Storing
vital products with care
Algemene Vergadering van Koninklijke Vopak N.V.
21 april 2020
Agenda voor de jaarlijkse Algemene Vergadering van Koninklijke Vopak N.V. - 21 april 2020
- Opening
- Bespreking van het bestuursverslag over het boekjaar 2019
- Implementatie van het remuneratiebeleid voor het boekjaar 2019
- Bespreking en vaststelling van de jaarrekening over het boekjaar 2019
- Dividend
- Verantwoording reserverings- en dividendbeleid
- Voorstel dividenduitkering over het boekjaar 2019
- Decharge van de leden van de Raad van Bestuur voor de uitoefening van hun taken in het boekjaar 2019
- Decharge van de leden van de Raad van Commissarissen voor de uitoefening van hun taken in het boekjaar 2019
- Benoeming van de heer B.J. Noteboom als lid van de Raad van Commissarissen
- Remuneratiebeleid voor de Raad van Bestuur en voor de Raad van Commissarissen
- Raad van Commissarissen
- Raad van Bestuur
- Voorstel tot machtiging van de Raad van Bestuur tot verwerving van gewone aandelen
- Intrekking van gewone aandelen verworven door de vennootschap
- Benoeming van Deloitte Accountants B.V. als de externe accountant voor het boekjaar 2021
- Rondvraag
- Sluiting
Een toelichting op de agendapunten 2 tot en met 12 is opgenomen in de Aandeelhouderscirculaire.
Punten 2 en 5a) zijn ter bespreking. De punten 3, 4 en 5b) tot en met 12 worden ter stemming voorgelegd, waarbij punt 3 in een adviserende stem wordt voorgelegd.
AGM 2020
Storing
vital products with care
Chairman of the Executive Board and CEO of Royal Vopak
Eelco
Hoekstra
Key messages
- Storing vital products with care helps both meet the needs of a growing population and reach society's broader goals
- Strategy execution
- Portfolio transformation gained momentum throughout 2019
- Excellent progress with our digital transformation
- Strong financial performance in 2019
- Covid-19response - taking good care of people working at our terminals and supporting society by storing vital products with care - all 66 terminals are operational
AGM 2020 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 our best ability to ensure we protect our people and support society by storing vital products with care.
- Business-continuityplans are in place and 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 deliveryand protection of the long term value.
- We have seen a limited impact in Q1 - China and South Korea performed well. It is currently too early to assess the extent and nature of the full impact and future developments including the delays of projects under construction.
AGM 2020 5
Sustainability developments
Safety and sustainability developments
People | Planet | |
Personnel Safety (TIR)
Total injuries per 200,000 hours worked
1.0 | |||||||||
0.5 | 0.34 | ||||||||
0.0 | |||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
Reportable spills
Uncontained spills in amount (metric tons) and frequency
200 | Metric tons | |||||
150 | Total number | |||||
100 | ||||||
50 | 21 | 12 | ||||
0 | ||||||
2016 | 2018 | 2017 | 2019 |
Trust and Verify program | Our ambition is to be climate neutral by 2050 |
and to remain the industry leader |
AGM 2020 6
Growth developments
Shift towards industrial terminals, chemical and gas terminals
Botlek | Vietnam | ||||||
RIPET | Vlissingen | Caojing | |||||
63,000 cbm | |||||||
Deer Park | 20,000 cbm | ||||||
96,000 cbm* | 9,200 cbm | German LNG | Qinzhou | 65,000 cbm* | |||
Corpus Christi | 33,000 cbm | Antwerp | PT2SB | ||||
Openseason completed | |||||||
290,000 cbm | |||||||
Veracruz | |||||||
ETPL | |||||||
130,000 cbm | 50,000 cbm | 1,496,000 cbm* | |||||
Altamira | 110,000cbm* | 151,000 cbm* | Sebarok | PITSB | |||
40,000 cbm | SPEC | Lesedi | 67,000 cbm* | 430,000 cbm* | |||
Jakarta | |||||||
