Storing vital
products
with care
Annual Report 2021
We store products that are vital for everyday life. Theenergy
that allow people to cook, heat or cool theirhomes and
for transportation. The chemicals thatenable companies
tomanufacture millions ofusefulproducts. The edible oils
toprepare food. Vopakisthe world’s leading independent
tank storage company andwe take pride in storing vital
products with care, for a growing world population.
Wearedeveloping new infrastructure solutions to actively
contribute to the introduction of future vital products,
focusing on zero- and low-carbon hydrogen, ammonia,
CO
2
, flow batteries and sustainable feedstocks.
Cover page
The symbols used on the cover represent just some of
the end-uses of the products we carefully store: energy
to heat houses and charge electric cars, polymers in
clothes, fuel for airplanes, chemicals used in computers,
mobile phones and many other consumer products.
Storing vital
products with care
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
1
Vopak Annual Report 2021
|
In this report
4
Introduction
5 2021 highlights
7 CEO statement
10
Purpose & strategy
11 Our purpose
12 Our strategy
14 Our value creation
16 Our responsible business conduct
21
Business & market environment
22 Letter of the Executive Board
25 Our business environment
28 Our business
32
Performance & outlook
33 Performance driven
34 Our performance
37 Sustainability
39 Service
41 Efficiency
42 Financial performance
46 People
47 Open & inclusive
48 Operating as one team
49 Supporting greater diversity
52 Future mindset
53 Leading locations
56 New vital products
59 Data driven
61 Key developments by division
62 Americas
64 Asia & Middle East
66 China & North Asia
68 Europe & Africa
70 LNG
72 Outlook
74
Sustainability
76 Introduction to sustainability
78 Governance and basis of preparation
84 Consolidated Sustainability Performance
86 Care for our societal impact (people)
98 Care for our environmental &
climateimpact(planet)
111 Care for our economic impact (profit)
123 Other topics
125
Governance, risk & compliance
126 Supervisory Board report
133 Supervisory Board members
134 Executive Board members
135 Remuneration report
152 Corporate Governance
157 Corporate Governance statement
160 Riskmanagement &internalcontrol
174 Shareholder information
177
Financial Statements
179 Consolidated Financial Statements
263 Company Financial Statements
270 Executive Board declaration
271 External auditor’s reports
282
Additional information
283 Non-IFRS proportional financial
information (unaudited)
286 Profit Appropriation
287 Stichting Vopak (Vopak Foundation)
288 Five-year consolidated summary
289 Glossary
292 Contact details
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
2
2
Any statement, presentation or other information
contained herein that relates to future events,
goals or conditions is, or should be considered,
a forward-looking statement.
Although the Company believes these forward-looking
statements are reasonable, based on the information
available to the Company on the date such statements
are made, such statements are not guarantees of
future performance and readers are cautioned against
placing undue reliance on these forward-looking
statements. The Company’s outlook does not
represent a forecast or any expectation of future
results or financial performance.
The actual future results, timing and scope of a
forward-looking statement may vary subject to
(amongst others) changes in laws and regulations
including international treaties, political and foreign
exchange developments, technical and/or operational
capabilities and developments, environmental and
physical risks, (energy) resources reasonably available
for our operations, developments regarding the
potential capital raising, exceptional income and
expense items, changes in the overall economy and
market in which we operate, including actions of
competitors, preferences of customers, society and/or
the overall mixture of services we provide and
products we store and handle.
The Company does not undertake to publicly update or
revise any of these forward-looking statements.
Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
3
Vopak Annual Report 2021
|
Introduction
Introduction
5 2021 highlights
7 CEO statement
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
4
Vopak Annual Report 2021
|
Introduction
Market
capitalization
in EUR billions
3.9
Storage
capacity
in million cbm
36.2
Total
injury rate
0.25
Number
of employees
in FTE
5,669
EBITDA
in EUR million -
excluding
exceptional items
1
827
Number
ofcountries
23
Number
ofterminals
73
2021 highlights
at year-end
Royal Vopak is the world’s leading independent tank storage company. 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 the economy
andthe daily lives of people across the globe, ranging from chemicals, oils, gases
andLNG to biofuels and vegoils. We are developing new infrastructure solutions
to actively contribute to the introduction of future vital products, focusing on
low-carbon and renewable hydrogen, ammonia, CO
2
, flow batteries and sustainable
feedstocks. We invest in digitalization and innovation to improve ourperformance
and our service to our customers. Vopak is listed on Euronext Amsterdam and
isheadquartered in Rotterdam, the Netherlands.
EPS
2.38
in EUR - excluding
exceptional items
1
In 200,000 hours worked
by own personnel and
contractors
1 For a reconciliation between the IFRS numbers and the amounts excluding exceptional items, reference is made to note 2.2 of the financial statements.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
55
Vopak Annual Report 2021
|
2021 highlights
2021 highlights
Q2 Q3 Q4Q1
April
• The greenfield joint venture industrial
terminal in Qinzhou, China, with an initial
capacity of 290,000 cbm started operations.
• Vopak announced that it signed a Joint
Development Agreement with Elestor for
the development of a hydrogen bromine
flow battery. The joint ambition is to scale up
the electricity storage capacity of these flow
batteries from 200 kWh to 3,000 kWh in a
period of 2years and then further develop it
to industrial scale. This development is part
of Vopak’s New Energy strategy.
May
• Keppel Data Centres, Kawasaki Heavy
Industries, Linde Gas Singapore, Mitsui
O.S.K. Lines and Vopak LNG have entered
into a Memorandum of Understanding
(MOU) to jointly explore the concept
development of a supply infrastructure to
bring liquefied hydrogen (LH2) into
Singapore to power Keppel’s data centres.
June
• Vopak has been awarded by Huizhou
QuanMei Petrochemical Terminal Co., Ltd.,
along-termcontract for storage and services
of a liquid products terminal in China. The
planned terminal would be constructed and
operated as part of ExxonMobil’s Huizhou
chemical complex.
July
• Vopak and Aegis announced that the
companies have decided to combine
efforts in a joint venture inIndia
with the aim to grow together inthe
LPG and chemicals storage and
handling business in India with a total
capacity of 960,000 cbm starting in
2022 depending on the fulfilment
of certain conditions.
• Gate LNG terminal successfully
managed its once in a decade
maintenance turnaround program, and
plans to invest in a further
regasification capacity expansion
of1.0bcm per year. Together with
theearlier announced investments
toincrease the capacity by 0.5 bcm
per year this will result in atotal
capacity of 13.5 bcm per year.
The12.5% additional send-out capacity
is planned to become available at the
end of 2024.
September
• The newly built Vopak Moda terminal
in Houston received the first ammonia
tanker. The new terminal fits Vopak’s
strategy of developing new
infrastructure solutions for products
like ammonia.
October
• Vopak announces the opening of
anewVopak industrial terminal in
theU.S. Gulf Coast. The new terminal
has been designed andbuilt by Vopak
to serve Gulf Coast Growth Ventures, a
joint venture byExxonMobil and SABIC
to build andoperate a world-scale
plastics manufacturing facility.
• Vopak, Groningen Seaports and
PATRIZIA opened a 25MW solar park
in The Netherlands. The opening of the
park marks Vopak’stransition to green
electricity inthe Netherlands.
November
• Vopak investigates strategic options
forits oil terminals in Australia.
Thismayinclude continued operations
ordivestment.
December
• Mitsui O.S.K. Lines (MOL) and Vopak
reach agreement to jointly own and
operate the FSRU for the new LNG
terminal in Hong Kong. This new joint
venture company between MOL and
Vopak in Hong Kong will own the
world’s largest floating storage and
regasification unit (FSRU) and have
along-term contract with Hong Kong
LNG Terminal Limited.
January
• Vopak and Rotterdam ShorePower to
conduct a feasibility study forthe use
of shore-based power for tankers in
the Port of Rotterdam. A key benefit of
shore-based power is that less
nitrogen dioxide, particulate matter and
CO
2
are released into the atmosphere,
which reduces air pollution and
combats climate change.
February
• Vopak is investing in the Port of
Rotterdam, for the storage of
waste-basedfeedstocks for the
production ofbiofuels such as biodiesel
and bio-jet-fuel. In total 16 new tanks
with a combined capacity of 64,000
cbm will be built at Vopak Terminal
Vlaardingen.
March
• Vopak LNG, which already partners in
fourliquefied natural gas (LNG) storage
facilities globally, is investigating the
feasibility of developing a similar
facility inPort Phillip Bay offshore
atNorth Avalon, Victoria, Australia.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
6
Vopak Annual Report 2021
|
CEO statement
I am enthusiastic
about how we are
successfully growing
and transforming our
company, actively
positioning ourselves
towards the future, while
delivering short term
performance.
Dick Richelle
Chairman of the
Executive Board and
CEO of Royal Vopak
as per 1 January 2022
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
77
Vopak Annual Report 2021
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CEO statement
CEO statement
Dear reader,
Thank you for your interest in Vopak. Every day, we
work hard to store the vital products that society
needs, and do so with care, as society expects of us.
I am grateful for the enormous commitment and team
spirit our employees have demonstrated again to
realize our purpose, and proud of what we have
achieved in 2021.
We are performance-driven people with a future
mindset, guided by our values. I am enthusiastic about
how we are successfully growing and transforming our
company, actively positioning ourselves towards the
future. Because of who we are as a company: our ability
to build partnerships across cultures, our independent
position and our open and inclusive culture. Because of
our physical network of terminals at locations where
infrastructure is needed to deliver products that society
needs today and tomorrow. And because of our
capabilities to handle vital products with care.
Performance-driven
2021, like 2020, was again an atypical year due to the
pandemic - with high volatility and lower demand for
storage across the industry due to tight supplies.
Vopak has proven its resilience and ability to continue
delivering while adapting to change. Over the past
years, we have been steadily shifting towards storing
cleaner conventional products, stepping up efforts in
new energies and sustainable feedstocks, and
embracing the digital age. At the same time, we
realize that long-term value creation is enabled by our
relentless focus on sustainability, service and
efficiency in our day-to-day performance. We did well
in that area. On safety, the cornerstone of our
sustainability policy, we had no major incidents in 2021
and continued to improve our performance versus
previous years. Our service delivery was well
perceived by our customers, which led to sustained
high net promoter scores. Our financial results in 2021
were better than in 2020, thanks to the sizable
contribution of delivered growth projects and our
ability to control costs.
We made good progress on our portfolio and growth
agenda. We reached new milestones in industrial
terminals. In the US Gulf Coast, Vopak Terminal Corpus
Christi started to service the joint venture of ExxonMobil
and SABIC, which operates a world-scale plastics
manufacturing facility. We also realized the integration
of the three industrial terminals from Dow into our
network, through our joint venture with BlackRock in
Vopak Industrial Infrastructures America. In China, we
started the operation of the industrial terminal in
Qinzhou. In addition, we were awarded an industrial
contract for storage and services of a liquid products
terminal to be constructed and operated as part of
ExxonMobil’s projected chemical complex project in
Huizhou, China. Finally, we delivered new storage
capacity and infrastructure at Antwerp Linkeroever,
Belgium; Veracruz, Mexico; Deer Park, USA; Rotterdam
Botlek, the Netherlands; and Sydney, Australia.
We are pleased with the progress towards starting
up our new joint venture in India in 2022. As the
Indian government has earmarked LPG to provide
cleaner and safe cooking fuels for households, we
are joining forces with Aegis to create one of the
largest independent tank storage companies for
Vopak is solidly
positioned towards
the future and
ready to take
the next step
in serving our
customers and
society in the
fast-paced
transition to a
sustainable world.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
8
Vopak Annual Report 2021
|
LPG and chemicals in the country. Gate terminal
(Gasunie/Vopak) for LNG in Rotterdam is making an
important contribution to the security of natural gas
supplies in the Netherlands and Northwest Europe and
will add additional capacity to serve increased demand.
We reached an agreement with Mitsui O.S.K. Lines to
jointly own and operate the floating storage and
regasification unit for the new offshore LNG terminal in
Hong Kong to support regional electricity demand.
Future mindset
As the pace of change accelerates, I am excited about
our positioning towards the many opportunities ahead.
In 2021, we progressed again in developing
infrastructure solutions for new vital products -- our
name for low- and zero-carbon new energies and
sustainable feedstocks. Building on our experience in
storing and handling ammonia at five other locations
around the world, we commissioned ammonia
operations in the new Vopak Moda Houston terminal.
This positions us well to contribute to future flows of
low-carbon and renewable ammonia, which can be
used as a hydrogen carrier, a shipping fuel or a
feedstock. We also work with various partners on
setting up new hydrogen supply chains via various
technologies - liquid organic hydrogen carriers to enable
hydrogen imports from various potential locations into
Northern Europe, and liquefied hydrogen in the long
run, to, for instance, Singapore. In the H-vision project,
we are part of a consortium that aims to significantly
lower CO
2
emissions in the Rotterdam industry by
using residual gases to produce low-carbon hydrogen,
for use as a fuel. We are also investing in new tanks in
the Port of Rotterdam to store waste-based feedstocks
for the production of biofuels such as biodiesel and
bio-jet-fuel. On CO
2
, Gasunie, Vopak and their joint
venture Gate terminal are investigating the joint
development of an independent hub terminal for CO
2
in
the port of Rotterdam, to receive and deliver liquid CO
2
via ship for market parties. Finally, we are developing
redox flow battery solutions with partners in Singapore
and in the Netherlands, where we aim to scale up
electricity storage capacity from pilot to industrial scale.
The execution of our digital strategy is progressing
well. The terminal management system for operations
and customer services, a software program that we
developed in-house, will be live at all terminals within
project scope at the end of 2023. At the same time,
we continue to transform into a data-driven company
and invest in digital innovation. From its launch in
2018 until year-end 2021, Vopak Ventures has built a
portfolio of 14 start-ups and scale-ups with the aim
to deliver stakeholder value and innovate in three
areas: digital & data platforms; operations & asset
management; and sustainability & new vital products.
Examples include water treatment, hydrogen logistics
and data connectivity.
People
I want to thank our customers, shareholders,
authorities and people in our communities for their
trust and support, which allow us to play our role in
society. I want to thank all the colleagues, contractors
and partners working at Vopak and our joint ventures
for maintaining the highest standards on safety,
sustainability and service despite the continued
impact of the pandemic on people’s physical and
mental health. I also want to thank all the colleagues
who contributed to Vopak WeConnect projects
for creating opportunities for youth in the
communities in which we operate. Engaging with
our communities is one of the 12 key topics of our
updated sustainability roadmap, which reflects
the outcome of our engagement with internal
and external stakeholders, including employees,
customers, authorities and neighbors. The roadmap
establishes a balanced approach on where we can
have a positive impact for people, planet and profit
and the United Nations Sustainable Development
Goals. The roadmap includes targets for each topic,
including on safety, reducing our greenhouse gas and
VOC emissions and inclusion & diversity.
Finally, on behalf of the Vopak people around the
globe, I had the privilege to say thank you to
EelcoHoekstra for his leadership, trust and
friendship. He led the company for almost 12 years.
I feel honored to succeed him and humbled to serve
as CEO of this great company.
In the past months, I had meetings and calls with
customers, partners and investors across the globe.
These introductions were extremely helpful to
understand where we stand. I will continue listening
to and engaging with a wide range of stakeholders
inside and outside Vopak and use their valuable input
in setting our priorities for the future. At the start of
2022, Vopak is solidly positioned towards the future
and ready to take the next step in serving our
customers and society in the fast-paced transition to
a sustainable world.
Dick Richelle
Chairman of the Executive Board and CEO of Royal Vopak
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
9
Vopak Annual Report 2021
|
Purpose
& strategy
11 Our purpose
12 Our strategy
14 Our value creation
16 Our responsible business conduct
Vopak Annual Report 2021
|
10
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Purpose & strategy
Purpose & strategy
Our purpose: storing vital
products withcare
The global population is increasing and becoming more affluent in general. Vital products
like energy, food, and chemicals areingrowing demand. As the world’s leading independent
tank storage and infrastructure company, we connect supply and demand for these products
and enable the delivery of products that are vital to the economy and the daily lives of people
around the world.
To do so, we operate a global network of storage
terminals at strategic seaport locations along major
trade routes. We ensure safe, clean and efficient
storage and handling of bulk liquid products and gases
for our customers.
Storing vital products
We help provide the energy that allows people to
cook, heat their homes and travel around. Chemicals
for the production of many different products. Today’s
world is in the midst of a profound transformation
withthe energy and feedstock transitions and the
revolution in digital technology. Our long-term success
depends on our ability to innovate and respond to
changing demands from society and the markets in
which we operate. Vopak is developing new
infrastructure solutions to actively contribute to the
global energy and feedstock transitions, which can
only succeed with adequate storage and infrastructure
solutions. Today, we store chemicals, oil, gases,
biofuels and edible oils. For the future we are
developing new infrastructure solutions to actively
contribute to the introduction of new vital products -
our name for low- and zero-carbon new energies and
sustainable feedstocks.
...with care
We strive to be a responsible member of society
and the communities in which we operate. We are
mindful of the potential impact of our business
activities on people’s safety, health and well-being
and on the environment.
Vopak Annual Report 2021
|
11
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Our purpose
Our purpose
The energy
transition needs
adequate
infrastructure
solutions.
Our strategy
Vopak operates a global network of terminals worldwide. Around the world, we connect the
supply of and demand for vital products and resources. Energy that allows people to cook,
heat their homes and travel the world. Chemicals for many useful products. We ensure the
safe, efficient and clean storage and handling of such vital products. This way, our contribution
to the world extends far beyond storage alone.
Vopak is excited to be at the heart of the energy
transition. The energy transition requires new supply
chains connecting supply and demand around the
world. We believe adequate storage and infrastructure
solutions are critical for its success. Our customers –
and potential new partners – play a key role in this
transformation, as they are large producers and users
of energy and feedstocks. Our customers count on
us, for enabling them to optimize these new energy
and feedstocks flows for the benefit of business
and society.
In 2021, Vopak continued to effectively manage the
company during the Covid-19 pandemic. Our strategy
proved to be resilient. The control and governance
structure that we put in place to respond to the
pandemic proved effective to support decision-making
and business execution while protecting the
well-being of employees, contractors and local
communities. Allterminals remained operational
and there were nosignificant disruptions to
business continuity.
Vopak Navigator
The Vopak Navigator guides us in creating value for our
stakeholders and society: storing vital products with care,
by performance driven people with a future mindset.
We are
performance
driven
people
with a
future
mindset
guided by our
values
Service
Data
driven
Efciency
Sustain-
ability
New vital
products
Leading
locations
Diverse
One
team
Open &
Inclusive
We store vital
products with care
Vopak Annual Report 2021
|
12
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Our strategy
Our strategy
Performance driven
We fulfill our purpose by being performance driven. We do this by excelling in
sustainability, service andefficiency. In this way, we contribute to society everyday.
• Sustainability: we are ambitious and performance driven with a balanced
roadmap focusing on care for people, planet and profit. Safety is our first priority.
We want to reduce our own environmental footprint while facilitating the
introduction of vital products of the future. We need to be profitable to have
access to resources to drive our strategy.
• Service: we always try to meet our customers’ needs and expectations,
enabling them to reach their present and future goals and ambitions. Customer
loyalty and maintaining a healthy profit is of the utmost importance to us.
• Efficiency: to stay ahead of competition, we are optimizing our core processes
including operations, maintenance, and project execution, continuously bringing
in more efficient and where appropriate digital solutions.
People
People are the heart of our company. Our people bring our purpose to life, by
adopting a future mindset and continuously driving performance.
• One team: we are all part of one Vopak team. Working at our international
company feels like being part of a global team.
• Open & inclusive: we’re committed to an open andinclusive culture where
ourpeople can work safely and develop their full potential.
• Diverse: we value and are inspired by a diverse workforce reflecting the
societies we serve.
Future mindset
We work with the future in mind, always ready for the potential of new
developments and change. For our future success and our license to operate in
society, we believe we need to focus on three important drivers: leading locations,
new vital products and being data driven.
• Leading locations: location is everything in our business. Around the world, we
connect supply and demand for vital products and resources. Our global network
of terminals determines our strategic position and how we are valued by our
customers and other stakeholders. We have the expertise to determine the right
locations to store and provide infrastructure for the vital products of today and
tomorrow.
• New vital products: Vopak’s contribution to a climate-neutral society is to
develop infrastructure solutions for zero and low-carbon new energies and
sustainable feedstocks, focusing on hydrogen and ammonia, CO
2
, flow batteries,
biofuels and sustainable feedstocks.
• Being data driven: investment in digital innovation gives us more access to data
across our business. By analyzing this data, we are able to improve safety,
provide better customer service, and increase efficiency.
Guided by our values
Our values guide us in making decisions, and our actions testify to our values.
We have five core values that guide everyone at Vopak in their daily work:
Care for safety, health & environment (SHE)
Integrity
Team spirit
Commitment
Agility
Together, our five core values provide the foundation for a unique Vopak culture
thathelps us live up to our purpose and take decisions in line with our strategy.
Theyenable us to earn and strengthen our license to operate for the benefit of our
company, our people, our communities and all other stakeholders.
Vopak Annual Report 2021
|
13
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
We believe in the
strength of who
we are, what we
do and where we
are located.
Our value creation
We aim to create long-term value for all our stakeholders – from customers and business
partners to investors, employees and local communities. Vopak’s business, financial and
investor strategies are founded on this principle.
1 Vopak’s model is based on the framework published by the Value Reporting Foundation. For more information, see www.valuereportingfoundation.org.
The products we store provide light, power, energy for
cooking and heating, and form the basis of millions of
useful products and household goods.
Through dividends for shareholders, salaries for
employees and the payment of taxes and suppliers,
we create financial value. We enable efficient services
that benefit our customers and the wider communities
we serve. We also create social value – our
engagements with different stakeholders like
governments, business partners and our communities
are proactive and transparent, and help us to work
together in a mutually beneficial manner, building
long-lasting relationships based on trust.
At the same time, we are aware that, through our
business activities, we may also deplete value
–through accidents, for example, or impact to the
environment. That’s why we work hard to reduce
these impacts. In operating our business, we also
consume resources – we invest in our facilities and
terminals and make use of natural resources like water
and energy. We aim to manage these resources as
responsibly as possible.
Value creation model
Our value creation model
1
is shown on page 15.
Thismodel describes both the resources we consume
(inputs) and the value we create or deplete during the
course of our business (outputs). Importantly, this
model allows us to identify where particular strategies
or investments may create value for one stakeholder
group, but reduce value for another. The table below
shows the principal value created per stakeholder group.
Vopak Annual Report 2021
|
14
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Our value creation
Our value creation
Customers
We continued to deliver product to
customers safely and efficiently – without
serious process incidents; we were able
to maintain operations through the year.
Customer loyalty levels, as measured by
NPS, increased further – confirming that
customers appreciate our service levels.
Employees & contractors
Total injury rate improved and severity of
personal incidents was lower than last year.
The sickness absence rate was kept low at
2.4%, despite Covid-19 challenges. Salaries,
benefits and pension contributions were
in line with last year. Employees receive a
fair and liveable compensation; again, all
countries were found to be compliant with
the living wage principle.
Investors
Payments to investors via dividends
were EUR 151 million. The share price
declined by 28%. We continued to invest
in our business, increasing overall storage
capacity by 0.6 million cbm mainly in
China and the Americas. New growth
projects were announced inChina, US
and Asia & Middle East.
Governments & authorities
We continued to support public services
through tax payments. We paid a fair tax
in the countries in which we operate.
We also complied with all safety, health
an
denvironmental protection laws.
In 2021, we received EUR 0.032 million
in fines.
Local communities
Our most material issue towards our
communities is process safety, which was
improved in 2021. It is our responsibility
to keep our neighbors safe during the
operation of our facilities by reducing
spills, emission and nuisance. Process
safety is one of the 12 key elements in
our sustainability roadmap. We encourage
employees to take an active part in
their local communities including via
WeConnect projects.
Business partners & suppliers
In 2021, total payments to suppliers
and other business partners reduced.
We continued to invest in joint ventures
around the world. Newopportunities
for business partners were alsocreated
through capacity expansion and
conversions at several major terminals.
Outcomes
1 More information on the United Nations Sustainable Development Goals that connect to the heart of our activities can be found on page 17.
2 Number of injuries for every 200,000 hours worked by employees and contractors.
Our employees are part of an inclusive workforce that provide the
company with their expertise, talent and resources. We invest in
training, talent development and diversity.
• 5,669 employees and more than 10,000 contractor person-year
• Annual average of 41 training hours per employee
• Employee engagement score of 7.6 based on
an 82% participation rate
• EUR 409 million in salaries, benefits and
pension contributions
• Total Injury Rate of 0.25
2
• We ecourage employees to take an active role in our
communities, including by supporting young people
through the Vopak WeConnect Fundation
• EUR 151 million paid to investors in dividends and interest
• EUR 366 million Free Cash Flow before growth
• EUR 65 million paid in taxes
• Our equity has grown by 8% to EUR 3.2 billion
• EUR 284 million spent on sustaining and service
improvements
• Increase in total storage capacity of 0.6 million cbm
• GHG emissions of 577,195 metric tons of
CO
2
equivalents
• Societal impact of VOC emissions reduced
by 23% compared to 2016
• Real-time data driven terminal management system
(MyService)
• Top quartile customer satisfaction (NPS: 74)
• Process Safety Event Rate of 0.09
Our shareholders and creditors provide the funds that we use to create value by
investing to grow our business.
• EUR 3.2 billion shareholder’s equity
• EUR 2.9 billion net debt
Our business makes use of natural resources such as energy and water. We hold land and
sea to build and operate our tank terminal assets.
• 17,791 terajoules of direct and indirect energy use of which 55% renewable energy
We operate and maintain a well-diversified portfolio of tank terminal assets
around the world to facilitate product movements and connect supply and
demand market.
• 73 terminals in 23 countries
• 36.2 million cbm of storage capacity
We engage with various stakeholders such as customers, suppliers,
governments, unions, local communities and society at large. Together,
these relationships provide our social ‘license to operate and grow’.
• More than 50 long-term joint venture partners
• More than 500 customers globally
Our processes and procedures ensure that we store products safely
and efficiently. We develop our own software & IT systems and have
embedded Vopak Standards globally.
• EUR 32 million IT investment program
• Vopak Standards and blueprints
People
People
Financial
Financial
Natural
Natural
Terminals & Equipment
Terminals & Equipment
Social & Relationships
Social & Relationships
Systems & Processes
Systems & Processes
Input
Business environment changes:
energy & feedstock transitions
& digital transformation
We are
performance
driven
people
with a
future
mindset
guided by our
values
Service
Data
driven
Efciency
Sustain-
ability
New vital
products
Leading
locations
Diverse
One
team
Open &
Inclusive
We store vital
products with care
We aim to create value
for all stakeholders
Outputs
Impact
1
Vopak Annual Report 2021
|
15
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
The Vopak
Values are the
foundation of
our approach
tobusiness.
Our responsible
businessconduct
Vopak aims to create value for all our stakeholders and society. Our approach to responsible
business conduct is about caring for people and planet, as well as profits.
This principle is built into our purpose as a company:
storing vital products with care. We strive to be a
responsible member of society and the communities
in which we operate, a company that our employees
and contractors may be proud to work for. To achieve
this, everyone at Vopak is provided clear guidance,
through values and policies.
Our moral compass
Vopak Values
The Vopak Values are the foundation of our approach
to business. It’s vital that our employees, contractors
and joint venture partners understand and share
these values.
There are five values in all:
• Care for safety, health and the environment
• Integrity
• Team spirit
• Commitment
• Agility
These values are embedded in our policies and
(performance-review) frameworks, including our Code
of Conduct. They act as a guide to decision-making,
and serve as the company’s moral compass.
Code of Conduct
Vopak’s Code of Conduct sets out our expectations
with regard not only to safety and the environment,
but also to human rights, non-discrimination, fraud
andcorruption. The Code also includes provisions
onanti-money laundering and compliance with
international sanction laws. These are important topics
for Vopak as we operate worldwide, including in
countries with a higher risk of corruption and poorer
human rights records. The Code is applicable to all
Vopak employees – we provide regular training in the
Code to ensure high standards. We also have a
whistleblower policy, allowing employees and other
stakeholders to report in confidence alleged violations
to laws, regulations and the Code of Conduct. We
follow up on all complaints, and take remedial action
where needed.
Vopak Annual Report 2021
|
16
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Our responsible business conduct
Our responsible business conduct
Sustainability Policy
Sustainability is about meeting the needs of the
present without compromising the ability of future
generations to meet their own needs. To live up to our
purpose, we act to help future generations meet their
needs and contribute to a more sustainable economy
by developing infrastructure for the introduction of vital
products of the future. We are mindful of the potential
impact of our business activities on people’s safety,
health and well-being and on the environment.
Through our care for people, planet and profit, we aim
to create value for all our stakeholders, including
customers, investors, employees, authorities, local
communities and society at large. Our choices today
should therefore contribute to our long-term relevance
for society and the well-being and development of
current and future generations. On page 36-38,
we have published our updated roadmap, which
provides a framework to implement the strategic
transformation of our portfolio towards cleaner
products and new energies and helps us further
integrate sustainability into our global processes
and investment decisions in cooperation with our
customers and other partners.
Sustainable Development Goals
Vopak supports the UN Sustainable Development
Goals (SDGs) and specifically embraces five SDGs,
where we believe we can create the most value for
stakeholders and society as a whole – by supporting
the energy and feedstock transitions, in providing
asafe working environment, in avoiding air, water and
soil pollution, and in building resilient, sustainable
infrastructure at ports around theworld.
SDG Vopak’s contribution Ambitions & targets
Ensure access to affordable, reliable, sustainable
and modern energy for all
Take urgent action to combat climate change
and its impacts
Vopak aims to contribute to the dual objective of limiting climate change,
while providing access to affordable, reliable and sustainable energy and
feedstocks for all. We help customers reduce their environmental and
carbon footprint and contribute to the energy and feedstocks transition
around the world. At the same time, we are taking effective measures to
reduce our own environmental and carbon footprint, including CO
2
.
We adopted three lines of action:
• First, develop infrastructure solutions to accelerate a switch to cleaner
conventional fuels and feedstocks for all;
• Second, develop infrastructure solutions for zero and low-carbon new
energies and sustainable feedstocks;
• Third, reduce our greenhouse gas emissions by 30% by 2030 and be
climate neutral by 2050.
Promote sustained, inclusive and sustainable economic
growth, full and productive employment and decent
work for all
In storing vital products with care, safety is our first and foremost priority.
This includes ensuring a safe and secure working environment for all
people working at and for Vopak and caring for the communities in which
we operate.
• Zero fatalities, life changing injuries & catastrophic process incidents and
reduce Total Injury Rate (TIR)
• Improve diversity in management in terms of gender, regional origin and
competences
• Respect human rights and contribute to realizing decent work for all people
who operate, build and maintain our terminals
• Being a good neighbor and engaging with our local communities.
Build resilient infrastructure, promote inclusive and
sustainable industrialization and foster innovation
To realize our purpose, we develop, maintain and operate reliable,
sustainable terminal infrastructure in ports around the world. We adopt
and invest in environmentally sound technologies and processes. We
explore the introduction of more sustainable technologies and processes
and work on the digital transformation of our company.
We have high standards in:
• Sustainability, service delivery and efficiency
• Design and engineering of new assets
• Project management and commissioning of new assets
• Operating and maintaining existing assets throughout the Vopak network
Ensure sustainable consumption and
production patterns
We work hard to reduce any negative impact of our activities on
people’s health and well-being, on the environment and on climate, in
particular by reducing emissions to air, water and soil and managing
waste and wastewater. Underlying these efforts is our ambition to
preserve biodiversity.
• Reduce Process Safety Event Rate (PSER)
• Reduce releases of harmful products to the environment, including
emissions of Volatile Organic Compounds (VOCs)
• No uncontained spills
Vopak Annual Report 2021
|
17
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Safety and health
We handle hazardous products. In addition to
complying with laws and regulations, we have
company-wide safety principles, the Vopak
fundamentals. Care for safety, health and the
environment is built into both our Code of Conduct
and our Supplier Code. We provide rigorous safety
training to those working at Vopak locations.
Vopak’s safety fundamentals include essentials on
transferring products, managing change, on permits,
lock-out - tag-out, excavation, use of motorized
vehicles, and working in confined spaces and at
heights – a common cause of accidents in the industry.
We systematically discuss and report work related
injuries, fatalities and illnesses if and when they
occur
1
, as well as process safety incidents like spills
and fires, with aview to further strengthening our
Safety, Health & Environment (SHE) performance. We
have implemented our Trust & Verify program. The aim
of this program is to increase awareness of safety
issues, and to encourage a culture of personal
accountability throughout the company. We are also
bringing in more technology which helps us to identify
risks sooner, often in real time. This gives us the
opportunity to intervene early and prevent incidents
before they happen; it also allows us to work more
remotely, and reduce the number of employees and
contractors potentially at risk. All incidents – no matter
how small – are reported, as are all near-misses.
Reports are made directly in Enablon, our incident
reporting system. Alerts are sent out following
1 Vopak applies OSHA 1904, relating to record-keeping and reporting of occupational injuries, fatalities and illnesses.
incidents, and every week terminal management
discusses safety performance and lessons learned.
Environment
We work to reduce our impact on the environment.
We have a clear responsibility to the communities in
which we operate. Vopak has a robust environmental
management process. We use API RP 754. Our
Environmental Management System is included in
Vopak’s internal standards (as part of our
Environmental Impact Assessment and Soil &
Groundwater Management).
We take measures to realize an reduction of our
greenhouse gas emissions in line with our ambition to
be climate neutral by 2050. We have put in place a
program of improvements at our terminals to further
reduce emissions of VOCs (volatile organic compounds).
VOCs can cause air pollution and may pose a health
risk, which is why we assess not only the emissions
themselves, but also their overall societal impact.
Worldwide, we are responsible for approximately 1,500
hectares of land. So, it is important that we avoid spills
that may contaminate local soil, groundwater, or the
sea. Our aim is to have no uncontained spills. As part of
our standards, we require our terminals to have
secondary containment, often additional barriers or
walls where there is risk of a spill – in tank pits, for
example, pumps or loading stations. This secondary
containment helps prevent spills seeping into the
nearby environment. Asa result, spills that do occur are
contained and cleaned up as quickly as possible.
With regard to biodiversity, Vopak’s impact
assessments cover not only air quality and possible
contaminations, but also emissions of light (which can
have an effect on bird behavior and migration), as well
as noise and possible risks to archaeological sites.
Hazardous waste is regulated through our Waste
Management standard; this applies to all entities.
Focus on major accident prevention
Given the nature of our business, there’s always the
risk of a safety incident. Our Terminal Health
Assessment (THA) and Assure program focus on major
accident prevention. Terminals are regularly audited to
make sure they meet the standards. Our assets –
tanks, pipelines, pumps and jetties – are regularly
maintained. We have a rolling three-year maintenance
program. All assets are designed, with safety as a first
priority. The program also helps ensure we have
employees able to respond quickly to emergencies and
a safety-first culture to prevent accidents.
Vopak’s terminals are equipped and tested annually on
their emergency and crisis response. At our terminals,
a typical Emergency Response Plan (ERP) includes
different scenarios, as well as recommended
responses and escalation procedures. Local authorities
are also involved closely in drawing up these ERPs.
During the year we carried out a cybersecurity
exercise to test our processes and policies in the
event of a cyber attack. With our frequent anti-phishing
campaigns, we can see an increased awareness as
well as greater vigilance of our staff.
Vopak Annual Report 2021
|
18
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Human & labor rights
We respect international human and labor rights
1
.
Foremployees, we provide competitive salaries and
benefits – we reward performance and work closely
with trade unions and other employee representative
groups at our terminals and facilities. In addition to our
own staff, we employ thousands of contractors across
1 As set out in the International Bill of Human Rights (which includes the Universal Declaration of Human Rights, the International Covenant on Civil & Political Rights and the International Covenant on Economic, Social & Cultural Rights).
Vopak’s policies are also based on a number of other international agreements and guidelines, including the International Labor Organization’s (ILO) fundamental principles, the UN Guiding Principles on Business and Human Rights,
and the OECD Guidelines for Multinational Enterprises. Vopak seeks to uphold international labor and human rights across its operations, as well as with suppliers, business partners, works councils and trade unions, within the limits
of local laws andregulations.
2 As set out by the International Labor Organization’s (ILO) fundamental principles and the OECD Guidelines for Multinational Enterprises.
our operations. During 2021, these contractors
outnumbered Vopak employees. Contractors often
work on construction sites, or on maintenance
projects. We work directly with contractors on health
& safety standards and training, human rights, ethics
and integrity; their obligations are set out clearly in our
Code of Conduct and Supplier Code.
Contractors and suppliers should comply with this
Code, as well as with Vopak’s sustainability policy,
living wage approach and international human and labor
rights standards
2
. We screen major investments for
potential human rights issues, in particular related to
contractors. With regard to labor rights, we have
identified locations most at risk of violations – in these
Significance of impacts
Relevance to stakeholders
Material sustainability topics
Topics to monitor Key topics
Economic topics
9
10
11
12
13
14
Financial performance
Customer acceptance and continuation
15
Innovation
16
Remuneration
Supplier acceptance and continuation
Taxation
Business ethics and integrity
Application of best practices
Environmental topics
1
2
3
4
5
6
7
8
Air quality: VOC and other air emissions
Soil and groundwater pollution
Water pollution
Waste
Greenhouse Gas (GHG) emissions
Energy use
Water management
Biodiversity
Societal topics
19
18
17
20
21
22
Nuisance
23
Labor conditions
24
Human rights
Diversity
Community engagement and charity
Process safety
Occupational health and safety
Training and education
7
15
14
13
12
11
10
21
22
23
24
20
19
18
17
9
16
6
4
1
2
5
3
8
Other topics
Vopak Annual Report 2021
|
19
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
locations, we verify that at least minimum conditions
are being met. We are reviewing our governance and
due diligence to decide if we need to include more
specific checks on conditions on human rights and
decent work with regard to contractors and suppliers.
Transparency
Our material issues
Vopak carries out periodic materiality exercises. These
enable us to identify material societal, environmental
and economic issues – topics that are most relevant to
our stakeholders. A full materiality assessment
–based on input from various stakeholder groups –
was performed in 2019. The most material issues are:
process safety, business ethics & integrity, air quality
(other greenhouse gas and VOC emissions),
occupational health & safety, water pollution and
innovation. These issues carry both opportunities and
risks. Each topic is addressed directly by our strategy,
as set out in the connectivity table in the sustainability
section (see page 83). Our materiality matrix is stated
on the previous page. Our approach and detailed
performance on each material topic and information on
the methodology used and process of the materiality
analysis may also be found in the sustainability section.
Risk management
Safety, health and the environment are also built into our
approach to risk management. We carry out regular risk
surveys – and take action to mitigate risks. For 2021, the
principal risks included climate change, an inaccurate
anticipation on the energy and feedstock transitions and
the risk of a major safety incident. Thecompany’s
principal risks remain largely unchanged compared with
2020. However, the Covid-19 pandemic has led to
higher levels of uncertainty in these risk areas.
Furthermore, three particular risks – market volatility,
movements in oil & gas prices and cyber breaches in
IT/OT systems – have become more apparent or have
accelerated during 2021 (i.e. they have increased in
probability, not impact, compared with the previousyear).
Since the start of the Covid-19 pandemic, the company
has monitored developments closely. Scenario-based
contingency plans and other mitigating actions are
ready to be implemented, if needed. Fortunately, there
were no significant disruptions to business continuity
and only limited impact on our operations – all terminals
remained operational during the year.
Vopak’s Executive Board has responsibility forrisk
management – we have an internal control framework,
based on three lines of defense: operational controls at
our terminals, oversight by divisional and global
management, and internal audit, ensuring full
compliance. Our internal control framework is regularly
reviewed and updated, where necessary.
Climate change and societal developments
are becoming increasingly important topics. On
climate-related controls, we support recommendations
from the TCFD (Task Force for Climate-Related
Financial Disclosures), and use this framework to
assess climate-related risks and opportunities, and to
stress-test our portfolio and strategy by using scenario
analysis. Based on our annual assessment, we are
confident that Vopak’s strategy sufficiently addresses
both the risks and opportunities arising from the
transitional and physical effects of climate change.
Forfurther details see climate impact on Vopak in
theSustainability chapter.
Responsible tax
Vopak acknowledges that paying tax is part of its social
responsibility. In 2021, Vopak paid EUR 65 million in
corporate income tax. Vopak complies with the letter
and spirit of the law. As a matter of principle, we pay
tax in countries where we do business. We don’t
operate businesses purely for tax purposes.
Additional information
Further information on these subjects and Vopak’s
system of corporate governance may be found in
theback-end of this Report in sections on
Sustainability (pages 75-124) and Governance,
Riskand Compliance (pages 125-175).
Vopak Annual Report 2021
|
20
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Business & market
environment
22 Letter of the Executive Board
25 Our business environment
28 Our business
Vopak Annual Report 2021
|
21
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Business & market environment
Business & market environment
We focused on short-term performance by delivering
growth projects and services to our customers, and
prioritizing the health and safety of people working at
our terminals. In 2021, we continued to execute our
strategy to create long-term value by moving toward
cleaner conventional fuels and feedstocks in our
network of terminals and infrastructure, while also
working on infrastructure solutions for low- and
zero-carbon new energies & sustainable feedstocks
including bio-based energy blends and feedstocks.
During the year, there is no doubt we operated in a
more volatile and unpredictable business environment
whereas the basis of our business is stable and
robust. Society is going through a profound
transformation with the energy transition and the
rapid adoption of new and digital technologies. We
are positive about how quickly we are shifting our
portfolio toward industrial and gas infrastructure, and
stepping up our efforts with regard to new energies,
sustainable feedstocks, and innovative technologies
such as for water treatment and drone based digital
inspections. We are pursuing various options for new
infrastructure solutions for hydrogen, ammonia, CO
2
and sustainable feedstocks, as well as flow batteries.
For 2022 and beyond, we will remain true to our
purpose: to store vital products with care. And, in doing
so, we will make a meaningful contribution to society,
supported by our financial performance. We are
performance driven people with a future mindset, guided
by our values recognizing people, planet and profit.
