Royal Vopak N : Vopak Report HY1 2021

Storing vital products with care

1/2YEAR REPORT 2021

Vopak Half year report 2021

Contents

Interim	Key events HY1 2021	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 2021 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	49

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

12 November 2021	Publication of 2021 third-quarter interim update
16 February 2022	Publication of 2021 annual results
20 April 2022	Publication of 2022 first-quarter interim update
20 April 2022	Annual General Meeting
22 April 2022	Ex-dividend quotation
25 April 2022	Dividend record date
28 April 2022	Dividend payment date

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 and feedstock systems, while simultaneously investing in digitalization and innovation. Vopak is listed on the Euronext Amsterdam and is headquartered in Rotterdam, the Netherlands. For more information, please visit vopak.com.

For more information please contact:

Vopak Press: Liesbeth Lans - Manager External Communication,

Telephone: [phone] | e-mail:[e-mail]

Vopak Analysts and Investors: Fatjona Topciu - Head of Investor Relations,

Telephone: [phone] | e-mail:[e-mail]

The analysts' presentation will be given via an on-demand audio webcast on Vopak's corporate website www.vopak.com, starting at 10:00 am CEST on 28 July 2021.

This press release contains inside information as meant in clause 7 of the Market Abuse Regulation.

Vopak Half year report 2021

Key events HY1 2021

Interim Management Report 3

Q2 2021	Q1 2021	Q2 2020	In EUR millions	HY1 2021	HY1 2020
303.1	300.1	292.4	Revenues	603.2	589.3
			Results -excluding exceptional items-
206.2	200.4	202.4	Group operating profit before depreciation and amortization (EBITDA)	406.6	402.6
124.6	121.3	129.8	Group operating profit (EBIT)	245.9	256.8
76.1	73.1	83.4	Net profit attributable to holders of ordinary shares	149.2	166.1
0.61	0.58	0.66	Earnings per ordinary share (in EUR)	1.19	1.31
			Results -including exceptional items-
136.5	200.4	235.4	Group operating profit before depreciation and amortization (EBITDA)	336.9	433.9
54.9	121.3	162.8	Group operating profit (EBIT)	176.2	288.1
6.4	73.1	116.4	Net profit attributable to holders of ordinary shares	79.5	197.4
0.05	0.58	0.91	Earnings per ordinary share (in EUR)	0.63	1.55
141.5	124.0	264.7	Cash flows from operating activities (gross)	265.5	407.4
-153.3	-138.6	- 171.4	Cash flows from investing activities (including derivatives)	- 291.9	- 141.6
			Additional performance measures
249.5	245.6	245.6	Proportional EBITDA -excluding exceptional items-	495.1	486.6
22.3	22.2	21.4	Proportional capacity end of period (in million cbm)	22.3	21.4
88%	89%	90%	Proportional occupancy rate	88%	88%
35.9	35.7	34.4	Storage capacity end of period (in million cbm)	35.9	34.4
87%	88%	88%	Subsidiary occupancy rate	87%	86%
10.6%	10.3%	12.1%	Return on capital employed (ROCE)	10.5%	11.8%
4,644.8	4,478.3	4,105.2	Average capital employed	4,552.8	4,190.1
2,927.2	2,723.6	2,450.4	Net interest-bearing debt	2,927.2	2,450.4
2.86	2.60	2.81	Senior net debt : EBITDA	2.86	2.81
3.09	2.82	2.81	Total net debt : EBITDA	3.09	2.81

Vopak Half year report 2021

Interim Management Report 4

Highlights for HY1 2021 -excluding exceptional items-:

• EBITDA of EUR 407 million (HY1 2020: EUR 403 million). Adjusted for EUR 15 million negative currency translation effects, EBITDA increased by EUR 19 million (5%). Growth project contribution in the first half 2021 is driving positive EBITDA performance in soft business conditions.
• Proportional occupancy rate of 88% (HY1 2020: 88%) unchanged reflecting positive movements in the Netherlands, Belgium and Singapore offset by Fujairah, Panama and Indonesia.
• Cost efficiency measures are tracking well and the cost level for HY1 2021 amounted to EUR 298 million (HY1 2020: 295 million) including cost for growth projects and business development efforts.
• EBIT of EUR 246 million (HY1 2020: EUR 257 million), adjusted for negative currency translation effects, EBIT increased by EUR 1 million. Depreciation charges were higher in HY1 2021 compared to HY1 2020 mainly due to higher depreciation for new capacity delivered as well as due to sustaining capex investments.
• Return on capital employed (ROCE) of 10.5% (HY1 2020: 11.8%).
• Net profit attributable to holders of ordinary shares of EUR 149 million (HY1 2020: EUR 166 million) reflecting less capitalized interest in HY1 2021.
• Earnings per ordinary share (EPS) of EUR 1.19 (HY1 2020: EUR 1.31).
• The Senior net debt : EBITDA ratio is 2.86 at the end of HY1 2021.