Panama | Merak | ||||||
170,000 cbm* | |||||||
100,000 cbm | |||||||
360,000 cbm* | 100,000 cbm | ||||||
Gas | Alemoa | 50,000 cbm | Sydney | ||||
Industrial terminals | |||||||
Durban | |||||||
Chemicals | |||||||
105,000 cbm | |||||||
Oil | 106,000 cbm* | ||||||
130,000 cbm |
* Fully or partly commissioned in 2019 | AGM 2020 7 |
2017-2019 strategy delivered
Transformative portfolio changes and digital strategy is being rolled out
Capture growth | | EUR 1 billion growth investment program in line with | |
long-term market developments | |||
Spend EUR 750 million on sustaining and | | Sustaining and service improvement capex programs | |
service improvement capex | remained within the spending limit | ||
Invest EUR 100 million in new technology, | | Build and global roll-out of Vopak's digital cloud-based | |
innovation programs and replacing IT systems | terminal management software in progress | ||
Drive productivity and reduce the cost base | | Efficiency program delivered - cost base for 2019 | |
is EUR 633 million | |||
AGM 2020 8
Key figures 2019
- Strong EBITDA and significant increase in earnings per share
- Portfolio well-positioned for future opportunities
EBITDA* | EPS* | Occupancy rate** | Terminal network | ||||
In EUR million | In EUR | In percent | In million cbm | ||||
830 | 2.80 | 84 | Today 34.3 | ||||
program | |||||||
2020-20221.5 | |||||||
Growth | |||||||
* Including net result from joint ventures and associates and excluding exceptional items | |
** Occupancy rate include subsidiaries only | AGM 2020 9 |
Storing
vital products with care
Member of the Executive Board and CFO of Royal Vopak
Gerard
Paulides
Financial highlights
- EBITDA of EUR 830 million reflect good aggregate business performance including new asset performance and positive IFRS 16 effects
- Earnings Per Share (EPS) significantly increased to EUR 2.80
- Cost savings program is delivered - 2019 cost base is EUR 633 million
- Continued growth investments
- EUR 100 million share buyback program and (proposed) dividend of EUR 1.15
AGM 2020 11
2019 vs 2018 EBITDA
Pro forma EBITDA increased reflected good aggregate business performance including new asset performance
829.8 | ||||||||||||
7.9 | 5.2 | 784.8 | 45.0 | |||||||||
5.8 | ||||||||||||
22.5 | 5.6 | |||||||||||
734.3 | 14.4 | 14.9 | 733.8 | 26.8 | ||||||||
2018 | FX-effect | Divested | Adjusted | Asia & | Americas | China & | LNG | Europe & | Global | pro forma | IFRS 16 | 2019 |
terminals | 2018 | Middle | North Asia | Africa | functions, | 2019 | effects | |||||
East | corporate | |||||||||||
activities | ||||||||||||
and others |
Figures in EUR million, excluding exceptional items including net result from joint ventures and associates | AGM 2020 12 |
Cash flow overview
Investment momentum driven by growth project phasing towards 2019
2019 | 2018 |
In EUR million | In EUR million |
710 | 647 | |||||||
500 | ||||||||
63 | 561 | |||||||
300 | 390 | |||||||
347 | ||||||||
18 | ||||||||
CFFO* Tax & other | CFFO | Sustaining, | FCF | Divestments | Growth | Other | Free Cash | |
(gross) | operating | (net) | service & IT before | investments | CFFI | Flow | ||
items | investments growth | before | ||||||
financing |
687 | 640 | |||||||
47 | ||||||||
266 | 38 | |||||||
374 | ||||||||
341 | ||||||||
21 | 50 | |||||||
CFFO | Tax & other | CFFO | Sustaining, | FCF | Divestments | Growth | Other | Free Cash |
(gross) | operating | (net) | service & IT before | investments | CFFI | Flow | ||
items | investments growth | before | ||||||
financing |
Figures in EUR million | |
* IFRS 16 classifies lease payments mostly as financing cash flows versus operating cash flows in prior years | AGM 2020 13 |
Robust balance sheet
Target leverage of 2.5 to 3.0 times senior net debt : EBITDA