Delivering on our strategy towards
energy transition
This past year was marked by a strong economic
rebound in developed countries, resulting in tight
energy and feedstock supply chains and lower demand
for storage. In 2021, we made good progress on
delivering our strategy and continued to invest in
growth – a total of EUR 269 million during the year,
resulting in an additional 0.6 million cbm in capacity
to meet growing customer demand, particularly in
China and the Americas.
We achieved our goal in allocating more capital to
gas markets. In addition, our Gate LNG terminal
successfully completed its maintenance turnaround
program. By the end of 2021, the Gate terminal was
operating at full capacity, able to supply 25% of the
Netherlands’ gas needs. During the year, we agreed
on a joint venture with Mitsui O.S.K. Lines (MOL) to
jointly own and operate the floating storage and
regasification unit at the new LNG terminal in Hong
Kong. We also announced a new partnership with
Aegis, which aimes at expanding our LPG and
chemicals storage position in India.
During 2021, we continued to expand our portfolio
of terminals. We signed a contract for an industrial
terminal as part of ExxonMobil’s proposed new
chemical complex in Huizhou, China. We further
strengthened our leading position in industrial
Letter of the Executive Board
Vopak made further progress in 2021 in terms of both strategic delivery and financial performance, supported by new growth projects and
cost efficiency. Our contribution extended beyond storage to enable efficient and effective distribution of energy and feedstocks. Around the
world, we continued to connect supply and demand for vital products and resources. We also updated our sustainability roadmap to navigate
us in the coming years and live up to our purpose, storing vital products with care.
Vopak Annual Report 2021
|
22
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Letter of the Executive Board
Letter of the Executive Board
terminals by commissioning new capacity at
Qinzhou in China and Corpus Christi in the US. In
the same year, we also brought new chemicals
capacity on line in the Netherlands and the US.
Meanwhile, implementation of our digital strategy
is progressing well. We continued to roll out a new
cloud based system for our terminals. This digital
strategy – including the increased use of data and
platforms – is key to both our short-term performance
as well as our longer-term value creation. Accelerating
our digital transformation will also help us improve
safety, service, efficiency and provide better service to
customers. In 2021, we invested a total of EUR 32
million in new technology, innovation and digital and
data platforms.
Performance driven
We defined a balanced Sustainability Roadmap,
containing the 12 key sustainability topics that matter
most to our stakeholders and where we can have
the highest impact for people, planet and profit. On
safety performance, the cornerstone of our 12 key
sustainability topics, we had no major safety incidents
and the total injury rate stood at 0.25, a significant
improvement compared to last year. We continued
with our Trust & Verify program. The aim of
Trust & Verify is to further increase safety awareness
and encourage a culture of personal accountability
throughout the company, helping us prevent severe
incidents and ensure a safe working environment. We
have included the living wage principle in our supplier
code and worked during the year with contractors to
uphold health & safety standards, human and labor
rights, ethics and integrity. Meanwhile, we are
continuing efforts to build an inclusive environment
with a more diverse workforce. Developing new skills,
particularly in digital and data, remains a strategic
priority for the company.
We are also looking for opportunities to further
reduce our environmental and carbon footprint. On
greenhouse gas emissions, our ambition is to be
climate neutral by 2050. To support the goal of a
climate-neutral society, we opened the Vopak Solar
Park at Eemshaven, a joint venture with Groningen
Seaports and PATRIZIA, which will deliver enough
electricity to power the equivalent of around 8,000
households in the Netherlands. We also switched
completely to green electricity for all our Dutch
terminals. Our multi-year improvement program to
reduce VOC emissions made clear progress over the
past year.
In 2021, we further strengthened customer
satisfaction, increasing our Net Promoter Score (NPS)
to 74, up from 67 in 2020. Our focus on short-term
performance and long-term value creation supported
an improvement in our financial performance, with
EBITDA increase. Our proposal will be to increase our
annual dividend for 2021 by 4% to EUR 1.25.
As the world continues to be impacted by Covid-19,
we appreciate the extraordinary efforts and
commitment of our employees and contractors to
keep Vopak performing well and safely, serving both
our customers and society by storing vital products
with care. Our number one priority is to continue
protecting the health, safety and well-being of our
people, their families and the communities in which
we operate. During the pandemic, we adapted our
governance and control measures, so that we were
able to pick up our regular business plans and
continue delivering on our strategy, as scheduled.
Some of our principal risks – the risk of a major safety
incident, climate change, or a failure to respond timely
to the current energy transition - did not significantly
change during 2021. Other risks, however, became
more prominent, including market volatility, oil and
gas prices, and the risks of serious cyber breaches.
On these risks, we monitored developments closely
throughout the year, and developed scenario-based
contingency plans and other mitigation measures,
ready to implement if needed.
Following our annual climate day in November 2021,
we reconfirmed that we are well-positioned to respond
to risks and capture new oppor tunities arising from the
transitional and physical impacts of climate change.
Future mindset
Over the past year, we have seized new opportunities
to serve large-scale industrial clusters, and will
continue to transform our portfolio and position our
company in leading locations toward more sustainable
Vopak Annual Report 2021
|
23
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
The Executive Board of Royal Vopak (left to right):
Gerard Paulides
Member of the Executive Board and CFO
Dick Richelle
Chairman of the Executive Board and CEO
Frits Eulderink
Member of the Executive Board and COO
energies and feedstocks. On sustainability, we are
ambitious and performance driven with a balanced
roadmap focusing on care for people, planet and profit.
We also continued to explore opportunities in
new vital products. An important milestone was the
opening of the Vopak Moda Houston terminal –
Houston’s first greenfield terminal in more than
a decade. The terminal is capable of handling
ammonia, and is therefore well positioned to become
the premier US Gulf Coast hub for hydrogen and
low-carbon ammonia . At the same time, we moved
forward with other development projects in hydrogen,
ammonia, CO
2
infrastructure and flow batteries,
notably in Europe, the Middle East and Asia.
We remain committed to the course set in previous
years to strategically position Vopak for the energy
transition and the shift to new, digital technologies.
We will update investors on our progress and priorities
during our Capital Market Day in 2022. As part of our
growth strategy, we will be further expanding storage
and infrastructure in the years ahead, especially in
industrial, gas and new energies in our terminal
network. We aim to contribute to a more sustainable
world by actively innovating and investing in
infrastructure for the introduction of the new vital
products of the future.
The Executive Board
Vopak Annual Report 2021
|
24
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Market
participants are
looking at various
options to reduce
CO
2
emissions.
Our business environment
Covid-19 and its economic impact
Following the outbreak of Covid-19, most economies
where Vopak operates reopened in 2021 as vaccines
became available. Consequently, demand for energy,
chemicals and other products recovered. Global GDP
for 2021 increased by an estimated 6%, with growth
forecast to continue into 2022. However, the
economic recovery has been uneven across regions
due to a variety of factors, including wide gaps in
vaccination rates. The economic recovery was
adversely affected by high energy and commodity
prices as well as supply constraints, coinciding with
the increase in global demand, which led to rising
inflation. With uncertainty surrounding the pandemic,
volatility in international commodity markets is
expected to continue into 2022.
Covid-19 pandemic continues to impact the industries
we serve and the disruptions in supply and demand of
products indirectly impacted performance. The tank
storage industry faced supply tightness leading to a
lower requirement for storage of products. During
these challenging times, we were able to safely serve
and support our customers and society at all our
locations around the world.
Energy transition and sustainability
From a climate change perspective, 2021 saw many
countries and organizations such as the United
Nations working together to develop scenarios for a
decarbonized economy. Many countries announced
new pledges and low-carbon policies to fight climate
change. COP26 held in Glasgow in November 2021
recognized the urgent need to reduce CO
2
and
methane emissions to limit global warming.
Overall market participants are looking at various
options to reduce CO
2
emissions through energy
efficiency, process improvements, transitioning to
low- and zero-carbon energy sources as well as using
carbon capture and storage (CCS).
Long-term developments
Longer term, demand for energy and feedstocks is
expected to continue growing in non-OECD countries
while demand will plateau in more mature economies.
Oil and gas will continue to play a key role in the
energy mix, stimulated by economic and population
growth, increasing urbanization and the rise of the
middle class in non-OECD countries. The energy
transition will change the energy mix.
Vopak Annual Report 2021
|
25
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Our business environment
Our business environment
Trends in our markets
We provide storage and handling services to three
principal end markets: energy, manufacturing and
food & agriculture. Our terminals play a key role in
supplying vital products to people and communities
around the world. 2021 was an atypical year due to
the pandemic with high volatility in product markets
and tight supply chains leading to lower demand for
storage across the industry. Below is a summary on
the performance of these product markets in 2021.
Chemicals
Chemicals demand rebounded strongly in 2021,
particularly from durable end-market sectors such
as construction, electronics, automotives, and
household goods, with the resumption of economic
activity. However, some sectors such as automotives
and electronics remain disrupted by a shortage
in semiconductors.
Despite a recovery in demand, the global trade in liquid
chemicals in 2021 was heavily restricted by several
factors. To name a few: adverse weather conditions,
rising self-sufficiency in China, high gas prices which
increased ethane costs and narrowed the usual US
ethane advantage, and uneven demand recovery
across the world. Strong demand recovery in the US
coupled with supply disruptions such as the US deep
winter freeze and Hurricane Ida reduced availability of
export flows, especially to Europe. The Middle East
continued to benefit from low-cost ethane production,
while also gaining from an increase in ethane prices
due to global market tightness. Meanwhile, China
continued to see massive expansions in especially
refinery-integrated production, reducing demand for
imports. In South & Southeast Asia, demand recovery
in 2021 was slower due to the onset of the Covid-19
variants, which prompted governments to re-impose
lockdown measures in 2021.
Refinery-petrochemical integration remained on the
agendas of major oil & chemical companies as they
looked to tap into growing petrochemical demand to
satisfy both durable and non-durable goods demand.
Examples of durable goods include automotive and
construction and non-durable goods include packaging.
The number of alliances and projects to reduce plastic
waste and increase circulairy increased materially, and
Vopak actively participates in business development
around plastic recycling.
Oil
At the start of 2021, demand for storage was higher,
with large global stock levels for crude and products
following the drop in demand during 2020. OPEC+’s
production quota limited crude supply, and excess
crude and product stock decreased substantially
during the year. The second half of 2021 saw a tighter
commodity market environment with limited demand
for storage in the key hubs, or for products not
requiring value-added services like make-break bulk,
blending, trading and distribution to end markets.
By the end of 2021, global consumption had
recovered to close to 99 mb/d – a higher rate than in
2020, but still below the average seen in 2019.
Demand increased throughout 2021 as countries
opened their borders to international travel, demand
for transport increased and economies recovered.
Demand for gasoline was strong as people chose to
travel by car instead of public transport. Demand for
petrochemical naphtha, meanwhile, was solid. The
weakest part of the market remains jet fuel. Though
demand has recovered from 2020 with the lifting of
international travel restrictions, pre-Covid-19 levels
were not yet reached.
During 2021, Brent crude rose to above $80 per barrel
for the first time in three years due to restrained
OPEC+ supply and unplanned outages that
temporarily halted the uptrend in world oil production.
The tight crude market, combined with high energy
prices, affected refinery runs where low margins
exacerbated the market tightness.
Gas
Growth in global LPG supplies was limited in 2021,
impacted by low oil demand as well as a more capital-
disciplined US shale industry. However, demand
growth continues to be strong with the start-up of
several LPG-fed petrochemical projects in China,
driving an increase in LPG trade flows. In China, the
rise in demand for imports was met largely by US
exports, as Middle East LPG exports were curtailed by
OPEC+ oil cuts. In Europe, lower domestic production
from refineries and lower imports from Russia
resulted in strong demand for LPG imports via
Northwest Europe. With the tightness in the global
LPG market, price-sensitive petrochemical demand was
limited and is expected to remain so in the near term.
Vopak Annual Report 2021
|
26
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
It was a record year for LNG. The unprecedented surge
in LNG spot prices around the world was triggered by a
colder than average winter in 2020 that resulted in lower
inventories at the start of the year. Demand for LNG was
fueled further by the economic recovery, heat waves
across North Asia and drought in Brazil that all increased
demand for power generation. During 2021, these
factors – along with supply disruptions toward the end of
the year – pushed LNG prices significantly higher. These
higher prices should result in more liquefaction projects
coming onstream (especially in North America, which
has a shorter time-to-market), increasing LNG supply and
supporting the construction of new LNG terminals.
Vegoils & biofuels
In 2021, higher export duties in Indonesia, a labor
shortage in Malaysia, and weather concerns in South
America pushed vegoil prices to multi-year highs. Global
consumption was supported by steady demand from the
food and personal care sectors, while demand increased
for vegoils used to make biodiesel.
During the year, biofuels played an increasing role in the
energy transition. Government mandates increased in
Europe and the Americas, which resulted in an increased
demand for biofuels in the overall energy mix. There
were also announcements of new production facilities,
as well as conversions of existing oil refineries into
bio-refineries in Europe and the Americas. These
developments lead to increased demand for storage and
blending within existing streams, as well as handling of
feedstocks or end-products.
New energies & sustainable feedstocks
With more renewable electricity going into the grid,
solutions are needed to balance demand and supply
effectively. Lithium-ion (li-on) batteries have proved
profitable at both utility and residential scales, but redox
flow batteries are expected to play a more prominent
role in the coming years. In fact, flow batteries are more
competitive at longer storage durations (over four hours).
A considerable number of alternatives to li-on batteries
are now appearing, based on cheaper electrolytes.
At the same time, carbon-neutral liquid and gaseous
energy sources and feedstocks are needed alongside
electricity. This is likely to create significant demand for
hydrogen, with 75 million tonnes in additional low- and
zero-carbon annual capacity forecast by 2030. This
directly relates to increased interest in carbon, capture
and storage (CCS) technologies connected with the
production of hydrogen. Ammonia benefits from the
same trend, as one of the most promising carriers for
hydrogen, in combination with its potential direct use as
a low- or zero-carbon feedstock in some end sectors.
Currently, Vopak operates 6 ammonnia terminals.
Liquefied hydrogen did not get the momentum in 2021
and the popularity of liquid organic hydrogen carriers
(LOHCs) carriers increased slightly.
Vopak intends to support the acceleration of the energy
transition, and is actively pursuing opportunities in
new energies projects. Our portfolio is uniquely
well-positioned to capture opportunities for investments
in new energies and sustainable feedstocks given our
existing activities in major sea ports and industrial
clusters. In 2021, we were pursuing more than 10 new
energies infrastructure projects.
Hydrogen
Sustainable feedstocks
CO
2
infrastructure
Flow batteries
Competition
2021 saw announcements of private equity and
terminal players expanding into new energies.
Key hubs, like Singapore and Rotterdam,
saw end-of-life tankage replaced by new builds
while occupancy rates were lower.
Vopak Annual Report 2021
|
27
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
We have
been serving
customers for
more than 400
years. We know
how to adapt to
changing times.
Our business
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 the economy
and the daily lives of people across the globe.
Vopak and its predecessors have been serving
customers for more than 400 years. We know how
toadapt to changing times and identify opportunities
in a world transforming faster than ever. We are
building an organization that reflects smart insights
from innovation and digitalization. Our business is
organized into five divisions: Americas, Asia & Middle
East, China & North Asia, Europe & Africa and LNG.
Vopak is head quartered in Rotterdam, and listed on
Euronext Amsterdam.
Products we store
We store and handle a variety of liquid products.
Theseinclude:
• Chemicals (methanol, xylenes, styrene, alpha
olefins, mono-ethylene glycol (MEG))
• Gas (LNG, LPG, ethylene, butadiene, ammonia)
• Oil products (crude oil, fuel oil, diesel, jet fuel,
gasoline, naphtha)
• Vegoils and biofuels
As an independent service provider, Vopak never owns
the products that it stores for its customers.
Supervisory Board
Executive Board
Global functions
Europe &
Africa
Asia &
Middle East
China &
North Asia
Americas LNG
Operating companies
Vopak Annual Report 2021
|
28
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Our business
Our business
Our business
We operate storage terminals at seaports around the
world; these terminals comprise storage tanks, jetties,
truck loading stations and pipelines, and provide
access to road, rail and pipeline networks. In many
instances, we store our customers’ products for
extended periods at these terminals. Vopak provides
common storage and logistics services to customers.
Consequently, our customers are able to benefit from
economies of scale; they do not have the direct cost
of owning and maintaining complex infrastructure. By
optimizing storage and handling processes and
operating more efficiently, we save our customers
time and money, and allow them to concentrate on
their core business.
At our terminals, we take bulk delivery of products.
These products are unloaded into our storage tanks.
During storage, we maintain product quality, often
under tightly controlled conditions – in some cases,
we heat or blend products together, according to
customer specifications. In all processes, we follow
strict rules that stress the importance of safety and
protecting the environment. On request, products are
pumped from storage tanks to our customers. Our
aim is to transit products as quickly and efficiently as
possible, ensuring delivery of vital products to society.
Our customers
Our customers are producers, manufacturers,
distributors, governments and traders. They include
leading international, regional and national chemical
and energy companies. Most of our customers have
been with us for several decades. Vopak’s terminals
connect directly with national grids and distribution
networks. In many cases, we handle feedstock
(products used in industrial processes); in others,
products go directly to end-users. Around 80% of our
revenue comes from take-or-pay storage fees paid by
customers. Vopak’s ambition is to be a strong link in
customers’ supply chains. Much of our business is
long term: typically, contracts for gas and industrial
terminals last 5-20 years. Chemicals and oil storage
contracts tend to be shorter term, with tenures of 0-5
years. In 2021, over 50% of our revenue came from
contracts with an original contract duration of three
years or more.
Our suppliers
Our suppliers vary from global qualified vendors,
used for equipment and IT automation, to local service
and construction suppliers. We aim for long-term
partner ships and ensure continuous improvement
on quality, efficiency and safety. In line with our
Sustainability Policy and Vopak’s Code of Conduct, our
suppliers, contractors (and their sub-tier suppliers and
contractors) adhere to our Supplier Code.
Vopak’s role in different value chains
We provide storage and handling services to three
principal end markets: energy, manufacturing and food
& agriculture. Our terminals play a key role in
supplying vital products to people and communities
around the world.
Vopak Annual Report 2021
|
29
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak’s role in different value chains
Petrochemical clusters are
becoming larger and more
complex, making logistics
integration even more crucial.
Because of this, many
petrochemical clusters adopt
the ‘industrial terminal’ model;
industrial terminals tend to
have a single operator, typically
serving multiple plants at the
same time, making it easier to
optimize terminal logistics.
Usually, industrial terminals
have long-term customer
contracts – since terminals are
fully integrated into the
customer’s facility. Vopak
operates industrial terminals in
the US, Europe, Middle East,
Asia and China.
Industrial terminals
Vopak is expanding its gas
storage – in response to
increased demand from
petrochemical producers,
gas-fired power plants and the
transportation sector. Vopak
continues to contribute to the
energy transition by
introducing new infrastructure
for cleaner conventional fuels
and feedstocks like LPG and
LNG. We own and operate
LPG terminals in the
Netherlands, China, Canada
and Singapore; we have LNG
facilities in Colombia, Mexico,
the Netherlands and Pakistan.
LNG
LPG
Gas terminals
Demand for chemicals
storage is growing. Vopak
operates a global network of
chemicals terminals; in
particular, we have a strong
presence in key hub locations,
including Antwerp, Rotterdam,
Singapore and Houston.
Besides pursuing growth
opportunities, we are also
looking at ways of operating
our terminals more efficiently
and further strengthening
customer service.
Chemical terminals
Vopak operates oil hub
terminals located strategically
along major shipping routes,
where suppliers, customers
and traders are active. These
include Rotterdam, Fujairah
and the Singapore Straits. We
also play an important role in
ensuring countries with
structural oil supply deficits
have adequate access to
energy imports. These include
countries such as Canada,
Brazil, Mexico, South Africa,
Indonesia and Australia.
Oil terminalsNew energies &feedstocks
Vopak is developing
infrastructure solutions for
the world’s changing energy
and feedstock systems.
Our strategy for zero- and
low- carbon new energies and
feedstocks is to facilitate new
supply chains for hydrogen
and ammonia, CO
2
, sustainable
feedstocks and biofuels, as
well as develop flow batteries.
Vopak has made its first
investments in hydrogen and
ammonia and is exploring
further opportunities in
Europe, Asia and the
Americas. In Europe and Asia,
we are also exploring the
potential of flowbatteries.
Energy Manufacturing Food & agriculture
End markets
Vopak Annual Report 2021
|
30
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Americas
Canada: RIPET, Hamilton, Montreal
East, Montreal West, Quebec City
US: Corpus Christi, Deer Park
(Houston), Freeport, Moda,
Plaquemine, St. Charles, Long Beach,
LosAngeles, Savannah
Brazil: UniãoVopak, Alemoa, Aratu
Colombia: Barranquilla, Cartagena
Mexico: Altamira, Coatzacoalcos,
Veracruz
Panama: Bahia Las Minas,
VopakPanama
Number of terminals: 24
Storage capacity: 5.5 million cbm
Asia & Middle East
India: Kandla
Indonesia: Jakarta, Merak
Australia: Darwin, Sydney
Malaysia: Kertih, PITSB, PT2SB
Singapore: Banyan, Penjuru, Sakra,
Sebarok, Jurong Rock Caverns
Thailand: Thai Tank Terminal
Saudi Arabia: Chemtank, SabTank
–Al Jubail, Sab Tank – Yanbu
Pakistan: Engro Vopak Terminal
UAE: Vopak Horizon Fujairah
Number of terminals: 19
Storage capacity: 15.6 million cbm
China & North Asia
China: Caojing (Shanghai), Haiteng,
Ningbo, Shandong Lanshan,
TianjinLingang, Qinzhou, Zhangjiagang
South Korea: Vopak Terminal Korea
Vietnam: Vopak Vietnam
Number of terminals: 9
Storage capacity: 3.1 million cbm
Europe & Africa
Belgium: ACS (Antwerp), Eurotank
(Antwerp), Linkeroever (Antwerp)
Spain: Terquimsa Barcelona,
Terquimsa Tarragona
Netherlands: Maasvlakte Oil Terminal
(Rotterdam), Botlek (Rotterdam),
Chemiehaven (Rotterdam),
Eemshaven, Europoort (Rotterdam),
Laurenshaven (Rotterdam), TTR
(Rotterdam), Vlaardingen, Vlissingen
South Africa: Durban, Lesedi
Number of terminals: 16
Storage capacity: 10.7 million cbm
LNG
Colombia: SPEC LNG
Mexico: LNG Terminal Altamira
Netherlands: Gate terminal
(Rotterdam)
Pakistan: Engro Elengy Terminal
Number of terminals: 4
Storage capacity: 1.2 million cbm
Note 1: Map shows Vopak terminals in operation at 15 February 2022.
Note 2: Our terminal in Venezuela is formally part of the Global functions and is not part of any of the divisions.
Hub terminal Terminal
Vopak Annual Report 2021
|
31
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Performance
& outlook
33 Performance driven
34 Our performance
37 Sustainability
39 Service
41 Efficiency
42 Financial performance
46 People
47 Open & inclusive
48 Operating as one team
49 Supporting greater diversity
52 Future mindset
53 Leading locations
56 New vital products
59 Data driven
61 Key developments by division
62 Americas
64 Asia & Middle East
66 China & North Asia
68 Europe & Africa
70 LNG
72 Outlook
Vopak Annual Report 2021
|
32
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Performance & outlook
Performance & outlook
We aim to excel in sustainability, service
and efficiency. In this way we contribute
to society, every day.
Performance driven
Vopak Annual Report 2021
|
33
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Performance driven
Performance driven
The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a change in
accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing Arrangements, as detailed in Note 1.1.
For a reconciliation between the IFRS numbers and the amounts excluding exceptional items, reference is made to
Note 2.2 of the Financial Statements.
Our performance
Key performance figures
1 scope 1 relates to direct emissions (from sources owned or controlled by Vopak), scope 2 relates to indirect emissions (from generation of purchased energy).
2021 2020 (restated)
Safety performance
Total Injury Rate (TIR), own employees and contractors
(per 200,000 hours worked) 0.25 0.37
Lost Time Injury Rate (LTIR), own employees and
contractors (per 200,000 hours worked) 0.11 0.17
Process Safety Events Rate (PSER), own employees
and contractors (per 200,000 hours worked) 0.09 0.14
Financial performance (in EUR millions)
Revenues 1,227.9 1,190.0
Group operating profit before depreciation and amortization (EBITDA)
741.5 777.6
Group operating profit before depreciation and amortization (EBITDA)
-excluding exceptional items-
826.6 779.7
Group operating profit (EBIT) 409.7 481.6
Group operating profit (EBIT) -excluding exceptional items-
494.8 483.7
Net profit attributable to holders of ordinary shares 214.2 294.6
Net profit attributable to holders of
ordinary shares -excluding exceptional items-
298.3 299.5
Cash flows from operating activities (gross excluding derivatives) 786.2 751.5
Cash flows from operating activities (gross) 741.2 810.4
Cash flows from investing activities (including derivatives) - 588.4 - 572.7
Average capital employed 4,755.1 4,159.4
Return On Capital Employed (ROCE) 10.2% 11.4%
Return On Equity (ROE) 9.7% 10.0%
EBITDA margin excluding result of joint ventures and associates 50.5% 50.4%
Capital and financing (in EUR millions)
Equity attributable to owners of parent 3,188.7 2,961.4
Net interest-bearing debt 2,925.1 2,589.4
Senior net debt : EBITDA 2.93 2.58
Interest cover (EBITDA : net finance costs) 8.4 10.7
2021 2020 (restated)
Key figures per ordinary share (in EUR)
Basic earnings 1.71 2.33
Basic earnings -excluding exceptional items- 2.38 2.37
Diluted earnings 1.70 2.33
Diluted earnings -excluding exceptional items- 2.37 2.36
Total number of ordinary shares outstanding end of period 125,740,586 125,740,586
(Proposed) dividend 1.25 1.20
Business performance
Storage capacity end of period (in million cbm) 36.2 35.6
- subsidiaries 18.5 18.2
- joint ventures and associates 13.8
13.5
- operatorships 3.9 3.9
Occupancy rate subsidiaries 87% 88%
Total number of employees end of period (in FTE) 5,669 5,637
Contracts > 3 years (as % of revenues) 50% 49%
Contracts > 1 year (as % of revenues) 89% 91%
Information on a proportional basis
Proportional EBITDA -excluding exceptional items-
999.6 960.5
Proportional occupancy rate 88% 90%
Net interest-bearing debt 3,971.5 3,620.5
Sustaining, service improvement and IT capex 355.2 317.4
Environmental performance
Societal impact reduction of our VOC emissions
23% 19%
Total amount of uncontained spills (metric tons) 12 327
Soil & groundwater (metric tons) 6 301
Water (metric tons) 6 26
Total carbon emissions (kilotons - scopes 1 and 2)
1
577.2 444.2
Business ethics & integrity
Fines from permit violations (amount, EUR thousands)
32 0
Employees completed the Code of Conduct training (in %) 89% 88%
Vopak Annual Report 2021
|
34
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Our performance
New ammonia terminal
in Port of Houston
The new marine terminal of Vopak Moda Houston,
a joint venture between Vopak and Moda Midstream
became fully operational in December 2021. It is the
only waterborne ammonia terminal in the Port of
Houston with deepwater capabilities and is directly
connected via pipeline to the port’s petrochemical
complex. Vopak’s expertise and presence in the main
industrial clusters makes Vopak well-equipped to
actively contribute to the development of new supply
chains for the energy and feedstocks of the future.
This project is in line
with Vopak’s strategy
of developing new
infrastructure solutions
for products like
ammonia and
hydrogen
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
35
We are
performance
driven
people
with a
future
mindset
guided by our
values
Service
Data
driven
Efciency
Sustain-
ability
New vital
products
Leading
locations
Diverse
One
team
Open &
Inclusive
We store vital
products with care
Our sustainability roadmap
People
Care for our societal impact
• Safety & occupational health
• Inclusion & diversity
• Human rights & decent work
• Being a good neighbor &
community engagement
Planet
Care for our environment & climate
• Becoming climate neutral
• VOC and other emissions to air
• Spills to soil and water
• Waste & wastewater
• Preserving biodiversity
Profit
Care for our economic impact
• Switch to cleaner conventional
fuels and feedstocks
• New energies & feedstocks
• Climate impact on
assets and operations
Vopak Annual Report 2021
|
36
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
We want to
contribute to the
introduction of
vital products of
the future.
Sustainability
On sustainability, we are ambitious and performance driven with a balanced roadmap focusing on
care for people, planet and profit. Safety is our first priority. We want to facilitate the introduction
of vital products of the future and reduce our own environmental and carbon footprint.
Our Sustainability Roadmap
Based on our purpose of storing vital products with
care, the United Nations Sustainable Development
Goals and the priorities indicated by our stakeholders,
Vopak defined a balanced Sustainability Roadmap. It
contains Environment, Social and Governance (ESG)
targets and actions on the 12 key sustainability topics
that matter most to our stakeholders and where we
can have the highest impact for people, planet and
profit. The roadmap provides a sustainability
framework to implement the strategic transformation
of our portfolio towards cleaner conventional products
and low- and zero-carbon new energies & feedstocks
and helps us further integrate sustainability into our
global processes and investment decisions. Finally, it
aims to guide our organization in translating key
sustainability topics into clear actions and priorities
and integrating them into our annual budget cycles,
business agendas, work programs and our daily drive
for performance.
Care for our societal impact (People)
Our care starts with the people who work for our
company and extends to the communities in which we
operate and society at large. In 2021 we managed to
significantly improve our safety performance. In line
with our ambitions we did not have a fatality, life
changing injury or catastrophic incident. We managed
to reduce our Total Injury Rate (TIR) from 0.37 to 0.25,
on course to reach our target of 0.20 (3 year rolling
average) in 2024. Within process safety we also saw
a further improvement of our performance with a
reduction of our process safety event rate from 0.14
to 0.09. Our target for 2024 is a PSER of 0.16 (3 year
rolling average.
2021
2018 2019 20202017
Total Injury Rate
Own employees and contractors per 200,000 hours worked
0.6
0.4
0.2
3-year rolling average TIR
0.34
0.37
0.30
0.38
0.25
Vopak Annual Report 2021
|
37
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Sustainability
2018 2019 2020 20212017
Process Safety Event Rate
Own employees and contractors per 200,000 hours worked
0.40
0.30
0.20
0.10
3-year rolling average PSER
0.16
0.14
0.12
0.26
0.09
We strive for a workforce that is diverse and includes
people from many different cultures, nationalities and
backgrounds. In 2021, 74% of senior management
(target 2024: 75%) in divisions and operating
companies were from local origin. The percentage of
women in senior management positions remained
stable during 2021 at 16% (target 2024: 20%).
Vopak has embraced the UN Sustainable Development
Goal 8, as it is committed to contribute to decent work
for all. During 2021 we refined our approach to
strengthen the governance and due diligence on
conditions on human rights and decent work, including
Tier 1 Divisional suppliers and major construction
companies working on our projects worldwide.
Care for environment & climate (Planet)
As citizens of this planet, we share concerns with
people around the world: how the world can be
provided with the energy and products it needs while
reducing pollution and greenhouse gas emissions.
1 Vopak’s CO
2
target includes other greenhouse gas (GHG) emissions; in Vopak’s case, the only other GHG emissions are a very limited amount of methane and N
2
O emissions; we report on total GHG and on methane emissions in our annual report.
We want to contribute to the dual objective of limiting
climate change in line with the Paris Agreement and
SDG13, while at the same time providing access to
affordable, acceptable and sustainable energy and
feedstocks for all, in line with other UN Sustainable
Development Goals (SDGs 7, 8 and 9).
This is why we adopted three lines of parallel action:
• First, we develop infrastructure solutions to
accelerate a switch to cleaner conventional fuels
and feedstocks for all;
• Second, we develop infrastructure solutions for
zero- and low-carbon new energies and sustainable
feedstocks like renewable hydrogen and ammonia;
• Third, we reduce our own environmental and
carbon footprint.
Our strategy is to continue transforming and growing
our portfolio of terminals towards cleaner fuels, gas
and chemicals, while developing infrastructure
solutions for vital products of the future. This helps
customers reduce their environmental and carbon
footprint and contributes to the energy and feedstocks
transition around the world (action line 1 and 2). To
reduce our own carbon footprint (action line 3), we will
take effective measures that deliver results in the
short to medium term, on which more information can
be found on page 97.
As part of our sustainability journey, Vopak first set the
ambition to become climate neutral in 2050 (scope 1
and 2). As a next step, in 2021, we conducted
research on concrete measures and intermediate
steps that would enable us to reach that goal. As a
result, we now have a clear view of how we can lower
our CO
2
emissions while transforming and growing
our company. Vopak has committed itself to the
following intermediary target: we will reduce our CO
2
emissions by 30% by 2030 (vs 2021, scope 1 and 2
emissions)
1
. Vopak is committed to validate its GHG
targets by the Science Based Targets initiative
(SBTi) and is currently working on submission of
science-based targets to SBTi. Science based targets
provide companies with a clearly defined sector
specific pathway to reduce greenhouse gas emissions
in line with the Paris Agreement goals, helping prevent
the worst impacts of climate change and future proof
business growth. Information on VOC and other
emissions to air, spills to soil and water, waste &
wastewater and preserving biodiversity, can be found
in the sustainability chapter of this report.
Our economic impact (Profit)
As an infrastructure and service provider, Vopak
actively supports the energy transition and feedstock
transitions around the world. We facilitate access to
energy, help introduce cleaner conventional fuels to
improve air quality and advance solutions to lower
carbon emissions. In 2021 we have continued the shift
of our portfolio towards cleaner fuels, gas and
chemicals and growing our activities to serve large
industrial complexes, while stepping up our efforts in
new energies and feedstocks. Information on the
climate impact on our assets and operation can be
found on page 113.
Vopak Annual Report 2021
|
38
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
We always try
to meet our
customer’s
expectations,
enabling them
to reach their
present and
future goals.
In recent years, there has been a steady increase in our Net Promoter Score (NPS) that
improved again in 2021, reflecting our commitment to continuously improve service delivery
to customers. With new digital technologies, we have an opportunity to further improve
customer service and make supply chains safer and more efficient. During the second year of
the Covid-19 pandemic we were able to continue servicing our customers globally due to our
robust business continuity plans.
There are several factors driving our continued focus
on improving service:
• Increased availability of real-time data, fueled by the
advance in new digital technologies
• Demand among customers for higher standards of
service and efficiency, as well as for more
sustainable processes and business practices
• Competition development in key hub locations
• Customers are increasingly tendering out gas and
industrial terminal projects.
Vopak continues to invest in resources to support and
review service delivery. In 2021, we invested around EUR
284 million in sustaining and service capex to ensure our
assets remain fit for purpose and enable us to provide
safe, reliable and excellent service to our customers.
Continued focus on service
We strive to be “best in port” and to improve our
service in three focus areas:
• Using digital technology and real-time data to
optimize our supply chains
• Upgrading our assets to optimize operational
capabilities and efficiency
• Continuously improving our processes and learning
from service incidents.
Digital and real-time data
In 2021, we continued to roll out our MOVES program,
in which we continued to improve our IT landscape,
and implemented our new terminal management
system ‘MyService’, with the total reaching 22
terminals. With MyService, we will be able to optimize
process efficiency, service to our customers and
enable real-time data sharing and communications
with our customers. Our multi-channel data
connectivity strategy is offering our customers a
tailored approach to exchange real-time data about
their operations using different types of technologies.
During the year, NxtPort, the innovative logistics
data-sharing platform originated in Antwerp, signed a
partnership with Vopak. NxtPort’s main goal is to
unlock the potential of sharing existing data amongst
many stakeholders in ports across the world. The
platform allows faster, more cost-effective, as well as
more efficient transfers of data between the different
market players.
In 2021, we successfully concluded development and
implementation of a new Customer Relationship
Management system (MyCRM). MyCRM supports
our key commercial processes and will help us better
understand customer needs. It uses the same
Service
Vopak Annual Report 2021
|
39
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Service
platform as MyService, allowing us to further
integrate our core processes.
We place strong emphasis on learning from incidents
and sharing lessons learnt across our network of
terminals. We use data analytics and dashboards to
analyze and improve service delivery. Our terminals are
connected digitally in such a way that we can now
safely share information on lessons learnt and service
performance for specific customers across the network.
Through regular operational reviews and stewardship
meetings, we work closely together with our customers
to continuously improve our service delivery.
Customer experience andloyalty
Our customers expect high levels of service from
Vopak. Company-wide standards in areas such as
safety and sustainability proved to be in line with
customer expectations.
Through our Net Promoter Score (NPS) survey, we
continuously measure customer loyalty. In 2021, our
NPS rose further to 74 points, a steady increase from
the 61 points in 2018. This is a reflection that our
customers appreciated and valued our consistently
high standards of service. Each customer response is
carefully followed up and translated into service
improvements. We are committed to making further
improvements – which is important if we are to
protect our leadership position in the industry.
Net Promoter Score
2018 2019 2020 20212017
20
40
60
80
61
67
65
74
48
Vopak Annual Report 2021
|
40
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
We optimize our
core processes and
project execution.
To maintain performance and stay ahead of competition,
we are working to optimize our core processes; these
include order management, operations, project
execution and maintenance. Going into 2022, wewill
continue to manage our cost levels by further
strengthening efficiency.
Improving efficiency in our operations
We strive to continuously strengthen performance by
improving the efficiency of our operations. As
mentioned before, our new terminal management
system, MyService, continues to be rolled out. The
system enables our terminals to improve process
efficiency, adopt real-time working and performance
management, using performance dashboards. Through
innovative digital solutions we aim to further excel, for
instance in the area of energy efficiency. Several pilots
have been carried out at our Savannah terminal in the
US. The pilots delivered new operational insights using
our terminal management system coupled with the
Internet of Things (IoT), which resulted in a reduction
in gas consumption of 26% and abated 2400 metric
tons of CO
2
, equivalent to ~290 homes.
Designing the right terminals for the future and
delivering projects according to plan
Design of new terminals and expansions is conducted
centrally to create maximum synergies. During 2021,
our Global Engineering group delivered many
engineering packages, worked on new energy projects
and professionalized the cost estimating capabilities.
Engineering packages are conceptual drawings and
outlines of the terminal site, considering many factors
such as the customer’s requirements and local
operating environment.
Effective asset management
We carry out regular maintenance of our terminals
andother facilities to ensure continued efficiency.
Maintenance may be needed to correct existing
operational problems, or to prevent new problems
from developing. Our maintenance staff receive
regular training and instruction to enhance their skills
and further improve efficiency.
During 2021, we pressed ahead with our Maintenance
Improvement Project, to update our processes,
enhance system support and add new functionalities
to improve effectiveness and efficiency. Of all our
facilities, tanks require the most maintenance and
consequently, in 2021, we continued our Tank
Turnaround Excellence program in ourkey hub
locations to increase efficiency.
Efficiency
Vopak Annual Report 2021
|
41
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Efficiency
Good progress
on our portfolio
and growth
agenda.
Financial
performance
Operating results
Revenues
During 2021, Vopak generated revenues of
EUR1,227.9 million, compared to EUR 1,190.0 million
in 2020. Excluding the negative currency translation
effect of EUR 8.0 million, the increase amounted
to EUR 45.9 million (3.9%). Higher revenues of
EUR14.9 million were generated by the contribution
of growth projects mainly in the Americas and
Europe & Africa division.
No exceptional items were reported in both years on
the revenue line.
The average occupancy rate for Vopak’s subsidiaries
(i.e. excluding joint ventures and associates) in 2021
was 87% compared to 88% in 2020. The decrease is
reflecting soft market conditions in oil and chemicals in
the Netherlands and Singapore.
Vopak’s worldwide storage capacity increased with 0.6
million cbm from 35.6 million cbm per the end of 2020
to 36.2 million cbm per the end of 2021, reflecting
newly commissioned capacity.
Expenses
Personnel expenses
In 2021, personnel expenses -excluding exceptional
items- amounted to EUR 342.7 million, an increase of
EUR 10.8 million (3.3%) compared to EUR 331.9
million in 2020. Excluding the positive currency
translation effect of EUR 1.9 million, the increase
amounted to EUR 12.7 million. This increase can be
attributed to lower capitalized personnel expenses and
a regular annual merit increase.
During 2021, Vopak employed, in FTEs, an average
of 4,250 employees (2020: 4,355), excluding
joint ventures and associates. This comprises 3,750
own employees (2020: 3,758) and 500 temporary
employees (2020: 597).
In 2021 no exceptional results were recorded in the
personnel expenses, while in 2020 an exceptional
gain of EUR 0.7 million was recognized. Including
exceptional items, total personnel expenses in 2021
amounted to EUR 342.7 million compared to
EUR331.2 million in 2020.
Other operating expenses
Operating expenses -excluding exceptional items-
increased by EUR 14.0 million (5.2%) to EUR 285.4
million (2020: EUR 271.4 million). Excluding the
positive currency translation effect of EUR 1.8 million,
the increase amounted to EUR 15.8 million. This
increase can be largely attributed to higher energy and
utilities expenses with EUR 16.5 million as well as
higher expenses related to new capacity, business
development projects and IT projects.
In 2021 an exceptional loss of EUR 0.7 million was
recorded (2020: EUR 0.9 million loss). This exceptional
item is related to a partial divestment of a 3%
equity stake in our Chemtank terminal located in
SaudiArabia. After divestment Vopak holds a 22%
equity stake in this associate.
Including exceptional items, total other operating
expenses in 2021 amounted to EUR 286.1 million
compared to EUR 272.3 million in 2020.
Vopak Annual Report 2021
|
42
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Financial performance
Result joint ventures and associates
In 2021, the result of joint ventures and associates
-excluding exceptional items- amounted to EUR 185.7
million, an increase of EUR 19.7 million (11.9%)
compared to EUR 166.0 million in 2020. The currency
translation effect had a downward effect of EUR 1.9
million. Improved results from joint ventures and
associates in the Asia & Middle East division as well as
a EUR 10.0 million reclass from withholding tax on
undistributed reserves of associates and joint ventures
to the income tax line were the main causes for the
higher results. Improved results for the Asia & Middle
East division is, for a large part, driven by our associate
industrial terminal (PT2SB) in Malaysia, as an
unfavorable accounting adjustment was recognized in
the 2020 results.
