminals (6 countries)

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

41.7	42.2	43.2	47.6	48.7
						33.7
					27.4	29.0	27.2	30.9
Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2
2019	2019	2019	2020	2020	2019	2019	2019	2020	2020

* Subsidiaries only	Vopak HY1 2020 - Analyst presentation	46
** EBIT(DA) - including net result from joint ventures and associates and excluding exceptional items

Asia & Middle East developments

Storage capacity		Occupancy rate*				Revenues*
In million cbm			In percent					In EUR million
3.3		Total Q2 2020	80		82	87	87	76.5	70.6	73.4	74.9	73.0
4.4	15.4 million cbm	71

Subsidiaries

7.7 Joint ventures & associates

Operatorships

Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2
2019	2019	2019	2020	2020	2019	2019	2019	2020	2020

19 Terminals (9 countries)

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

		85.0	78.0	77.1
71.4	70.8				69.2
					62.2	61.8
					55.5	55.1
Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2
2019	2019	2019	2020	2020	2019	2019	2019	2020	2020

* Subsidiaries only	Vopak HY1 2020 - Analyst presentation	47
** EBIT(DA) - including net result from joint ventures and associates and excluding exceptional items

China & North Asia developments

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

	Total Q2 2020	79	73		74	80
0.8	2.8 million cbm		64
				9.8	9.7		9.8	10.4
							8.9
2.0	Subsidiaries
	Joint ventures & associates
	Operatorships
		Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2
		2019	2019	2019	2020	2020	2019	2019	2019	2020	2020

8 Terminals (3 countries)

EBITDA**				EBIT**
In EUR million				In EUR million
		20.2
13.9	13.0		13.8	13.7			17.3
	11.0
					10.1		10.8	10.8
Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2
2019	2019	2019	2020	2020	2019	2019	2019	2020	2020

* Subsidiaries only	Vopak HY1 2020 - Analyst presentation	48
** EBIT(DA) - including net result from joint ventures and associates and excluding exceptional items

Europe & Africa developments

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

1.3	Total Q2 2020	83	84	84	83	88	151.9	152.7	131.9	126.8	128.1
10.4 million cbm
	Subsidiaries
9.1	Joint ventures & associates
	Operatorships
		Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2
		2019	2019	2019	2020	2020	2019	2019	2019	2020	2020

15 Terminals (4 countries)

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

81.1	77.6
		62.8	60.7	64.8	47.4	43.5
							29.0	27.0	29.5
Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2
2019	2019	2019	2020	2020	2019	2019	2019	2020	2020

* Subsidiaries only	Vopak HY1 2020 - Analyst presentation	49
** EBIT(DA) - including net result from joint ventures and associates and excluding exceptional items

JVs & associates developments

Net result JVs and associates*		Americas*				Asia & Middle East*
In EUR million	53.4			In EUR million				In EUR million
		50.9
	46.2		45.9
37.2											22.5	24.8	24.8	24.1
						2.9		3.1	3.0	15.5
					1.8	2.4
Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2
2019	2019	2019	2020	2020	2019	2019	2019	2020	2020	2019	2019	2019	2020	2020

China & North Asia*	Europe & Africa*	LNG*
In EUR million	In EUR million	In EUR million

15.6

								11.9		13.9
	8.6						11.1	10.0	10.9
8.4	8.4
7.1
			0.6	0.3	0.6	0.6	0.9

Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2
2019	2019	2019	2020	2020	2019	2019	2019	2020	2020	2019	2019	2019	2020	2020

* Excluding exceptional items	Vopak HY1 2020 - Analyst presentation 50

Project timelines

Vopak's

Capacity

2017

2018

2019

2020

2021

2022

Country

Terminal

ownership

Products

(cbm)

Growth projects

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

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

Indicative overview, timing may change due to delays of projects under construction relating to COVID-19 pandemic

Vopak HY1 2020 - Analyst presentation 51

Portfolio developments

Growth program of 1.5 million cbm in 2020-2022

Corpus Christi

130,000 cbm

Altamira

40,000 cbm

Veracruz

79,000 cbm*

Gas

Industrial terminals

Chemicals

Oil

	Botlek
	Vlissingen	Qinzhou
Deer Park	63,000 cbm		Caojing
	9,200 cbm	290,000 cbm
33,000 cbm	German LNG		65,000 cbm
Antwerp
Vopak Moda		Vietnam	PITSB
	Open season completed
	50,000 cbm
46,000 cbm		20,000 cbm	215,000 cbm*
	Lesedi	Merak	Jakarta
Panama
		50,000 cbm	100,000 cbm
40,000 cbm*	100,000 cbm		Sydney
Durban
	130,000 cbm	105,000 cbm

* Remaining capacity, partly commissioned in 2019

Vopak HY1 2020 - Analyst presentation 52