Priorities for cash
1 | Debt servicing |
average interest 3.5% | |
Growth opportunities | |
2 | |
Value accretive growth | |
Shareholder dividend | |
3 | |
Stable to rising cash dividend | |
Capital optimization | |
4 | |
Efficient robust capital structure | |
Senior net debt : EBITDA ratio | Senior net debt : EBITDA ratio |
(frozen GAAP) | scenarios |
3.75
2.0-2.5 | 2.5-3.0 | 3.0-3.5 | ||||||||||||
2.5-3.0 | ||||||||||||||
2.83 | 2.73 | 2.04 | 2.02 | 2.49 | 2.75 | Strategic considerations | ||||||||
• | Timing of growth opportunities | |||||||||||||
• | Shareholder distributions | |||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Target | ||||||||
Maximum ratio under private placements programs and syndicated revolving credit facility - 'frozen GAAP'
AGM 2020 14
Increase in shareholder returns
5% increase in dividend and EUR 100 million share buyback program
Dividend and EPS* | Share Buyback Program |
In EUR
2.80
2.55 2.56
2.31 | 2.25 | 2.27 |
Vopak will start a share buyback program to return EUR 100 million to shareholders
0.90 | 1.00 | 1.05 | 1.05 | 1.10 | 1.15 | |
2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
39% | 39% | 41% | 47% | 48% | 41% payout ratio |
* Including net result from joint ventures and associates and excluding exceptional items | AGM 2020 15 |
Financial highlights
- EBITDA of EUR 830 million reflect good aggregate business performance including new asset performance and positive IFRS 16 effects
- Earnings Per Share (EPS) significantly increased to EUR 2.80
- Cost savings program is delivered - 2019 cost base is EUR 633 million
- Continued growth investments
- EUR 100 million share buyback program and (proposed) dividend of EUR 1.15
AGM 2020 16
Storing
vital products with care
Member of the Executive Board and COO of Royal Vopak
Frits
Eulderink
Sustainability messages
Storing vital products with care
- Vopak is committed to remain a responsible member of the communities in which we operate.
- We are committed to maximize positive, and minimize the negative effects of our business activities.
- We aim to contribute to a more sustainable society by introducing more sustainable technologies, processes and products, and facilitating the energy transition.
- Important sustainability topics for society and Vopak result in 3 horizons of action on the short, medium and long term.
- Our ambition is to be the sustainability leader in our industry and to be climate neutral by 2050.
AGM 2020 18
Sustainability at a glance
Energy supplied | Income tax paid |
In peta-joules | In EUR millions |
4,500 | 71 |
Equivalent to 120 million | We pay fair tax in |
households | countries in which we |
operate | |
Total energy | Renewable energy |
consumption | |
In peta-joules |
14.5 | 69% |
Equivalent to 0.4 million | +8% vs 2018 |
households |
People employed
Own employees (in FTE) and
contractor (in man years)
>15,000
Total Injury Rate (TIR)
In 200,000 hours worked own
personnel and contractors
0.34
+0.04 vs 2018
Living wage
Percentage of employees that
receive living wage
100%
Process Safety Event
Rate (PSER)
In 200,000 hours worked own personnel
and contractors in operational sites
0.16
+0.04 vs 2018
AGM - Sustainability 19
Storing vital products with care
Important sustainability topics for society and Vopak
Care for our | Assuring occupational |
societal impact | health and safety |
Ensuring process safety | |
Ensuring human rights | |
and decent work | |
Increasing diversity | |
Care for our | Air quality: Reducing VOC |
environment | and other air emissions |
Preventing water and soil | |
pollution | |
Reducing GHG emissions | |
Increasing energy efficiency | |
Our economic impact | Delivering vital products to |
customers and society | |