In March 2020, one of PT2SB’s anchor customers had
to close the facility as a result of a fire incident in this
adjacent RAPID facility. The anchor customer has since
been out of operation, while plans to restart the
refinery have repeatedly been delayed, most recently
due to technical issues in the hydrogen production
units. As at 31 December 2021, our PT2SB associate
has reported net accounts receivable balances for
contractually delivered services of approximately
EUR 88 million (on a 100% JV basis). The prolonged
refinery closure may impact PT2SB’s financial
performance in 2022. Mitigating the situation is a
priority for PT2SB and its shareholders.
Exceptional results were recorded in 2021 in the
result of joint ventures with a total negative impact of
EUR 13.4 million. The exceptional results consisted of
an exceptional loss of EUR 4.8 million in the Moda
Houston terminal (VMH) for business development
costs, an exceptional loss of EUR 10.8 million because
of discontinuation of our active participation in the
German LNG project partly offset by an exceptional
gain of EUR 2.2 million relating to a partial release of a
tax provision that was recognized in a joint venture
terminal within the Asia & Middle East division at the
end of 2019.
The Group’s result of joint ventures and associates
-including exceptional items- for 2021 amounted
to EUR 172.3 million compared to EUR 161.2 million
in 2020.
Group operating profit before depreciation
and amortization
Full year 2021 Group operating profit before depreciation
and amortization (EBITDA) - excluding exceptional
items- increased by EUR 46.9 million (6.0%) to
EUR826.6 million (2020: EUR 779.7 million). Adjusted
for EUR 5.9 million negative currency translation effects,
EBITDA increased by EUR 52.8 million. Growth project
contribution is driving positive EBITDA (EUR 50 million
(6%) in soft business conditions.
Including exceptional items, Group operating profit
before depreciation and amortization (EBITDA) for
2021 amounted to EUR 741.5 million compared to
EUR 777.6 million in 2020. The exceptional items for
2021 also includes an incremental impairment
recognized in the first half year for the Vopak Bahia las
Minas terminal in Panama for the amount of EUR 71.0
million. This impairment, which is identified as an
exceptional item, is the result of a further deteriorating
business environment and lower occupancy rates.
Group operating profit
Group operating profit (EBIT) -excluding exceptional
items- amounted to EUR 494.8 million. Group
operating profit increased with EUR 11.1 million (2.3%)
compared to EUR 483.7 million in the same period of
2020. Excluding the negative currency translation
effect of EUR 4.6 million, the increase amounted to
EUR 15.7 million.
Including exceptional items, Group operating profit (EBIT)
for 2021 amounted to EUR409.7 million compared to
EUR 481.6 million in 2020. This decrease is largely
attributable to the EUR 71.0 million Panama
impairment recorded in the first half of 2021.
ROCE -excluding exceptional items- of 10.2%
compared to 11.4% in 2020.
Cash flows from operating activities and
working capital
Cash flows from operating activities (gross) amounted
to EUR 741.2 million in 2021 (2020: EUR 810.4 million).
The decrease of EUR 69.2 million was mainly related
to net cash outflows from non-hedging derivatives
positions held for intra-group financing positions as
well as working capital developments due to timing
differences. Excluding derivatives impact and working
capital movements, CFFO increased by EUR 42.2
million. Business related cash flows from operating
activities including dividends received from
jointventures and associates was resilient.
Vopak Annual Report 2021
|
43
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Strategic investments and divestments
Cash flows from investing activities
Total cash flows from investing activities (including
derivatives) for 2021 amounted to a net cash outflow
of EUR 588.4 million (2020: net cash outflow of
EUR572.7 million).
Total investments amounted to EUR 592.3 million
(2020: EUR 832.2 million). These cash outflows are
mainly related to EUR 493.0 million (2020: EUR 612.5
million) of investments in property, plant and
equipment and to EUR 66.8 million (2020: EUR 189.7
million) of investments in joint ventures, associates
and other equity investments, including acquisitions.
For the period 2020-2022, Vopak expects to be at the
higher end of the range of EUR 750 million to EUR 850
million for sustaining and service improvement capex,
subject to additional discretionary decisions, policy
changes and regulatory environment. The sustaining
and service improvement capex for 2021 amounted to
EUR 284.3 million (2020: EUR 271.1 million).
As part of the strategic direction for the period
2020-2022, Vopak indicated to invest annually up to
a maximum EUR 45 in IT capex to complete Vopak’s
digital terminal management system. In 2021,
EUR 31.6 million was invested in new technology,
innovation programs and IT projects (2020: EUR 44.0
million - including Cloud Computing expenditures).
Divestments and repayments
Total cash inflows from disposals and repayments in
2021 amounted to EUR 16.7 million (2020: EUR 256.8
million). Cash inflows were lower compared to 2020
mainly in relation to the incoming cash flows in 2020
for the repayment in respect of joint ventures and
associates and cash receipt from divestments of our
terminal in Algeciras, Spain and the divestment of
49% equity share in the joint venture Vopak SDIC
Yangpu Terminal in Hainan, China.
Depreciation and amortization
Depreciation and amortization charges amounted to
EUR 331.8 million, which was EUR 35.8 million (12.1%)
higher than prior year (2020: EUR 296.0 million).
Excluding the positive currency translation effect of
EUR 1.3 million, the increase amounted to EUR 37.1
million. Higher depreciation and amortization charges
are the result of the increase in commissioned assets.
Impairments
In 2021, net impairments on property, plant and
equipment and intangible assets were recognized for
the amount of EUR 71.0 million (2020: EUR 30.1
million). In the first half year of 2021, an incremental
impairment was recognized for the Vopak Bahia las
Minas terminal in Panama for the amount of EUR 71.0
million. This impairment, which is identified as an
exceptional item, is the result of a further deteriorating
business environment and lower occupancy rates. In
2020 an impairment of EUR 42.9 million for this
terminal was recognized. Additionally, the 2020
exceptional result included an exceptional gain of
EUR12.8 million for the reversal of an impairment
for our Quebec City terminal in Canada.
Capital structure
Equity
The equity attributable to holders of ordinary shares
increased by EUR 227.3 million to EUR 3,188.7 million
(31 December 2020: EUR 2,961.4 million). The
increase mainly resulted from net profit for the period
of EUR 214.2 million and the impact of other
comprehensive income of EUR 160.3 million, partly
offset by the ordinary shareholder dividend payments
in cash of EUR 150.5 million. The other comprehensive
income includes an overall positive valuation impact of
EUR 33.2 million related to the valuation of equity
investments held at Fair Value through Other
Comprehensive Income (FVOCI).
Debt
The total interest-bearing debt increased by EUR335.7
million to EUR 2,925.1 million (31December 2020:
EUR 2,589.4 million). The main increase was with
the short-term bank loan facility for a total amount
of EUR 462 million as at year-end 2021
(2020: EUR 205 million).
Net repayments of interest-bearing loans and short-term
borrowings during 2021 amounted to EUR 223.2 million
(2020: EUR 207.0 million). The Revolving Credit Facility
was available for the total amount of EUR 0.9 billion as
at year-end 2021 (2020: EUR 1.0 billion).
As at 31 December 2021, an equivalent of EUR1,582.1
million (2020: EUR 1,606.2 million) was drawn
under private placement programs with an average
remaining term of 6.5 years (2020: 6.8 years). In
addition, a bank loan for an amount of EUR 130.6
million (SGD 200 million) at the level of Vopak
Vopak Annual Report 2021
|
44
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Terminals Singapore, with an average remaining term
of 1.6 years was outstanding per 31 December 2021.
The Senior net debt: EBITDA ratio was 2.93 as at
year-end 2021 (31 December 2020: 2.58), well below
the maximum agreed ratios in the covenants with the
lenders and private placement investors.
Net finance costs
In 2021, the Group’s net finance costs amounted to
EUR 106.5 million compared to EUR 86.3 million in
2020. The increase is resulting from lower interest
capitalization on qualifying projects and higher interest
expenses as a result of increased interest-bearing
debt compared to 2020.
The average fixed interest and the average floating
interest on the interest-bearing loans and bank loans
on 31 December 2021 were 3.8% (2020: 3.9%) and
1.3% (2020: 1.4%) respectively.
Cash flows from financing activities
The cash outflow from financing activities amounted
to EUR 84.8 million (2020: EUR 218.7 million). The
cash outflows from financing activities mainly
consisted of dividend payments of EUR 150.5 million
to ordinary shareholders, dividend payments of
EUR25.0 million to non-controlling interests, finance
costs payments of EUR 76.5 million and lease
payments of EUR 56.7 million partly offset by net
proceeds from interest-bearing loans and short-term
financing for an amount of EUR 223.2 million (2020:
payments of EUR 207.0 million).
Income taxes
Income tax expenses -excluding exceptional items-
amounted to EUR 61.0 million in 2021, a decrease of
EUR 7.3 million compared to EUR 68.3 million in 2020.
The effective tax rate -excluding exceptional items-
was 15.7% compared to 17.2% in 2020. This decrease
was mainly due to changes in profit before income
taxes, the applicability of participation exemptions
thereto, differences in corrections for previous years
and partly offset by withholding tax on undistributed
reserves of associates and joint ventures.
Income tax expenses -including exceptional items-
amounted to EUR 60.0 million in 2021, a decrease of
EUR 11.1 million compared to EUR 71.1 million in 2020.
The effective tax rate -including exceptional items- was
19.8% compared to 18.0% in 2020.
Net profit attributable to holders of
ordinary shares
Net profit attributable to holders of ordinary shares
-excluding exceptional items- amounted to
EUR298.3 million which is in line with the 2020
net profit of EUR 299.5 million in 2020. Earnings
per ordinary share -excluding exceptional items-
amounted to EUR 2.38 in 2021 and EUR 2.37 in 2020.
Net profit attributable to holders of ordinary shares
-including exceptional items- amounted to EUR 214.2
million compared to EUR 294.6 million in 2020.
Earnings per ordinary share -including exceptional
items- amounted to EUR 1.71 (2020: EUR 2.33).
Joint ventures and associates
Joint ventures and associates are an important part of
the Group for which equity accounting is applied. In
the section Additional Information in this report the
effects of non-IFRS proportional consolidation on the
statement of financial position and statement of
income of the Group are presented.
Dividend proposal
Vopak’s dividend policy targets to pay an annual stable
to rising cash dividend in balance with a management
view on a payout ratio range of 25-75% of the net
profit excluding exceptional items attributable to
holders of ordinary shares and subject to market
circumstances. The net profit excluding exceptional
items that forms the basis for dividends to be declared
may be adjusted for instance for the financial effects
of one-off events, such as changes in accounting
policies, acquisitions and divestments.
Vopak proposes a dividend of EUR 1.25 per ordinary
share over 2021 (2020: EUR 1.20) to the Annual
General Meeting of 20 April 2022. The dividend
increase of EUR 0.05 or 4% reflects Vopak’s
performance throughout a turbulent 2021. The
dividend payout ratio will amount to 53% of earnings
per ordinary share excluding exceptional items
(2020: 51%).
Vopak Annual Report 2021
|
45
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
People are the heart of our company. Our people bring our
purpose to life, by adopting a future mindset and continuously
driving performance. If asked ‘what makes Vopak special?’,
many will say it is our culture. Vopak employs an international
workforce of almost 6,000 people (headcount). This includes
the employees of our joint ventures and associated companies.
People
Vopak Annual Report 2021
|
46
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
People
People
Our people can
work safely and
develop their
full potential.
We’re committed to an open and inclusive culture where our people can work safely and
develop their full potential. We believe that each individual has the right to be treated with
respect and dignity, and work in a professional atmosphere that promotes equal opportunities
and prohibits discrimination or harassment on the basis of race, color, national origin, religion,
gender, sexual orientation, age, political orientation or trade union membership.
Whether it’s about becoming more digital and
data-driven or more diverse, or about shifting our
product portfolio towards more sustainable and new
products and solutions, to prepare our people for the
future. We have identified five major transitions
shaping our approach to workforce planning at Vopak:
1 Energy Transition: Rebalance staff competencies in
response to the shift in the Vopak portfolio to
industrial, gas and new energies infrastructures.
2 Employee Value Transition: Promote the Vopak
Employee Value Proposition (EVP), positioning Vopak
as an employer of choice
3 Organizational Efficiency Transition: Improve
company performance, (cost) efficiency, and
individual productivity.
4 Digital Transition: Rebalance roles, responsibilities,
and competencies in sync with process and system
standardization, implement a data driven way of
working, and automation and robotization
5 Geographical Transition: Recruit and develop
top talent in all Vopak locations, with a focus on
growth areas.
Below, we have detailed our approach to each of
these transitions.
We believe our previous approach was effective in
running our existing business, but not to face future
challenges brought by the energy transition. Our
Sustainability Roadmap provides the basis for a strong
narrative regarding Vopak’s transition to a more
sustainable future, which we believe is key to attract
and retain talent. We are evolving as an organization to
ensure the right focus and resources are allocated to
achieve our goals as laid out in the Sustainability
Roadmap, for example to achieve our 2030 CO
2
reduction target and become climate neutral by 2050.
Initial steps were taken in 2021 with the creation of a
dedicated new energies team at the headquarters,
where already 30% of our business development
people work.
As part of our Employee Value Transition, we embarked
on collecting feedback from the organization via a
people engagement survey. Our engagement survey
was sent out to more than 6,000 employees and we
achieved a solid participation rate of 82%. Results
show that Vopak engagement scores are at par with
the external benchmarks (composed of similar energy
sector companies). Our employee Net Promoter Score
Open & inclusive
Vopak Annual Report 2021
|
47
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Open & inclusive
Working at
Vopak feels
like being
part of
one team.
(NPS), a way of measuring how our employees feel
about Vopak, is slightly above the benchmark, with
major variation across the global network. Two areas
identified as opportunities to improve are
communicating changes and diversity.
Lessons from Covid-19 will become part of a new
reality and our new way of working. Important to
make a distinction here between our front-line
execution and office based employees.
Our front-line execution, i.e. the people occupying
operational roles at the terminals, cannot work from
home and follow strict business continuity plans to
ensure continued and safe operation. For our office
based employees, the new reality of Covid-19 certainly
has some positive aspects – for example, lower travel
costs and reduced need for office space. However, it
might also reduce the effectiveness of working
together, weaken company culture if not managed well.
Operating as one team
We all feel part of one Vopak team. Working at our
international company feels like being part of a
global team.
Over the past year, we have devoted considerable
time and effort on the Digital Transition and making
ourHR Global Platform (Workday/MyPulse) the single
source of HR data across Vopak.
This common tool has now been deployed across
90% of Vopak sites and it’s allowing us to run all
ourHR processes in a consistent and efficient way,
including payroll data, workforce planning,
performance management, compensation & benefits,
time & attendance, expenses, feedback, talent
acquisition, learning and people analytics. Using
common data supports our approach to the remaining
four other transitions.
Part of our Digital Transition is our MOVES program.
This program involves implementing Global
Applications & Systems. We use e-learning programs
to help our employees adapt to these new ways of
working. In doing so, our purpose is to “assign the
right learnings to the right audiences at the right time.”
This keeps our workforce motivated to learn, and able
to adapt to future changes in their work environment.
Global Learning & Development team oversees the
use of MyPulse as the platform to support training and
skills development.
Vopak Annual Report 2021
|
48
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Operating as one team
We value
a diverse
workforce that
reflects the
societies that
we serve.
We believe that diversity in its broadest sense contributes to the long-term success of our
company. We are committed to having both an inclusive culture where all individuals feel
welcome and a diverse workforce that reflects the societies we serve. Our talent is becoming
more diverse in gender and nationality, with local talent replacing expats.
Our focus is on diversity in terms of gender, regional
origin and competences. Our aim is to increase the
percentage of women in senior management
positions to at least 20% by 2023. In addition, we aim
to have at least 75% local employees in senior
management in divisions and operating companies,
and 25% international talents in senior management
in global roles and the LNG division. We see several
trends in our workforce. We notice that our talent
pools (identified as part ofsuccession planning) are
becoming more diverse both in gender and national
origin. For talent pool 1 (our first-time leaders),
we nominated 34% women in 2022. Women,
meanwhile, make up 27% of pool 2 (our “top 100”).
Both pools have a majority of internationals
participants: pool 1 55% and pool 2 52%.
Goal Ambition & targets Timeline
More women in Vopak’s senior management positions Share of women in senior management positions
of at least 20%
2023
More diversity in terms of regional origin in senior
management (Hay 19 and above)
Senior management in divisions and operating
companies at least 75% local
2023
More diversity in terms of regional origin in senior
management (Hay 19 and above)
Senior management in global roles and the LNG division
at least 25% international talents
2023
100
Women in Vopak senior management
in %
11
12
2019 2020
15
16
20212018
20
15
10
5
Senior management nationality diversity
in divisions and operating companies
in %
83
77
2019 2020
79
79
20212018
100
80
60
40
20
Supporting
greater diversity
Vopak Annual Report 2021
|
49
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Supporting greater diversity
Senior management nationality diversity
in global roles and the LNG division
in %
10 10
2019 2020 2021
10 10
2018
20
10
In 2021, our diverse participants in the talent pool were
successfully promoted to senior roles. The senior talent
pools that we use for our most senior executive and
other key roles show gender and regional diversity.
Also, two thirds of the participants in our most recent
Oxford University leadership program now hold “top
100” roles in our organization.
Annual training hours
Average number of training hours by employee during year
52
48
2018 2019
50
36
41
2020 20212017
20
60
40
Being a good neighbor & community
engagement
We involve communities at the early development
stages of growth projects and continue our
engagement throughout the lifetime of our terminals.
For our communities, priorities that we address
include topics ranging from stench and nuisance,
plastics clean up, preservation of archeological sites
and mitigating the impact of truck movements during
construction activities up to improving roads and
local education. We are aware that stakeholder
engagement requires an ongoing dialogue, with
regular contacts and two-way communication
Vopak encourages its employees to take an active
part in their local communities. Through the Vopak
WeConnect Foundation, employees work on projects
to help young people in our local communities, in
cooperation with schools, community groups and
NGOs. Vopak WeConnect has a clear mission: to
open up professional horizons for young people, to
increase their jobreadiness and to inspire them to
work withothers across cultures, languages and
social backgrounds.
Living wage
In line with our commitments under the
UNGlobal Compact, Vopak supports the
“livingwage” principle in the UN’s Declaration
on Human Rights. The goal of a living wage is
to allow workers to afford a basic, adequate
standard of living through employment without
government subsidies. Our policy is to pay all
Vopak staff the living wage at a minimum.
According to our whistleblower policy, breaches
can be reported in confidence by all employees
and other stakeholders. Additionally, the living
wage principle is included in the Vopak Global
Supplier Code and in the global supplier and
contractor performance management program,
so the principle also applies to Vopak all
suppliers and contractors.
To ensure we meet (or exceed) living wage
standards, we carry out a living wage
assessment annually. Please note that, in
Venezuela, this assessment is informal because
of a lack of official indicators to measure basic
work and living standards. In 2021, all Vopak
countries were found compliant with the living
wage principle unchanged from 2020.
Vopak Annual Report 2021
|
50
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Engaging with local
communities and
empowering young people
The Vopak WeConnect Foundation was set up in 2017 to
encourage Vopak employees to empower young people
in surrounding communities, by opening up new horizons
for them and inspiring them to work together with
others across various backgrounds. Despite the pandemic,
projects continue to flourish with already more than
6,000young people involved. The Go Alemoa Go project
serves to empower young people and revitalize the
community with a broad range of activities such as
sports and educational events.
Go Alemoa Go
from Brazil is one of
many successful
Vopak WeConnect
projects in
the past years
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
51
We work with the future in mind, always ready
forthepotential of new developments and change.
Forour continued success and our license to operate
insociety, we believe we need to focus on three important
drivers that make for a successful future mindset: leading
locations, new vital products andbeing data driven.
Future mindset
Vopak Annual Report 2021
|
52
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Future mindset
Future mindset
Leading locations
Location is
everything in
ourbusiness.
We connect
supply and
demand for
vitalproducts.
Vopak is continuously developing its portfolio of terminals to make sure we have leading
assets in leading locations. Along with conventional product and market reporting, we
increasingly deploy digital solutions to have more accurate and real-time views on product
movements around the world. As a result, we are better able to predict where additional
capacity or new locations may be needed.
In line with our strategy, our new locations are shifting
geographically toward East of Suez and the Americas,
and – from a terminal type perspective – toward more
industrial and gas terminals. We are also putting more
focus on new energies and sustainable feedstocks.
Over the past year, the implementation of our growth
strategy has been affected by the Covid-19 pandemic,
both in developing new projects and executing
existing ones. There has also been continued
uncertainty surrounding recovery. During 2021,
Vopakapproved final investment proposals for a total
capacity of 1.8 mln cbm. Major projects include:
• Industrial terminals (ITL): Vopak was awarded
acontract for storage and services for a new
liquidproducts terminal by Huizhou QuanMei
Petrochemical Terminal Co., Ltd. in China. The
planned terminal would be constructed and
operated as part of ExxonMobil’s proposed Huizhou
chemical complex project.
• Gas & chemicals: Vopak will join forces with Aegis
to expand in the LPG and chemicals storage and
handling business in India. The new partnership
– Aegis Vopak Terminals Ltd. – will operate a
network of eight terminals, located in five strategic
ports along the east and west coasts of India.
Witha total capacity of around 960,000 cbm,
thepartnership will become one of the largest
independent tank storage companies for LPG and
chemicals in thecountry. The newly built Vopak
Moda terminal in Houston received the first
ammonia tanker. The new terminal very well fits
Vopak’s strategy of developing new infrastructure
solutions for products like ammonia. Gate LNG
terminal will expand its regas capacity by 12.5%
in 2024.
• Brownfield expansions at existing locations:
including Vlaardingen, which will increase its
capacity by 64,000 cbm to store renewable
feedstocks in 2022.
Looking ahead to 2022, Vopak will continue to allocate
the majority of its growth investments in industrial,
gas and new energies. We have numerous projects
indevelopment across the organization:
• Asia Middle East aims to pursue growth projects
tostrengthen its position in key hub and industrial
locations.
• After successfully completing a number of key
projects, the Americas will focus on execution and
growth within its existing terminals. Following the
integration of the three industrial terminals we
acquired from Dow in 2019, the team is actively
looking for further development opportunities.
Also a number of new energies projects are
being assessed.
Vopak Annual Report 2021
|
53
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Leading locations
• Europe & Africa commissioned several brownfield
chemical projects in 2021, and will focus in 2022
on further developing new energies projects as
well as strengthening our position in industrial and
gas terminals.
• China will focus on growth in ITL, chemicals and gas.
• Vopak LNG will focus on further enhancing value
creation at its existing terminals as well as pursuing
more advanced projects, while pursuing
opportunities in new energies and increasing
longer-term sustainability by monitoring and
reducing both methane and CO
2
emissions.
• New energies is developing new infrastructure
solutions to actively contribute to the introduction of
future vital products, focusing on low-carbon and
renewable hydrogen, ammonia, CO
2
, flow batteries
and sustainable feedstocks. We currently pursue
10+ infrastructure projects and studies.
Strategic portfolio shift
Since our strategic review in 2014, Vopak has divested
more than 10 oil terminals. These terminals were
located in the Netherlands, UK, Sweden, Germany,
Estonia, Spain, USA and China. In this same period,
we have added more than 10 terminals to our
network. These new locations within our network are
mainly industrial terminals and terminals for LNG,
gasses and chemicals. Vopak is also developing new
infrastructure solutions to actively contribute to the
introduction of future vital products, focusing on
low-carbon and renewable hydrogen, ammonia, CO
2
,
flow batteries and sustainable feedstocks.
Gas terminals
Oil terminalsIndustrial terminals
Chemicals terminals
Proportional revenue by product category
~10%
~15%
40-45%
35-40%
~10%
20-25%
40-45%
25-30%
10-15%
25-30%
35-40%
25-30%
15-20%
25-30%
30-35%
20-25%
201920172014 2021
China & North Asia
Asia & Middle East
Proportional revenue by division
5-10%
~15%
~20%
5-10%
5-10%
15-20%
20-25%
5-10%
40-45-%
~10%
~20%
~25%
~10%
~35%
10-15%
20-25%
~25%
~10%
30-35%
45-50%
LNG
Americas
Europa & Africa
201920172014 2021
Vopak Annual Report 2021
|
54
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Partnership for LPG and
chemical storage in India
Vopak has joined forces with Aegis to invest in
the growth of LPG and chemical storage in India,
as LPG is earmarked by the local government for
providing cleaner and safer cooking fuels for
households. This new partnership, Aegis Vopak
Terminals Ltd, will become one of the largest
independent tank storage companies for LPG and
chemicals in India, operating a network of eight
terminals that are located in five strategic ports
along the coasts of India.
The investment
ts into Vopak’s strategy
of allocating capital for
our growth in the
gas markets
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
55
We are developing
new infrastructure
solutions to
contribute to
the introduction
of future vital
products.
New vital products
New energies & sustainable feedstocks
Renewable energy sources like solar and wind create
supply peaks and troughs, which need to be managed.
Furthermore, some regions are better suited to
producing renewable energy than others, which
means there will be a geographical imbalance
between supply and demand of renewable energy.
Asa consequence, storing and transporting electricity
is a key challenge for the renewable energy sector.
Inaddition to sustainable electrons, society will need
more sustainable molecules, both as a source of
energy and as a feedstock. Developing infrastructure
solutions for low- and zero-carbon new energies and
sustainable feedstocks will be critical for supporting
the wide scale deployment of renewable energy
sources and the transition to a climate-neutral society.
In response, Vopak has developed a new energies and
sustainable feedstocks strategy, focused on four
pillars, which are stated below. New energies is a
long-term growth segment for Vopak, and is primarily
about capital allocation in the coming years.
First, we are developing infrastructure solutions in
ports to enable exports, imports, transportation and
storage of low- and zero-carbon hydrogen. The way to
do this is by transforming hydrogen into a liquid. We
are exploring three routes for transportation and
storage of hydrogen: liquefied hydrogen (LH2), liquid
organic hydrogen carriers (LOHCs) and ammonia.
Vopak already stores ammonia at six sites, and is able
to make use of its existing ammonia locations and
capabilities to safely store and handle this product.
LOHC can be stored in existing petroleum-like
infrastructure, which is an advantage of this carrier.
Liquefied hydrogen has benefits in terms of its purity
as it is not mixed with other molecules, which makes
it suitable for specific applications. However, LH2
needs to be stored at -253 ºC, which means there
needs to be attention to safety risks requiring
experienced infrastructure operators. In all cases the
storage and handlin of hydrogen requires more energy
than conventional fuels.
Second, we are investigating CO
2
storage
infrastructure through the development of open
access infrastructure that is needed in CCS (carbon
capture and storage) and CCU (carbon capture
and utilization) supply chains, starting in the
Amsterdam-Rotterdam-Antwerp region. For example
in the Port of Rotterdam, Vopak is together with
Gasunie and Gate terminal exploring the development
of an independent terminal to receive and deliver liquid
CO
2
. This project is named CO
2
nnect. Currently, many
industrial companies and clusters will not be able to
make use of depleted gas fields because they are not
directly connected to a CO
2
pipeline. Transporting
liquefied CO
2
by ship offers these companies an
option to connect to this infrastructure. As a
pressurized liquid, CO
2
volumes shrink 550 times
compared to CO
2
under atmospheric conditions,
making it easier and efficient to transport it by ship
similar to LNG.
Third, flow batteries will be needed to cover energy
surpluses and shortages for multiple hours, days, or
Vopak Annual Report 2021
|
56
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
New vital products
potentially even weeks depending on the renewable
energy penetration in the overall energy mix.
Apartfrom vanadium, which has dominated this sector
so far, Vopak is also investigating other promising
technologies, based on cheaper electrolytes such
asbromine. Vopak is partnering with Elestor for the
development of a hydrogen bromine flow battery.
Thejoint ambition is to scale up the electricity storage
capacity of these flow batteries. Vopak is piloting the
vanadium redox flow battery technology in Singapore
and Australia together with partners. Our presence in
the main industrial clusters makes us well-positioned
for this development.
Finally, we already invested in storage for waste-based
biofuels in Rotterdam and are active in contributing to
the usage of more sustainable feedstocks – for
example, bio-based feedstocks (such as organic
waste) that can be used to produce biofuels.
Non-organic recycled plastics, we believe, have even
greater potential. These can be used to produce
energy, but also as feedstock to create those chemical
elements and compounds such as feedstock for
automotivate, construction and plastics production.
Vopak Ventures
We have set up Vopak Ventures to identify investment
opportunities in start-ups and scale-ups in new
technologies and emerging value chains. In this, we
focus on threeareas:
• Operational excellence and asset management
– this is about “optimizing the way we work”
• Platforms, data and digital
– “Connecting supply chains”
• New energies, feedstock and sustainability
–“Products and flows of the future”
Vopak Ventures invests as a minority shareholder and
aims to maintain the entrepreneurial spirit in each of
our investments.
Since 2018, Vopak Ventures has made 14 investments,
ranging from minor amounts up to EUR 15 million.
In 2021, we were in a position to have an overall
positive revaluation on our portfolio of EUR 39 million
versus 2020, recorded in other comprehensive income
in equity (on the balance sheet).
Vopak Ventures is well positioned and organized to
make further investments in the years to come.
Thiswill continue to support the Vopak strategy,
whileoptimizing its investment portfolio.
Vopak Annual Report 2021
|
57
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Our joint ambition
with Elestor is
to scale up to
industrial scale
Development of a hydrogen
bromine flow battery
Developing large scale and low cost electricity
storage will become increasingly important,
and with this promising technology, electricity
can be stored in molecules on a large scale.
This is an excellent collaboration with Elestor,
who brings in its knowledge of its unique HBr
flow battery technology. Large-scale storage of
hydrogen and bromine forms an important part
of the HBr flow battery and fits well with Vopak’s
locations, core activities and competence.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
58
Digital innovation
provides more
data of all aspects
of our business.
Data driven
Investments in digital innovation will allow us to have more access to data in all aspects of our
business. By analyzing this data, we will be able to improve safety, provide better customer
service, and increase efficiency.
Implementing MOVES
Vopak’s own developed software for our terminal
operations has now been extended to all our joint
ventures, bringing substantial value for real-time
operations. In total, 23 terminals are now using the
new IT/OT (information and operational technology)
environment and customers appreciate the new
service, leading to a higher customer satisfaction
reflected in higher NPS scores. The coming two years
will be used to implement this new software at all
remaining terminals. During 2021, we continued to
implement our important digital transformation
program MOVES.
By the end of the year, 47 terminals were using the
new Finance & Procurement Cloud platform,
standardizing our ways of working and creating an
efficient global shared service center. As part of our
HR platform, we have introduced a full learning
environment for staff and contractors to ensure that
our people are trained efficiently and reliably. Payroll
integration with our HR platform continues.
During 2021, we also rolled out our own CRM
application at 67 terminals on the low code platform to
optimally serve our customers. In 2022, we will
introduce our advanced Tank Planning service that is
built upon this new foundation of our digital
processes. The advanced Tank Planning service will
allow us to efficiently and digitally match customer’s
requests with actual tank storage opportunities, whilst
taking into consideration constraints such as product
requirements, out-of-service capacity etc.
Strengthening cybersecurity
In 2021, we finalized the IT workstreams in all our
terminals and started the OT security components of
the project COINS (converged IT and OT networks
securely). During the year, we continued the ongoing
implementation of our secured Edge infrastructure, for
segmentations of our IT and OT domains. We also
carried out a cybersecurity exercise to test our
processes and policies in the event of acyber attack.
With our frequent anti-phishing campaigns, we can
see an increased awareness as well as a greater
vigilance of our staff. Penetration testing takes place
on a continuous basis aiming to increase awareness
across the organization.
Supply chain platform
In January 2021, we launched a partnership with
NxtPort to develop and roll out the NxtPort
International data sharing platform. Houston went live
with the platform in 2021; Singapore will follow suit in
2022. Through this real-time data sharing platform, we
help the industry save substantial supply chain related
costs. The data sharing enables real-time insight in
processes with all parties involved.
Vopak Annual Report 2021
|
59
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Data driven
Asset management platform
In selected terminals, we have implemented new
innovative solutions that help our employees monitor
and manage our assets and processes. These include
sensors for valves, temperature and vibration, which
help us to change the way we operate and maintain
our assets, for example to do predictive maintenance
on tanks in order to maximize their lifetime. Our aim is
to digitize our operational environment with smart and
affordable solutions. Cooperation with our joint
ventures has been very successful in co-developing
such solutions.
Being data driven
To benefit fully from our investments in new
technologies, we need to further strengthen data
governance and broaden employees’ access to data
(“democratization”). In 2021, Vopak’s top management
received an introduction to AI and machine learning;
we are now expanding this training to other teams
within the company. Excellent data management is
akey to ensuring teams have access to the data they
need to complete their tasks. Our strong data driven
competencies in areas such as service using NPS as
ametric and reducing energy consumption through
operational IoT capabilities support our ambitions for
energy savings or maintenance improvements at all
our terminals which we aim to scale up. Our data
integration platform with real time API functionality
forinternal and external data sharing has been
implemented to bring reliable services to our clients.
The platform draws on the foundations laid by the
MOVES program, and clients use the API to optimize
their supply chains by having access to data such as
the berthing time of a vessel at a jetty and real-time
information on their stock and throughput levels.
2021
20192018
2020
Investments in IT
in EUR million
40
50
30
20
10
38
32 32
28
Vopak Annual Report 2021
|
60
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Key
developments
by division
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
61
Vopak Annual Report 2021
|
Key developments by division
Key developments by division
Americas
Total Injury Rate (TIR)
For every 200,000 hours worked
for
own personnel and contractors
Share of EBITDA
1
In % of EBITDA from all divisions
- excluding exceptional items -
22%
2020
22%
0.23
Share of proportional EBITDA
1
In % of proportional EBITDA from all divisions
- excluding exceptional items -
20%
2020
18%
2020
0.40
“In 2021, Vopak Americas faced numerous challenges –
including the Texas winter freeze, Hurricane Ida and
Covid-19 surges across the region. That said, our
people, assets and business strategies ensured that
we delivered the expected positive results. The
terminals we acquired in December 2020 from Dow,
with our joint venture partner BlackRock, were fully
integrated into the Vopak network during the year and
are performing well. In addition, we commissioned a
new industrial terminal in Corpus Christi, Texas, an
Americas division (left to right)
Mark Verwest, Director Finance & Control
Heidi Herzog, Director Commercial & Business Development
Gert-Jan Krispijn, Director Operations & Technology
Chris Robblee, Division President
Luis Palacios, Director Human Resources
ammonia and gas terminal in Houston at JV Vopak
Moda Houston, two chemical projects at our Deer
Park terminal and the second phase of our Veracruz,
Mexico, expansion for Clean Petroleum Products.
In addition to the growth we achieved during the year,
I am exceptionally proud of the progress our team has
made with respect to safety, service, diversity,
digitalization and transitioning to new energies.”
Chris Robblee, President of Vopak Americas
1 Share of (proportional) EBITDA is calculated excluding global functions.
Vopak Annual Report 2021
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62
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Americas
Total storage capacity
In million cbm
2
Americas
Americas
Number of terminals
2
24
5.5
2020
5.3
Division developments
2021 was an exceptional year for the Americas, as our
team continued to work and thrive despite the pandemic.
We executed on our growth strategy by commissioning
six projects, including two new terminals.
On the US Gulf Coast, we opened a new industrial
terminal in Corpus Christi to serve the 1.8 MT/year
ethane cracker run by Gulf Coast Growth Ventures, a
joint venture between ExxonMobil and SABIC (Saudi
Basic Industries Corp.). We also commissioned a new
ammonia terminal, namely Vopak Moda Houston, first
greenfield terminal in the Port of Houston in more than
a decade. This terminal is positioned to become the
premier US Gulf Coast hydrogen and low-carbon
ammonia hub. Furthermore, we partially commissioned
new chemicals infrastructure at our Deer Park terminal,
which is fully leased to chemical customers. We took a
step forward in sustainability by repurposing existing
infrastructure to lighter fuels, whereby a considerable
percentage of our total capacity transitioned from
fuel oil to clean petroleum.
Market overview
In 2021, Vopak Americas’ storage and handling
business remained steady despite unforeseen issues
affecting our key markets and customers. Our US Gulf
Coast Industrial Terminals experienced several major
weather events, causing major supply disruptions and
a tightening of global chemical markets. A gradual
return to economic growth during the year supported
demand for the products we store.
Our industrial terminals captured market opportunities
which were, partially offset by the negative impact of
the weather events. On the US West Coast, terminals
benefitted from the rebound in air travel. Our
distribution terminals in key Latin American markets –
Mexico and Brazil – continued to benefit from growing
imports of chemicals, vegetable oils and petroleum
products. Other markets were challenged by the
negative market structure for petroleum product
storage. OurVeracruz terminal in Mexico has seen
consistently high throughput since the completion of
the expansion earlier in the year.
Financial performance
In 2021, despite the negative impact of winter freezes
and hurricanes in Texas, the Americas division
continued to show solid growth, supported by new
project commissioning and rigorous cost efficiency
measures. Revenue increased 1% year-on-year
supported by new growth projects in Mexico and the
US, which offset the negative impact of Covid-19
disruptions. EBIT
1
also increased by 1% driven by
higher revenue and cost efficiency measures.
In EUR millions 2021 2020 (restated)
Revenues 326.6 322.9
Operating profit before depreciation
andamortization (EBITDA)
1
190.0 186.5
Operating profit (EBIT)
1
125.7 124.4
Average capital employed 963.3 829.1
Storage capacity (in million cbm)
2
5.5 5.3
Occupancy rate subsidiaries 90% 92%
Proportional occupancy rate 90% 92%
Proportional EBITDA
1
206.7 186.3
1 Excluding exceptional items.
2 At 15 February 2022.
Original contract duration
AMERICAS
50%
39%
11%
< 1 year
1-3 years
3 > years
Vopak Annual Report 2021
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63
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Asia & Middle East
Share of EBITDA
1
In % of EBITDA from all divisions
- excluding exceptional items -
32%
2020
33%
Total Injury Rate (TIR)
For every 200,000 hours worked
for
own personnel and contractors
0.14
2020
0.22
Share of proportional EBITDA
1
In % of proportional EBITDA from all divisions
- excluding exceptional items -
29%
2020
31%
“Across the region, we have made significant progress
in implementing our strategy, despite the challenges
of Covid-19 and soft market conditions. Our growth
projects and developments in industrial terminals are
progressing well. Our digital transformation is also
progressing well as we continued the efficient,
online roll-out of the IT systems and ramp-up of
innovation deployments. Safety performance
continues to improve despite a difficult start at the
beginning of the year. Our service delivery is at a high
standard and customer satisfaction reached an all-time
high. All of this was possible thanks to the
commitment and dedication of our people who
worked tirelessly to ensure we continued to live up to
our purpose: storing vital products with care. In 2022
and beyond, we will continue to invest across the
region in our well-diversified portfolio, in digitizing our
processes and most importantly in our people.
Ibelieve that by investing and empowering our people
to lead us out of these extraordinary times, we may
emerge more resilient and with a market position that
can differentiate us from our competitors.”
Michiel Gilsing,
President of Vopak Asia & Middle East
Asia & Middle East division (top left to bottom right)
Janhein van den Eijnden, Director Operations and Technology
Mariah Ismail, Director Human Resources & Communications
Marina Surzhenko, Director Commercial & Business Development
Michiel Gilsing, Division President
Samantha Xu, Director Finance & Control
Sjoerd Bazen, Managing Director Vopak Singapore
1 Share of (proportional) EBITDA is calculated excluding global functions.
Vopak Annual Report 2021
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64
Introduction
Purpose
&strategy
Business&market
environment
Additional
information
Financial
Statements
Governance,risk
&compliance
Sustainability
Performance
&outlook
Asia & Middle East
Asia & Middle EastAsia & Middle East
Total storage capacity
In million cbm
2
Asia & Middle East
Number of terminals
2
19
15.6
2020
15.5
Division developments
On safety and sustainability, we continued to operate
with high standards by focusing on improving the
integrity of our assets, personal safety and processes.
Over the past year, we devoted time and resources to
further improving our safety culture, with a strong
focus on our Trust & Verify program. Our customers
also appreciated and valued our consistently high
standards of service. Wereached an all time high in
terms of customer satisfaction.
In H2 2021, we commissioned our expansion project
in Sydney, Australia. We are investigating the strategic
options for our terminals in Australia. This may include
continued operations or divestment. We decided to
join forces with Aegis in India, creating a joint venture,
with the aim to grow together in the LPG and
chemicals storage and handling business. The deal is
expected to be closed during 2022, and provides an
excellent foothold for further expansion in this growing
market. PT2SB terminal in Pengerang is expected to
become fully operational during 2022 following several
delays related to the refinery start-up of our main
customers. With regard to new energies, in Singapore,
we have successfully completed testing on the
potential use offlow batteries in storing and supplying
green energyat industrial locations. We are in the
process ofdefining a project to scale up such a flow
battery concept for industrial usage.
Market overview
Our well-balanced portfolio and contract structure tend
to support business performance during soft market
conditions. The start of 2021 was relatively strong for
our oil business in the hub locations Singapore,
Pengerang and Fujairah. However, during the year the
market weakened due to a lack of demand as a result
of continued Covid-19 restrictions and a
backwardation.The fuel distribution in Australia
remained strong supported by new capacities while
Jakarta distribution market remained challenging.
Demand in chemical distribution markets increased in
the final quarter of 2021.
Financial performance
The Asia & Middle East division reported a 1%
increase in EBIT
1
for 2021. The growth was driven by
the results from PT2SB and an improved performance
from Australia and Jubail. Revenue was lower in
Singapore, Fujairah and Jakarta. Efficiency measures
supported margin developments. Occupancy rates
were stable for the main group companies. For joint
ventures, occupancy was stable for industrial
terminals, but lower in Fujairah and Indonesia.