Q2 2021 events:

• In the second quarter of 2021, the greenfield industrial terminal in Qinzhou, China, with an initial capacity of 290,000 cbm started operations.
• On 22 June 2021, Vopak announced that it has been awarded by Huizhou QuanMei Petrochemical Terminal Co., Ltd., a contract for storage and services of a liquid products terminal in China. The planned terminal will be constructed and operated as part of ExxonMobil's proposed Huizhou chemical complex project. Vopak will have ownership of 30% of the 560,000 cbm terminal, including the pipelines to connect the terminal to the jetty and EMHCC plant.
• After ten years of continuous LNG operations, Gate terminal in Rotterdam, the Netherlands, started on 15 June 2021 its major maintenance turnaround to ensure the best in class service for its customers, which was successfully completed as planned on 10 July 2021. In addition, Gate terminal will invest in a send-out capacity increase of 0.5 BCM per annum to a total of 12.5 BCM per annum. The additional capacity is planned to become available as of
  1 October 2024.

Exceptional items HY1 2021:

• An incremental impairment was recognized for the Vopak Bahia las Minas terminal in Panama for an amount of EUR 69.7 million. This impairment is the result of a further deteriorating business environment and lower occupancy rates in the first half of 2021.

Subsequent events:

• On 12 July 2021, Vopak announced that it has joined forces with Aegis in India with the aim to grow together in the LPG and chemicals storage and handling business. The new joint venture Aegis Vopak Terminals Ltd will operate a network of 8 terminals with a total capacity of around 960 thousand cbm. The transaction is expected to close early 2022, subject to customary closing conditions. The enterprise value for Vopak's shareholding in the joint ventures will amount to EUR 185 million plus EUR 15 million, depending on the fulfilment of certain Conditions Precedent. Post financing Vopak's net consideration amounts to EUR 100 million plus EUR 15 million depending on the fulfilment of certain conditions.
  In addition to the net consideration at closing of a total EUR 115 million, Vopak and Aegis have agreed the payment of a minimum EUR 18 million and up to a maximum of EUR 40 million payable to Aegis via a financial instrument.

Vopak Half year report 2021

Interim Management Report 5

Revenues of the joint venture are forecasted to grow with a CAGR of around 6% in the first 5 years. LPG revenues will be about 75% of the total revenues of the joint venture. On the back of the forecasted revenue growth, the joint venture is expected to increase EBITDA in line with revenue growth towards 2026 driven by growth of LPG demand and imports of liquid chemicals in India. In addition, the joint venture has a pipeline of growth projects, both brownfield and greenfield.

Looking ahead:

• In 2021, reported EBITDA contributions from 2020 and 2021 growth projects are expected to be at the higher end of the EUR 30 million to EUR 50 million range, subject to market conditions and currency exchange movements.
• In 2023, reported EBITDA contribution from 2020 and currently approved growth projects is expected to be in the range of EUR 110 million to EUR 125 million, subject to market conditions and currency exchange movements. Additional projects will further contribute to reported EBITDA.
• Cost management continues and we expect to manage the 2021 cost base including additional cost for new growth projects below EUR 615 million, subject to currency exchange movements.
• In 2021, growth investment is expected to be at the low end of the range EUR 300 million to EUR 350 million. The allocation of these investments will be through existing committed projects, new business development and pre-FID (Final Investment Decision) feasibility studies in new energies including hydrogen based on the assumption that the Aegis Vopak transaction will close early 2022.
• For the period 2020-2022, 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 2021, Vopak expects to reach around EUR 290 million in sustaining and service capex, based on current views on exchange rates.
• As part of the strategic direction for the period 2020-2022, Vopak indicated to invest annually EUR 30 million to EUR 50 million in IT capex to complete Vopak's digital terminal management system. For 2021, Vopak expects to be at the high end of the range in IT capex and we expect this program to be completed by the end of 2023.
• The majority of growth investments will be allocated towards industrial, gas and new energies infrastructures. Our positive views on chemicals have not changed. New growth investments in oil infrastructure are expected to be reduced and will mostly be targeted towards strengthening our leading hub positions.

Impact of Covid-19 pandemic in 2021:

The pandemic spread of Covid-19 (Coronavirus) remains an impactful event on all people and organizations around the world. Our first priority in the Covid-19 response is to protect the health and well-being of our people, their families and the communities in which we operate. We remain focused in these circumstances 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 work locations around the world.

The pandemic brings more uncertainty with respect to general operating and market conditions as well as volatility in currency exchange movements and the estimates remain subject to future events. We expect to continue to manage our performance in line with our business plans.

Vopak Half year report 2021