Following our business | |
ethics and integrity | |
Boosting innovation | |
Paying fair tax | |
External climate change risks, opportunities and impacts on Vopak
Organizing yearly climate day to stress test:
- Resilience of portfolio
- Growth strategy
AGM 2020 20
Vopak's lines of actions towards a sustainable future
SDGs | Action on 3 horizons | |||
Decent work | Responsible | | Continuous focus on safety & reducing | |
and economic | consumption | environmental footprint (short-term) | ||
growth | and production | |||
Affordable and | Industry, | | Facilitating the switch to lighter fuels and | |
clean energy | innovation and | feedstocks (medium-term) | ||
infrastructure | ||||
Affordable and | Industry, | | Developing infrastructure solutions for new | |
clean energy | innovation and | energies (long-term) | ||
infrastructure | ||||
AGM 2020 21
Personal safety & GHG reduction
Continuous focus on safety & reducing environmental footprint
Personal safety | GHG reduction | |
Aiming to be as safe as the safest customer | Supporting Paris Climate goals | |
Personnel Safety (TIR) | Total GHG emissions | |
Total injuries per 200,000 hours worked | in metric tons of CO2 equivalents |
0.95 | 460 | ||||||||
440 | |||||||||
420 | 408 | ||||||||
0.34 | 0.40 | 400 | |||||||
0.23 | |||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2050 |
Oil industry | Vopak | Chemical | Tankstorage | |
average | industry | competitor | We are particularly looking for ways to reduce energy | |
average | ||||
consumption from heating (38% of total GHG emissions). | ||||
Vopak's Trust & Verify program | Ambition to be climate neutral by 2050 |
AGM 2020 22
Facilitating the switch to lighter fuels and feedstocks
Transforming our portfolio to facilitate the switch to lighter fuels and feedstocks
Progress during 2019
Facilitating LNG
- ETPL in Pakistan facilitates energy equivalent of 4.5 million households
- Gate Rotterdam facilitates energy equivalent of 8 million households
Facilitating LPG
- LPG Canada supports Asian energy demand deficit
~10% | ~10% | 10-15% | |
~15% | 20-25% | ||
25-30% | |||
35-40% | 25-30% | ||
25-30% | |||
40-45% | 40-45% | 35-40% | |
2014 | 2017 | 2019 | >2019 |
Gas Industrial terminals Chemicals Oil
AGM 2020 23
New Energies
Developing infrastructure solutions for new energies
New energies strategy
Hydrogen
- Clean and renewable source of energy
Flow batteries
- Use molecules to store large quantities of electricity
CO2 storage & use
- Carbon Capture Storage & Use to support Paris Climate goals
Green feedstocks
- New feedstocks for chemical industry and recycling plastics
Hydrogen progress
- Vopak explores 3 potential ways to handle hydrogen
- Liquid Hydrogen
- Ammonia
- Liquid Organic Hydrogen Carrier (LOHC)
- Vopak is one of the members of H-visionRotterdam
- Vopak made its first hydrogen investment in Hydrogenious (LOHC)
AGM 2020 24
Vopak WeConnect Foundation
Contributing to the youth in communities we operate
- Since 2016
- Focus on young people aged between 10-24years
- Engage with our communities and help empower young people and connect them to the world
Caojing, China
Rotterdam Botlek, Netherlands
Alemoa, Brazil
- So far, 30 WeConnect projects were launched around the world
- Reaching more than 5,000 young people in all Vopak regions
Malaysia
Altamira, Mexico
Rotterdam Europoort, Netherlands
Panama | Pakistan |
AGM 2020 25
Storing
vital products with care
Annual General Meeting 21 April 2020
Questions & Answers
Storing
vital products with care
Algemene Vergadering van Koninklijke Vopak N.V.
21 april 2020
Attachments
- Original document
- Permalink
Disclaimer
Royal Vopak NV published this content on 21 April 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 April 2020 15:52:10 UTC