In EUR millions 2021
2020
(restated)
Revenues 284.1 289.3
Operating profit before depreciation
andamortization (EBITDA)
1
280.8 274.8
Operating profit (EBIT)
1
214.4 211.4
Average capital employed 1,212.5 1,123.1
Storage capacity (in million cbm)
2
15.6 15.5
Occupancy rate subsidiaries 87% 87%
Proportional occupancy rate 86% 91%
Proportional EBITDA
1
302.2 317.8
1 Excluding exceptional items.
2 At 15 February 2022.
Original contract duration
ASIA ME
56% 40%
4%
< 1 year
1-3 years
3 > years
Vopak Annual Report 2021
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65
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
China & North Asia
Share of EBITDA
1
In % of EBITDA from all divisions
- excluding exceptional items -
8%
2020
7%
Total Injury Rate (TIR)
For every 200,000 hours worked
for
own personnel and contractors
0.17
2020
0.11
China & North Asia division (top left to bottom right)
Yan Chen, Division President
David Gai, Director Project & Engineering
Peng Chen, Director Business Development & Commercial
Mike Lai, Director Operational Excellence
Whitney Wu, Director Human Resources
Wim Samlal, Director Finance & Control
“2021 was another successful year for our
China&North Asia division despite the challenges
for the entire world due to Covid-19 pandemic.
We achieved very good results in terms of safety,
service, growth and financial performance. We were
awarded a contract for storage and services of a
liquid products terminal in China by Huizhou
QuanMei Petrochemical Terminal Co., Ltd. We are
excited for this opportunity to serve ExxonMobil via
this greenfield industrial terminal in a safe,
sustainable and efficient way. We believe our
business will remain strong and robust in the
coming years, and plan to further expand our
network across the region, especially in China.”
Yan Chen, President of Vopak China & North Asia
Share of proportional EBITDA
1
In % of proportional EBITDA from all divisions
- excluding exceptional items -
9%
2020
9%
1 Share of (proportional) EBITDA is calculated excluding global functions.
Vopak Annual Report 2021
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66
Introduction Sustainability
Purpose
&strategy
Business&market
environment
Performance
&outlook
Additional
information
Financial
Statements
Governance,risk
&compliance
China & North Asia
China & North Asia
Total storage capacity
In million cbm
2
China & North Asia
Number of terminals
2
9
3.1
2020
2.8
Division developments
Vopak operations in China and North Asia continued
to manage the Covid-19 situation well in 2021. The
economic performance of the countries in our
division varied by macroeconomic developments in
China, South Korea and Vietnam. Vopak’s China &
North Asia division continued to deliver strong
performance in 2021. We further expanded our
business by adding capacity and securing new
long-term industrial contracts.
Our new industrial terminal in Qinzhou, China was
successfully commissioned in May 2021. Meanwhile,
work has begun on Qinzhou Phase 2 – a 50,000 GT
liquefied gas jetty and is expected to be operational in
the third quarter of 2022. Work on expanding our
Caojing terminal, with the construction of ammonia
and butadiene storage capacity, has also started and
will be commissioned in the second quarter of 2022.
During the year, we also secured a new industrial
project in Huizhou, serving ExxonMobil with an
additional storage capacity of 559,700 cbm.
Construction is expected to start in 2022; the
terminal is expected to come online in the fourth
quarter of 2023.
Market overview
In China, the petrochemical industry did well in 2021.
Most petrochemical manufacturers enjoyed good
business, even with addition of significant capacity
from recently commissioned mega plants.
Vopak’s performance in China was strong: most of
ourindustrial customers – typically large operators,
enjoyed high run rates during the year. As a result, our
industrial terminals were able to run at full capacity.
Our distribution business in general performed well
even though we experienced some business slow
down in the second half of the year for various
reasons, including temporary product flow changes.
In South Korea, our tanks continued to maintain high
occupancy rates. With the recovery in exports, our
throughput numbers improved compared with 2020.
In Vietnam, longer-term contracts protected most of
our business from the effects of Covid-19.
Financial performance
EBIT - excluding exceptional items - from China &
North Asia in 2021 increased by 24% driven by growth
project contributions. Our results in 2020 included an
exceptional gain of EUR 33 million relating to the sale
of our stake in the Yangpu terminal.
In EUR millions
2021
2020
(restated)
Revenues 44.7 42.0
Operating profit before depreciation
andamortization (EBITDA)
1
68.4 56.9
Operating profit (EBIT)
1
56.5 45.4
Average capital employed 421.9 420.0
Storage capacity (in million cbm)
2
3.1 2.8
Occupancy rate subsidiaries 75% 80%
Proportional occupancy rate 86% 89%
Proportional EBITDA
1
97.2 86.9
1 Excluding exceptional items.
2 At 15 February 2022.
Original contract duration
CHINA NA
21%
53%
26%
< 1 year
1-3 years
3 > years
Vopak Annual Report 2021
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67
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Europe & Africa
Share of EBITDA
1
In % of EBITDA from all divisions
- excluding exceptional items -
34%
2020
33%
Total Injury Rate (TIR)
For every 200,000 hours worked
for
own personnel and contractors
0.51
2020
0.82
“2021 was a rewarding year in many aspects. The
Covid-19 pandemic continued to have a significant
influence on our markets. Even so, we were able to
serve our customers throughout the year without
interruption. We were also able to successfully exploit
the new capacity that came on stream in the Europe
& Africa region in 2020 and 2021. Looking beyond
2021, we see that the energy landscape in Europe is
changing rapidly. The energy transition will create
Europe & Africa division (left to right)
René van Tatenhove, Director Finance & Control
Patrick van der Voort, Division President
Maarten Smeets, Director Commercial & Business Development
Mathilde de Winter, Director Human Resources
Harold Corstjens, Director SHEQ
Frank Jan Thijssen, Director Operations & Technology
opportunities for new low-carbon or carbon-neutral
infrastructure – we intend to play a major role in this
transition. In the refinery sector in Rotterdam and
Antwerp, Vopak has an excellent position to service
these industry clusters and maintain an effective
distribution hub for the region, both for current
products and new, more sustainable fuels.”
Patrick van der Voort, President of Europe & Africa
Share of proportional EBITDA
1
In % of proportional EBITDA from all divisions
- excluding exceptional items -
28%
2020
27%
1 Share of (proportional) EBITDA is calculated excluding global functions.
Vopak Annual Report 2021
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68
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Europe & Africa
Division developments
During 2021, our operations continued to be influenced
by Covid-19. Our new way of working, with staff partly
working from home, partly in the office or at the terminal,
became the norm.
In Belgium, we completed the expansion of our
Linkeroever terminal, expanding capacity by 50,000 cbm
for the glycol market. At our Botlek terminal in
Rotterdam, we commissioned our new styrene facility of
63,000 cbm and finalized the overhaul of our ethanol
storage facility. In addition, we saw our first full year of
operation for additional capacity in Durban, as well as at
our new Lesedi terminal, both in South Africa. In Lesedi
near Johannesburg, we are now operating a 100,000
cbm fuel storage facility connected by pipeline to our
Durban terminal.
Meanwhile, we are currently expanding our terminal in
Vlaardingen with the addition of 64,000 cbm for the
storage of waste-based feedstock for renewable diesel.
During 2021, we also continued to develop projects in
green hydrogen (carrier) or ammonia storage, CO
2
storage and flow batteries, supporting the further
decarbonization of industry in the Europe & Africa region.
Market overview
Covid-19 continued to have a significant effect on our
markets in Europe & Africa. During the year, several
oil products and fuel components remained in
backwardation, limiting demand for storage. In the
chemicals sector, there was a recovery in throughput
levels and a mix of storage demand for various products.
Markets for edible oils, biodiesel, LPG and chemical
gases remained strong throughout 2021.
Across Europe, sustainability and the energy transition
continued to grow in importance; Vopak aims to
capture new market opportunities in this sector. This
has implications over the mid-to-long term, not least
the need to transition existing markets to sustainable
alternatives, and for more investment in response to
new emission restrictions. Meanwhile, we expect
imports of chemicals and gases into Europe to
continue growing, given the increased availability of
competitive chemical feedstocks in both North
America and the Middle East.
Financial performance
Compared with 2020, our operations in Europe &
Africa saw a significant increase in revenue and
EBITDA
1
in 2021 – due to new capacity. We saw lower
occupancy rates as a result of soft market conditions.
With the overhaul of our terminal infrastructure
in Botlek and regular out-of-service and repair
activities at Europoort, we were able to reduce our
out-of-service capacity.
In EUR millions 2021 2020 (restated)
Revenues 566.0 532.9
Operating profit before depreciation
andamortization (EBITDA)
1
299.7 273.0
Operating profit (EBIT)
1
128.3 128.3
Average capital employed 1,717.0 1,381.6
Storage capacity (in million cbm)
2
10.7 10.7
Occupancy rate subsidiaries 87% 88%
Proportional occupancy rate 87% 88%
Proportional EBITDA
1
295.4 274.0
1 Excluding exceptional items.
2 At 15 February 2022.
Europe & Africa
Total storage capacity
In million cbm
2
Europe & Africa
Number of terminals
2
16
10.7
2020
10.7
Original contract duration
49%
37%
14%
< 1 year
1-3 years
3 > years
Vopak Annual Report 2021
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69
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
LNG
“Based on 2021 we remain very positive on the growth
opportunities for LNG infrastructure which will continue
for at least the next 15 years. The global demand
volumes are expected to almost double due to
different drivers like autonomous gas consumption,
switching from oil/coal to gas, gas enabling intermittent
renewables and gas facilitating the energy transition
LNG division (left to right)
Michael Naërt, Director Technology & Projects
Kees van Seventer, Division President
Stella Zerbo, Human Resources & Communications Director
Casper Pieper, Commercial & Business Development Director
Anne-Marie Kroon, Director Finance & Control
Jarmo Stoopman, General Manager
overall. We can leverage on synergies and/or existing
gas infrastructure for new energy storage like
hydrogen or ammonia. With our execution power and
excellent network, we are fully equipped to anticipate
future technology and unknown market developments.”
Kees van Seventer, President of Vopak LNG
LNG
Total Injury Rate (TIR)
For every 200,000 hours worked
for
own personnel and contractors
Share of EBITDA
1
In % of EBITDA from all divisions
- excluding exceptional items -
4%
2020
5%
0.36
2020
0.38
Share of proportional EBITDA
1
In % of proportional EBITDA from all divisions
- excluding exceptional items -
14%
2020
15%
1 Share of (proportional) EBITDA is calculated excluding global functions.
Vopak Annual Report 2021
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70
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
LNG
Division developments
The Covid-19 pandemic did not substantially impact
the safety or operations of our LNG terminals in 2021
and we were able to focus on the growth of terminals
and our projects pipeline. We secured the long-term
future of our terminal in Mexico and performed a large
maintenance program at Gate (Rotterdam) where we
also took FID on expansion of our send-out capacity.
By the end of 2021, the Gate terminal was operating
at full capacity, able to supply 25% of the Netherlands’
gas needs. We added viable projects to our portfolio
like in Australia and Singapore. We secured our
agreement with MOL (Japan) to co-own the FSRU and
perform jetty operations in Hong Kong. This 5th LNG
terminal will be commissioned in 2022 and will serve
two power plants switching from coal to gas. For 2022
we expect to merge Vopak New Energies ventures
with the executing power of the LNG group.
Market overview
The tight market fundamentals have resulted in an
unprecedented volatility in the LNG market in 2021.
Record gas prices up to $30/mmbtu were observed in
the months leading up to winter before adjusting
downwards due to warmer weather, higher inventory
levels in North Asia and fuel switching amidst the high
gas price environment. Despite the roller coaster
market conditions, global LNG trade grew over 5% on
a year over year basis. Supply and demand growth
were dominated by the United States as an exporter;
and China as the new largest global importer
exceeding Japan, highlighting the evolving shape of
the LNG trade. We expect the long term outlook for
LNG to remain positive with high prices supporting
investments in new LNG liquefaction projects.
Besides the growth in LNG demand, the focus on
sustainability has spurred the development of green
and bio LNG and raised the scrutiny on the carbon
footprint of the LNG supply chain. We aim to continue
to develop new LNG infrastructure, considering the
future fuel mix in selected growth markets and
facilitate the energy transition globally.
Financial performance
The LNG division comprises joint venture and associate
terminals and therefore has no revenues recognized at
subsidiaries. The LNG results include all costs related
to the LNG divisional and business development
activities. EBIT
1
from our LNG division amounts to
EUR 39.9 million and shows astable performance
despite executing large maintenance projects
(2020: EUR 42.6 million).
In EUR millions 2021 2020 (restated)
Operating profit before depreciation
andamortization (EBITDA)
1
39.9 42.6
Operating profit (EBIT)
1
39.9 42.6
Average capital employed 404.3 364.5
Storage capacity (in million cbm)
2
1. 2 1. 2
Proportional occupancy rate 96% 97%
Proportional EBITDA
1
150.3 149.6
1 Excluding exceptional items.
2 At 15 February 2022.
LNG
Total storage capacity
In million cbm
2
LNG
Number of terminals
2
4
1.2
2020
1.2
Vopak Annual Report 2021
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71
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
We will continue
to execute on our
growth strategy,
investing in additional
infrastructure and
storage capacity
and further
expanding our use
of new digital
technologies.
Outlook
The Covid-19 pandemic will continue to impact
economies even after the virus is fully under control.
Any resurgence in infections due to new variants may
force countries once more to restrict travel and avoid
large-scale gatherings; this, inevitably, will affect
consumer behavior, GDP growth and energy demand.
The decisive economic and monetary policy measures
from governments and central banks in 2021 have
led to a strong economic rebound, which resulted in
unusually high levels of inflation. In 2022, governments
and central banks will have to balance stimulus and
inflationary pressures.
• Worldwide, the shift to sustainability is gaining
momentum. Changes in the world’s energy mix
and measures to reduce CO
2
emissions to limit the
impact of climate change are likely to accelerate.
• Many countries have taken exceptional tax
measures to stimulate local business and economy
after the severe impact of Covid-19. Based on the
duration of the crisis, governments may amend
their local fiscal policies.
• Lessons from Covid-19 will become part of a new
reality and our new way of working. This has positive
aspects – for example, lower travel costs and
reduced need for office space. However, it might
also reduce the effectiveness of working together,
weaken company culture if not managed well.
Clearly, the pandemic has introduced more uncertainty
into our business environment. We see opportunities
for growth, but we recognize that growth is unlikely
to be linear. In 2022, we will continue to seek
opportunities to reduce our environmental footprint
and implement our sustainability roadmap, working
towards our ambition to be climate neutral by 2050.
Vopak Annual Report 2021
|
72
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Outlook
Outlook
Dutch Vopak terminal
switching to green electricity
Vopak Solar Park Eemshaven, a new solar park
that was opened in 2021, is a joint venture between
Vopak, Groningen Seaports, and funds managed by
PATRIZIA. The park has a capacity of approximately
25 megawatts, which is equivalent to an average
consumption of approximately 8,000 Dutch
households. The green energy certificates are
purchased by local companies within Groningen
Seaports and by Vopak.
Vopak is actively
contributing to the
greening of the logistics
chains of its customers
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
73
X Xxxxxxx
XX Xxxxxxx
XX Xxxxxxx
Sustainability
76 Introduction to sustainability
78 Governance and basis of preparation
84 Consolidated Sustainability Performance
86 Care for our societal impact (people)
98 Care for our environmental & climateimpact(planet)
111 Care for our economic impact (profit)
123 Other topics
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
74
Sustainability
Sustainability
Sustainability performance and notes
Introduction to sustainability 76
Governance and basis of preparation 78
Note 1. Basis of preparation 78
Note 2. From stakeholder engagement to materiality 81
Note 3. Connectivity 83
Consolidated Sustainability Performance 84
Care for our societal impact (people) 86
Note 4. Occupational health andsafety 87
Note 5. Process safety 89
Note 6. Human rights and decent work 92
Note 7. Diversity 94
Note 8. Training and education 95
Note 9. Nuisance 96
Note 10. Community engagement 97
Care for our environmental &
climateimpact(planet) 98
Note 11. Our impact on climate change: GHG emissions 99
Note 12. Air quality: VOC and other air emissions 103
Note 13. Water pollution 104
Note 14. Soil and groundwater pollution 105
Note 15. Biodiversity 106
Note 16. Energy use 107
Note 17. Water management 109
Note 18. Waste 109
Note 19. Circularity 110
Care for our economic impact (profit) 111
Note 20. Business ethics and integrity 112
Note 21. Innovation 113
Note 22. Climate impact on Vopak 114
Note 23. Our responsibility towards taxation 116
Note 24. Participation and partnerships 121
Other topics 123
Note 25. EU Taxonomy 123
Vopak Annual Report 2021
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75
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Sustainability is about meeting the needs of the present without compromising the ability of future generations to meet their own needs.
To live up to our purpose, we act to help future generations meet their needs and contribute to a more sustainable economy by facilitating the
introduction of vital products of the future. At the same time, we strive to be a responsible member of society and the communities in which
we operate, a company that our employees and contractors are proud to work for. We are mindful of the potential impact of our business
activities on people’s safety, health and well-being and on the environment. Through our care for people, planet and profit, we aim to create
value for all our stakeholders, including customers, investors, employees, authorities, local communities and society at large. Our choices
today should thus contribute to our long-term relevance for society and the well-being and development of current and future generations.
The Executive Board determines Vopak’s purpose, strategy, value creation, business
conduct and performance (all including sustainability) and is responsible for the
implementation of Vopak’s Sustainability Policy. This responsibility is delegated to
division management and to the management of our operating companies. The
global departments support the divisions and operating companies in acting on this
responsibility. All Vopak employees have a shared responsibility with regard to
sustainability as laid down in the Vopak Values, Code of Conduct, our Sustainability
Policy and our sustainability targets.
On sustainability, we are ambitious and performance driven with a balanced
roadmap focusing on care for people, planet and profit. The approach and programs
to achieve this are integrated into our business decision making.
Targets on our key indicators are set at group, divisional and operating company
levels. Progress is monitored by the Executive Board and Supervisory Board as part
of regular business monitoring and systematically reviewed on a quarterly basis.
Structure of this sustainability section
The purpose of the sustainability information in our Annual Report covering the
financial year 2021, is to:
• Respond to the key topics and expectations from our stakeholders
• Respond to relevant societal topics
• Comply with laws and regulations.
This, together with our interpretation of people, planet and profit, and our
acknowledgment of their interdependencies, is used as the basis for the structure
and information in this section:
• Care for our societal impact (people)
• Care for our environment & climate (planet)
• Care for our economic impact (profit).
Introduction to sustainability
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76
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Introduction to sustainability
Introduction to sustainability
Impact of Vopak versus impact on Vopak
This sustainability section presents information about the impacts of Vopak’s activities on the society,
environment and economy linked to our value creation process. The determination of (sustainability
related) threats and opportunities that could potentially impact Vopak’s portfolio and/or strategy
forms an integral part of our strategic planning cycle. This is fully integrated into our risk
management process, reference is made to the Governance, risk & compliance section.
Disclosures on the potential impact(s) of climate change on both Vopak’s physical assets and our
business activities are reported as part of the Care for our economic impact (profit) section and
our impact on climate change (through GHG emissions) are included within the Care for our
environmental & climate impact (planet) section in this sustainability section.
We aim to be clear and transparent towards our stakeholders regarding our vision,
our sustainability policy, objectives and performance. Vopak informs its stakeholders
actively about its sustainability performance. This has two benefits:
• It enhances the support for and credibility with regard to the way Vopak manages
its sustainability goals and related topics.
• It enables a dialogue with stakeholders and the communities in which Vopak
operates, which helps us gain insights and improve our performance in the area
of sustainability.
Materiality versus demand for other topics to be reported
We strive to be transparent and report relevant and balanced information. This section contains an
explanation of (1) our societal, environmental and economic impacts, (2) our ambitions, how we want
to achieve these and presents the developments and (3) performance in 2021 based on topics
identified as material for Vopak.
Vopak’s GRI Content Index provides all necessary references to those GRI
indicators in scope (as well as explanations for any indicators not reported on).
This Index may be found on our website:
www.vopak.com/sustainability/gri-content-index.
Impact of Covid-19 pandemic
Also in 2021, the spread of Covid-19 has had a significant impact on all people and
organizations around the world. Regrettably also our colleagues were confronted
with tragic personal situations caused by the pandemic. Related to our operations
we have so far observed limited impact. All our terminals have stayed operational
and there have been no significant disruptions to business continuity. Our main
focus is on the health of the people working at our terminals, offices or at home
around the world 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. The new circumstances did not
lead to a deteriorated performance on safety and environmental impacts.
Vopak Annual Report 2021
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77
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Note 1. Basis of preparation
Reporting criteria
In recognition of the fact that sustainability is a core element of and integrated
into our strategy and operations, we combine our Sustainability Report with our
Annual Report.
The information on Vopak’s sustainability performance in this report has been
prepared in accordance with the Sustainability Reporting Standards Comprehensive
option of the Global Reporting Initiative (GRI Standards as published in 2016, unless
stated otherwise), to communicate and understand organizations’ societal,
environmental and economic impacts. The Standards were designed to enhance
the global comparability and quality of information on these impacts, thereby
enabling greater transparency and accountability for organizations.
GRI
On 2 July 2021, final approval was granted for the revised GRI Universal Standards, which will be in
effect for reporting from 1 January 2023. For our 2021 Annual Report the GRI standards as published
in 2016 are applied.
We subscribe to the view that good corporate reporting should result in the
communication of a clear, concise and integrated story that explains how our
company’s resources are creating value for its stakeholders. As such, Vopak’s
Annual Report also applies the principles of the Integrated Reporting Framework by
the International Integrated Reporting Council (IIRC).
Climate-related disclosures have been prepared by using the framework as issued
by the Task force on Climate-related Financial Disclosures (TCFD). Disclosures on
the potential impact(s) of climate change on Vopak including a description of our
governance, strategy and risk management in line with the requirements of TCFD
are reported as part of the Care for our economic impact (profit) section.
Our impact on climate change (through GHG emissions) is further explained in
Note11. Our impact on climate change: GHG emissions.
Financial KPIs are reported based on information included in the company’s
Financial Statements, prepared in accordance with IFRS as adopted by the
European Union.
EU Taxonomy
Vopak, subject to the Non-Financial Reporting Directive (‘NFRD’) via Part 9 of Book 2 of the Dutch
Civil Code, is required to apply the Taxonomy Regulation for the Annual Report 2021. Reference is
made to the Note 25. EU Taxonomy.
Sustainability Roadmap
In 2021, the updated Sustainability Roadmap was approved by the Strategic Committee, Executive
Board and the Supervisory Board. The Roadmap provides an improved overview of the key
sustainability topics with clear objectives that we focus on as a company. It specifies our actions and
integrates sustainability even stronger into our global processes and investment decisions. The
Sustainability Roadmap has led to updated target settings which are also included more specifically in
the incentive programs of senior management.
Reporting principles
Our sustainability reporting principles are based on the reporting principles in the
GRI Standards and when necessary supported by internally developed standards
and guidelines unless otherwise specified. Throughout the Annual Report, we have
indicated how we applied the GRI reporting principles, such as materiality,
stakeholder inclusiveness and reliability.
Governance and basis of preparation
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78
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Governance and basis of preparation
Governance and basis of preparation
Reporting period
The reporting period for the sustainability information in this Annual Report is the
2021 financial year, covering Vopak’s activities from 1 January 2021 to 31 December
2021. This report builds on the previous Annual (Sustainability) Reports.
Reporting process and assurance
As in previous years, Vopak has voluntarily requested its external auditor to
provide limited assurance on its sustainability reporting. For the Assurance Report
of our independent auditor, reference is made to the Assurance report of the
independent auditor.
The sustainability data used in this report was obtained from our global
consolidation and management reporting system, and additionally from the HR
management, compliance management, operational (safety and environment)
management reporting systems and other management reporting systems.
All data is consolidated by our Global Operations function and reviewed by the
Global Control and Business Analysis function. Responsibility for reporting on
sustainability is currently assigned to the Global Operations function. We have a
continuous focus to further embed the material topics into the responsibilities of
relevant departments, strengthening our non-financial data collection process and
proceeding with further integration into our reporting processes. At least on a
quarterly basis, key sustainability topics are reported to the Strategic Committee,
Executive Board and the Supervisory Board. Once a year, we organize a review of
our strategy and a thematic day on climate change. Key topics and stakeholder
concerns were discussed in Supervisory Board meetings. For more information,
reference is made to the Supervisory Board report.
For further details on the governance and control framework, reference is made to
the Governance, risk & compliance section.
Change in reporting policies for 2021
Vopak has not applied any new reporting standards for 2021.
Reporting adjustments of historical data
There have been no adjustments to information provided in previous reports.
Basis of consolidation
For sustainability reporting purposes, Vopak consolidates data from its
headquarters, division offices and those entities under its operational control
(unless acquired within the last 12 months
1
), and from entities that are not
under our operational control who report voluntarily.
Unless otherwise stated, the sustainability information in this report includes all
information for Vopak’s principal subsidiaries, joint ventures and associates (as
noted in Note 9.11 Principal subsidiaries, joint ventures, associates and investments
of the Consolidated Financial Statements).
An entity under operational control implies:
• Application of Vopak´s operational standards
• Adoption of Vopak´s Code of Conduct
• Being part of the three-year cycle of Vopak´s Terminal Health Assessments (THA)
or equivalent
In consolidating data, we apply the following principles:
• Greenfield Undeveloped land acquired to build a new terminal is deemed to be
within reporting scope from the day of acquisition;
• Brownfield When an existing terminal is expanded, these activities are deemed
to be within reporting scope;
• Acquisition When a terminal is acquired and operations are continued, there is
a grace period of one year before the terminal is brought within the scope of
sustainability reporting. During this grace year, all data must be reported and
monitored in our internal reporting system;
• Divestment When terminals are closed or sold, they are removed from
reporting scope from the date of divestment, data until the date of divestment
is still included.
1 Please note that Vopak Industrial Infrastructure terminals on the U.S. Gulf Coast were included in the grace period.
Vopak Annual Report 2021
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79
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Consolidation scope and boundaries
Entities that do not meet the consolidation criteria are shown in the table below,
which reconciles the storage capacity reported in the financial statements to that
used for sustainability reporting purposes:
In million cbm
2021 2020 2019 2018 2017
Total storage capacity according to
Vopak Financial Statements
1
36.2 35.6 34.4 37.0 35.9
Temporarily out-of-scope due to grace period after
acquisition
2
Elengy Terminal Pakistan – – - 0.2 - 0.2 n/a
SPEC, Colombia – - 0.2 - 0.2 n/a n/a
Vopak Industrial Infrastructure Americas,
United States – - 0.8 n/a n/a n/a
Out-of-scope as no operational control
Sabtank (Jubail), Saudi Arabia - 1.5 - 1.5 - 1.5 - 1.5 - 1.5
Sabtank (Yanbu), Saudi Arabia - 0.3 - 0.3 - 0.3 - 0.3 - 0.3
Chemtank (Jubail), Saudi Arabia - 0.6 - 0.6 - 0.6 - 0.5 - 0.5
Maasvlakte Olie Terminal (MOT),
The Netherlands - 1.1 - 1.1 - 1.1 - 1.1 - 1.1
Ridley Island Propane Export Terminal (RIPET), Canada - 0.1 - 0.1 - 0.1 n/a n/a
Vopak Ventures - equity investments – – – – n/a
Estonian Railway Services
(ERS - part of Vopak E.O.S.), Estonia
3
n/a n/a n/a – –
Total out of scope for sustainability reporting - 3.6 - 4.6 - 4.0 - 3.6 - 3.4
Total storage capacity according to the sustainability
reporting scope
32.6 31.0 30.4 33.4 32.5
1 Vopak Terminals Korea does not meet the consolidation criteria, but reports sustainability information voluntarily.
2 In 2016, Vopak started to manage and operate Chevron’s existing 509,000 cbm terminal at Bahia Las Minas, in
Panama. According to the consolidation criteria, the terminal is in scope for sustainability reporting as from 1
January 2017. Elengy Terminal Pakistan (acquired at the end of December 2018) is in scope as from 1 January
2020. SPEC, Colombia (acquired as per end of September 2019) and the three Vopak Industrial Infrastructure
terminals on the U.S. Gulf Coast (acquired as of December 2020) are in scope as from 1 January 2021.
3 Vopak E.O.S. is divested as per April 2019.
For capacity developments, reference is made to the Leading locations section of
the Annual report, and notes 3.1Acquisition and divestment of subsidiaries and
3.5Joint ventures and associates of the Consolidated Financial Statements.
Vopak Annual Report 2021
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80
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Note 2. From stakeholder engagement to materiality
Together with our stakeholders, we define the material societal, environmental
and economic topics for our company. In 2019, we conducted a full materiality
assessment. For the methodology used, details on the materiality process
and changes since our last report, reference is made to our website:
www.vopak.com/sustainability/stakeholder-engagement.
The table below summarizes the expectations and interests of our stakeholders
and the topics that they regard as key topics. It should be noted that this reflects
the overall outcome per stakeholder group from our stakeholder engagement.
Expectations, interests and key topics vary for each individual stakeholder.
Our response to the overall key topics and concerns of our stakeholders is
embedded in the notes to the topics in this Sustainability section.
Stakeholder group Expectations Key topics How we engage them
Youth To be relevant in the future, young people deem it
important that a company as Vopak acts responsible in its
environmental and societal behavior.
• Air quality: VOC and other air emissions
• Greenhouse gas emissions
• Soil and groundwater pollution
• Water pollution
• Vopak WeConnect projects
• Face-to-face meetings
• Information on our website and social media channels
Customers Increasingly put sustainability high on their agenda and
require Vopak, as an important link in their supply chain,
to at least align its sustainability policy with theirs.
• Business ethics and integrity
• Applications of best practices
• Occupational health and safety
• Process safety
• Face-to-face meetings
• Calls, emails, conferences
• Net Promoter Score (NPS) survey to measure customer satisfaction
• Internal & external audits
Business partners Looking for long-term relationships to realize growth
based on mutual trust and value creation.
• Application of best practices
• Process safety
• Customer acceptance and continuation
• Face-to-face meetings
• Calls, emails, conferences
• Internal & external audits
Authorities & governmental
organizations
Respect (stricter) regulations, control and perform safely. • Business ethics and integrity
• Nuisance
• Air quality: VOC and other air emissions
• GHG emissions
• Face-to-face meetings
• Written contacts
• Information on our website
• Open houses & site visits
• Participation in public hearings & conferences
Financial and capital markets Increasingly take a long-term appreciative view of
companies that aim for sustainable profitability.
• Financial performance
• Business ethics and integrity
• Customer acceptance and continuation
• Presentations, webcasts, roadshows with analysts and investors at least every quarter
• Individual meetings
• Capital Markets Day
• General Meeting of Shareholders
Neighbors and local communities Increasingly require Vopak to engage with them to
address issues such as stench and odors.
• Air quality: VOC and other air emissions
• Business ethics and integrity
• Face-to-face meetings
• Written contacts
• Information on our websites and social media channels
• Open houses & site visits
• Participation in public hearings & conferences
• Vopak WeConnect projects
NGOs NGOs expect Vopak to be a responsible, transparent,
cooperative and trustworthy partner.
• Air quality: VOC and other air emissions
• Business ethics and integrity
• Process safety
• Water pollution
• Face-to-face meetings
• Written communications
• Information on our websites and social media channels
• Open houses & site visits
• Participation in public hearings & conferences
• Vopak WeConnect projects
Suppliers Suppliers of assets value long-term relationships.
Suppliers of services (e.g. contractors) expect a safe and
healthy workspace and fair treatment.
• Suppliers acceptance and continuation
• Customer acceptance and continuation
• Financial performance
• Face-to-face meetings
• Quarterly calls with Tier 1 and Tier 2 suppliers
• Contracts
• Site visits
• Supplier visits
Employees Value a company that cares, helps to develop their talents
and offers training programs to develop the full potential
of every individual.
• Process safety
• Financial performance
• Occupational health and safety
• Daily work relationships
• Training and human resources cycles
• Biennial employee engagement survey
• Intranet, mail, internal social media - townhall sessions (digital)
Senior management Determines the overall long-term strategy on our ‘License
to Operate’ and our expansion plans and ensure
continued value creation for stakeholders.
• Process safety
• Business ethics and integrity
• Ongoing internal dialogues
• LEAD program
Vopak Annual Report 2021
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81
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Materiality
Our materiality topics reflect the impacts of Vopak on the society, the environment
and the economy. The 24 topics that are identified, are classified as either:
• Key topics: We aim to fulfill a leading role with regard to these topics and have
integrated these topics into our strategic sustainability priorities;
• Topics to monitor: We want to demonstrate our social responsibility with regard
to these topics. We measure and report on parts of these topics in our report;
• Other topics: These are important topics for Vopak and are managed accordingly.
The materiality matrix showing the ranking of the 24 topics can be found at the
Purpose & strategy section. According to the ranking of topics determined as most
relevant across stakeholder groups and ranked as the most significant impact of our
business, six key topics emerged as being the most material. We report in detail on
the six key topics. All other topics reported in this section are based on compliance
with regulatory requirements and our response to actual societal topics. On these
other topics, we report on our management approach.
Vopak’s Executive Board was closely involved in the process and approved the
materiality matrix, acknowledging that the matrix provides a fitting overview of the
relevant aspects for Vopak and its stakeholders.
In 2022, a full materiality assessment will be performed.
This figure shows the 24 topics included in our materiality assessment. The six items in bold emerged as the most material:
1
2
3
4
5
6
7
8
Air quality: VOC and other air emissions
Soil and groundwater pollution
Water pollution
Waste
Greenhouse Gas (GHG) emissions
1
Energy use
Water management
Biodiversity
9
10
11
12
13
14
Financial performance
Customer acceptance and continuation
15
Innovation
16
Remuneration
Supplier acceptance and continuation
Taxation
Business ethics and integrity
Application of best practices
19
18
17
20
21
22
Nuisance
23
Labor conditions
24
Human rights
Diversity
Community engagement and charity
Process safety
Occupational health and safety
Training and education
Care for our environmental & climate impact
Planet
Care for our economic impact
Profit
Care for our social impact
People
1 Although GHG emissions is not ranked as key topic in our stakeholder engagement, the Executive Board considers this to be st
rategic.
Therefore, we have set a long-term target and report transparently on our GHG emissions. Reference is made to Note 11. Our impact on climate change: GHG emissions.
Vopak Annual Report 2021
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82
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Note 3. Connectivity
The set-up of this sustainability section is based on the topics and outcomes from
Vopak’s materiality assessment. The table below reconciles the six key topics to our
value creation model, the strategic Vopak Navigator areas, the corresponding risks,
disclosures on management approach, performance and outlook, and the topic-
specific GRI Standards. It also provides a link with the UN Sustainable
Development Goals (SDGs).
For more information on our strategic leadership areas, reference is made to the
Performance & outlook section. Our governance with regard to the sustainability-
related risks and opportunities is integrated into our governance and risk
management processes; for more information, reference is made to the
Governance, risk & compliance section. Topic-related KPIs are included in
Consolidated Sustainability Performance and corresponding notes.
Key topic Vopak
Corresponding
value creation capital
Corresponding
SDG
Corresponding topic
Vopak Navigator
Corresponding risk
in Risk Paragraph
Corresponding
performance notes
Corresponding
GRI Standard
Care for our societal impact
Occupational health
andsafety
People • Sustainability
8
Note 4. Occupational health
and safety
• GRI 403: Occupational Health
and Safety (2018 version)
Process safety Natural
Social & Relationships
• Sustainability
• Service
8
Note 5. Process safety No corresponding GRI
topic-specific standard
Care for our environmental & climate impact (planet)
Air quality:
VOC and other
airemissions
People
Natural
• Sustainability
8
Note 12. Air quality:
VOC and other emissions
• GRI 305: Emissions
Water pollution Natural
• Sustainability
8
Note 13. Water pollution No corresponding GRI
topic-specific standard
Care for our economic impact (profit)
Business ethics and
integrity
People
Social & Relationships
• Open & inclusive
• One team
• Diverse
13
Note 20. Business ethics
and integrity
• GRI 205: Anti-Corruption
• GRI 307: Environmental
Compliance
• GRI 419: Socio-economic
Compliance
Innovation Systems & Processes
• New vital products
• Data driven
3
10
Note 21. Innovation No corresponding GRI
topic-specific standard
Vopak Annual Report 2021
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83
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
N.R. Not reported as topic was not in sustainability reporting scope.
Q.R. Only qualitative reporting.
Consolidated Sustainability Performance
2021 target Performance 2022 target Long-term target Note
2021 2020 2019 2018 2017
Care for our societal impact (people)
Occupational health and safety
Our first priority is to have zero fatalities and
life changing injuries each year
4
Fatalities, own employees and contractors 0 0 0 1 2 2 0
Total Injury Rate (TIR), own employees and contractors
(per 200,000 hours worked) 0.27 0.25 0.37 0.34 0.30 0.38 0.24
TIR 3 year rolling average
Progress to achieve
long-term target 0.32 0.33 0.34 0.32 0.36
Progress to achieve
long-term target
TIR 3 year rolling average of
maximum 0.20 in 2024
Process safety
5
Major process incidents
0 0 0 0 0 0 0 Our first priority is to have zero
major process incidents
Process Safety Events Rate (PSER), own employees and
contractors (per 200,000 hours worked)
0.16 0.09 0.14 0.16 0.12 0.26 0.15
PSER 3 year rolling average
Progress to achieve
long-term target 0.13 0.14 0.17 0.20 0.26
Progress to achieve
long-term target
PSER 3 year rolling average of
maximum 0.16 in 2024
Human rights and decent work
6
Total number of employees (in headcount)
5,816 5,688 5,697 5,833 5,657
A living wage for all own employees
andourmain suppliers and contractors
Percentage of employees with a living wage
100% 100% 100% 100% 100% 100% 100%
Diversity
Progress to achieve
long-term target
17% 16% 12% N.R. N.R.
Progress to achieve
long-term target
Increase the proportion of women in Vopak’s
senior management positions to at least 20%
7
Percentage of women in senior management positions
Percentage of regional origin in senior management positions
(divisions and operating companies) 84% N.R. N.R. N.R. N.R.
Senior management in divisions and operating
companies at least 75% local in 2023
Percentage of regional origin in senior management
(global roles and LNG) 9% N.R. N.R. N.R. N.R.
Senior management in global roles and the LNG
division at least 25% international talents in 2023
Care for our environment and climate impact (planet)
GHG emissions
Increase energy
efficiency and seek
opportunities for
renewables
Increase energy efficiency
and seek opportunities
forrenewables
Our ambition is to be climate neutral by 2050.
Our 2030 target is a 30% reduction of GHG
emissions compared to 2021
11
Total GHG emissions - scope 1 & 2 (metric tons)
577,195 444,150 408,475 417,409 402,256
- Direct GHG emissions - scope 1 (metric tons)
349,356 207,078 154,807 165,720 166,917
- Indirect GHG emissions - scope 2 (metric tons)
227,839 237,072 253,668 251,689 235,339
Air quality: VOC and other air emissions
Progress to achieve
long-term targe
Reduce our societal impact by
30% in 2025 compared to 2016
12
Societal impact reduction of our VOC emissions
23% 19% 6% Q.R. Q.R.
Water pollution
Ensure effective spill
prevention
and secondary
containment in high
risk areas
Ensure effective spill
prevention and secondary
containment in high
riskareas
Ensure integrity of the environment:
Zerouncontained spills of harmful products
13
Total number of reportable spills
2 8 6 4 1
Total product spilled (reportable spills in metric tons)
6 26 2 1 1
Soil and groundwater pollution
14
Total number of uncontained reportable spills 11 6 6 4 7
Total product spilled (uncontained reportable spills in metric tons)
6 301 19 29 25
Vopak Annual Report 2021
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84
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Consolidated Sustainability Performance
Consolidated Sustainability Performance
Consolidated Sustainability Performance
2021 target Performance 2022 target Long-term target Note
2021 2020 2019 2018 2017
Our economic impact (profit)
Business ethics and integrity
20
Number of fines from permit violations 0 2 0 1 0 2
0 Zero permit violations and no
violations of Code of Conduct
Amount of fines from permit violations (in EUR thousands) 0 32 0 0 0 2,124
0
Total number of breaches of Code of Conduct 0 3 6 13 3 8 0
Innovation
Investments to achieve
long-term target
Q.R. Q.R. Q.R. N.R. N.R. Investments to achieve
long-term target
Our aim is to continuously improve our safety,
service and efficiency performance
21
N.R. Not reported as topic was not in sustainability reporting scope.
Q.R. Only qualitative reporting.
Vopak Annual Report 2021
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85
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak is storing vital products with care. Our care starts with the people who work for our company and extends to the communities in which
we operate and society at large. Vopak wants to be a force for good. We aim to ensure that all the products we store are taken care of in
the right environment and the right manner. The products we store are useful for society, but can potentially be harmful to the environment
or can endanger people’s health if stored or handled inappropriately. Our first responsibility is to provide safe, clean and efficient storage.
We must ensure that our employees and contractors can return home safely after each working day. Furthermore, with operations around the
globe, Vopak is a multicultural company. Therefore we strive for a workforce that is diverse and inclusive.
Value creation capital Input Output & Outcome Impact
People
Employees provide their time, expertise and knowledge. We also
use contractors and other service providers in our operations.
We invest in training and talent development to build a skilled,
diverse workforce.
We develop our people, train them in new skills, motivate them,
and aim to provide them career opportunities and offer a healthy,
safe and rewarding working environment for both employees and
contractors.
Social & Relationships To carry out our business, we rely on relationships with
stakeholders. These include our customers – in addition to our
employees, suppliers, business partners and governments.
We also need the continued goodwill of the local communities
in which we operate. Together, these relationships provide our
‘license to operate and grow’.
At Vopak, we handle hazardous products with care. We ensure safe
delivery of these products to our customers, providing a vital link
in the supply chains for products that are vital for everyday life. We
facilitate novel clean(er) products through appropriate infrastructure.
Natural To run our business, we use natural resources, such as energy
and water. We also hold areas of land and sea to build and
operate our terminals.
We work to reduce our negative effects on the environment – by
reducing both vapor and GHG emissions and pollution to air, water
and soil.
Care for our societal impact (people)
Vopak Annual Report 2021
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86
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Care for our societal impact (people)
Care for our societal impact (people)
Note 4. Occupational health andsafety
Definition, reporting policies and boundaries
This includes the impact of fatalities, incidents, sickness, exposures
to operational hazards and long-term exposure to chemicals.
Materiality matrix no.
18
Occupational
health and safety
Related topic
Reporting policies
Occupational health and safety are managed and reported according to OSHA 1904.
The safety rates (Total Injury Rate (TIR) and Lost Time Injury Rate (LTIR)) are
calculated as the number of incidents per 200,000 hours worked.
Boundaries
Safety relates not only to Vopak employees, but also to the employees of our
contractors when they are working on our sites. Sickness is only reported for our
own employees.
Management approach
At Vopak, we operate a global network of terminals and we handle a wide range of liquid and gaseous
products and feedstock that are vital for everyday life. If handled incorrectly the products that we store
can endanger the health and safety of our employees, contractors and everyone within the community
surrounding our facilities.
Therefore, we store and handle these products according to the latest standards, best practices and
applicable legislation. It is our responsibility to keep our employees, contractors and neighbors safe
from any incident occurring during the operation of our facilities and storage of the products.
Our global standards cover key operational and maintenance processes. In the daily operation and
maintenance of our terminals, we encounter non-routine activities that are managed with additional
control measures such as control of work procedures. Every Vopak employee, contractor and service
provider is required to adhere to our Safety, Health and Environmental requirements, which are
formalized through employment and service contracts, in all locations and at all times. Safety
committees are organized on a terminal level at all terminals. In addition to safety, we strive for a
healthy workforce. In several countries, Vopak encourages its employees to incorporate more healthy
elements into their lifestyle through, for instance, company sports events, health checks, advice on
diet, a healthy variety of food in the company’s canteens and work-life balance initiatives.
We monitor and report any safety incident at our facilities involving our own employees, contractors
and third parties. We also monitor our employees periodically for any effects of exposure to the
chemicals we handle and store. It is the obligation of everyone at a Vopak facility to report any
(potential) safety or health issue in the reporting system Enablon accessible by all employees. We
strongly believe that all safety incidents can be prevented and are committed to the goal of zero
personal incidents.
Occupational safety
2021
Target
2021
Performance
Our
ambition
Occupational health and safety
Fatalities, own employees and
contractors
0 0
Our first priority
is to have zero
fatalities and life
changing injuries
each year
Total Injury Rate (TIR), own employees
and contractors (per 200,000 hours
worked)
0.27 0.25
TIR 3 year rolling average Progress to achieve
long-term target
0.32
TIR 3 year
rolling average
of maximum
0.20 in 2024
In 2021, we did not have a fatality, nor any major injury leading to a permanent
disability of one of our employees or contractors. This is in line with our targets of
zero fatalities and major incidents (those incidents leading to life changing injuries).
Safety is our first and foremost priority. At the end of every working day, each
person at our terminals should return safely to their homes and families. We have
to maintain our focus on our safety culture, systems and hardware to ensure a safe
working place for all and continuous improvement in these areas.
Vopak Annual Report 2021
|
87
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Occupational safety performance
Own employees Contractors Combined
2021 2020 2021 2020 2021 2020
Fatalities 0 0 0 0 0 0
Lost time injuries (LTIs) 8 13 9 15 17 28
Restricted work cases (RWCs) 5 8 8 8 13 16
Medical treatment cases (MTCs) 3 4 6 14 9 18
Total Injury Count (TIC) 16 25 23 37 39 62
Total Injury Rate (TIR) 0.30 0.47 0.23 0.32 0.25 0.37
Lost Time Injury Rate (LTIR) 0.15 0.25 0.09 0.13 0.11 0.17
Total Injury Rate
0.38
0.34
0.37
0.25
0.30
2018 2019 2020 20212017
0.5
0.4
0.3
0.2
0.1
Lost Time Injury Rate
0.18
0.14
0.11
0.17
0.12
0.5
0.4
0.3
0.2
0.1
2018 2019 2020 20212017
Occupational safety rates per division
Total Injury Rate Lost Time Injury Rate
2021 2020 2021 2020
Americas 0.23 0.40 0.11 0.11
Asia & Middle East 0.14 0.22 0.02 0.11
China & North Asia 0.17 0.11 0.09 0.03
Europe & Africa 0.51 0.82 0.20 0.42
LNG 0.36 0.38 0.24 0.19
Global HQ 0.18 0.00 0.18 0.00
Total 0.25 0.37 0.11 0.17
In 2021, we were able to improve our performance compared to 2020 with regard
to personal safety.
For the (high potential) incidents that occur, evaluation of the root causes of the
personal incidents has identified that most cases still occur primarily due to impact
on or by an object (construction/maintenance) slips, trips and falls.
In 2021, we fully implemented our ‘Trust & Verify!’ program that was launched in
2018, including the leadership review process through the leadership hierarchy
(including the executive board). This program further increases safety awareness
and encourages a culture of personal accountability and safety leadership
throughout the company, helping us prevent incidents and ensure a safe working
environment. In 2022, we will continue with our focus on further embedding Trust
& Verify! and supervision on site throughout the organization.
Occupational health
Sickness rat
e
in %
2.4 2.4
2.22.2
2.3
3.0
2.5
2.0
1.5
0.5
1.0
2018 2019 2020 20212017
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88
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Sickness rate per division
Sickness rate %
2021 2020
Americas 1. 3 1. 5
Asia & Middle East 1. 9 1. 6
China & North Asia 0.8 0.7
Europe & Africa 5.2 4.4
LNG 2.1 2.8
Global HQ 2.5 2.1
Total 2.4 2.2
In 2021, 46% (2020: 47%) of Vopak staff worked in areas of higher accident risk
(mainly operational and maintenance staff at our terminals). There remains no
reported cases of employees suffering from occupational diseases in 2021.
Note 5. Process safety
Definition, reporting policies and boundaries
This includes incidents of product contaminations, damages to
installations, spills and other product losses of primary containment.
Materiality matrix no.
17
Process safety
Related topic
Reporting policies
Process safety is managed and reported according to the API standard RP 754 and
events are measured based on the significance of the incident, with Tier 1 as the
most significant.
Major process incidents are those Tier 1 events with the highest severity and
catastrophic impact.
According to our materiality assessment, the topic of process safety includes
incidents of loss of primary containment (LOPC), contamination, fires, damage
andfires.
All Tier 1 and Tier 2 LOPCs are reported in this note. For more detailed reporting on
spills, reference is made to Note 13. Water pollution and Note 14. Soil and
groundwater pollution. Both terms – ‘spills’ and ‘LOPCs’ – are used to refer to the
same definition: an unplanned or uncontrolled release of material from primary
containment, including non-toxic and non-flammable materials.
A (product) contamination is any situation where a customer’s product is out of
contract specification and cannot be used as intended or is reduced in value, or
needs unplanned after treatment (e.g. mixing, blending, sparging) due to the action
of another substance on that product.
Vopak Annual Report 2021
|
89
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Contaminations and damages could be both process and non-process related. Both
types of incidents are reported in this note. Examples of non-process
contaminations are products damaged by overheating due to tank or line heating
systems or due to lack or failure of nitrogen inerted atmosphere.
The process safety event rate (PSER) is calculated as the total number of Tier 1 and
Tier 2 incidents per 200,000 hours worked.
Boundaries
All Tier 1 and Tier 2 process safety events are reported in this note. This includes
process-related incidents that create personal injuries involving employees,
contractors and third parties.
With regard to damages, we have only included damages with a cost larger than
EUR 50,000.
Management approach
The processes of storing and handling liquids and gasses at a Vopak facility requires safety measures
to prevent any incident related to the operations. All staff working at Vopak facilities are obliged to
report process safety incidents via Enablon (or for joint ventures comparable systems). Another core
element is the constant monitoring and reporting of every process incident at our facilities and
investigating the root cause in order to prevent similar incidents. For major incidents, we share the
results of these investigations with all of our facilities by means of a written safety alert.
In 2021, we relaunched the Terminal Health Assessment, referred to as THA2.0, which is an audit
program that has been used within Vopak for over 15 years. It is a key governance tool within Vopak’s
integrated management system, providing the leadership with assurance that terminals are
implementing and maintaining their assets, processes, procedures and knowledge in accordance
with the legal regulations, Vopak standards and best practices. It was relaunched based on a
combination of lessons learned from our Assure program of 2016-2020, and improvements based
on the latest industry standards, and a new tool for capturing the audit results and follow up
(Enablon audit module).
Asset integrity is secured through the 3-Year Maintenance Program (3YMP), in which a risk-based
approach is used to determine the level of maintenance required for key assets such as tanks,
pipelines and plant control systems. The 3YMP is reviewed annually during the budget cycle, in
addition to the routine maintenance activities.
Consequently, the progress against this program is measured quarterly and benchmarked against the
original plan, as part of our divisional reviews. In cases where additional maintenance is required,
these requests are assessed and resourced to ensure that asset integrity is not at risk.
For all products stored at our terminals, we require a Material Safety Data Sheet from our customers
in order to appropriately store and handle these products.
2021
Target
2021
Performance
Our
ambition
Process safety
Major process incidents
Process Safety Event Rate (PSER),
own employees and contractors
(per 200,000 hours worked)
0
0.16
0
0.09
Our first priority is to
have zero major process
incidents each year
PSER 3 year rolling average Progress to achieve
long-term target
0.13 PSER 3 year rolling
average of maximum
0.16 in 2024
Process Safety Event Rate
0.12
0.26
0.16
0.14
0.09
2018
1
2019 2020 20212017
0.5
0.4
0.3
0.1
0.2
1 The significant improvement in our 2018 process safety performance is partially explained by the changed threshold levels of
API RP 754. Our process safety incident classification has been aligned with the new API 754 standard. This means that some
incidents have been downscaled to a lower tier classification, due to the impact of the incident (such as non-flammable edible oils).
The impact of the application of the new standard in 2018 is that six LOPCs occurred in 2018, are classified as Tier 3 instead of Tier 2.
Vopak Annual Report 2021
|
90
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Process safety performance per division
Tier 1 PSE Count Tier 2 PSE Count Tier 1 & Tier 2 PSER
2021 2020 2021 2020 2021 2020
Americas 2 0 3 3 0.15 0.12
Asia & Middle East 1 2 5 6 0.14 0.15
China & North Asia 0 1 0 1 0.00 0.09
Europe & Africa 1 3 1 3 0.07 0.17
LNG 0 2 0 0 0.00 0.38
Global HQ 0 0 0 0 0.00 0
Total 4 8 9 13 0.09 0.14
For 2021, we were able to meet our target (PSER of 0.16).
Process safety events per type
Tier 1 PSE Count Tier 2 PSE Count
Tier 1 & Tier 2 PSE Count
2021 2020 2021 2020 2021 2020
Fatalities 0 0 0 0 0 0
Lost time injuries (LTIs) 2 1 0 0 2 1
Restricted work cases
(RWCs) 0 0 0 1 0 1
Medical treatment cases
(MTCs) 0 0 0 0 0 0
Loss of primary
containments (LOPCs)
3 7 9 12 12 19
Fires 0 0 0 0 0 0
Pressure Relief
Device activations 0 0 0 0 0 0
Total 5 8 9 13 14 21
In 2021, a Tier 1 LTI and a Tier 1 LOPC occurred at the same event, therefore
counted as one event in the total Tier 1 PSE Count.
Product contaminations
2021 2020
PSE Non-PSE Total PSE Non-PSE Total
Americas 1 1 2 2 3 5
Asia & Middle East 1 0 1 1 1 2
China & North Asia 0 1 1 0 3 3
Europe & Africa 4 2 6 4 4 8
LNG 0 0 0 0 0 0
Global HQ 0 0 0 0 0 0
Total 6 4 10 7 11 18
Damages (>50k EUR)
2021 2020
Property Product Total Property Product Total
Americas 3 0 3 1 0 1
Asia & Middle East 3 0 3 4 1 5
China & North Asia 0 0 0 1 0 1
Europe & Africa 6 1 7 7 1 8
LNG 0 0 0 1 0 1
Global HQ
0 0 0 0 0 0
Total 12 1 13 14 2 16
Vopak Annual Report 2021
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91
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Note 6. Human rights and decent work
Human rights
Related topic
Decent work
Related topic
This includes (but is not limited to) the fair treatment of employees
and (sub-)contractors, respect for the rights of indigenous people and
land use rights, as stated in our Code of Conduct and Supplier Code.
Materiality matrix no.
22
This includes, (but is not limited to) complying with the OECD
guidelines, the possibility for employees to participate in collective
labour agreements and Vopak ensuring that all its employees and
contractors earn a living wage as stated in our Code of Conduct
and Suppliers Code.
Materiality matrix no.
21
2021
Target
2021
Performance
Our
ambition
Human rights and decent work
Total number of employees (in headcount) 5,816
Percentage of employees with a living wage 100% 100% A living wage for
all own employees
and our main
suppliers and
contractors
Our workforce
2021 2020 2019 2018 2017
Total number of employees (in headcount) 5,816 5,688 5,697 5,833 5,657
- Percentage of male employees 82% 83% 84% 84% 84%
- Percentage of female employees 18% 17% 16% 16% 16%
- Percentage employees with a living wage 100% 100% 100% 100% 100%
Headcount Gender Employment type Employment contract
31-Dec-21 Men Women Full-time Part-time Permanent Fixed term
Americas 1,057 81% 19% 100% 0% 99% 1%
Asia & Middle East 1,403 84% 16% 99% 1% 94% 6%
China & North Asia 1,040 84% 16% 100% 0% 52% 48%
Europe & Africa 1,573 83% 17% 92% 8% 93% 7%
LNG 266 80% 20% 96% 4% 95% 5%
Global HQ 477 73% 27% 86% 14% 91% 9%
Total 5,816 82% 18% 96% 4% 87% 13%
35 - 44 45 - 54 > 6455 - 6415 - 24 25 - 34
2,500
2,000
1,500
1,000
500
Age distribution
52
714
1,337
1,869
1,636
208
Approximately 40% (2020: 41%) of our employees are employed under a Collective
Labor Agreement (CLA), most of these employees work in the operations and
maintenance departments at our terminals. We strive for long-lasting and healthy
relationships with unions and works councils all over the world in the best interest
of our employees and the Company.
Number of contractors
During 2021, Vopak hired contractors for in total over 10,000 person-years. The
majority of our contractors are working on construction and maintenance projects.
Vopak Annual Report 2021
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92
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Human rights
Vopak respects human rights as described in the United Nations (UN) Universal
Declaration of Human Rights, the UN Guiding Principles on Business and Human
Rights and the OECD Guidelines for Multinational Enterprises, and accepts the
responsibility for ensuring that all our entities respect human rights when
conducting business.
The risks of potential human rights issues lay mainly in the area of construction and
maintenance activities, which are often performed by contractors under our
supervision. Driven by the many greenfield projects, as well as maintenance
activities at our existing terminals, our contractors’ exposure hours equal and
mostly exceed that of our own employees, making contractor management equally
important as that of Vopak employees.
Major investment proposals are required to be screened for potential human rights
issues. Our screening is based on the country in which the project is being carried
out and the characteristics of the investment proposal. The screening includes an
assessment of the regions where the risks of human rights issues are high. For
these projects, specific agreements are made between all the stakeholders in the
project which detail the manner in which parties will uphold human rights. All
partners, contractors and suppliers are required to adhere to the Vopak Code of
Conduct and the Supplier Code, which also cover human rights.
According to our whistleblower policy, all employees and other stakeholders to
speak up and to report any human rights issues or other violations of our Code of
Conduct or Supplier Code in confidence. The Trusted Person follows up on all
complaints and takes remedial action where needed. For all cases reported during
2021, reference is made to Note 20. Business ethics and integrity.
Specific actions to ensure compliance with our standards include:
• All the wages of all of our employees in the countries in which we operate in,
meet or exceed the living wage standards in 2021.
• In 2021 we further improved our checklist and screening process for EPC
contractors. This checklist covers, amongst others, human rights and decent
work topics. It is applied to EPC contractors that work on larger projects that
involve our global and divisional organizations.
• Global Procurement and Global Projects carried out a gap analysis, an
assessment of our main risks on human rights and decent work, and proposed
next steps to incorporate human rights and decent work even further at global,
divisional and local level.
Decent work
Labor rights
In line with the UN Guiding Principles on Business and Human Rights and the
OECD Guidelines for Multinational Enterprises, we base our decent work objectives
and commitments on the International Covenant on Civil and Political Rights, on the
International Covenant on Economic, Social and Cultural rights and on the
fundamental rights set out in the International Labor Organization’s Declaration on
Fundamental Principles and Rights at Work.
We seek to uphold these rights in our operations and in relationships with our
suppliers, business partners, work councils and unions within the boundaries of
local laws and regulations.
Living wages
In line with Vopak’s commitments under the UN Global Compact, Vopak supports
the ‘living wage’ principle in the UN’s Declaration on Human Rights. The goal of a
living wage is to allow a worker to afford a basic, adequate standard of living
through employment without government subsidies. Our policy is to pay local
Vopak staff at least the living wage norms reflecting the wage levels required to
meet their basic needs for living. According to our whistleblower policy, breaches to
our living wage principle can be reported by all employees and other stakeholders.
To ensure the wages provided to all of our employees in the countries we operate
in, meet (or exceed) the living wage standards, we carry out a ‘living wage’
assessment annually, in order to verify that the company’s wages meet or exceed
the living wage standards. Please note that due to the lack of official indicators and
accurate benchmarks available to measure basic work and living standards as a
result of the economic situation in the country, the Vopak wages paid to staff in
Vopak Annual Report 2021
|
93
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Venezuela can only be assessed informally. In 2021, all countries were found
compliant with the living wage principle and no issues were noted (2020: no issues).
Additionally, the living wage principle is included in the Vopak Global Supplier Code
and in the Global supplier and contractor performance management program, so
that its application is not limited to Vopak employees only.
Pay ratios
For our countries of significant operations (Netherlands, Singapore, US), we
disclose the ratio between the total remuneration package of the highest paid
employee and the total average remuneration of Vopak employees in that country,
in accordance with the GRI Standards.
The calculation method for the calculation of these pay ratios is consistent with the
method used to calculate the CEO Pay Ratio as shown in the Remuneration report
in this 2021 Annual Report. The latter calculation method is adjusted compared to
previous years based on the recommendations made by the Monitoring Committee
Corporate Governance. This adjusted method has been applied to the
compensation ratios shown in this table as well.
2021 2020
1
Pay ratio The Netherlands 19.4 1 7. 7
Pay ratio Singapore 10.3 8.9
Pay ratio United States 4.2 4.2
1
The 2020 pay ratios shown in this table are recalculated on the basis of the calculation method recommended by
theMonitoring Committee Corporate Governance in order to facilitate a like-for-like comparison with the 2021
pay ratios stated in this table. Under the calculation method used by Vopak in previous years, the 2020 pay ratio for
TheNetherlands is 17.9, the 2020 pay ratio for Singapore is 9.6, and the 2020 pay ratio for the United States is 4.9,
asstated in the 2020 Annual Report.
Employee hires and turnover
The relative turnover is 12%. 77% of the leavers were voluntary. The staff
turnover rate is acceptable for the markets we operate in and we believe, as also
apparent from the employee engagement survey, that the intention to stay with
the company is strengthened by good leadership, good career and development
opportunities and working together based on our values and a positive working
environment. When a divestment is made, Vopak will do its utmost to ensure that
the employees working at the specific location are transferred under the same
contractual arrangements as of when they were working for Vopak.
Note 7. Diversity
Diversity
Related topic
This includes diversity in gender, nationality, culture, age, physical
abilities and competencies.
Materiality matrix no.
23
Vopak is a multicultural company with operations around the globe. This means our
workforce is diverse and includes people from many different cultures, nationalities
and beliefs. We respect this diversity and nurture the many different approaches
and perspectives each culture brings to our business. Whatever their backgrounds,
our people share our company’s passion for service and want to perform to the
best of their ability. We believe that each individual has the right to be treated with
respect and dignity, and work in a professional atmosphere that promotes equal
opportunities and prohibits discrimination or harassment on the basis of amongst
others race, color, national origin, religion, sex, sexual orientation, age, political
orientation or trade union membership, allowing everyone at Vopak to develop their
full potential.
We have started on a journey to become a more diverse company. On a senior
management level, we strive to be a reflection of the countries we operate in with
a balanced gender diversity. We are not there yet, but we are making progress. Our
industry has traditionally been male-dominated, and our company is no exception.
Becoming more diverse will enable us to stay relevant to society and live up to our
purpose, today and in the future. Until 2023, our diversity policy will focus on
increasing diversity in senior management (Hay 19+) in terms of gender, regional
origin and competences. To reach that goal, we are taking a step by step approach,
starting with clear targets for 2023. For more details, refer to the People chapter.
Vopak Annual Report 2021
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94
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Senior management composition (salary scales at or above 19, excluding Board level)
2021 Performance 2023 Target
Diversity
Percentage of women in senior management positions 17%
Increase the proportion
of women in Vopak’s
senior management
positions to at least
20% in 2023
Management composition (salary scales at or above 15)
Executive
Board
Terminal and
divisional
management
Global staff
directors Global staff HQ
% employees 2021 2020 2021 2020 2021 2020 2021 2020
Gender
Men 100% 10 0% 77% 77% 75% 75% 75% 77%
Women 0% 0% 23% 23% 25% 25% 25% 23%
Nationality
Dutch 100% 10 0% 26% 27% 92% 92% 77% 78%
Other 0% 0% 74 % 73% 8% 8% 23% 22%
Senior management composition (salary scales at or above 19, excluding Board level)
On a senior management level, we strive to be a reflection of the countries we
operate in with a balanced gender diversity.
2021 Performance Our ambition
Diversity
Percentage of regional origin in senior management
positions (divisions and operating companies)
84%
Senior management in
divisions and operating
companies at least 75%
local in 2023
Percentage of regional origin in senior management
(global roles and LNG)
9% Senior management
in global roles and the
LNG division at least
25% international
talents in 2023
Note 8. Training and education
Training and
education
Related topic
This refers to having competent people qualified to do their job and
awareness of any safety topic related to their jobs.
Materiality matrix no.
19
Attracting, developing and retaining talent is critical to our success.
Vopak’senvironment is changing rapidly. Therefore, different skills and backgrounds
are needed, now and in the future. At the same time, we need to retain critical skills
to build on our existing experience and knowledge. This is even more challenging
outside Europe where the Vopak brand is less visible and less well known outside
the industry. These are often the countries of high growth or higher growth potential.
Our core approach to talent management is having a strong development focus and
facilitating learning on the job. Another important program that we have used
successfully is our Management Trainee program. As part of our Employee Value
Proposition, we grow careers internally and promote career development within the
company. This approach allows us to rejuvenate our workforce, and ensure that
critical skills and experience can be passed from one generation to the next.
We believe in internal career growth and development and therefore we focus as much
as possible on recruitment from within the company where possible to fill vacancies.
People development
Our people development efforts are geared towards having the right people with
the right skills in the right place at the right time in order to strengthen our
organization and enable further growth. Opportunities for personal growth and
development are also a key component for retention of our staff.
Our performance review process not only focuses on measuring employees’ past
performance, but also on steering long-term development. Many Vopak employees
participate in this process. The Vopak performance management process has a
strong focus on performance delivery, (360 degree) feedback and the Vopak Values.
Development needs are identified and translated into plans based on a yearly cycle.
Vopak Annual Report 2021
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95
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
We believe that leadership behavior is crucial in embedding and sustaining the
Vopak Values in the organization. In 2021, we also continued our cooperation with
the Oxford Saïd Business School, implementing our Accelerate 2 Lead program.
For more details refer to the People chapter.
Equipping our people - Vopak fundamentals and processes
Vopak expects all employees and contractors working at its terminals to care for
safety, health and the environment. It is part of our company values. My Learning
Operation (MLO) has been one of our most effective tools in training and assessing
proficiency in the Vopak Fundamentals on Safety. In 2021, 87% (2020: 91%) of our
employees completed compulsory annual training on the Vopak Fundamentals. The
percentage is below 100% due to joiners during the year. In addition to our Vopak
Fundamentals, we have 14 other safety-critical modules available within MLO (e.g.
personal protective equipment (PPE), pumps, lines and valves, etc), which are also
used to train and assess our field employees.
We are also using MLO to train and assess operational employees on our core
operational processes, such as ship and truck handling. These training programs
will be administered and monitored through our MLO system.
We created an online Code of Conduct training for all Vopak employees. More than
89% of invited employees have completed this training by the end of December 2021.
Training hours per employee
2021 2020
Americas 35 27
Asia & Middle East 49 43
China & North Asia 68 49
Europe & Africa 33 33
LNG 28 55
Global HQ N.R. N.R.
Total 41 36
In 2021, Vopak employees spent an average 41 hours in training compared to
36hours in 2020.
Note 9. Nuisance
This refers to the fact that Vopak is trying to reduce its effects from
nuisance on its neighbors by monitoring and addressing smell, noise
and other complaints, by installing facilities to mitigate these nuisances.
20
Nuisance
Related topic
Materiality matrix no.
We strive to increase our positive impact and reduce the negative impact on the
communities where we operate.
Nuisance: vapor, odor, stench and noise complaints
2021 2020
Americas 5 2
Asia & Middle East 0 0
China & North Asia 0 0
Europe & Africa 45 52
LNG 0 0
Global HQ 0 0
Total 50 54
During 2021, in total we received 9 stench complaints (2020: 9), that originated
from 9 individual incidents (2020: 9) at 4 locations (2020: 5). We also received
41 noise complaints (2020: 45) for two terminals located in The Netherlands.
The noise complaints were all related to ship engines during the night hours.
Vopak Annual Report 2021
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96
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Note 10. Community engagement
Community
engagement
and charity
Related topic
This refers to the ambition of Vopak to support the local communities in which
Vopak operates (e.g. through our We-Connect program).
Materiality matrix no.
24
We strive to be a responsible and active member of the communities in which we
operate. This includes hiring and training local staff, stimulating economic growth
through business investments and minimizing harm to the environment.
While topics identified through the materiality survey are relevant to Vopak’s
operations worldwide, other topics are essentially at a local level. We involve
communities at the early development stages of growth projects and continue our
engagement throughout the lifetime of our terminals. For our communities,
priorities that we address include topics ranging from plastics clean up,
preservation of archeological sites and mitigating the impact of truck movements
during construction activities up to improving roads and local education. We are
aware that stakeholder engagement requires an ongoing dialogue, with regular
contacts and two-way communication. Depending on the stakeholders and the
topic, communication is maintained through face-to-face meetings, letters and
emails, information on our websites, social media, open houses & site visits and
participation in public hearing. Engaging with our neighbors and local communities
is an essential part of our business to address these concerns and respond to them
in a timely manner.
This is why Vopak requires stakeholder management to be an integral part of
project management and regular business management, regular business cycles
and terminal audits (including at joint ventures):
• Being a good neighbor & community engagement is one of the 12 key topics of
our Sustainability Roadmap;
• The Vopak Project Management standard (VPM) requires active and structured
stakeholder management;
• Internal guidance on stakeholder engagement has been strengthened through
the adoption of a stakeholder engagement policy in 2021, which will be rolled out
in the coming years;
• Every three years, local communities are one of the stakeholder groups that
contribute to the materiality assessment that guides our prioritization of
sustainability topics.
Vopak WeConnect Foundation
In storing vital products with care, our care extends to our communities. We strive
to be responsible and active members of the communities in which we operate and
to build sustainable relationships.
Vopak encourages employees to take an active part in their local communities. This
is happening in numerous ways at Vopak locations around the world. One common
vehicle to help engage with our communities is the Vopak WeConnect Foundation,
which supports employees in setting up sustainable projects to empower young
people in our communities, in cooperation with local schools, community groups, or
NGOs. Set up in 2017, the foundation’s mission is to broaden young people’s
horizons, improve their opportunities in life and inspire them to work with others
across cultures, languages, and social backgrounds. Through the Vopak WeConnect
Foundation, employees can make a difference in the lives of many young people in
our local communities. Refer to the People chapter for more details including 2021
developments on the Foundation.
Vopak Annual Report 2021
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97
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
We aim to reduce the negative impact of our activities on people’s health and well-being, on the environment and on climate.
Underlying Vopak’s decision to focus on reducing emissions (to air, water and soil) and managing waste and wastewater, is our
ambition to protect biodiversity.
Value creation capital Input Output & Outcome Impact
Natural
To run our business, we use natural resources, such as energy
and water. We also hold areas of land and sea to build and
operate our terminals.
We work to reduce our negative effects on the environment – by
reducing both vapor and GHG emissions and pollution to air, water
and soil.
People Employees provide their time, expertise and knowledge. We also
use contractors and other service providers in our operations.
We invest in training and talent development to build a skilled,
diverse workforce.
We develop our people, train them in new skills, motivate them,
and aim to provide them career opportunities and offer a healthy,
safe and rewarding working environment for both employees
and contractors.
Care for our environmental
& climateimpact(planet)
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98
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Care for our environmental & climateimpact(planet)
Care for our environmental & climateimpact(planet)
Note 11. Our impact on climate change: GHG emissions
Definition, reporting policies and boundaries
This refers to CO
2
and other greenhouse gas emissions
resulting from direct energy use in Vopak’s own
operations (Scope 1) and indirect energy use resulting
from energy electricity Vopak purchased (Scope 2).
Materiality matrix no.
5
Greenhouse Gas
(GHG) emissions
Related topic
As citizens of this planet, we share concerns with people around the world: how
the world can be provided with the energy and products it needs while reducing
pollution and greenhouse gas emissions. We want to contribute to the dual
objective of limiting climate change in line with the Paris Agreement and SDG13,
while at the same time providing access to affordable, acceptable and sustainable
energy and feedstocks for all, in line with SDGs 7, 8 and 9.
This is why we adopted three lines of action:
• First, we develop infrastructure solutions to accelerate a switch to
cleanerconventional fuels and feedstocks for all;
• Second, we develop infrastructure solutions for zero and low-carbon
newenergies and sustainable feedstocks, like hydrogen and ammonia;
• Third, we reduce our own environmental and carbon footprint, including CO
2
.
By acting along these three lines, we contribute to a more sustainable and climate
neutral society. Our strategy is to continue transforming and growing our portfolio
of terminals towards cleaner fuels, gas and chemicals, while developing
infrastructure solutions for vital products of the future. This helps customers reduce
their environmental and carbon footprint and contributes to the energy and
feedstocks transition around the world (action line 1 and 2). To reduce our own
carbon footprint (action line 3), we will take effective measures that deliver results
in the short to medium term.
GHG emissions targets
As part of our sustainability journey, Vopak first set the ambition to become climate neutral in 2050
(scope 1 and 2). As a next step, in 2021, we conducted research on concrete measures and
intermediate steps that would enable us to reach that goal. As a result, we now have a clear view of
how we can lower our CO2 emissions while transforming and growing our company. Vopak has
committed itself to the following intermediary target: we will reduce our GHG emissions by 30%
by2030 (vs 2021, scope 1 and 2 emissions), including future growth of our business. Our target
implies a GHG reduction between 45%-60% of our existing business in 2030.
Vopak is also committed to validate its GHG targets by the Science Based Targets initiative (SBTi) and
is currently working on submission of science-based targets to SBTi. Science-based targets provide
companies with a clearly-defined sector specific pathway to reduce greenhouse gas emissions in line
with the Paris Agreement goals, helping prevent the worst impacts of climate change and future-
proof business growth.
To achieve our 2030 target, we will:
• further improve energy efficiency,
• switch to renewable electricity where possible
• seek to electrify our operations
• generate our own renewable electricity where possible
• aim to use new energies in our own operations
We aim to use offsetting of CO
2
emissions only as a last resort and a temporary
solution. We will seek to collaborate with customers, suppliers and contractors to
jointly reduce emissions to reinforce our impact. At the same time, we will continue
to pursue our targets on the other sustainability topics where we can make a
positive contribution to people, planet and profit and the SDGs. In particular, we will
develop infrastructure to support the energy and feedstock transition, with a focus
on hydrogen, ammonia, CO
2
, sustainable feedstocks and flow batteries.
We feel motivated to do our part to reduce our own footprint while helping
customers reduce theirs, by developing solutions for a more sustainable, climate
neutral society.
Vopak Annual Report 2021
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99
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Reporting policies
To calculate GHG emissions from energy use, we have applied the following
conversion factors:
• Direct energy conversion to carbon emissions: Dutch list of fuels and standard
CO
2
emission factors, version January 2021 (from the Netherlands
Enterprise Agency)
• Conversion of electricity to carbon emissions: the International Energy
Agency (IEA)
• For the conversion of Methane emissions (CH4) and Nitrous oxide (N2O) to CO
2
equivalents, we have used: Global Warming Potential Value from IPCC Fifth
Assessment Report (AR5). Under AR5, we also account for methane slip in our
combustion processes in addition to the venting of methane in our LNG activities.
Boundaries
Vopak’s reporting on GHG emissions (calculated based on energy use),
encompasses scope 1 (direct energy use and emissions from the combustion of
fossil fuels) and scope 2 emissions (indirect energy use and emissions from
electricity and steam purchased for our own use). Our reporting on GHG emissions
includes carbon dioxide (CO
2
), methane (CH4) and N2O.
CO
2
SF
6
CH
4
N
2
O HFC
S
PFC
S
Scope 2 Scope 1 Scope 3
Indirect Direct Indirect
Purchased electricity
for own use
Fuel combustion Production of
purchased materials
Product use Outsourced
activities
Employee
business
travel
Waste
disposal
Contractor-
owned vehicles
When storing or handling products no other GHG emissions such as
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride
(SF6) are emitted.
For 2021 the GHG emissions are provided in the table below. For the three Vopak
Industrial Infrastructure terminals in the U.S. Gulf Coast, part of the energy use is
based on contracted energy data rather than actual usage. This accounts for <5%
of the total GHG emissions for Vopak.
2021
Target
2021
Performance
Our
ambition
GHG emissions - operational control
Total GHG emissions - scope 1 & 2 (metric tons)
Increase
energy
efficiency
and seek
opportunities
for renewables
577,195
Our ambition is
to be climate
neutral by 2050.
Our 2030 target is
a 30% reduction
of GHG emissions
compared to 2021
- Direct GHG emissions - scope 1 (metric tons) 349,356
- Indirect GHG emissions - scope 2 (metric tons) 227,839
GHG emissions - equity stake
1
Total GHG emissions - scope 1 & 2 (metric tons)
363,293
Not applicable,
targets are set
on operational
control
scope level
- Direct GHG emissions - scope 1 (metric tons)
226,126
- Indirect GHG emissions - scope 2 (metric tons) 137,167
1 For sustainability reporting purposes, Vopak consolidates data from its headquarters, division offices and those entities
under its operational control. As the Vopak Group includes a relatively high number of joint ventures and associates, equity
stake reporting actually leads to lower GHG emissions. Vopak’s targets and ambitions are set at the larger operational
control scope level, taking responsibility also for those terminals over which we do not have financial control. These figures
exclude the entities which are out-of-scope as mentioned in the consolidation scope and boundaries.
The majority of our scope 1 and scope 2 GHG emissions are generated through
operational processes such as production of steam for heating purposes (gas
consumption) or through electricity consumption for powering our pumps and, on a
lower level, for heating and cooling. The amount depends on (1) the products we
store for our customers, (2) the weather conditions and (3) the amount of product
transferred (electricity consumption).
Vopak Annual Report 2021
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100
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
GHG emissions by emission type
In metric tons of CO
2
equivalents 2021 2020 2019 2018 2017
Carbon dioxide (CO
2
) 570,559 443,341 406,244 416,561 401,377
Methane (CH
4
) 6,440 675 2,110 718 74 7
Nitrous oxide (N
2
O) 196 134 121 130 132
Total GHG emissions 577,195 444,150 408,475 417,409 402,256
Vopak does not have emissions of: SF6, HFCx and PFCx components. Methane
emissions are mainly caused by venting in our LNG operations as a result of
cleaning activities.
In 2021 our GHG emissions increased compared to previous years. This was largely
due to the fact that new terminals in our network were added to the 2021 reporting
scope, increasing our scope 1 carbon emissions with 139,490 metric tons and our
scope 2 carbon emissions with 10,466 metric tons. The switch to green electricity
of our Dutch subsidiaries in the fourth quarter of 2021 and of our Terquimsa
terminals in June 2021 compensated for the increase with a reduction of
approximately 18,700 metric tons of scope 2 carbon emissions. In 2022 more
terminals will switch to renewable electricity.
Over the past couple of years our emissions increased mainly due to our portfolio
transformation towards cleaner fuels and gasses. LNG in particular led to increased
use of energy in our own operations and therefore higher CO
2
emissions. Additionally,
future growth in other gasses, like ammonia, will also require cryogenic storage, with
temperatures well below zero leading to relatively high amounts of energy use.
Therefore, our strategy of investing in cleaner fuel solutions for our customers and
society makes it challenging for us to reduce our own CO
2
footprint, as storing and
handling products like LNG lead to an increase of our own CO
2
emissions, even
though it contributes to the climate goals, for instance in countries where LNG
replaces coal for power generation.
One way to avoid an increase of carbon emissions from our LNG operations is via
renewable energy sources. At Gate Terminal (the Netherlands), we convert the
imported LNG into gas using process water from a nearby electrical power plant.
Atour LNG Terminals in Altamira (Mexico), Elengy (Pakistan) and SPEC (Colombia)
we use regular (i.e. unprocessed) sea water. Additionally, the Dutch LNG joint
venture terminal Gate is planning to switch to green electricity.
More broadly, within the Vopak group, we are trying to lower GHG emissions via
forexample:
• We conducted a successful pilot with solar foil pilot at our terminal in Vlaardingen
(the Netherlands) and will extend this in 2022 too.
• As from the third quarter of 2021 the Vopak Solar Park Eemshaven (the
Netherlands) was fully operational. The green energy certificates were mainly
purchased by local companies within Groningen Seaports and by Vopak.
• Vopak switched completely to green electricity for its Dutch subsidiaries. In 2022
more locations will switch to green electricity.
For more details on the steps that we have made in improving energy efficiency,
reference is made to Note 16. Energy use.
12.4
14.3
17.7
12.5
13.4
GHG emissions intensity
Metric tons per thousand cbm storage capacity
1
2018 2019 20202017
246
183
198
193
205
GHG emissions intensity
Metric tons per million EUR revenue
2
25.0
20.0
15.0
10.0
5.0
250
200
150
100
50
2018 2019 20202021 20212017
1 Storage capacity as per 31 December of the reporting year for the entities in-scope for sustainability reporting.
2 Revenue on a 100% basis for the entities in-scope for sustainability reporting.
Consistent with the increase of our absolute GHG emissions, our GHG emissions
intensity per cbm of storage capacity and revenues also showed an increase
compared to previous years. This is for a large part due to our strategic portfolio
shift including the expansion of our LNG operations.
Vopak Annual Report 2021
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101
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
GHG emissions by energy source
Natural gas
Fuel/Gas oil
LPG
Electricity
40%
4%
2%
54%
Dilemma: Vapor Treatment versus GHG reduction
We are installing Vapor Treatment Units (VTUs) in order to reduce our VOC emissions. The use of
these VTUs will result in an increase of carbon emissions as gas for combustion (mostly LPG) is
needed. While we expect that the use of VTUs will increase in the near future we will be confronted
with this challenge. We continuously seek opportunities to handle vapors in a more sustainable
manner. Refer for more details on VOC emissions to Note 12. Air quality: VOC and other air emissions
GHG emissions per division
In metric tons of CO
2
equivalents 2021 2020 2019 2018 2017
Direct GHG emissions (scope 1) 349,356 207,078 154,807 165,720 166,917
of which Americas 120,789 63,401 69,863 59,670 57,445
of which Asia & Middle East 19,763 21,652 27,386 29,369 29,838
of which China & North Asia 1,975 1,771 1,516 2,465 2,981
of which Europe & Africa 44,464 41,506 53,790 73,450 75,856
of which LNG 162,306 78,660 2,098 764 797
of which Global HQ 59 88 154 2 0
Direct GHG emissions (scope 2) 227,839 237,072 253,668 251,689 235,339
of which Americas 29,350 18,847 19,008 22,820 23,313
of which Asia & Middle East 60,084 64,930 56,256 49,430 46,807
of which China & North Asia 49,374 47,204 47,327 46,845 45,716
of which Europe & Africa 28,585 40,688 54,124 75,253 77,912
of which LNG 59,598 64,328 75,728 56,384 40,747
of which Global HQ 848 1,075 1,225 957 844
Total GHG emissions 577,195 444,150 408,475 417,409 402,256
Other indirect GHG emissions (scope 3)
Our scope 3 GHG emissions mainly result from the steel and concrete that we buy
to build and maintain our terminals and our tanks, waste that can not yet be
recycled and is treated offsite by third parties and business travel and employee
commuting.
While we are planning to further expand scope 3 emission reporting, as a next
step, in our 2021 report we have further detailed our scope 3 emissions reporting
with the purpose of providing insight into the nature and the potential extent of our
scope 3 emissions.
In 2021, the scope 3 emissions that we were able to measure and report were:
• Emissions from purchased steel and concrete for construction and maintenance
projects. In 2021 for 10 large projects their steel and concrete purchases were
measured with calculated CO
2
emissions of 58,038 metric tons. Emissions from
steel and concrete purchase may vary year-over-year depending on the amount
and size of projects taking place at out terminals;
• Emissions related to waste that can not yet be recycled and is treated offsite by
third parties (Vopak aims to return as much waste as possible to its customers
for re-use). In 2021, 41 the terminals reported their waste with calculated CO
2
emissions of 28,358 metric tons;
• Emissions from business travel and employee commuting is 2,789 metric tons
(2020: 2,803). This includes transportation of employees for business-related
activities (air travel and automotive travel by leased cars). Emissions from fuels
used in vehicles at our terminals are reported as part of our scope 1 emissions.
For more details on how Vopak embraces the energy and feedstock transitions,
reference is made to New vital products and Note 21. Innovation.
Vopak Annual Report 2021
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102
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Note 12. Air quality: VOC and other air emissions
Definition, reporting policies and boundaries
This refers to the reporting of Vopak's VOC and other emissions
and its program to reduce the emissions based on the societal
impact of these emissions.
Materiality matrix no.
1
Air quality: VOC and
other air emissions
Related topic
Reporting policies
As field measurement to obtain a total emission figures is not yet feasible, we make
use of globally acknowledged calculation programs (TANKS 4.0 and Caruso) to assess
our Volatile Organic Compound (VOC) emissions. These emissions occur during the
storage and handling of products and are therefore a result of our own operations.
The NO
x
, SO
x
and PM2.5 emissions are calculated based on our energy
consumption. We have applied the following conversion factors:
• NO
x
emissions: IPCC Good Practice Guidance and Uncertainty Management
in National Greenhouse Gas Inventories
• SO
x
emissions: 2015 Specific emission factors per energy source stream
• PM2.5 emissions: Database for particulate matters from Dutch National
Institute for Public Health and the Environment
Boundaries
Data in this note includes information for all in-scope entities as noted in
Note 1. Basis of preparation.
Management approach
Our prime responsibility is to comply with (local) legislation on air emissions. Our objective is to
reduce our VOC emissions, in order to reduce our societal impact by 30% in 2025. To meet this
objective, we are focusing our efforts on those areas where the societal impact is largest. We
developed a model in 2017 to provide guidance to the organization on possible reduction measures
and their societal impact (according to the True Value method). This helps us ensure that our efforts
and investments, beyond what is required from a regulatory perspective, are targeted at areas where
the impact on society is highest.
2021
Performance
Our
ambition
Air quality: VOC and other air emissions
Societal impact reduction of our VOC emissions
23% reduction
compared
to 2016
Reduce our societal
impact by 30%
in 2025 compared
to 2016
VOC reduction program
In 2017, we analyzed our VOC emissions based on 2016 data for our 17 largest
terminals. We estimated that these represent roughly 75% of our emissions
globally. For this assessment, we applied the emission calculation model used
by the authorities in the Netherlands (Caruso 4.0). Approximately 15-20% of
the emissions at these terminals relate to standing emissions from storage.
The remaining 80-85% is due to handling (loading, unloading, roof landings).
We aim to mitigate our vapor emissions to reduce the societal impact by 30%
in 2025 compared to 2016.
In 2021, 78 projects were completed at 19 locations with a total spend of over EUR
24 million, resulting in a societal impact reduction of 23% compared to 2016.
Other air emissions
In metric tons 2021 2020 2019 2018 2017
NO
x
emissions 905 543 402 434 439
SO
x
emissions 5.4 3.7 2.7 2.9 2.8
Particulate matters (PM2.5) 14.8 13.0 15.0 15.8 16.0
Approximately 70-75% of our NO
x
emissions originate from the combustion of
natural gas and 75-80% of all our fine dust (PM2.5) emissions originate from the
combustion of diesel oil.
The increase of our 2021 NO
x
emissions are caused by increased natural gas usage
as a result of the new terminals being added to our reporting scope.
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Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Note 13. Water pollution
Definition, reporting policies and boundaries
This includes the quantity and quality of discharge into surface water.
Materiality matrix no.
3
Water pollution
Related topic
Reporting policies
All spills of more than 200kg are reported as reportable spills. This also includes
process safety-related Tier 1 and Tier 2 loss of primary containment according to
API RP 754 (and thus includes the Tier 1 and Tier 2 less than 200kg).
Boundaries
Data in this note includes information for all in-scope entities as noted in
Note 1. Basis of preparation.
Management approach
As almost all our terminals are situated by open waterways, we particularly seek to prevent any
unwanted discharge of product to the surface water. Prevention takes place through our focus on asset
integrity, adherence to operational procedures, specifically designed containment and drainage facilities
at our jetties and piers. In the event that product is discharged to the surface water, mitigation takes
place through specific equipment present at every pier or jetty, supported by services to recover and
prevent further spread of contaminants.
Vopak principle on water pollution
The principle of our Environmental Management System (EMS), set out in the Vopak Way Standards,
based on international laws and regulations, are:
• Prevention: for water contamination, this means that secondary containment, which is mandatory
at every new terminal, should also be implemented at our older terminals (whenever this can be
implemented simultaneously with our maintenance schedules)
• A spill response program on how to act in case of a spill occurs, applicable to both soil and water.
We measure the effectiveness of the prevention of spills to surface and sewage water as part of
our Assure and Terminal Health Assessment (THA) programs.
2021
Target
2021
Performance
Our
ambition
Water pollution
Total number of reportable spills
Ensure effective
spill prevention
and secondary
containment in
high risk areas
2
Ensure integrity of
the environment:
Zero uncontained
spills of harmful
products
Total product spilled
(reportable spills in metric tons) 6
Performance
2021 2020 2019 2018 2017
Total number reportable spills 2 8 6 4 1
Total product spilled (reportable spills in
metric tons) 6 26 2 1 1
We had 2 reportable spills into surface and sewage water in 2021 (2020: 8),
with a total of 6 metric tons (2020: 26 metric tons) of products being spilled.
The 2 spills of fuel oil occurred at our Fujairah terminal (United Arab Emirates).
Where possible, all product that was spilled into water has been removed.
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Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Note 14. Soil and groundwater pollution
This is related to soil and groundwater pollution caused by Vopak’s
operations, controlling existing soil contamination and taking
remediation measures in case of the event that an accident occurs.
Materiality matrix no.
2
Soil and ground-
water pollution
Related topic
Reporting policies
All spills of more than 200kg are reported as reportable spills. This includes process
safety-related Tier 1, Tier 2 and Tier 3 loss of primary containment according to
API RP 754.
The identification and remediation of emissions to soil and groundwater are guided
by local legislation and the requirements stated in our Vopak Way Standards ‘Spill
control’ and ‘Soil and groundwater management’.
2021
Target
2021
Performance
Our
ambition
Soil and groundwater pollution
Total number of uncontained reportable spills
Ensure effective
spill prevention
and secondary
containment in
high risk areas
11
Ensure integrity of
the environment:
Zero uncontained
spills of harmful
products
Total amount of uncontained reportable spills
(metric tons) 6
As the owner and/or user of approximately 1,550 hectares of land, with almost
5,000 tanks, Vopak has a responsibility for taking care of this land. The majority of
our tanks are equipped with a secondary protection system to prevent spills and
other contaminants from entering the soil and groundwater.
Vopak Principles on soil contamination
The principles of our Environmental Management System (EMS), set out in our
Vopak Way standards, based on international laws and regulations, are:
• Prevention: for soil contamination, this means that secondary containment,
which is mandatory at every new terminal, should also be implemented at our
older terminals (whenever this can be implemented simultaneously with our
maintenance schedules)
• A spill response program on how to act in case of a spill occurs, applicable to
both soil and water.
Specific locations where the risk of spillage is higher, such as pumping pits, truck
loading stations and jetty manifolds, are already equipped with secondary
containment to prevent damage to the environment. We continue to improve the
coverage of secondary containment and, led by a risk-based approach, we continue
to improve the protection of the subsoil and groundwater at our terminals.
In this risk-based approach, we took into account that 78% of our terminals are in
the vicinity of areas of high biodiversity and that extra precautions (e.g. vertical
barrier that isolates the Vopak location from external areas) are taken to prevent any
contamination of these areas. If a spill or any unwanted discharge takes place,
emergency mitigation procedures (e.g. scooping up contaminated soil) are in place
at all our terminals, in accordance with the Vopak Standards: ‘Spill control’ and ‘Soil
and groundwater management’.
Performance
2021 2020 2019 2018 2017
Total number of uncontained
reportable spills 11 6 6 4 7
Total product spilled (uncontained reportable
spills in metric tons) 6 301 19 29 25
All reportable spills were remediated immediately according to the requirements
stated in our Vopak Way standards ‘Spill control’ and ‘Soil and groundwater
management’; however, our aim is to have no uncontained spills.
Besides prevention, Vopak is also engaged in a process of remediation of
13existing contaminated locations, reference is made to environmental
provisions in Note 9.5 Provisions of the Consolidated Financial Statements.
The cost of remediation is reported as part of environmental, safety and cleaning
expenses under Note 2.6 Other operating expenses of the Consolidated
Financial Statements.
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&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Uncontained spills to water, soil and groundwater pollution (Note 13 &14)
2021 2020
Contained
Uncontained
Total Contained
Uncontained
Total
Total number of
reportable spills 27 13 40 41 14 55
Total product
spilled (reportable
spills in
metric tons) 3,645 12 3,657 175 327 502
We work to prevent spills; our goal is zero uncontained spills. In 2021,
uncontained spills amounted to 12 metric tons (2020: 327 metric tons).
Note 15. Biodiversity
Biodiversity
Related topic
This applies to 78% of Vopak terminals and specifically refers to areas and classified as:
• Natura 2000 sites (Europe)
• Areas falling under the UNESCO and the Biosphere Program
• Areas defined by Bird Life International
• Wetlands according to the Ramsar Convention.
Materiality matrix no.
8
We acknowledge that preserving and restoring biodiversity in and around our
terminals is fundamental to our long-term business survival. Healthy ecosystems
are fundamental for sustaining production of energy, food and manufactured goods
for society in the long term; they also enable us to treat and dissipate waste,
maintain soil and water quality and help control pollution. We aim to avoid damage
to ecosystems and contribute to preserving biodiversity. In our efforts to preserve
biodiversity, we focus primarily on areas that are most at risk as a consequence of
our operations.
At the beginning of the United Nations decade of biodiversity, in 2011, Vopak identified
the areas of high biodiversity in the vicinity of its terminals. For this, Vopak asked the
University of Wageningen to conduct a study of the impacts that terminals could have
on its environment. The study proved that the impact could be significant (NO
x
depositions, sound and light disturbances) at a distance of 5 miles from the terminal.
Based on these conclusions, Vopak has identified the following areas of special
concern: Natura 2000 sites (Europe); areas falling under the UNESCO MaWn and
the Biosphere Program; areas defined by BirdLife International; Wetlands as defined
by the Ramsar Convention. When applying this definition, it appears that 78% of all
our terminals can have a negative impact on biodiversity in areas of special concern.
Vopak has also drawn up a comprehensive list of species (birds, mammals,
amphibians, plants and other living organisms) that may be affected in these areas
of special concern. If terminals are located in the direct vicinity of areas of
ecological diversity, extra care is taken to prevent any damage to the neighboring
area through air, soil, groundwater and surface water contamination.
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Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Measures taken are, amongst others, installing groundwater protection to prevent
contaminated groundwater flowing towards these area’s and adapting the lighting
of our terminals to minimize the disturbances for bird migrations. For new
terminals, biodiversity matters are taken into account in the design phase of every
new terminal through our global standard on Environmental Impact Assessment.
For example, the jetty at the terminal in Panama was designed to prevent the
disturbance of a (small) coral reef.
Vopak will continue its approach to biodiversity. We remain committed to reducing
our impact on the identified areas of special concern where protection of ecological
diversity is most urgent. In 2022, our Global Environmental Impact Assessment
standard will be updated into a general standard on Biodiversity formally including
the principles, which we are already adhering to in practice.
Note 16. Energy use
Energy use
Related topic
This includes energy derived from natural gas, LNG/propane,
heating fuel, gas/diesel oil, biofuels, purchased steam, district
heating, and renewable energy.
Materiality matrix no.
6
Reporting policies
Vopak’s reporting on energy use encompasses direct energy use from the
combustion of fossil fuels (scope 1) and indirect energy use from electricity and
steam purchased for our own use (scope 2). To calculate energy, we have applied
the following conversion factors:
• Conversion of consumption to energy in terajoules: Dutch list of fuels and
standard CO
2
emission factors, version January 2021 (from the Netherlands
Enterprise Agency)
• Conversion of natural gas consumption to energy in terajoules: the Energy
Information Administration (EIA) and for Belgium and Singapore location-
specific conversion factors.
In terajoules (TJ) 2021 2020 2019 2018 2017
Natural gas 5,426 3,004 1,917 2,143 2,180
LPG / Propane 211 203 220 171 150
Heating fuel 14 18 18 19 15
Gas / Diesel Oil 282 291 387 416 427
Total direct energy 5,933 3,516 2,542 2,749 2,772
Electricity 1,744 1,730 1,852 1,706 1,595
Steam 76 10 31 4 1
Renewable energy 9,849 9,415 10,058 6,944 4,125
Total indirect energy 11,669 11,155 11,941 8,654 5,721
Total energy 17,602 14,671 14,483 11,403 8,493
Total renewable energy as a %
of total energy
56% 64% 69% 61% 49%
The increased energy consumption over the past years is mainly due to the
increased activities at our LNG operations.
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environment
Financial
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&outlook
Additional
information
Energy use intensity
Terajoules per million cbm storage capacity
2018 2019 20202017
Energy use intensity
Terajoules per million EUR revenue
400
500
600
300
200
100
476
341
261
2018 2019 20202021 20212017
6.0
7.5
4.5
3.0
1.5
6.5
540
473
6.6
7.5
5.6
4.1
The energy consumption for our conventional liquid bulk storage and handling
operations is used for the production of steam for heating purposes (gas
consumption) or through electricity consumption for powering our pumps and,
toalesser extent, for heating and cooling. The amount depends on (1) the product
mix we store for our customers, (2) the weather conditions and (3) the amount of
product transferred (electricity consumption). Energy consumption for our LNG
operations and other cryogenic gasses is significantly more intensive than our
conventional liquid bulk storage and handling operations. For more details on
theimpact of our LNG operations, reference is made to Note 11. Our impact on
climate change: GHG emissions.
We see greater energy efficiency as a way to reduce our carbon footprint.
Energy efficiency teams at our terminals strive to reduce our energy use through
smarter equipment, smarter processes and digital innovation, including the use of
sensors. We are driving various efficiency improvement projects in different parts of
our network. Some of the examples are:
• The energy-efficiency program in the Netherlands (reduction of the energy
consumption with more than 8% in 2017 - 2020) now serves as a blueprint to
increase our energy efficiency around the globe. With the implementation of the
EED (European Energy Efficiency Directive) in 2021, Vopak continued working on
its energy efficiency by further reducing energy consumption.
• Ongoing program for insulating our tanks
• Energy dashboarding at several terminals in order to monitor usage
• Installation of industrial LED lighting.
For more details on the steps that we have made in improving energy efficiency,
reference is made to Note 11. Our impact on climate change: GHG emissions.
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&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Note 17.Water management
Water
management
Related topic
This refers to the, e.g. treatment of rainwater, of water used for tank
cleaning and discharged.
Materiality matrix no.
7
Water management is an important responsibility, especially the quality and
quantity of discharge to surface water. We are committed to responsible water-care
systems at our terminals. The objective is to make a clear distinction between flows
of good quality water (i.e. clean rainwater) and contaminated water.
The principle is that clean water should remain clean and not be mixed with
process water, while process water will be treated in a water treatment plant.
Water used during operations is recycled through a water treatment plant (at or
outside Vopak) before release into surface water or sewers.
Vopak has developed a modular model for engineering and optimizing the design of
wastewater treatment plants. This model is based on local legislation and the
amount and composition of the wastewater that needs to be cleaned. Next to this
engineering tool, we are supporting the developments of new innovative
wastewater cleaning techniques.
Note 18. Waste
Waste
Related topic
This refers to the amounts of hazardous waste streams that are not
reused by the customers. This flow is, in general, less than 10% of
the total amount.
Materiality matrix no.
4
In addition to the waste water as described in Note 17. Water management, during
operations there are several types of waste:
• Hazardous waste: Slobs and residual products from tanks, pipelines. Each time
a tank is empty, a (small) amount of residual product, contaminated with other
material (such as water), remains. This product is mostly returned to the owner
of the product. The remaining part is treated as chemical waste by specialized
waste treatment companies outside our terminals;
• Industrial waste: Generated by means of maintenance and/or demolition.
Demolition waste, e.g. steel from the tanks, is directly recycled by the contractor;
• Soil remediation waste: Contaminated soil transported out of the Vopak site for
treatment and replaced by clean soil. Further reference is made to Note 14. Soil
and groundwater pollution;
• Household waste: Normal garbage waste generated by offices.
All waste has to be treated according to the Vopak Way Standard on Waste
Management, even when the terminal’s host country requires a lower standard.
For every source of waste, Vopak has currently specific standards/procedures:
• Spills to soil: Every spill that occurs at a terminal must be cleaned immediately
and the contaminated soil disposed of;
• Residual waste management: When tanks change service to another product,
small amounts of product may remain in the tanks and pipelines. This is currently
treated as chemical waste and treated by specialized companies. However, in
some instances we make use of companies that can upgrade residual waste into
a product with a value;
• Slops: When tanks are cleaned for inspection, residual waste (called slob) has to be
removed from the tank and processed elsewhere. Our aim is to recollect as much
product as possible and transfer that back to our customer. On average (1/3) is
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Additional
information
transferred back to the customer and (2/3) is to be processed elsewhere
(mostly incinerated);
• Sludges from our waste water treatment plants;
• Demolishment of assets: old assets (mainly steel & concrete), which are recycled).
Note 19. Circularity
Circularity for Vopak is to reduce waste and to increase the reuse of waste of
construction, operating and demolishing our assets, in such following the Cradle to
Cradle principles.
1. Design for the future: We are incorporating (new) digital technologies in our
design process. Furthermore, we are bound by our standards to the right
materials, to design for appropriate lifetime and for extended future use. This is
embedded in the Vopak way standards and our - repeatable formula, where we
define the building blocks for our assets.
2. Supply: We work together throughout the supply chain, internally within
organizations and with the public sector to increase transparency and create joint
values, as laid down in our supplier policy.
3. Use of assets: While assets are in use, we will maintain, repair and upgrade our
assets to maximize their lifetime.
4. Demolition of assets: We have a system in place to reuse the main materials of
our assets, such as steel and concrete.
Since 2020 Vopak, via Vopak Ventures, is a shareholder in Xirqulate. This entity uses
a proven technique that converts low-calorific residual flows and high-calorific waste
flows into a clay substitute as a secondary raw material for the ceramic industry or
as an additive in concrete products.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Sustainability is about caring for people and the planet while sustaining profit. This means innovating, bringing in new digital
technologies, transforming our company and holding the course we set out in previous years, while living the Vopak Values
and staying true to our business ethics. Through our storage and handling services, the payment of taxes, dividends for
shareholders and salaries for employees, we create economic value.
Value creation capital Input Output & Outcome Impact
Knowledge
We have company-wide standards. Our processes and systems
ensure we handle products efficiently and safely. In our core areas,
we also develop our own software.
We work to continuously strengthen customer service and improve
the efficiency of our systems and processes. To support this, we are
digitizing more of our operations.
Financial Our shareholders and creditors provide funds. We rely on these
funds to invest in our business, expand storage capacity, and
explore new opportunities for growth.
We generate cash flows from our business. We use this to operate
our terminals and invest in new growth; we also pay interest to our
creditors, tax and dividends to our shareholders, as well as salaries
and benefits to our employees.
Manufactured We operate a network of terminals around the world. These include
storage tanks, pipelines, jetties and other facilities. It is this network
that enables us to move products and connect up supply and
demand.
We maintain our terminals and other facilities – and invest in
newstorage capacity to open up flows of product to areas of
highdemand.
People Employees provide their time, expertise and knowledge. We also
use contractors and other service providers in our operations. We
invest in training and talent development to build a skilled, diverse
workforce.
We develop our people, train them in new skills, motivate them,
and aim to provide them career opportunities and offer a healthy,
safe and rewarding working environment for both employees and
contractors.
Social & Relationships To carry out our business, we rely on relationships with
stakeholders. These include our customers – in addition to our
employees, suppliers, business partners and governments. Wealso
need the continued goodwill of the local communities in which
we operate. Together, these relationships provide our ‘license to
operate and grow’.
At Vopak, we often handle hazardous products with care. Weensure
safe delivery of these products to our customers, providing a vital
link in the supply chains for oil, gas, chemicals and vegoils. We
facilitate novel clean(er) products through appropriate infrastructure.
Care for our economic impact (profit)
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environment
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Performance
&outlook
Additional
information
Care for our economic impact (profit)
Care for our economic impact (profit)
Note 20. Business ethics and integrity
Definition, reporting policies and boundaries
Ethical behavior refers to behavior in accordance with the Vopak Values
and Code of Conduct, including anti-corruption and anti-bribery, compliance
with legislative regulations, prevention of fraud and political funding.
Materiality matrix no.
9
Business ethics
and integrity
Related topic
Reporting policies
All significant fines and non-monetary sanctions for non-compliance with laws and/
or regulations in the societal, environmental and economic area are reported.
Boundaries
Data in this note includes information for all in-scope entities as noted in
Note 1. Basis of preparation.
Management approach
In order to fulfill our role in society, we consider it vital that employees, contractors, suppliers
and joint venture partners understand and share our Vopak Values, i.e. Care for Safety, Health &
Environment, Integrity, Team Spirit, Commitment and Agility. We expect them to act accordingly
when conducting business.
The company encourages employees and other stakeholders to raise any concern or doubt they
may have with regard to business conduct. In the case of employees, this can be with their direct
manager. Employees as well as external parties can contact the Vopak contact person or the
designated Trusted Person (via mail: whistleblower@vopak.com). Concerns raised are addressed
with care, confidentiality and respect.
We do not pay contributions to any political party nor related purposes, worldwide.
In 2021, we have devoted considerable time and effort on the Digital Transition
and making our HR Global Platform (Workday/MyPulse) the single source of
HR data across Vopak. This common tool has now been deployed across 90%
of Vopak sites.
We have incorporated many learnings to our HR system (MyPulse) including
learnings related to the Code of Conduct, Privacy Code, Sanctions Compliance,
etcetera. As MyPulse allows us to reach all Vopak employees, this contributes in
making sure all employees perform quality learnings in a timely manner.
Completion of Code of Conduct training
In 2021, 89% of all employees in MyPulse have completed company-wide training
on all aspects of the Code of Conduct, including anti-corruption as per end of
December 2021 (2020: 88%).
Incidents of discrimination, fraud, corruption and bribery
In 2021, 36 whistleblower and fraud cases (2020: 53) were reported to the Trusted
Person. All whistleblower and fraud cases were followed up and reported to the
Executive Board and Supervisory Board. Appropriate action was taken, including
further strengthening of internal controls where necessary. There were no alledged
cases of discrimination reported during 2021 (2020: 3). In 3 cases, the investigation
led to evidence that supported the allegations (2020: 6). None of these cases have
had a material financial consequence. All our employees are required to adhere to
our anti-corruption and anti-bribery policy and our Code of Conduct.
Permit violations
In general, permit violations and fines are related to three compliance issues:
• Non-compliance with operating permits (or expired permits);
• Non-compliance with environmental regulations and/or limits;
• Non-compliance with safety regulations.
Two of the permit violations in 2021 resulted in fines amounting to EUR 32,000
in total (2020: EUR 0).
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Additional
information
Note 21. Innovation
Innovation relates to the digital
transformation of the company,
as well as other innovations that
improve efficiency, safety and logistics.
Materiality matrix no.
13
Innovation
Related topic
By innovating and bringing in new digital technologies, our aim is to improve our
services to the customers, operational performance and getting ahead of the
energy and feedstock transition and climate change.
As part of the strategic direction for the period 2020-2022, Vopak indicated to invest
annually up to a maximum of EUR 45 million in IT capex, to complete Vopak’s digital
terminal management system. Our Moves program, in which we renew our IT
landscape, is being implemented. We expect both service and efficiency to be
benefited from the rolling out of new systems and functionality. For further
information, reference is made to Data driven.
During the year, Vopak signed a partnership with NxtPort, the innovative logistics
data-sharing platform. NxtPort’s main goal is to unlock the potential of sharing
existing data amongst many stakeholders in ports across the world. The Platform
allows faster, more cost-effective, as well as more efficient transfers of data
between the different market players. New technologies will drive further
improvements in customer service, efficiency and safety. For more details,
reference is made to Data driven.
In 2021, Vopak is, amongst others, involved in the following sustainability related
innovation projects:
• Drone inspection of VOC emissions at the terminal: In 2021, we conducted two
tests to measure the real time emissions of VOC at two terminals. One terminal,
Vopak terminal Vlissingen, is a gas storage terminal, the other terminal, Vopak
terminal Europoort, is an oil terminal. Both tests showed the concentrations of
various (identified) products emitted at the specific sites. These inspections can
be used either for maintenance purposes as well as indicating the amounts of
VOC emitted at a specific location (i.e. a pump pit, tank, pipeline or loading
platform). The tests will be further implemented in our operating procedures in
2022 and 2023.
• Waste water treatment using Aquacycl technology: In 2021, we started a test
with a new concept of water treatment. This concept is based on a bio
electrochemical treatment technique and is energy neutral, which means that it
is using the electricity that is generated during the breakdown of the organic
components. Another advantage is that this technique is capable of breaking
down organics completely and much faster (hours) than normal biological
treatment. The test at our terminal in Deer Park, Houston will continue in the
first quarter of 2022, after which we will decide how to implement this system in
our projects.
Vopak embraces the energy and feedstock transitions. This is why we are
developing partnerships and exploring ways to facilitate the introduction of new
technologies, processes and products to advance a sustainable, low-carbon future.
A few examples are:
• We are developing infrastructure solutions in ports to enable exports, imports,
transportation and storage of low- and zero-carbon hydrogen. The way to do this
is by transforming hydrogen into a liquid.
• In the Port of Rotterdam, Vopak, as a member of the CO
2
nnect project, is
exploring the development of an independent terminal to receive and deliver
liquid CO
2
.
• Vopak is partnering with Elestor for the development of a hydrogen bromine
flow battery.
For more details, reference is made to New vital products and Data driven.
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Additional
information
Note 22. Climate impact on Vopak
Introduction
We acknowledge the Intergovernmental Panel on Climate Change (IPCC)
assessment that human influence is clear and physical impacts are already being
felt. There is a growing need for governments, business and citizens to adapt to and
mitigate the impacts and risks of climate change.
In this note we aim to provide transparency about the potential impact of climate
change on both Vopak’s physical assets and our business activities, by disclosing
the information on our efforts in line with the recommendations of the Financial
Stability Board’s Task Force on Climate-related Financial Disclosure (TCFD).
For the impact of Vopak on climate change, reference is made to Note 11. Our
impact on climate change: GHG emissions.
Governance, strategy and risk management
The determination of threats and opportunities driven by climate change forms an
integral part of the company’s strategic planning cycle. Our governance with regard
to climate-related risks and opportunities is integrated into our governance and risk
management processes. For more information, reference is made to the
Governance, risk & compliance chapter.
Our journey on addressing climate-related risks and opportunities for Vopak
Since 2014, we assess the risks and opportunities related to climate change as part of the
sustainability program and reported on this in our Annual Report.
In 2017, we started using the TCFD framework in our reporting.
As of 2018 we organize an annual Climate Day to stress test our strategy, including growth and our
asset portfolio against the International Energy Agency (IEA) scenarios (transitional) and the IPCC
scenarios (physical).
In 2021, we again conducted our Climate Day, together with our Strategic Committee (including the
Executive Board) and external guest speakers, with the purpose to stress test our strategy, including
growth and our asset portfolio against physical and transitional climate-change impacts. We went
through updated IEA scenarios and performed a more in- depth analysis on the higher risk areas for
physical impacts. More details are included below.
Climate-related risks and opportunities
The risks and opportunities may be categorized into the following segments:
• Transition: This includes changes in market dynamics, policy actions, reputation
and new technology and product developments.
• Physical risks: This includes acute risks such as increased severity of extreme
weather events and chronic risks such as rising sea levels, temperature and
precipitation changes.
Transitional risks and opportunities
The international commitment to combat climate change and lower CO
2
emissions
is having a profound impact on energy markets and industries. This development
represents risks for Vopak, as a part of our current business relates to fossil-based
products. At the same time, we see tremendous opportunities, given the fact that
the daily and seasonal fluctuations in wind and solar energy are likely to increase
the need for storage of low-carbon and clean energy sources like hydrogen, as well
as CO
2
storage solutions, pipeline infrastructure and new technologies.
In the 2021 stress-testing of the IEA scenarios and assessing policy developments
around the world learned that the main insights are:
• Covid-19 disrupted GDP growth, energy demand and global emissions resulting
in new energy scenarios. The rapid but uneven economic recovery from last
year’s Covid-induced recession is putting major strains on parts of today’s energy
system, sparking sharp price rises in natural gas, coal and electricity markets.
For all the advances being made by renewables and electric mobility, 2021 is
seeing a large rebound in coal and oil use. Largely for this reason, it is also
seeing the second-largest annual increase in CO
2
emissions in history.
• In all scenarios, renewable energy will grow considerably and demand for coal
will decline over time.
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Governance,risk
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Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
• Demand outlook for coal, oil, gas and renewables will depend on policy setting
and investments.
• The energy mix in OECD countries will move away from fossil to renewables -
whereby policy setting drives the speed of the transition. Energy demand in
non-OECD countries will grow strongly with fossil energy needed to support
this growth.
The speed of change increases with a lower peak in energy demand and an
enhanced role for renewables. IEA scenarios are aligned with Vopak’s strategy to
transform the portfolio towards cleaner products and new energies.
Physical risks and opportunities
To assess the physical climate-related risks, in 2021, we re-assessed the 2020
outcome of the potential impact of three IPCC scenarios for 2050 (RCP 2.6, 4.5/6.0,
8.5), which are based on global warming of respectively 1.5 degrees, 2 degrees,
3degrees and 4.5 degrees Celsius. The sensitivity analysis demonstrated the
following potential acute and chronic climate impacts with the highest risk on our
current assets by 2050:
1. Heavy rainfall causing river flooding:
• This is a threat to the terminals in the Netherlands (Botlek, Vlaardingen
& Europoort)
• Other countries that are impacted by this are Vietnam (Mekong river)
and Louisiana (Mississippi)
2. Increase intensity of tropical storms and hurricanes:
• In general it is predicted that tropical storms are increasing in severity.
Not in frequency. This is caused by higher seawater temperatures
• Locations that will be impacted are: US Gulf and East coast, Western India
and China
3. Excessive heat:
• The normal average temperature rise is expected to be around 2-3C,
however, days with extreme temperatures are likely to increase
• Locations affected are most likely the US, India, Pakistan, Singapore
and Malaysia
4. Increased windforce in normal weather conditions:
• Next to the increase in windforce of tropical storms, we already noticed an
increase of the windforce in other regions
• All locations may be impacted. In the recent past we have experienced this for
example in Belgium and The Netherlands
The consequence of these potential developments could be an increase in (preventive
and maintenance) investments and an increase in insurance costs for these areas. This
concerns not only Vopak, but also other actors in affected port areas. Therefore, we
will engage with these stakeholders and strive to stay ahead with the developments.
Our response to potential risks and opportunities on Vopak
Based on the stress test and subsequent analysis in 2021, we are confident that
our strategy sufficiently addresses both the risks and opportunities arising from the
physical effects of climate change, as well as those related to the transition to a
low-carbon economy.
We adopted three lines of action to contribute to the dual objective of limiting
climate change in line with the Paris Agreement and SDG13, while at the same time
providing access to affordable, acceptable and sustainable energy and feedstocks
for all, in line with other UN Sustainable Development Goals (SDGs7,8and 9):
• First, we develop infrastructure solutions to accelerate a switch to cleaner
conventional fuels and feedstocks for all;
• Second, we develop infrastructure solutions for zero- and low-carbon new
energies and sustainable feedstocks like renewable hydrogen and ammonia;
• Third, we reduce our own environmental and carbon footprint. Refer to Note 11.
Our impact on climate change: GHG emissions.
We welcome and support the new initiatives to improve and drive the convergence
of standards and practices in business disclosures related to climate risks,
such as the recommendations of the Financial Stability Board’s Task Force on
Climate-related Financial Disclosure (TCFD). We will continue to engage with
investors and other stakeholders in order to further improve our disclosures of
material climate-related risks and opportunities, taking into consideration the
recommendations of the TCFD and other relevant developments.
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Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Note 23. Our responsibility towards taxation
This refers to the transparency of Vopak’s reporting on tax and its responsibility
towards taxation.
Materiality matrix no.
16
Taxation
Related topic
Approach towards taxation
Vopak’s approach towards taxation
We consider our tax payments as a contribution to the communities in which we
operate. It is therefore important that we pay our fair share of tax and that we
adequately explain the taxes paid. This is one of the key principles underlying our
“approach to tax” as further explained in section 2 of this note.
Part of this “approach to tax” and our tax principles is our acknowledgment of the
importance of being transparent on our tax position and tax contribution. We
acknowledge global and local initiatives. As such, this note will be an example of our
commitment to transparency. It brings together information about our tax strategy
and our worldwide income tax contribution in 2021.
Our behavior related to tax is based on and in line with Vopak’s purpose, values and
its Global Code of Conduct (i.e. the Vopak Navigator). We are a responsible taxpayer
and we pay tax where we operate: we declare profits and pay taxes where the
economic activities occur. In this respect we have defined a set of guiding tax
principles to which we adhere.
Vopak’s tax principles
Compliance
We act in accordance with the law and with regulatory requirements of the
countries in which we operate and we are guided by relevant international
standards (e.g. OECD guidelines). We comply with the letter of the law and take
into account the spirit as well. Where tax laws do not give clear guidance, prudence
and transparency shall be the guiding principles.
We are committed to file all relevant tax filings and make all relevant payments,
domestic and foreign, with accuracy, in good faith and on time and to have the
relevant substantiating documents in place. Where tax law is unclear or subject to
interpretation, we evaluate the likelihood or seek external advice to ensure that our
position would, more likely than not, be upheld. In doing so, we take due care of a
sustainable relationship with relevant tax authorities.
Business rationale and transfer pricing
Our business structure is driven by commercial considerations, is aligned with
business activity and has genuine substance. Following the principle that tax should
follow business, profits are allocated to the countries in which business value is
created. For calculating transfer prices, we apply the arm’s length principle. We
ensure that our transfer pricing documentation comply with applicable
internationally agreed and recognized principles as outlined in the OECD guidelines.
We do not enter into aggressive and contrived tax planning structures. We therefore
do not use secrecy jurisdictions or so-called ‘tax havens’ for tax avoidance, nor
artificial tax structures that have no commercial or operational substance. In the rare
situations where an entity in a ‘tax haven’ is acquired as part of a larger transaction,
Vopak will assess whether the entity meets the requirements of the Global Tax
policy and will take appropriate actions where necessary. We carry out risk
assessments as part of any tax planning on significant transactions.
The Global Tax department is aligned with the business and is not a profit center by
itself. Vopak may engage in tax planning initiatives and can make use of incentives
promoted by government authorities but due consideration is given to Vopak’s
interest, reputation, brand and corporate social responsibility. Where we claim tax
incentives, we seek to ensure that they are aligned with our business and
operational objectives and have sufficient economic substance in order for the tax
incentive to be granted.
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&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Relationship with tax authorities
Vopak seeks to develop strong and cooperative relationships with national tax
authorities which are based on mutual respect, transparency and trust. Vopak
strives to enter into cooperative compliance programs with the tax authorities.
Transparency
We are transparent about our approach to tax. We provide information to our
stakeholders, including investors, employees, professional service providers and
the general public about our approach to tax and taxes paid.
Disclosures are made in accordance with relevant domestic regulations, as well as
applicable reporting requirements and standards.
Our approach to tax and our tax principles are laid down in our Tax policy which has
been approved by the Executive Board. The tax policy is periodically reviewed by
our Executive Board and the Global Tax team and will be updated if necessary to
continuously reflect our purpose, values, regulations, international tax standards
and other relevant developments in society.
The tax policy is applicable to all Vopak majority owned and/or (jointly) controlled
entities. Where Vopak only has a minority interest in a business or entity, Vopak
shall, in its role as shareholder, encourage and support the application of the
contents of the tax policy.
Tax technology
Vopak recognizes the importance of a technology enabled Global Tax Function in
order to ensure and further improve the accuracy and reliability of all its tax and
customs processes and the related tax reporting and compliance obligations, but
also to make data driven decisions. In this respect, the Global Tax Function has
prepared a Road Map in which it sets out the steps to become more and more
technology enabled.
Tax governance, control and risk management
Tax governance
Management of Vopak’s tax affairs requires good governance. The responsibility of
the Executive Board for Vopak’s tax affairs is managed through the portfolio of the
CFO in the executive board. Our CFO delegates the day-to-day management of our
tax affairs to our Global Tax team. The Global Tax team reports to the CFO on a
quarterly basis and has regular meetings to discuss the daily topics.
The Global Tax team advises management and the business on the tax implications
of decisions, performs appropriate tax planning to support business goals and
ensures compliance with all tax laws. Advice is sought from external advisors
on material transactions and whenever the necessary expertise is not available
in-house. Local finance managers are responsible for the tax position and tax filings
in their respective country and are assisted by the Global Tax team and local
external tax advisors.
Tax control and risk management
Following Vopak’s international focussed business, we are subject to taxation in the
many countries in which we operate. The tax legislation in these countries differs, is
often complex and subject to interpretation by management and the government
authorities. Recent developments in the international tax arena (e.g. introduction of
public CbCr and Pillar 2) have increased the likelihood of changes to tax systems in
the countries where we operate, and this creates added uncertainty.
Tax Risk Management guidelines are available to provide guidance to ensure that
decision-making on corporate transactions and strategy takes proper account of the
tax implications to:
1. ensure that Vopak is compliant with tax regulations;
2. ensure transparency on tax planning and the tax contributions of Vopak
towards society;
3. minimize the (unforeseen) tax impact of any changing regulations or new
business initiatives.
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Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Tax is an integral part of the risk management process of the company. For an
overview of the principal risks of the company, reference is made to the section
Risk management and internal control in the Governance, risk & compliance
section. Vopak’s Key Control Framework has a dedicated section stipulating the
internal controls which enforce compliance with the global tax policy.
On a regular basis, all Vopak staff are trained on the Vopak Value, for example as
part of informal ethical dilemma dialogues. As part of the informal ethical dilemma
dialogues. This approach ensures that our staff is sufficiently equipped to identify
and address tax dilemmas when encountered. Processes and procedures are
implemented to guarantee adherence to Vopak’s tax policy and guidelines, which is
actively monitored by the Global Tax team. Severe violation of these guidelines or
any identified matters that could lead to a severe violation should be reported to
Global Tax. Employees of Vopak are encouraged to report serious concerns through
the normal reporting channels, however, they can also voice concerns outside these
channels through the Vopak Whistleblower channel.
The In-control statement by the Executive Board, as included in this Annual Report,
is based on the effectiveness of Vopak’s internal controls, including those relating
to tax. For more information, including the involvement of Global Internal Audit in
the monitoring of the effectiveness of internal controls, reference is made to section
Risk management and internal control in the Governance, risk & compliance section.
Furthermore, the company’s external auditor provides assurance on our financials,
including our tax positions, and taxes paid. We refer to the independent auditor’s
report of our external auditor on the Annual Report 2021.
Stakeholder engagement and management of concerns related to tax
Engagement with tax authorities
One of our tax principles is that we seek to develop good and cooperative
relationships with national tax authorities which are based on mutual respect,
transparency and trust and where possible we try to enter into cooperative
compliance programs.
In the Netherlands, Vopak is considered as one of the top 100 companies for which
the Individual Tax Monitoring Plan is applicable. The Individual Tax Monitoring Plan
has been implemented in the course of 2021 with a formal agreement. In this new
set up, Vopak will continue its existing good and transparent relationship with the
tax authorities in the Netherlands and internationally.
In periodical meetings with tax authorities, we discuss relevant business developments
and we actively approach tax authorities to discuss facts and circumstances and the
tax impact thereof to come to an aligned view on the tax treatment.
Stakeholder engagement
Vopak aims for transparency and an open dialogue with its various stakeholders.
Transparency is key to creating trust. It provides us with valuable insights into our
business and operating environments and helps us to be a responsive and
responsible member for the communities in which we operate. In order to
substantiate this, Vopak regularly engages with its stakeholders (e.g. business
partners, authorities, customers, employees, financial and capital market, neighbors
and/or local communities, NGO’s, suppliers, youth and senior management) as part
of the stakeholder engagement dialogue.
Tax developments in 2021
Measures taken by governments
Governments have issued Covid-19 measures in 2020 and 2021 to support local
businesses. For example, companies affected by the economic consequences of
Covid-19 could apply for a deferral of payment of CIT, VAT and Payroll Tax. Vopak did
not apply for any of these arrangements.
Pillar 2
On 1 July 2021, 130 countries of the 139 members of the OECD Inclusive
Framework on BEPS committed to fundamental changes to the international
corporate tax system. This change includes a jurisdictional-level minimum taxation
of 15% for multinational companies with a turnover of €750m. Draft legislation has
been published late December 2021. It is expected that the legislation will enter
into force as from January 2023. It is expected that this will impact Vopak to a
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&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
certain extent. The exact impact will be analyzed in Q1 of 2022. In addition, it is
expected that certain countries in which Vopak operates will introduce a global
minimum tax rate of 15%. Any developments in this respect are closely monitored.
Public County-by-Country reporting (CbCr)
On December 1, 2021 the Directive on public CbCr was published in the Official
Journal of the EU. Public CbCr will apply to companies that are (non-)EU based
multinational corporations with a total consolidated revenue of more than €750m in
each of the last two consecutive financial years.
The rules require the EU-based multinational corporation to disclose publicly the
income taxes paid and other tax related information such as a breakdown of profits,
revenues and employees per country. Such information needs to be disclosed
for all EU member states and the countries on the EU list of non-cooperative
jurisdictions for tax purposes. For all other jurisdictions it is sufficient for aggregated
data to be disclosed.
Member states need to transpose the directive into national law by 22 June 2023.
The first financial year of reporting on income tax information will be the first
financial year starting on or after 11 June 2024. Reporting needs to take place within
12 months from the date of the balance sheet of the financial year in question.
In principle, IFRS requires that the Vopak Group is consolidated in the financial
statements of HAL Holding N.V. (HAL), a company listed and traded on the
Euronext in Amsterdam. As a result, Vopak is not obliged to file its own CbCr with
the tax authorities, but Hal includes this information in their CbCr reporting. The
same will apply to the Public CbCr rules and therefore the exact impact needs to
be discussed with Hal.
DAC6
Following the implementation of the European Directive Mandatory Disclosure
Rules / DAC6 per 1 January 2021, intermediaries and/or taxpayers must report
qualifying (potential) cross-border transactions to the Dutch tax authorities. The
Directive has a retrospective effect to 25 June 2018, hence any transaction as from
that time needed to be reported in January 2021. All transactions in 2021 need to
be disclosed within 30 days after it is ready for implementation.
Vopak did not need to report a transaction under the Mandatory Disclosure Rules
in 2021.
Effective tax rate overview
Vopak pays a fair tax in the countries in which it operates. The largest operations are
located in the Netherlands, Singapore and the United States.
For an overview of the effective tax rate per main country per (geographical)
division, reference is made to the table in this section and the Financial
performance chapter where a narrative explanation on the effective tax rate for the
year is provided. For more information on the segments and other financial
information per segment, reference is made to note 2.1 of the Consolidated
Financial Statements.
For more information on the total tax position and tax charge of the Group (including the
weighted average statutory tax rate and the mandatory effective tax rate reconciliation),
reference is made to section 8 of the Consolidated Financial Statements.
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&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Including exceptional items Excluding exceptional items
Statutory
tax rate
Effective
tax rate
Statutory
tax rate
Effective
tax rate
Americas 25.9% 79.0% 25.1% 26.4%
of which:
United States of America 21.0% 19.6% 21.0% 19.7%
Mexico 30.0% 40.6% 30.0% 40.6%
Asia & Middle East
21.4% 14.6% 21.1% 15.1%
of which:
Australia 30.0% 29.5% 30.0% 29.5%
Singapore 17.0% 15.1% 17.0% 15.1%
China & North Asia
24.9% 15.3% 24.9% 15.3%
Europe & Africa 28.0% 39.6% 30.8% 76.4%
of which:
Netherlands (incl. head office) 25.0% 1.4% 25.0% 1.3%
Belgium 28.0% 27.1% 28.0% 27.1%
LNG
22.4% 4.4% 22.4% 4.4%
Total Vopak 23.3% 18.1% 23.3% 17.3%
The effective tax rate -excluding exceptional items- based on the proportional financial
information was 26.2% (2020: 27.9%). For more information, reference is made to
the Statement of income in the chapter Non-IFRS proportionate financial information.
Effects of the joint ventures and associates on the effective rate
As the Group extensively operates via investments in joint venture and associates,
which fall under the Dutch participation exemption, and of which the profits have
been taxed in the country of establishment while the net profits of these entities are
part of the EBIT(DA) of the Group, the effective tax rate of the Vopak Group is per
definition always lower than the weighted average tax rate of that of its subsidiaries.
To obtain a proper insight into the economic effective tax rate of the Group,
including the tax paid by the joint ventures and associates, reference is made to the
Non-IFRS proportionate financial information that is included in the Additional
information section.
Assurance on tax and tax related matters
We see taxation and/or tax related matters as an integral part of our business. In
this respect the Executive Board gives a full in-control statement in the Financial
Statements section of this Report of which taxation and tax related matters are an
integral part. Nonetheless, we find it valuable in light of being transparent to make a
separate tax in-control statement in this note.
The Executive Board confirms that:
• the internal risk management and control systems and processes of the Group
provide reasonable assurance that the tax items in our financial statements and
this note give a true and fair view of the Group’s tax position;
• there have been no material failings in the effectiveness of the internal risk
management and control systems and processes of the Group in relation to taxes.
In this respect, we refer to the note the Executive Board makes in its full in-control
statement in the Financial Statements section that similarly applies to this tax-
incontrol statement.
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Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Note 24. Participation and partnerships
Vopak participates in numerous forums, industry associations, think tanks and
research institutes, technical working groups, corporate networks and public-private
partnerships, at local, national, regional and international levels. These partnerships
and memberships help us to stay tuned to changing stakeholder demands and
societal needs, signal new laws and changing market conditions, share best
practice and learn from other individuals or organizations. They also allow us to
participate in international and national debates on policy issues, to contribute to
the energy and feedstock transition, for example, and to support our own internal
digital transformation.
New energies & innovation
Currently, we are participating in several feasibility studies to explore the potential of
hydrogen as a source of low-carbon energy for the industry and power sector in the
Netherlands and elsewhere, including through the H-vision project in Rotterdam and
the Institute for Sustainable Process Technology (ISPT). We are also a member of
the international Hydrogen Council, Hydrogen Europe, the European Clean
Hydrogen Alliance, the Dutch H2Platform,the Global CCS Institute (Americas), the
Ammonia Energy Association and the Getting to Zero Coalition (re marine fuels)
while exploring possible partnerships to develop new hydrogen supply chains, CO
2
infrastructure and services, new feedstocks and flow batteries.
We also engage in dialogues and studies about sustainability, climate change and
the energy and feedstock transition as part of the Clingendael International Energy
Program (CIEP), the International Energy Forum (IEF), the World Energy Council
(WEC) and the World Economic Forum (WEF).
In the field of innovation, our partnerships include SmartPorts, which supports the
port of Rotterdam in its ambition to develop into Europe’s leading port and
industrial complex of the future, as well as PortXL and iTanks, fostering innovation
in the port and accelerating startups.
We have set up Vopak Ventures to identify investment opportunities in start-ups
and scale-ups in new technologies and emerging value chains. For further
information, reference is made to chapters Sustainability and Data driven.
We value these platforms and partnerships, as we realize that they are becoming
increasingly important to keep our company relevant, healthy and fit for the future,
and help us deliver on our commitment to continue storing the vital products that
society will need tomorrow.
Industry associations
Our memberships of industry associations include, but are not limited to:
• The Dutch association of tank storage companies (VOTOB) that aim in particular
to lift industry safety and sustainability standards, as well as tank storage
associations in other countries; various national and regional associations of
the chemical, gas or petrochemical industries, like the European Petrochemical
Association (EPCA)
• Technical affiliations like the Chemical Distribution Institute - Terminals (CDI-T)
• The Engineering Equipment and Materials Users’ Association (EEMUA)
• The Nederlands Normalisatie Instituut which sets guidelines and technical
standards in the Netherlands (NEN)
• A sub-committee of the World Association for Waterborne Transport
Infrastructure (PIANC), where we helped design technical guidelines for
marine terminal infrastructure.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
External benchmarks
Participation in various benchmarks, as well as feedback from the organizations
behind them, also trigger reflection and action on sustainability topics. Although
benchmarks certainly have a clear added value, completing questionnaires requires
time and effort that cannot be devoted to other activities. We, therefore, decided to
limit our active participation to benchmarks that are either leading at a global level
or relevant in a local context (these are detailed in the table hereafter).
Benchmark Brief description Rating Strengths Weaknesses
Sustainalytics The ESG risk rating measures a company’s exposure
toindustry-specific material ESG risks and how well
acompany is managing those risks.
November 2021: 23.1
July 2020: 19.2
(0 = Low exposure, 50 = High exposure)
• Environmental performance
(carbon emissions &
environmental impact, land use &
biodiversity)
• Community relations
• Waste reduction
ISS ISS QualityScore is a data-driven scoring and screening
solution designed to help institutional investors (1) to
review a company’s governance quality and assess risk
and (2) to measure and identify areas of environmental
and social risk through company disclosure.
Score as per January 2021:
Environmental: 3 (Jan 2020: 2)
Social: 3 (Jan 2020: 2)
Governance: 2 (Jan 2020: 2)
(10 = High risk, 1 = Low risk)
• Audit & risk oversight
• Environmental risk &
opportunities
• Labor, health & safety
• Shareholder rights
• Waste & toxicity
CDP CDP represents institutional investors; its aim is to offer
transparent guidance to investors on climate-related
opportunities and risks for companies.
December 2021: C (climate), C (water)
December 2020: D (climate), C (water)
• No targets on reductions of GHG
emissions and waste
EcoVadis EcoVadis operates the first online platform providing
Supplier Sustainability Ratings for global supply chains
that enables companies to monitor the CSR
performance of their suppliers worldwide. EcoVadis
analyses CSR policy, implementation and performance
with respect to environmental and social aspects,
inthe area of ethics and supply chain responsibility.
December 2021: pending review
December 2020: 57
(rating scale: 0 – 100)
• Labor practices • No information on reporting on
sustainable procurement issues
• No third party due diligence on
ethicsissues
• Environmental fines during the past
5years
NL Transparency Benchmark The Transparency Benchmark is a biennial study by the
Ministry of Economic Affairs and Climate and the Dutch
Professional Association of Accountants (NBA) into the
transparency of corporate social reporting at Dutch
companies.
November 2021: 73 (scale 0 – 100)
November 2020: 74 (scale 0 – 200)
(0 = Low, 100 = High)
Bi annual
• Governance
• Communication on issues
• Environmental policies
• Stakeholder management
• Impacts of value creation
• Limited instead of reasonable
assurance
• Reporting on CO
2
in the supply chain
VBDO Tax The Dutch Tax Transparency Benchmark provides
an overview of Dutch stock listed companies’ fiscal
transparency and is based on the principles for good
tax governance. Each principle is further separated
into various elements and converted into measurable
criteria. These measurable criteria are tested against
publicly available information on tax payments.
October 2021: 27
July 2020: 26
(rating scale: 0 – 35)
• Define and communicate
a clear strategy
• Respect the spirit of the law.
Tax-compliant behaviour is
the norm
• Know and manage tax risks
• Disclosure of country-by-country tax
• Tax assurance
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Other topics
Note 25. EU Taxonomy
EU Taxonomy
The EU Taxonomy constitutes one of the cornerstones for both the European Green Deal as well as
the EU Action Plan on Sustainable Finance. The ultimate goal is to help shift the capital flow towards
more sustainable investments in the EU. However, to do so, a clear definition of what constitutes
“sustainable” is needed. And this is what the EU Taxonomy is aimed at – providing clear guidance on
when an activity can be deemed sustainable.
Reporting requirements
Vopak, subject to the Non-Financial Reporting Directive (‘NFRD’) via Part 9 of Book
2 of the Dutch Civil Code, is required to apply the Taxonomy Regulation for the
Annual Report 2021.
The first Delegated Act concerning the technical screening criteria for economic
activities with significant contribution to climate change mitigation and adptation
(the ‘Climate Delegated Act’) was adopted on 4 June 2021 and is effective as of
1January 2022. Therefore, for the Annual Report 2021, Vopak disclosed the
proportion of Taxonomy-eligible and Taxonomy non-eligible economic activities of
the total revenues, capital and operational expenditures related to climate change
mitigation and climate change adaptation.
Basis of preparation
For sustainability reporting purposes, Vopak consolidates data from its headquarters,
division offices and those entities under its operational control and from entities
that report voluntarily although they are not under our operational control. This
means that all subsidiaries and joint ventures & associates over which Vopak has
operational control are included in the scope of notes 4 - 24 on a 100% basis
despite the actual shareholding percentage.
On the contrary, the EU Taxonomy includes reporting of entities which are
consolidated in the Group’s Financial Statements in line with the requirements
of IFRS 10. As such the EU Taxonomy reporting scope is limited to subsidiaries.
Joint ventures and associates are not included for EU Taxonomy purposes as no
revenues, opex and capex are shown in the Consolidated Financial figures,
because of accounting under the equity method for these types of investments.
However, after release of additional guidance, non-financial undertakings like Vopak,
may disclose additional KPIs based on revenues, capex and opex that include
investments in equity accounted in joint ventures and associates, pursuant to IAS
28, on a pro rata basis corresponding to their share in the equity of the joint
venture. As the Vopak Group consists of a relatively high number of joint ventures
and associates, information is reported both including and excluding the
proportional consolidation of subsidiaries, joint ventures and associates.
Other matters of interest are the following:
IFRS 9 - Equity investments measured against fair value through other comprehensive income (FVOCI):
In addition to joint ventures and associates, Vopak Group has investments in the equity of other entities
which do not classify as either a subsidiary, joint venture or associate. The Taxonomy regulation currently
does not include these types of investments and capital allocated to these investments is thus excluded.
In 2021 an amount of EUR 7.2 million was invested in equity investments that perform hydrogen-related
economic activities.
IFRS 16 - Lessor accounting for finance leases: Lessor accounting for finance leases is applicable to some
arrangements within the Vopak Group. In case of lessor accounting, Vopak recognizes a finance lease
receivable and interest income over time rather than recording PP&E, revenues and depreciation. As such,
the revenue and capex KPI are affected by this IFRS 16 accounting treatment. While the substance of our
services provided are the same, we believe that this may lead to an incorrect representation of the revenue
and capex KPIs under the Taxonomy. Given that no guidance is identified in the regulations and the
complexity that comes with reversing lessor accounting, the 2021 financial figures were not adjusted.
Operating expenses: Annex I of the Delegated Act July 2021 defines operating expenses as ‘direct
non-capitalized costs that relate to research and development, building renovation measures, short-term
lease, maintenance and repair, and any other direct expenditures relating to the day-to-day servicing of
assets of property, plant and equipment by the undertaking or third party to whom activities are
outsourced that are necessary to ensure the continued and effective functioning of such assets’. Therefore
the operating expenses include the ‘personnel expenses’ as well as ‘other operating expenses’ as reported
in the Consolidated and Proportional Financial Statements.
Vopak Annual Report 2021
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123
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Other topics
Other topics
Below the results of our Taxonomy assessment are reported:
Activity Code Activity category
Performance
IFRS Consolidated Financial Statements
Performance
Non-IFRS proportional nancial information
Revenues Opex Capex Revenues Opex Capex
Climate change mitigation
Hydrogen & ammonia
Storage of ammonia
4.12/ 3.15
Own performance
Enabling activity
8 1% 1 0% – 0% 11 1% 5 1% 32 5%
Biofuels
Biofuels storage services
1
4.13 Enabling activity 50 4% 19 3% 20 4% 50 3% 19 2% 20 3%
LNG
LNG storage services
1,2
n.a. Transitional activity – 0% 11 2% – 0% 152 9% 58 7% 18 3%
Business development
(Flow) batteries 4.10 Own performance – 0% 0 0% – 0% – 0% – 0% – 0%
CO
2
capture and storage 5.10/12/9.12 Own performance – 0% 1 0% – 0% – 0% 1 0% – 0%
Hydrogen & ammonia 4,12 Own performance – 0% 1 0% – 0% – 0% 1 0% – 0%
Energy effiency measures
Energy effiency measures
3
n.a. Own performance n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Climate change adaptation
Not in scope
4
n.a. Enabling activity n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Taxonomy-eligible 58 5% 35 5% 20 4% 213 13% 84 10% 70 11%
Taxonomy-eligible (excluding LNG) 58 5% 23 4% 20 4% 61 4% 26 3% 52 8%
Total Revenues - Opex - Capex 1.228 629 518 1.665 800 640
Reporting against EU Taxonomy is new for all companies, with the added complexity that not all of the regulation has been published yet. As multiple understandings and interpretations may exist on how to apply the EU Taxonomy, Vopak’s
interpretations have been explained below:
1. Storage and infrastructure services biofuels & LNG: Our services have the objective of enabling a substantial reduction of GHG emissions in another sector of the economy. Both biofuels and LNG can only be stored in dedicated specific tanks
and related infrastructure; storage facilities/tanks are not interchangeable. For biofuels, this is also corroborated by the fact that, for a large part of our biofuels services, specific certification is required before storage activities can be performed
by Vopak. Therefore these activities were identified as enabling activities.
2. Inclusion of LNG: Natural gas is at the heart of a heated debate over whether it should be included in the Taxonomy as a transitional Taxonomy aligned activity for climate change mitigation. The Climate Delegated Act neither includes nor
excludes gas. Instead, it was decided to postpone a decision until further technical assessment was performed. On February 2, 2022 a Complementary Climate Delegated Act was published which now includes gas-related activities.
Herewith, the Act recognizes the role that certain energy activities can play in supporting decarbonization, for a limited period of time, until better alternatives based on renewable or low-carbon technologies are sufficiently developed. As the
Complementary Climate Act is not yet formal, our 2021 disclosures are shown both including and excluding LNG activities with the purpose of providing transparent and complete disclosures.
3. Energy efficiency measures: Purchase of outputs of Taxonomy-eligible activities is not by definition Taxonomy-eligible. The purchase of Taxonomy-eligible output is only eligible when it can be reported as one of the various types of Capex
described in Annex I to the Disclosures Delegated Act (Section 1.1.2.2). Our interpretation of Section 1.1.2.2. (category III) is that only energy efficiency measures related to target activities can be included. This implies that energy measures
taken at, for example, chemical storage facilities are non-eligible. For the Annual Report 2021, the approach was taken to not report any eligible capex and opex from energy efficiency measures despite the fact that various measures were
undertaken in 2021. Another interpretation or reasoning, that was not applied in the Annual Report 2021, may be that as the nature of Vopak’s business is (at least partly) similar to real estate, energy efficiency measures for our storage
services may well opt for inclusion (economic activity 7.3 - 7.6).
4. Climate change adaptation: As climate change is likely to affect all sectors of the economy, all sectors will need to be adapted to the adverse impact of the current climate and the expected future climate. Despite this fact, the current
Taxonomy only allows for inclusion of climate change adaptation activities if these are related to the economic activities that are covered by the technical screening criteria for climate change mitigation. As such, for the Annual Report 2021 no
eligible activities were identified.
The EU Taxonomy regulation developments will be closely monitored to ensure transparent and complete disclosures, also in future years.
Vopak Annual Report 2021
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124
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Governance,
risk & compliance
126 Supervisory Board report
133 Supervisory Board members
134 Executive Board members
135 Remuneration report
152 Corporate Governance
157 Corporate Governance statement
160 Riskmanagement &internalcontrol
174 Shareholder information
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
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125
Governance, risk & compliance
Governance, risk & compliance
Supervisory Board report
Supervision
The Supervisory Board oversees and advises the Executive Board in performing
its management tasks and guides the company’s operational and financial
development. In performing their duties, the members of the Supervisory Board
are guided by the interests of Vopak and all its stakeholders.
During 2021 the Supervisory Board held seven regular meetings and two extra
meetings. One meeting was held face-to-face and eight meetings via video
conference due to the Covid-19 restrictive measures. All regular meetings were
held jointly with the full Executive Board present. All plenary sessions of the
Supervisory Board were accompanied by an executive session with the CEO in
attendance and by a session held solely between the members of the Supervisory
Board. Between meetings, the Chairman of the Supervisory Board had regular
contact with the CEO to discuss the current state of affairs of the company and to
prepare for meetings, as was the case for the Chairman of the Audit Committee
with the CFO.
In 2021, the average attendance at the regular and additional meetings combined
was 96.3%.
Strategy is one of the Supervisory Board’s main priorities and is an integral part of
its considerations and decision making processes. In 2021, a session spread over
two days was fully dedicated to discuss the execution of the Vopak strategy with
the Executive Board centering around growth, autonomous performance,
competitive efficiency and the application of innovative technologies aimed at
long-term value creation. Other topics discussed during the strategy session were
sustainability, transformation programs for certain hub locations, sustaining capex
programs next to the opportunities pursued in new energies and digital innovations.
By means of an in-depth and permanent dialogue, the Supervisory Board is
constantly involved in developing, regularly monitoring and evaluating the
company’s strategy. For instance, new business opportunities are always assessed
against their strategic rationale and the principal risks both for the short and long-
term are evaluated thoroughly. Choices proposed by management can thereby be
challenged and the underlying arguments weighed against each other.
Sustainability is an important driver for the strategy. This year the Supervisory Board
considered the sustainability roadmap that lays down the ESG topics in focus for
the company. It provides a good framework to further integrate sustainability and
care for the environment into how the business is run and for instance how to take
investment decisions. In this way the company remains a responsible member of
society, being mindful of the potential impact of the business activities on people’s
safety and health and on the environment. Safety is an ESG topic that has first and
foremost priority and ample time is spent on this topic in the Supervisory Board
meetings. This is also the case for diversity and human rights. Vopak is a
multicultural company that keeps striving for a workforce that is diverse and
includes people from different cultures, nationalities and beliefs. The standards on
human rights and decent work are laid down in Vopak’s Code of Conduct. The
company aspires to play an active role in the energy and feedstock transition and
become climate neutral by 2050 by constantly reducing its environmental footprint
and lowering its emissions of greenhouse gases. This ambition of the company is
laid down in a comprehensive plan with a CO
2
reduction target of 30% versus 2021
to be achieved in the year 2030.
The Supervisory Board approved the strategy as being effectuated by the Executive
Board. The fundamentals of the current strategy are considered still valid and a
refined look has been taken to determine the strategy ambitions for the period after
2021. In executing the strategy, the company will make clear choices while
continuing to allocate the available capital in the right manner and to the right
locations. The Destination 2030 process has started to determine the strategic view
on the coming decade and formulate the strategy going forward.
Vopak Annual Report 2021
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126
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Supervisory Board report
Supervisory Board report
During its 2021 meetings, the Supervisory Board discussed a number of recurring
topics at each meeting including the company’s operational and financial
performance, the financing of the company and succession planning for senior
management. The Supervisory Board discussed and approved the 2022 budget,
quarterly reports and numerous investment proposals related to greenfield projects,
expansions at several existing locations and acquisition opportunities. An important
attention point this year was the new partnership with Aegis in India with the aim
to grow together in the LPG and chemicals storage and the contract awarded by
ExxonMobil for a greenfield industrial terminal in China. The Supervisory Board
also reviewed the progress of ongoing projects and the portfolio of new projects.
During the year, several representatives of senior management were invited to
give presentations to the Supervisory Board.
An important development this year was the succession of both the CEO and
CFO. After having served 11 years as Chairman of the Executive Board and
CEO, EelcoHoekstra was succeeded by Dick Richelle as per 1 January 2022.
MichielGilsing was nominated incoming CFO and member of the Executive Board
as per the date of the AGM scheduled for 20 April 2022. At the same time
FritsEulderink was nominated for a next term as COO and member of the
Executive Board. The Supervisory Board would like to thank Eelco Hoekstra and
Gerard Paulides for their individual contributions made to Royal Vopak and wish
both of them the very best for their future.
The global economic contraction caused by the Covid-19 pandemic has impacted
the company in many ways. Since the start of the pandemic, the developments
have been closely monitored. There were limited consequences for the operations
with no significant disruptions to business continuity, confirming the relative
resilience of the company to the crisis. Overall the existing governance structure of
the company continued to work well. The Supervisory Board was able to uphold the
quality and effectiveness of the collaboration throughout the year, despite the fact
that it was possible to only hold one physical meeting and the usual annual site
visit had to be cancelled.
External auditors were present at two meetings of the Supervisory Board in which
the annual results and half-year results were discussed. The interim report and
auditor’s report issued by the external auditors were reviewed during these
meetings. The minutes of all the meetings of the Audit Committee, Remuneration
Committee and the Selection and Appointment Committee were shared with and
reviewed by the Supervisory Board.
The Supervisory Board discussed the operation of the company’s risk management
and control systems. In the absence of the Executive Board members, the
Supervisory Board discussed the performance of the Executive Board and
theproposal by the Remuneration Committee for the remuneration of the
Executive Board.
The Supervisory Board evaluated its own performance in 2021 and that of its
committees. In preparation and as part of the self-assessment procedure, each
member completed a questionnaire. Observations in regard to the functioning of
the Supervisory Board, its relationship with the Executive Board and other
stakeholders of the company were hereby taken into account. This was discussed
and assessed by the Supervisory Board. Main topics and conclusions of the
evaluation related to the effectiveness of the Supervisory Board in fulfilling its tasks,
the effectiveness of the committees and of the individual members. Where
necessary appropriate actions were taken. The relationship with the Executive Board
and engagement with the organization were also included in the evaluation process.
The outcome of the evaluation process showed that it meets the governance
requirements. The self-assessment gives insight in how the Supervisory Board
effectively functions and contributes to the corporate decision making process.
Certain boardroom challenges were identified in the self-assessment that can
further improve the performance of the Supervisory Board and that will encourage
and support the Executive Board in its efforts to create an inclusive and safe culture
throughout the organization.
Vopak Annual Report 2021
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127
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Composition of the Supervisory Board
The Supervisory Board currently comprises six members: Mr Noteboom (Chairman),
Mr Groot (Vice-Chairman), Mrs Foufopoulos - De Ridder, Mrs Giadrossi, Mr Hookway
and Mr Van der Veer. At the AGM held on 21 April 2021, Mr Richard Hookway was
appointed as a member of the Supervisory Board for a term of four years. As per the
same date and in accordance with the resignation schedule, Mr Zwitserloot stepped
down from the Supervisory Board.
For more information about the Supervisory Board members, reference is made to
the Supervisory Board members paragraph in this report.
The Supervisory Board recognizes its own role in the company’s corporate
governance structure, with members receiving updates and information to
adequately fulfill their roles and responsibilities. Ongoing education is an important
part of good governance. As part of the induction program, new members of the
Supervisory Board visit various terminal locations and meet with divisional and local
management. They also attend induction sessions at which they are informed about
financial, reporting, internal audit, HR, commercial and business development, IT,
legal and governance related affairs. The induction program for Mr. Hookway is
experiencing delays because of the Covid-19 restrictions.
All Supervisory Board members, except for one, as permitted by the Code, qualify as
independent in the meaning of best practice provision 2.1.7 of the Dutch Corporate
Governance Code. Mr Groot does not satisfy all independence criteria. If a member
of the Supervisory Board has a direct or indirect personal conflict of interest with
Vopak, such member will not participate in the deliberations and the decision-making
of the Supervisory Board on the matter concerned.
The Supervisory Board has three committees: the Audit Committee, the Selection
and Appointment Committee and the Remuneration Committee. Their roles are
described below in more detail. The committees generate, review and discuss
detailed information and prepare recommendations relating to their specific areas
while the full Supervisory Board retains overall responsibility and always takes the
final decisions. In each case, the Committee Chair reports the Committee’s main
considerations and findings to the full Supervisory Board, usually immediately after
the relevant Committee meeting.
The Audit Committee assists the Supervisory Board in its responsibility to oversee
Vopak’s financing, financial statements, financial reporting, compliance and system
of internal business controls, risk management and audit findings. Non-financial
topics are also reviewed as part of risk management including whistleblower cases.
The Remuneration Committee primarily makes recommendations regarding the
remuneration and the remuneration policy of the Executive Board and the
Supervisory Board.
Audit Committee
The Audit Committee met five times in 2021. The attendance rate was 100%. All
meetings were attended by the CFO, the Global Finance Director and the Global
Director Internal Audit.
The external auditor was also present at all of these meetings. The Audit Committee
discussed with the external auditor at the end of the meetings for the half year and
full year, without management being present, its assessment of Vopak’s activities,
risk assessment and internal control systems as well as collaboration with the
Executive Board and the organization.
A core task of the Audit Committee was to extensively review the financial reports
and the budget before consideration by the full Supervisory Board. The Audit
Committee also discussed topics related to Vopak’s financing structure, analyses
of the financial ratios, pensions, status of legal claims and proceedings, tax matters,
sustainability, IT and cyber security, fraud and whistleblowing reports, reports on
the risks associated with the company’s operational, commercial, financial and other
activities, compliance matters as well as the company’s management reporting.
It also discussed the dividend proposal, The company’s views on notifications from
Dutch corporate governance platform organizations were also reviewed.
Vopak Annual Report 2021
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128
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
The Audit Committee considered the 2021 audit plan of the external auditor and the
Internal Audit department’s plan for 2022. Both audit plans were approved by the
Supervisory Board. The main topics of the external audit plan include the materiality
levels, the audit scope, the key audit risks and the key elements of the audit
approach as well as the auditor’s assessment of the risk of fraud within the
company. The audit reports from Internal Audit performed during 2021 and the
progress realized in implementing recommendations from audits, were also
considered. The Audit Committee reviewed the risk management and internal
control processes. No significant changes to the internal risk management and
control systems were made during the year under review. It discussed the
recommendations in the management letter and the relationship with the external
auditor. Deloitte Accountants B.V. was nominated as the external auditor of the
company to audit the annual statements of the company for the financial year
ending 31 December 2022.
The Audit Committee monitored the independence of the external auditor. During
2021, non-audit services were not provided by the group’s external auditor but only
audit or audit-related services were provided. The performance of the external
auditor was assessed by the Audit Committee itself in which process satisfaction
survey was used as conducted among the divisions, operating companies and
relevant global functions. This assessment included a consideration of the quality of
the audit work, the expertise and composition of the audit team, the audit fee and
the quality control within the audit firm.
Finally, the Audit Committee assessed its own performance throughout the year
and its regulations, supported by an extensive questionnaire that was discussed by
the Audit Committee members. The Audit Committee’s performance met the
requirements in all areas. During 2021, Mr Van der Veer acted as financial expert.
Selection and Appointment Committee
The Selection and Appointment Committee is primarily tasked with advising on
candidates to fill vacancies in both the Executive Board and the Supervisory Board.
An important activity of the Selection and Appointment Committee is also
succession planning of senior management up to and including the members
of the Executive Board. The Selection and Appointment Committee met three times
in 2021, two regular meetings and one extra meeting.
The attendance rate was 100%. During its meetings the Selection and Appointment
Committee discussed various relevant topics in detail. This includes diversity-related
topics to ensure that the composition of both Boards represents a good balance in
terms of diversity (including experience, gender, and nationality). Diversity in a
broad sense continues to be a topic on the Supervisory Board agenda and is
therefore discussed by the Selection and Appointment Committee on a regular
basis. In line with the company’s diversity program, the Supervisory Board supports
the efforts of the company to strive for a global workforce that is a reflection of
society and to create a working environment where all employees feel included.
As part of its regular activities, the Selection and Appointment Committee
discussed extensively, among others, the rotation schedule, the future composition
of the Supervisory Board and the specific profiles of the Supervisory Board
members. In 2021 the members of the Selection and Appointment Committee
performed on behalf of the Supervisory Board an evaluation of the effectiveness
of the Executive Board members both individually as well as performing as a team
in leading the company and implementing the strategy. This evaluation was
performed in consultation with the Executive Board members and based on the
Supervisory Board members’ own knowledge and opinions. The conclusion of this
evaluation was positive and no major actions were considered necessary in view of
the conclusions of the evaluations which conclusion was supported by the full
Supervisory Board.
The recruitment process makes use of the specific profiles for the various positions
within the Executive Board and the Supervisory Board. These profiles are drawn up
against the background of the full Executive and Supervisory Board’s profile. These
profiles take into account the specific nature of the company, its stakeholders and
its activities.
The desired expertise and background relating to economic, environmental and
social topics are also considered. The process is aimed at maintaining a composition
consisting of a well-balanced mix of competencies and experienced professionals
Vopak Annual Report 2021
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129
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
who deal with key areas in an appropriate manner. External search agencies are
being engaged for the fielding of candidates for succession and nomination.
The attendance rate was 100%. During its meetings the Selection and Appointment
Committee discussed various relevant topics in detail. This includes diversity-related
topics to ensure that the composition of both Boards represents a good balance in
terms of diversity (including experience, gender, and nationality). Diversity in a
broad sense continues to be a topic on the Supervisory Board agenda and is
therefore discussed by the Selection and Appointment Committee on a regular
basis. In line with the company’s diversity program, the Supervisory Board supports
the efforts of the company to strive for a global workforce that is a reflection of
society and to create a working environment where all employees feel included. As
part of its regular activities, the Selection and Appointment Committee discussed
extensively, among others, the rotation schedule, the future composition of the
Supervisory Board and the specific profiles of the Supervisory Board members. In
2021 the members of the Selection and Appointment Committee performed on
behalf of the Supervisory Board an evaluation of the effectiveness of the Executive
Board members both individually as well as performing as a team in leading the
company and implementing the strategy. This evaluation was performed in
consultation with the Executive Board members and based on the Supervisory
Board members’ own knowledge and opinions. The conclusion of this evaluation
was positive and no major actions were considered necessary in view of the
conclusions of the evaluations which conclusion was supported by the full
Supervisory Board.
The recruitment process makes use of the specific profiles for the various positions
within the Executive Board and the Supervisory Board. These profiles are drawn up
against the background of the full Executive and Supervisory Board’s profile. These
profiles take into account the specific nature of the company, its stakeholders and
its activities.
The desired expertise and background relating to economic, environmental and
social topics are also considered. The process is aimed at maintaining a composition
consisting of a well-balanced mix of competencies and experienced professionals
who deal with key areas in an appropriate manner. External search agencies are
being engaged for the fielding of candidates for succession and nomination.
Remuneration Committee
The Remuneration Committee met four times in regular meetings in 2021. The
attendance rate was 91.7%. In addition, the Committee held regular informal
consultations and consulted professional internal and external advisors. For the
following topics that recur annually, proposals were developed and submitted to
the Supervisory Board for approval:
• The annual base salary and variable pay opportunities in 2022;
• The key performance indicators and target setting for the 2022 short-term
incentive plan and the 2022 - 2024 long-term incentive plan;
• The actual short-term incentive for 2021; and
• The vesting of the long-term incentive plan 2018 – 2020.
The remuneration policies for the Executive Board and the Supervisory Board are
designed in a manner that is reflective of the Vopak values and to ensure alignment
with the company’s stakeholders interests and expectations. The Remuneration
Committee reviewed these policies during 2021 and no material changes were
made to these two remuneration policies.
As part of this review, the Remuneration Committee conducted its annual
comprehensive and in-depth analysis of the total compensation levels and individual
components thereof. The Remuneration Committee took into consideration various
benchmarks and other market data, as well as information on pay developments of
senior management of the company.
For the remuneration policies and the proposals for the remuneration of the
individual Executive Board members, the Remuneration Committee took into
account the applicable legal requirements, the Dutch Corporate Governance Code
and other relevant remuneration governance requirements and shareholders
views. The Remuneration Committee took note of the views of the individual
ExecutiveBoard members on the structure and amount of their total remuneration.
The Remuneration Committee also took notice of the views of other stakeholders,
Vopak Annual Report 2021
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130
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
such as customers, suppliers, business partners, authorities, the works council of
Koninklijke Vopak N.V. and employees in general.
The policy review resulted in a decision to adjust the Supervisory Board fees which
were lastly determined in 2017, going forward for 2022 and beyond. With regard to
the other aspects of the Executive Board and Supervisory Board remuneration
polices, taking into account the approval rate for the current remuneration policies
at the Annual General Meeting in 2020 and the feedback shared by investors and
other shareholders as well as Vopak’s works council, these policies are kept
materially unaltered going forward. Nevertheless, the review opportunity was used
to further clarify and elaborate these policies within their boundaries. With respect
to the short-term incentive plan 2021 and the long-term incentive plan 2021−2023,
the Remuneration Committee proposed to largely maintain the set-up.
The 2021 and proposed 2022 remuneration packages of the Executive Board are
well-positioned against relevant peers and:
• have a focus on long-term value creation
• take into account the internal pay ratios within Vopak on a total remuneration basis
• are reflective of the outcomes of scenario analyses carried out to validate
payout results.
For further details on the actual remuneration during 2021 and the shareholding
positions of the Executive Board and the Supervisory Board, reference is made to
the Remuneration report. For further details on the remuneration policies, reference
is made to the Vopak website.
Rotterdam, 15 February 2022
The Supervisory Board
B.J. Noteboom (Chairman)
M.F. Groot (Vice-Chairman)
L.J.I. Foufopoulos – De Ridder
N. Giadrossi
R.M. Hookway
B. van der Veer
Vopak Annual Report 2021
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131
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
2021 attendance at regular Supervisory Board and committee meetings for
the appointment period
Member
Supervisory
Board
Audit
Committee
Selection &
AppointmentCommittee
Remuneration
Committee
B.J. Noteboom 100% 100%
M.F. Groot 100% 10 0% 100%
L.J.I. Foufopoulos – De Ridder 85.7% 100% 75%
N. Giadrossi 100% 100% 100%
R.M. Hookway 100% 100%
B. van der Veer 85.7% 100%
R.G.M. Zwitserloot 10 0% 100%
Vopak Annual Report 2021
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132
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Supervisory Board members
Mr. Ben Noteboom (Chair)
Chair of the Selection and Appointment Committee and Member of the
RemunerationCommittee
Mr. Ben Noteboom (Dutch, 1958) was previously CEO of Randstad Holding N.V.
Mr. Noteboom was first appointed to the Supervisory Board on 20 April 2016.
Hiscurrent term ends in 2024. He is a member of the Supervisory Board of
AegonN.V. He is also chairman of Stichting Prioriteit Ordina Groep and board
member of the Amsterdam Cancer Center. He owns 3,500 Vopak shares.
Mr. Mel Groot (Vice-chair)
Member of the Audit Committee and Member of the Selection and
Appointment Committee
Mr. Mel Groot (Dutch, 1959) is Chairman of the Executive Board of HAL Holding N.V.
Mr. Groot was first appointed to the Supervisory Board on 18 December 2014.
His current term ends in 2022. Mr. Groot is a member of the Supervisory Board
of Anthony Veder Group N.V. and he is the chairman of the Board of Chile Holding
Optico S.A the holding company of Rotter y Krauss Lta. Mr. Groot is also a
Non-Executive Director of Safilo Group SpA. Mr. Groot does not own any Vopak shares.
Mrs. Lucrèce Foufopoulos - De Ridder (Member)
Member of the Audit Committee and Member of
the Remuneration Committee
Mrs. Lucrèce Foufopoulos – De Ridder (Belgian, 1967) is currently member of the
Executive Board of Borealis AG as Executive Vice President Polyolefins and
Innovation & Technology. Mrs. Foufopoulos – De Ridder was first appointed to the
Supervisory Board on 18 April 2018. Her current term ends in 2022. She is member
of the Supervisory Board of Borouge Pte. Ltd. She does not own any Vopak shares.
Mrs. Nicoletta Giadrossi (Member)
Chair Remuneration Committee
Member of the Audit Committee
Mrs. Nicoletta Giadrossi (Italian, 1966) was President of Technip Europe, Africa
India, and Executive VP/Head of Operations Aker Solutions Asa. Mrs. Nicoletta
Giadrossi was first appointed to the Supervisory Board on 17 April 2019. Her
current term ends in 2023. She is Chair of the Board of Cairn Energy plc and Chair
of the Board of Ferrovie dello Stato Italiane. She is also Senior Advisor of Bain
Capital Partners and Chair of TecHouse A.S. in Norway. She does not own any
Vopak shares.
Mr. Ben van der Veer (Member)
Chair of the Audit Committee
Mr. Ben van der Veer (Dutch, 1951) was previously Chairman of the Executive Board
of KPMG N.V., until September 2008. Mr. Van der Veer was first appointed
totheSupervisory Board on 18 April 2018. He is board member of Stichting
Preferente Aandelen Heijmans. His current term ends in 2022. He does not own
any Vopak shares.
Mr. Richard Hookway (Member)
Member of the Audit Committee
Mr. Richard Hookway (British, 1961) is currently a non-executive board member of
Parkland Corp. and of the UK Atomic Energy Authority. He is also a member of the
board of trustees of the British Council and is the Chair of Swim England. Previously
he held positions as a board member of Centrica plc and Chief Executive Officer of
Centrica Business and prior to that various executive positions at BP, including
serving as Group Chief Operating Officer for Global Business Services and IT and
CFO BP Downstream. Mr. Hookway was first appointed to the Supervisory Board
on 21 April 2021. His current term ends in 2025. He does not own any Vopak shares.
Vopak Annual Report 2021
|
133
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Supervisory Board members
Supervisory Board members
Executive Board members
Dick Richelle
Chairman Executive Board and CEO, Royal Vopak (as per 01-01-2022)
Nationality Dutch
Year of birth 1970
Education Master’s Degree in Business Economics
Career Dick Richelle started his career with Royal Vopak in 1995 as a management
trainee. He brings over 25 years of experience and in-depth knowledge of the
business activities of Royal Vopak having served in a variety of management roles in
Latin America, Europe and as Head of Investor Relations. The last 12 years he led
the Vopak divisions Americas and Asia & Middle East as President and most
recently headed the Global Commercial and Business Development department.
Eelco Hoekstra
Chairman Executive Board and CEO, Royal Vopak (until 31-12-2021)
Nationality Dutch
Year of birth 1971
Education Master’s Degree in Economics
Career Eelco Hoekstra has over twenty five years of experience in the international
tank storage industry and joined Vopak in 2003. At Vopak, he held various
management positions in the Middle East, Latin America and Asia. Eelco Hoekstra
was President of Vopak Asia until his appointment to the Executive Board in
November 2010. He has been Chairman of the Executive Board and Chief Executive
Officer of Royal Vopak since January 2011.
Gerard Paulides
Member of the Executive Board and CFO of Royal Vopak
Nationality Dutch
Year of birth 1963
Education Master’s Degree in Business Economics
Career Gerard Paulides joined Vopak in 2017. He previously worked at Royal Dutch
Shell as Executive Vice President and was a member of the Board of Directors of
Shell Midstream Partners. Gerard Paulides has a track record as CFO by fulfilling
several leadership roles in investor relations, finance and mergers & acquisitions in
the gas, chemicals and oil industry. He has been a member of the Executive Board
and Chief Financial Officer of Royal Vopak since February 2018.
Frits Eulderink
Member Executive Board and COO, Royal Vopak
Nationality Dutch
Year of birth 1961
Education PhD in Astrophysics and two cum laude Master’s Degrees in
Mathematics and in Astronomy
Career Frits Eulderink joined the Royal Dutch Shell Group in 1990, where he held
various technical and management positions in the Netherlands, North America,
Africa and the Middle East, including in the fields of Research, Manufacturing,
Exploration and Production. Until the end of 2009, Frits Eulderink was Vice-
President Unconventional Oil in Houston (United States). He has been a member of
the Executive Board and Chief Operating Officer of Royal Vopak since April 2010.
Vopak Annual Report 2021
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134
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Executive Board members
Executive Board members
Remuneration report
Letter of the chair of the remuneration committee
Dear shareholders,
On behalf of the Supervisory Board and the Remuneration Committee, I present
you this 2021 Remuneration Report. We have taken into account feedback received
at the last AGM session on incentive compensation disclosure for the Executive
Board, and have made our report clearer.
2021 was a dynamic year for Vopak. Several changes in the Boards’ composition
took place. Richard Hookway was appointed, and I succeeded Rien Zwitserloot as
Chair of the Committee. The Executive Board composition is also changing with the
arrival of Dick Richelle and Michiel Gilsing. Additionally, it was decided to nominate
Frits Eulderink for re-appointment for the next 4 years at the upcoming Annual
General Meeting.
The year ahead contains many promises and challenges. Vopak has shown
resilience and capacity to adapt to the instability given by the COVID-19 pandemic.
Vopak also worked on enhancing clarity on the company’s longer-term strategic
sustainability agenda which will be led by our new CEO. The strategic Sustainability
Roadmap will become part of the Executive Board incentive compensation KPIs.
In 2022, the Committee will seek to continue the alignment and transparency
between our remuneration policies, incentive remuneration, company results, and
the larger societal contribution of Vopak. Personally, I would like to thank you as
shareholders for your continued support, and I am looking forward to further
engagement with you in the coming years.
Nicoletta Giadrossi
Chair of the Remuneration Committee
This section of the Annual Report provides an overview of the implementation of
Vopak’s remuneration policies for the members of the Executive Board and the
Supervisory Board during 2021, as well as the Vopak’s remuneration policies for the
members of the Supervisory Board and the Executive Board going forward.
This Directors’ Remuneration Report for 2021 has been prepared in accordance
with relevant Dutch corporate governance and legal requirements. The Supervisory
Board approved this report. This report contains 2 main sections:
• the Annual Report on Remuneration, describing the implementation of the
company’s Board Remuneration Policies applicable in 2021 and the details of the
2021 Executive Board and Supervisory Board remuneration packages; and
• the company’s Supervisory Board and Executive Board remuneration policies for
2022 and beyond.
The implementation of the company’s remuneration policy in 2021 and the details
of the 2021 Executive Board and Supervisory Board remuneration packages as
described in the section ‘Annual Report on Remuneration’ of this Remuneration
Report will be put forward for an advisory vote to the General Meeting on 20 April
2022. The Supervisory Board remuneration policy for 2022 and beyond will be put
forward for approval to the General Meeting on the same date.
The annual report on remuneration
This section of the Remuneration Report describes the implementation of the
company’s Board Remuneration Policies applicable in 2021 and the details of the
2021 Executive Board and Supervisory Board remuneration packages.
Board composition in 2021
Rien Zwitserloot stepped down as member of the Supervisory Board on 21 April,
2021, while Richard Hookway joined Vopak as member of the Supervisory Board on
that same date. Following the announcement on 20 October, 2021, and the
Vopak Annual Report 2021
|
135
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Remuneration report
Remuneration report
Extraordinary General Meeting on 17 December, 2021, Eelco Hoekstra stepped
down as CEO and member of the Executive Board on 31 December, 2021. Following
the announcement on 10 December, 2021, Gerard Paulides will step down as CFO
and member of the Executive Board on 20 April, 2022. For further details on the
composition of the Supervisory Board and the Executive Board during 2021 reference
is made to pages 133 and 134 in the Governance section of this Annual Report.
Voting results at the 2021 General Meeting
During the Annual General Meeting on 21 April 2021, the implementation of the
company’s remuneration policy in 2020, as disclosed in the Remuneration Report of
the company’s 2020 Annual Report, was presented to the company’s shareholders
for an advisory vote. The voting result was 78.70% in favor.
Executive Board Remuneration in 2021
During 2021, the Executive Board remuneration policy was executed in line with
the resolutions adopted at the Annual General Meeting in April 2020.
No deviation or derogation was applied. Neither was any claw back applied to (variable)
compensation provided to individual Executive Board members in earlier years.
2021 Executive Board total remuneration
The table on the next page shows the total 2021 remuneration to which each
member of the Executive Board was entitled, as well as the break-down in
components. Also the related costs for the company (as recognized in the 2021
Consolidated Statement of Income) are shown.
Executive Board Remuneration - components
2021 individual remuneration packages for Executive Board members are designed
in a manner that ensures external competitiveness and internal consistency. Their
2021 remuneration packages are comprised of the following main elements:
• Annual base salary.
• Short-term variable compensation; an annual cash-based incentive opportunity
related to the achievement of financial and non-financial targets for the year
(1-year performance period).
• Long-term variable compensation; a share-based incentive opportunity related to
the achievement of financial and strategic targets during a three-year
performance period.
• Pension arrangements.
Eelco Hoekstra left the company on 31 January 2022 as a result of his (reduced)
notice period which will end on that date. In 2021, he continued to bepaid in line
with Vopak’s Executive Board remuneration policy until the end of hisservice on 31
December, 2021. In January 2022, he received the fixed part of his package only.
Governed by the Executive Board Long-Term Incentive Plan Rules andthe
discretionary decision by the Supervisory Board, Eelco Hoekstra remains eligible for
full vesting of the unvested performance shares granted conditionally tohim under
the Executive Board Long-Term Share Plans 2019 – 2021, 2020 – 2022 and 2021 –
2023; no accelerated vesting applies.
Gerard Paulides will continue to be paid in line with Vopak’s Executive Board
remuneration policy until the end of his scheduled Board appointment on 20 April,
2022. From April 21until 30 June, 2022, he will receive the fixed part of his package
only. Governed bythe Executive Board Long-Term Incentive Plan Rules and the
decision by the Supervisory Board, Gerard Paulides remains eligible for full vesting
of the unvested performance shares granted conditionally to him under the
Executive Board Long-Term Share Plans 2019 – 2021, 2020 – 2022 and 2021 –
2023; no accelerated vesting applies.
Under IFRS, the costs that occur after the termination of their Board appointment,
i.e. after the date of the termination of their services to the company (for
EelcoHoekstra, this was on 31 December 2021, and for Gerard Paulides, this is
scheduled to be on 20 April, 2022), are accelerated in 2021. These IFRS-labeled
termination benefits are explained in more detail in the footnotes to the table
‘2021 Executive Board remuneration entitlements and IFRS costs for the company’
of this Remuneration Report on thenext page.
Additionally, benefits and other emoluments were provided for in 2021 in line with
the Vopak Netherlands policies, plans and arrangements which apply to all Vopak
staff in the Netherlands.
Vopak Annual Report 2021
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136
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
2021 Executive Board remuneration entitlements
1
and IFRS costs (audited) for the company
Fixed compensation Variable compensation
Proportion fixed
vs variable
compensation (%)
Annual base salary
Pension
contributions
2
Other
3
Short-term incentive Long-term incentive Total
In EUR thousands 2021 2020 2021 2020 2021 2020 2021
4
2020
5
2021 2020 2021 2020 2021 2020
E.M. Hoekstra
entitlement
74 6 735 174 172 12 12
671 622
736
6
679
9
2,339 2,220
39.8% / 60.2% 41.4% / 58.6%
costs (IFRS)
196
7
12
1,734
7, 8
735
10
3,521 2,275
F. Eulderink
entitlement
568 560 186 184 1 1
426 395
458
6
435
9
1,639 1,574
46.1% / 53.9% 47.3% / 52.7%
costs (IFRS)
1 1
570
8
462
10
1,751 1,601
G.B. Paulides
entitlement
568 545 134 128 9 9
426 384
426
6
394
9
1,563 1,461
45.5% / 54.5% 46.7% / 53.3%
costs (IFRS)
833
11
9
832
8,11
393
10
2,793 1,460
Total entitlements
1,882 1,840 494 484
22 22
1,523 1,401
1,620
6
1,508
9
5,541 5,255
43.3% / 56.7% 44.6% / 55.4%
22
Total costs (IFRS) 3,136
7,8,11
1,590
10,12
8,065 5,336
10
1,030
1 Entitlements are defined as payments (cash) and vestings (shares) which relate to the financial year at hand, i.e. fixed remuneration (annual base salary, pension contributions, and other fixed remuneration), the short-term variable incentive which
relates to the performance year 2021 and which will be paid out in 2022, and the long-term variable incentive of which the performance period ended on 31 December 2021 (2019 – 2021 LTSP), and which is scheduled to vest in 2022.
2 For Executive Board members who were in service prior to January 1, 2015 (in 2021: Eelco Hoekstra and Frits Eulderink), the difference between the Vopak contributions to the current pension plan and the Vopak contributions to the pension arrangement
in place prior to January 1, 2015, is compensated for by a separate pension contribution allowance paid out to the individual, subject to statutory tax withholdings. The gross value of these allowances is included in the pension contributions as stated in
this table.
3 The column ‘Other’ includes certain perquisites provided to individual Executive Board members in 2021, such as a life-cycle allowance and an employer contribution to the Dutch statutory health insurance. The IFRS costs shown in this column are
excluding the annual employer contributions to the Dutch social security. For Eelco Hoekstra, Gerard Paulides, and Frits Eulderink, the 2021 employer social security contributions amounted to EUR 13K (2019: EUR 10K).
4 This is the STIP related to the 2021 performance year which will be paid out in 2022.
5 This is the STIP related to the 2020 performance year which was paid out in 2021.
6 This is the value of the 2019 – 2021 LTSP performance shares at 31 December 2021 based on the performance realized and the closing share price at 31 December 2021 of EUR 30.80. These shares are scheduled to vest in April 2022.
7 The IFRS costs shown in the columns ‘Other’ and ‘Long-term incentive’ in this table for Eelco Hoekstra include the regular costs the company incurred in 2021, as well as the costs which the company would have incurred in 2022 and beyond, if his
Board appointment had not been terminated, and which are now accelerated in 2021. The costs for the period 1 January to 31 January, 2022 plus the cash value of the paid leave days still unused on 31 January, 2022 amount to EUR 126K in total.
Inaddition, employer contributions to the Dutch social security in relation to the 2022 payments to the amount of EUR 1K will also be paid in 2022. The accelerated costs for the unvested 2020 – 2022 and 2021 – 2023 LTSP grants which are expected
to vest in 2023 and 2024, respectively, are based on modelled vesting results and amount to EUR 821K in total. The estimated total tax levy on the payments and (estimated) vestings to Eelco Hoekstra in 2022, 2023 and 2024 required under the Dutch
income tax law 32ba/ 32bb regarding excessive severance payments (“pseudo-eindheffing excessieve vertrekvergoedingen”) amounts to EUR 57K.
8 This amount reflects the recognized IFRS costs accrued by the company during the financial year 2021 for the unvested performance shares awarded conditionally to individual Executive Board members under the Long-Term Share Plans 2019 – 2021,
2020 – 2022, and 2021 – 2023.
9 This is the value of the 2018 – 2020 LTIP performance shares based on the performance realized and the closing share price at 31 December 2020 of EUR 42.99. These shares vested in April 2021 based on a share price of EUR 39.90, resulting in the
following values at the date of vesting: Eelco Hoekstra: EUR 630,380; Frits Eulderink: EUR 403,469; and Gerard Paulides: EUR 365,684. These values are also shown in the table ‘2021 movements in outstanding LTSP awards made to the Executive
Board’ in this Remuneration Report.
10 This amount reflects the recognized IFRS costs accrued by the company during the financial year 2020 for the unvested performance shares awarded conditionally to individual Executive Board members under Long-Term Share Plans 2018 – 2020,
2019 – 2021, and 2020 – 2022.
11 The IFRS costs shown in the columns ‘Other’ and ‘Long-term incentive’ in this table for Gerard Paulides include the regular costs in 2021 the company incurred in relation to his Board services, as well as the costs which the company would have
incurred after 20 April, 2022, if his Board appointment would not be terminated, and which are now accelerated in 2021. The costs for the period 21 April to 30 June, 2022 amount to EUR 157K in total. In addition, employer contributions to the Dutch
social security in relation to the 2022 payments after 20 April, 2022, to the amount of EUR 3K will also be paid in 2022. The accelerated costs for the unvested 2020 – 2022 and 2021 – 2023 LTSP grants that which are expected to vest in 2023 and
2024, respectively, are based on modelled vesting results and amount to EUR 344K in total. The estimated total tax levy on the payments and (estimated) vestings to Gerard Paulides in 2022, 2023 and 2024 required under the Dutch income tax law
32ba/ 32bb regarding excessive severance payments (“pseudo-eindheffing excessieve vertrekvergoedingen”) amounts to EUR 666K in total.
12 The amount shown here is excluding the 2020 long-term incentive costs for Jack de Kreij (EUR 38K) as shown in this same table in the Remuneration Report of the 2020 Annual Report.
Vopak Annual Report 2021
|
137
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
The 2021 total remuneration amounts are within the limits of the Executive Board
remuneration policy. The overall costs increased from EUR 5.4 million in 2020 to
EUR8.1 million in 2021. This increase is mainly due to the acceleration of costs
in2021 under the IFRS regulations as a result of the termination of the Board
appointments of Eelco Hoekstra and Gerard Paulides. For further details on the costs
of the Long-Term Share Plans for the company, reference is made to note 7.2 to the
Consolidated Financial Statements.
By rewarding Executive Board members in 2021 for the achievement of specific
objectives of short-term and longer-term value creation, in particular (but not limited
to) the company’s financial, safety and customer satisfaction performance as well
as the execution of the company’s strategy, their remuneration packages contribute
to the longer-term value creation for the company and remain aligned with the
company’s shareholders’, employees and other stakeholders’ interests.
2021 annual base salary
The 2021 annual base salaries of the Executive Board are as follows:
• Eelco Hoekstra: EUR 746,025
• Frits Eulderink: EUR 568,400
• Gerard Paulides: EUR 568,400
In its review of the Executive Board members’ remuneration in December 2020,
the Supervisory Board considered both internal consistency, in particular staff
salary increases, as well as the results of external benchmarking against similar
positions in AEX and AMX listed companies in the Netherlands, and selected
European reference companies. Benchmarks were carried out on the basis of
similar job size, board position, the company’s revenues and market capitalization,
such in various compositions, before arriving at an informed decision.
Per January 2021, the base salaries of individual Executive Board members were
increased in order to strengthen the longer-term stable position around market
median for the Executive Board total remuneration packages aimed for under the
policy. Also, through the 2021 salary increases, the desired internal equity between
the remuneration packages of the COO and the CFO has been achieved.
2021 Short-term variable compensation
At the beginning of 2022, the results against targets for the 2021 Executive Board
short-term incentive (STIP) were evaluated. The Supervisory Board decided not to
apply any discretionary adjustments upward or downward to the STIP payouts. The
table below shows the 2021 STIP payouts for each Board member, both in target
and actual percentage of their annual base salary, and split per KPI. The 2021 STIP
will be paid out in April 2022, after approval of the 2021 financial results by the
General Meeting.
Financial KPIs
Over 2021, Vopak reports an EBIT (excluding exceptional items) of EUR494.8
million. This is a maximum result compared to the 2021 target, resulting in a
corresponding payout on this KPI. For further details on the EBIT performance
during 2021, reference is made to the section Financial performance in the
performance & outlook section. Compared to the 2021 target, the achieved result
2021 STIP for the Executive Board
2021 payout opportunity
1
2021 realized performance as a % of the overall payout Total 2021 STIP
2020
Target
2021
Target
Max EBIT Cost
Safety
Customer
Satisfaction
Executive Board
Effectiveness Actual payout
% of base salary Target Actual Target Actual Target Actual Target Actual Target Actual %
2
In EUR
thousands
E.M. Hoekstra 60% 60% 90% 18% 36% 12% 24% 9% 9% 9% 9% 12% 12% 90% 671
F. Eulderink 50% 50% 75% 15% 30% 10% 20% 7.5% 7.5% 7.5% 7.5% 10% 10% 75% 426
G.B. Paulides 50% 50% 75% 15% 30% 10% 20% 7.5% 7.5% 7.5% 7.5% 10% 10% 75% 426
1 Expressed as a percentage of their annual base salary.
Vopak Annual Report 2021
|
138
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
on the Cost KPI of EUR 628.1 million (excluding exceptional items) is at maximum,
resulting in a corresponding payout on this KPI.
Non-financial KPIs
The 2021 performance on the non-financial KPIs Safety, Customer Satisfaction
andExecutive Board Effectiveness, is as follows:
Safety
Vopak’s ‘License to Operate’ and its ‘License to Grow’ are conditional upon its
ability to operate safely and responsibly. Vopak’s long-term aim is zero incidents and
no harm to anybody working at a Vopak facility. Process safety and the occupational
health and safety of employees and contractors are the company’s top priorities.
The personal safety KPI is measured by the Total Injury Rate (TIR). The actual TIR
realization for Vopak as a whole is 0.25 against the 2021 TIR target for Vopak as a
whole. No fatal incidents occurred during the year. The target is met and there will
be a corresponding payout on this KPI. The process safety KPI is measured by the
Process Safety Event Rate (PSER). The actual PSER realization for Vopak as a whole
is 0.09 against the 2021 PSER target for Vopak as a whole. The target is met and
there will be a corresponding payout on this KPI. For further details on the results
on Safety, reference is made to the Sustainability chapter in this Annual Report.
Customer Satisfaction
To realize our ambition of continuous improvement of our service performance,
ambitious Net Promoter Score targets are set at various levels within the
organization, as well as for Vopak as a whole. With an achieved result of 74,
thistarget is met compared to the 2021 target, resulting in a corresponding payout
on this KPI.
Executive Board effectiveness
Based on individual evaluation meetings with the Executive Board, in which the
implementation and realization of the agenda of the Executive Board for 2021
setatthe beginning of the year was discussed, the Supervisory Board assessed
the performance of the Executive Board as effective.
2021 Long-term variable compensation
The performance period of the conditional awards made under the Long-Term
Share Plan 2018 – 2020, ended on 31 December 2020. The realized EPS
performance resulted in vesting at 90% of the target level. After the Annual General
Meeting of shareholders on 21 April 2021, the conditionally granted performance
shares under this Plan vested and were fully settled in shares in accordance with
the Plan rules. The Supervisory Board decided not to apply any discretionary
adjustments upward or downward. The (gross) value of the vested shares to
eachExecutive Board member is shown in the table below as well as in the table
‘2021 Executive Board remuneration entitlements and IFRS costs for the company’
in this Remuneration Report.
The performance period of the conditional awards made under the Long-Term
Share Plan 2019 – 2021 ended on 31 December 2021. The average 2019, 2020 and
2021 EPS performance realized is EUR 2.52 (excluding exceptional items), resulting
in a vesting at maximum for this KPI compared to the target. The Supervisory Board
also assessed the company’s Strategy Realization (named Strategic Direction
earlier) during the performance period, and determined a vesting outcome between
target and maximum for this KPI on the basis of the results achieved. The overall
vesting outcome achieved is therefore also between target and maximum. The
Supervisory Board decided not to apply any discretionary adjustments upward or
downward. Vesting is subject to and will take place after approval of the 2021
financial results by the General Meeting on 20 April 2022.
At the beginning of 2021, a conditional award of performance shares under the
2021 – 2023 LTSP was made to each Executive Board member. These conditional
awards are scheduled to vest in 2024, subject to performance realization. During
the whole of 2021, the conditional awards of performance shares made under the
Long-Term Share Plans 2020 – 2022 were outstanding. These conditional awards
are scheduled to vest in 2023, subject to performance realization.
The table on the next page shows the LTSP movements during the year.
Vopak Annual Report 2021
|
139
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Share ownership
Executive Board members’ ownership of Vopak shares is shown in the table on
the right. This table contains the total number of shares acquired by the individual
Executive Board members as a result of performance shares vesting under the
company’s Long-Term Share Plans, as well as any additional ordinary shares
acquired at the individual Board member’s own expense (personal investments).
In 2021, the CEO was required to own a minimum number of company shares with
a value equivalent to two (2) times his 2021 annual base salary. For Vopak’s CFO
and COO, this minimum shareholding requirement was one (1) time their 2021
annual base salary.
2021 movements in outstanding LTSP awards made to the Executive Board
1,2
LTSP
Start date
performance
period
End date
performance
period
(Scheduled)
vesting date
Gross value of
target award
at the date of
award (EUR)
Share price
at the date
of award
3
(EUR)
Gross #
of shares
awarded
(target) at
the
date of
award
4
Gross #
of shares
under
deferral at
1 January
2021
Gross #
of shares
held under
deferral at
31 December
2021
Gross # of
shares that
lapsed
during 2020
Gross #
of shares
that vested
during 2021
Share price
at the date
of vesting
(EUR)
Gross
market value
of vested
award at the
date of
vesting (EUR)
E.M. Hoekstra LTSP 2018-2020 1 Jan 2018 31 Dec 2020 AGM 2021 634,375 36.138 17,544 17,544 0 1,755 15,799 39.900 630,380
LTSP 2019-2021 1 Jan 2019 31 Dec 2021 AGM 2022 700,000 40.274 17,380 17,380 17,380 0 0 n/a n/a
LTSP 2020-2022 1 Jan 2020 31 Dec 2022 AGM 2023 808,500 48.580 16,643 16,643 16,643 0 0 n/a n/a
LTSP 2021-2023 1 Jan 2021 31 Dec 2023 AGM 2024 820,628 45.150 18,176 n/a 18,176 0 0 n/a n/a
F. Eulderink LTSP 2018-2020 1 Jan 2018 31 Dec 2020 AGM 2021 406,000 36.138 11,235 11,235 0 1,123 10,112 39.900 403,469
LTSP 2019-2021 1 Jan 2019 31 Dec 2021 AGM 2022 436,000 40.274 10,826 10,826 10,826 0 0 n/a n/a
LTSP 2020-2022 1 Jan 2020 31 Dec 2022 AGM 2023 504,000 48.580 10,375 10,375 10,375 0 0 n/a n/a
LTSP 2021-2023 1 Jan 2021 31 Dec 2023 AGM 2024 511,560 45.150 11,330 n/a 11,330 0 0 n/a n/a
G.B. Paulides LTSP 2018-2020 1 Jan 2018 31 Dec 2020 AGM 2021 368,000 36.138 10,183 10,183 0 1,018 9,165 39.900 365,684
LTSP 2019-2021 1 Jan 2019 31 Dec 2021 AGM 2022 404,800 40.274 10,051 10,051 10,051 0 0 n/a n/a
LTSP 2020-2022 1 Jan 2020 31 Dec 2022 AGM 2023 490,500 48.580 10,097 10,097 10,097 0 0 n/a n/a
LTSP 2021-2023 1 Jan 2021 31 Dec 2023 AGM 2024 511,560 45.150 11,330 n/a 11,330 0 0 n/a n/a
1 Reference is made to note 7.2 of the Consolidated Financial Statements for more details on the costs of these awards for the company.
2 Because Executive Board members are required to hold a continuous portfolio of Vopak shares calculated as a percentage of their annual base salary (200% for the CEO, and 100% for the CFO and COO), the retention periods for the
vested shares under each of the LTSPs are not included in this table. For the number of vested performance shares held by individual Executive Board members, reference is made to the table in the section ‘Share Ownership‘ below.
3 The share price at the date of award is the average closing price of a Royal Vopak NV ordinary share listed on Euronext Amsterdam during the calendar quarter immediately preceding the performance period of the respective LTSP.
4 All shares awarded conditionally under the company’s LTSPs to Executive Board members are subject to performance conditions.
Vopak shares owned by individual Executive Board members
Number of shares
# of vested
performance
shares on
31 December
2021
# of privately
invested
shares on
31 December
2021
Total # of
shares
owned on
31 December
2021
1
Total # of
shares
owned on
31 December
2020
2
E.M. Hoekstra 57,802 9,582 67,384 59,406
F. Eulderink 33,431 1,750 35,181 30,075
G.B. Paulides 4,628 6,200 11,828 6,200
1 The share price at the end of 2021 was EUR 30.80.
2 The share price at the end of 2020 was EUR 42.99.
Vopak Annual Report 2021
|
140
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Other
Executive Board members did not receive any remuneration from group
companies. Vopak has not provided any personal loans, advances or guarantees
to Executive Board members.
Remuneration of the Supervisory Board in 2021
The remuneration of Supervisory Board members consists of fixed fees for general
membership and committee memberships, paid in cash only. It is not subject to the
achievements of the company. In addition, Supervisory Board members are
reimbursed for actual business expenses made, and, when living outside the
Netherlands, for actual travel expenses made.
2021 Supervisory Board total remuneration
During 2021, the Supervisory Board remuneration policy was executed in line with
the resolutions adopted at the Annual General Meeting in April 2020. No deviation
or derogation was applied.
The table below shows the gross amounts of Supervisory Board fees each
Supervisory Board member received in 2021, resulting in a total cost to the
company of EUR 0.54 million, as compared to EUR 0.50 million in 2020. The
increase in costs was due to changes in the composition of the Board. For further
details, reference is made to note 7.3 of the Consolidated Financial Statements.
Supervisory Board members did not receive any other fixed allowances or
performance-related incentives (neither in cash nor in shares), nor any other
remuneration, such in accordance with the policy. Nor did Vopak provide any
personal loans, advances or guarantees to Supervisory Board members.
No Supervisory Board members held any Vopak shares at year-end 2021,
exceptforBen Noteboom, who held 3,500 shares (2020: 3,500).
Terms of engagement
During 2021, Supervisory Board and Executive Board members had a board
agreement with Koninklijke Vopak N.V. in line with the provisions on appointment
and termination in their respective remuneration policies.
2021 Supervisory Board remuneration
1,2
In EUR thousands
Supervisory
Board
Audit
Committee
Selection and
Appointment
Committee
Remuneration
Committee Total 2021 Total 2020
B.J. Noteboom (Chair) 97.5 n/a 7.0 7.0 111. 5 111.5
M.F. Groot (vice-Chair) 65.0 8.5 5.0 n/a 78.5 78.5
L.J.I. Foufopoulos – De Ridder (member) 65.0 8.5 n/a 7.0 80.5 80.5
N. Giadrossi (member)
3
65.0 8.5 n/a 9.0 82.5 77.0
R. Hookway (member)
4
75.83 5.67 n/a n/a 81.5 n/a
B. van der Veer (member) 65.0 15.0 n/a n/a 80.0 80.0
R.G.M. Zwitserloot (former member)
5
21.67 n/a n/a 3.33 25.0 75.0
Total
455.0 46.17 12.0 26.33 539.5 502.5
1 Reimbursements of actual expenses made by individual Supervisory Board members are not included in this table as these do not qualify as remuneration.
2 Amounts stated are gross, and excluding VAT, where applicable.
3 Nicoletta Giadrossi is a member of the Remuneration Committee as of 1 July 2020, and Chair of the Remuneration Committee since 21 April 2021.
4 Richard Hookway was appointed as a member of the Supervisory Board, and as a member of the Audit Committee on 21 April 2021. The fees shown in this table include an amount of EUR 32,500 which was provided to him as compensation
for his activities for the Supervisory Board prior to his appointment.
5 Rien Zwitserloot stepped down as a member of the Supervisory Board, and Chair of the Remuneration Committee on 21 April 2021.
Vopak Annual Report 2021
|
141
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
5-Year comparison
The annual change of Vopak’s Supervisory Board and Executive Board Members’
remuneration, the performance of the company, and the average remuneration of
employees of the company over the five most recent financial years, are presented
in a comparative manner in this section.
The tables on the next page jointly provide a 5-year comparative overview of the
performance of the company (as reflected by the results on the individual KPIs
used in the Executive Board STIP and LTSP, as well as captured in the Executive
Board STIP and LTSP overall outcomes) and the annual total remuneration of
Executive Board members (market value). In order to provide a full comparison,
theincreases in annual base salary of individual Board members are also included
in this table.
CEO pay ratio
The comparison between the developments in the annual total remuneration of
Executive Board members and average remuneration on a fulltime equivalent basis
of employees of the company other than directors is shown by the developments
in the CEO pay ratio, the CEO being the highest paid Executive Board member.
TheCEO pay ratio reflects the value of the CEO’s annual total remuneration
asapercentage of the value of the annual average total remuneration of Vopak
employees globally in the respective financial year. 5-year developments of this
ratio are shown in the graph on next page. In 2021, the Monitoring Committee
Corporate Governance recommended to understand the concept of pay ratios
tomean the ratio between (i) the total annual remuneration of the CEO and (ii)
theaverage annual remuneration of the employees of the company and group
companies whose financial data is consolidated by the company, whereby:
• the total annual remuneration of the CEO includes all the remuneration
components (such as fixed remuneration, variable cash remuneration (bonus),
share-based part of the remuneration, social contributions, pension, expense
allowance, etc.) included in the consolidated annual accounts on an IFRS basis;
• the average annual remuneration of the employees is determined by dividing the
total wage costs in the financial year (as included in the consolidated annual
accounts on an IFRS basis) by the average number of FTEs during the financial
year; in addition, the hiring of external employees is taken into account pro-rata,
insofar as they are hired for at least three months during the financial year; and
• the value of the share-based component of the remuneration is determined at
the time of assignment in accordance with the applicable rules under IFRS.
The CEO pay ratio calculation method Vopak used in previous years equaled this
recommended method with the exception of using a historical 3-year average for
the IFRS costs of the long-term incentive awards which were awarded, outstanding
and vested in the financial year at hand. Going forward, the calculation method
recommended by the Monitoring Committee Corporate Governance will be used.
Using this calculation method, the CEO pay ratio is 27.7 in 2021 (25.8 in 2020).
Vopak Annual Report 2021
|
142
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
5-year comparison between company performance, Supervisory Board and Executive Board total remuneration, and average total employee remuneration
Company performance
2017 2018 2019 2020
1
2021
EBIT
2
490.4 463.3 5 39.1 483.7 494.8
EBITDA
2
763.2 734.3 829.8 779.7 826.6
Cost
2
675.9 666.0 632.7 603.3 6 28 .1
EPS
3
2.25 2.27 2.80 2.37 2.52
TIR
4
0.38 0.30 0.34 0.37 0.25
PSER
4
0.26 0.12 0.16 0.14 0.09
NPS 48 62 65 67 74
Overall STIP result
5
41.67% 142.5% 142.5% 141% 150%
Overall LTSP result
5
50% 50% 120% 90% 137.5%
5
15
25
35
CEO Pay ratio
9,10
20212017 2018 2019 2020
8.1
21.1
28.9
25.8
27.7
Executive Board total remuneration
6,7
2017 2018 2019 2020 2021
CEO 1,14 5 1,633 2,323 2,220 2,339
COO 910 1,224 1,651 1,574 1,639
CFO (current) 46 882 995 1,461 1,563
CFO (former) 966 243 499 n/a n/a
Executive Board annual base salary increases
8
2017 2018 2019 2020 2021
CEO 0.0% 1.5% 10.3% 5% 1.5%
COO 0.0% 1.5% 7.4% 2.75% 1.5%
CFO (current) n/a n/a 10% 7.7% 4.3%
CFO (former) 0.0% n/a n/a n/a n/a
Supervisory Board total remuneration
6
2017 2018 2019 2020 2021
Chairman (current) 10 0.1 111. 5 111. 5 111. 5 111. 5
Vice-chairman (current) 78.5 78.5 78.5 78.5 78.5
Member (current) n/a 56.5 80.5 80.5 82.5
Member (current) n/a 21.67 73.5 77.0 7 7.0
Member (current) n/a n/a n/a n/a 81.5
Member (current) n/a 78.0 80.0 80.0 80.0
Chairman (former) 33.57 n/a n/a n/a n/a
Member (former) 75.0 75.0 75.0 75.0 25.0
Member (former) 80.0 23.9 n/a n/a n/a
Member (former) 70.0 20.9 n/a n/a n/a
Member (former) 51.14 9.5 n/a n/a n/a
1 The 2020 EBIT, EBITDA, Cost and EPS figures shown in this table are the restated company performance results reflecting the change in the IFRS policies for accounting cloud computing arrangements. Prior to this accounting restatement, these results were 492.0, 791.6,
and 591.4 million EUR and EUR 2.42 respectively, as stated in the Remuneration Report of the 2020 Annual Report.
2 In EUR million. EBITDA was used as a financial KPI in the Executive Board short-term incentive plan up until and including 2017; as of 2018, EBITDA was replaced by EBIT and Cost. Cost figures shown reflect personnel expenses and other operating expenses. EBIT, EBITDA
and Cost figures shown are excluding exceptional items.
3 In EUR. EPS figures shown are excluding exceptional items.
4 Expressed as a percentage per 200,000 hours worked (own personnel and contractors). For TIR and PSER, a decrease is aimed for year-on-year, i.e. a decline in injuries and events.
5 Payout/ vesting as a % of target (=100%).
6 In EUR thousands.
7 Entitlements of total remuneration figures are shown. Payouts under the Executive Board STIP are included in the financial year which also encompasses the performance year. Vestings of the Executive Board LTSP are included in the year in which the performance period ended (year 3).
8 As a % of the annual base salary of the previous year.
9 The 2021 IFRS costs shown for Eelco Hoekstra in the table “2021 Executive Board remuneration entitlements and IFRS costs (audited) for the company” in this Remuneration Report include the costs the company incurred in 2021 as well as the costs which the company would
have incurred in 2022 and beyond, if his Board appointment had not been terminated, and which are now accelerated in 2021. Under IFRS, these latter costs are accelerated in 2021 because they occur after the termination of his Board appointment on 31 December 2021, i.e. the
termination of his services to the company. The 2021 CEO pay ratio shown in this 5-year graph is normalized by calculating this ratio without the costs for 2022 and beyond which are accelerated in 2021 under IFRS. This is done in order to facilitate a like-for-like comparison with the
CEO pay ratios in previous and future years. If these accelerated costs are included, the 2021 CEO pay ratio would be 38.8.
10 The CEO pay ratio graph shows the 2017 – 2020 CEO pay ratios recalculated on the basis of the calculation method recommended by the Monitoring Committee Corporate Governance. Under the calculation method used by Vopak in previous years, the 2020 CEO pay ratio is 26.1,
the 2019 CEO pay ratio is 21.5, the 2018 CEO pay ratio is 20.8, and the 2017 CEO pay ratio is 17.3, as stated in the previous Annual Reports. If the calculation method used by Vopak in previous years is applied, the normalized 2021 CEO pay ratio is 27.6, and 32.7 without
normalization (see previous footnote).
Vopak Annual Report 2021
|
143
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Board remuneration policies in 2022 and beyond
This section of the Remuneration Report describes the company’s Supervisory
Board and Executive Board Remuneration Policies for 2022 and beyond. These
policies can also be found on the company’s website.
Policy review
The Supervisory Board and Executive Board remuneration policies are evaluated for
revision by the Supervisory Board on a regular basis and at least every four years.
The Remuneration Committee advises the Supervisory Board on these policies
andindividual remuneration packages, as well as any changes thereto.
The Supervisory Board reviewed these policies during 2021. The review resulted
ina decision to adjust the Supervisory Board fees which were lastly determined
in2017. With regard to the other aspects of the Supervisory Board and Executive
Board Remuneration polices, taking into account the approval rate for the current
Supervisory Board and Executive Board Remuneration policies at the Annual
General Meeting in 2020 and the feedback shared by investors and other
shareholders as well as Vopak’s works council, the Supervisory is of the opinion
tokeep these policies materially unaltered going forward. Nevertheless,
thereviewopportunity wasused to further clarify and elaborate these policies
within their boundaries.
The revised Supervisory Board remuneration policy for 2022 and beyond will be put
forward for approval to the General Meeting on 20 April 2022.
Governance
The Supervisory Board and Executive Board remuneration policies and actual
remuneration provided to individual Supervisory Board and Executive Board
members are set by the Supervisory Board, based on proposals of the
Remuneration Committee which is supported by internal and external independent
specialists. Decisions on the Executive Board remuneration policy and the
remuneration of individual Executive Board members are made in the absence of
the Executive Board.
The Supervisory Board considers the design of these remuneration policies in line
with the company’s purpose, business strategy and business environment, applicable
laws and regulations, as well as the views of its stakeholders and society at large.
The Supervisory Board ensures transparency by disclosing the Supervisory Board
and the Executive Board remuneration policies in the Remuneration Report section
of the company’s Annual Report. They are also made available on the company’s
website. Furthermore, in the Remuneration Report section of the company’s Annual
Report the application of the policy in the financial year at hand is set out in detail.
In case of material alterations and/ or revisions to these policies, these are put
forward to the General Meeting for approval. If any of these two policies remains
unaltered during a period of four years from the last change, it will again be put
forward to the General Meeting for confirmation of approval.
Changes in the Vopak Netherlands benefits and emoluments policies, plans and/ or
arrangements applicable to all Vopak non-CLA staff, and for which Executive Board
members are also eligible, follow the regular legal and company governance
processes for such changes. In case a change in any of these policies, plans and/ or
arrangements would affect the entitlements of Executive Board members under
these policies, such changes are not subject to the approval of the General Meeting.
For further information on governance please refer to the section Corporate
Governance in this Annual Report.
Stakeholder engagement
Investors, and other shareholders, customers, suppliers, business partners, authorities
and employees are among others important stakeholder groups with whom Vopak
is in continuous contact. Investors and shareholders as well as the works council of
Koninklijke Vopak N.V. are consulted when Vopak’s Supervisory Board and Executive
Board remuneration policies and any changes thereto requires approval from the
Annual General Meeting. In the past years, proposals for Vopak’s Supervisory Board
and Executive Board remuneration policies and any changes thereto have consistently
been adopted by the General Meeting with approval rates exceeding 95%.
Vopak Annual Report 2021
|
144
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Every two to three years, Vopak asks a broad group of internal and external
stakeholders directly about the key sustainability topics that they want us to
address. The most recent materiality survey, which includes feedback on
remuneration within Vopak, was conducted in 2019. In addition, Vopak highly
values the employee and customer satisfaction surveys as a tool to verify the
implementation of earlier suggestions, comments and recommendations, as well
as to gather additional feedback and identify new topics. Feedback received from
investors and other shareholders, the works council of Koninklijke Vopak N.V.,
employees and customers and additional desk research shows that remuneration
is ranked as important, yet not requiring continuous monitoring or being a key
topic of concern.
Remuneration objectives and principles
The Vopak Supervisory Board and the Executive Board remuneration policies
support the company’s purpose of storing vital products with care. Also, the
Supervisory Board and the Executive Board remuneration policies are reflective of
the Vopak Values. They are clear and transparent, and developed in order to foster in
particular Integrity, Commitment and Team Spirit among Supervisory Board and
Executive Board members in their dealings with each other, as well as other Vopak
staff, partners, customers, shareholders and other stakeholders. Vopak’s Values
Care for Health, Safety and Environment, as well as Agility, are promoted in
particular via the Executive Board variable remuneration plans and related Key
Performance Indicators (‘KPIs’) and targets.
The Supervisory Board and the Executive Board remuneration policies aim to attract
and retain Board members the right level of experience and competencies to drive
the achievement of the company’s purpose and strategic objectives.
The Supervisory Board remuneration policy supports the Supervisory Board to duly
execute its duties and responsibilities independently, and, hence, contribute as best
as possible to the realization of the company’s strategic objectives, including the
longer-term value creation for the company and its stakeholders. This is to ensure
alignment with the (longer-term) interests of the company’s stakeholders and
society at large. It achieves these objectives by providing remuneration that
consists of fixed elements only, with remuneration levels that are sustainable
within the level playing field in the Netherlands.
The Executive Board remuneration policy provides for remuneration packages that
consist of a balanced mix of fixed and variable compensation, with remuneration
levels that are in line with the relevant level playing field. Also, the Executive Board
remuneration policy is aligned with those of Vopak senior executives.
By rewarding Executive Board members for the achievement of specific objectives
of short-term and longer-term value creation, this policy ensures alignment with the
company’s shareholders’, employees' and other stakeholders’ interests. In its
day-to-day operations, care for people’s safety and health and for the environment
are the company’s first and foremost priority. Therefore, the Executive Board
remuneration policy links the Executive Board remuneration to the company’s
safety performance, with short-term incentive targets on both people safety and
process safety. Targets on EBIT, cost-effectiveness and customer satisfaction are
also included in the short-term incentives, as they measure the company’s success
in creating value today for its stakeholders. At the same time, the Executive Board
needs to ensure that the company stays relevant to the market and the society at
large by facilitating flows of products that are vital to people in their daily lives,
today and in the future. Therefore, the Executive Board remuneration policy links
the long-term rewards to the Executive Board’s performance on steering the
company in the agreed strategic direction and creating value for its stakeholders.
All Vopak’s remuneration policies, including those for the Supervisory Board and the
Executive Board, are designed to balance the following remuneration principles.
External competitiveness
The Remuneration Committee is informed by external advisors about the total
remuneration levels of similar board memberships and other positions in relevant
markets on a regular basis. The Remuneration Committee considers the benchmark
against the bottom 10 AEX and top 10 AMX companies excluding companies in the
financial and real estate industry*, and ranked on the basis of their market
capitalization, most relevant.
* For 2022, this peer group will consist of the following companies: (a) bottom 10 AEX companies: Akzo Nobel, ArcelorMittal, ASM International, BE Semiconductor Industries, IMCD, Just Eat Takeaway.com,
KPN, Randstad, Signify, and Wolters Kluwer; (b) top 10 AMX companies: Aalberts, Aperam, Arcadis, Corbion, Galapagos, InPost, JDE Peets, OCI, Royal Boskalis Westminster, and SBM Offshore.
Vopak Annual Report 2021
|
145
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
A longer-term stable position around market median against this peer group is
aimed for. Other remuneration data from other benchmarks and/ or other
companies may be used in order to gain an improved understanding of the Dutch
and European longer-term market developments and trends in Board remuneration.
Internal consistency
Equally, the Remuneration Committee values internal consistency. Executive Board
remuneration is aligned with the remuneration of senior executives by using the
same job evaluation methodology. Alignment between the remuneration packages
for the Executive Board members and senior executives is also ensured through a
similar design in the remuneration policies, plans and components.
Strategic alignment
The Supervisory Board remuneration only consists of fixed compensation, i.e. it is
not subject to the achievements of the company, and is paid in cash only.
The Executive Board remuneration policy aims for a balance between fixed and (short-
term and long-term) variable compensation, with a relative emphasis on long-term
variable compensation. This emphasis is aligned with the company’s longer-term
strategy, which requires multi-year decisions on and realization of major capital
investments in assets and often longer-term customer and partner contracts. In
addition, the KPIs in the Executive Board variable compensation plans are selected to
motivate them to steer the company’s strategy execution in the short and longer term.
Pay for performance
As a reflection of Vopak’s performance culture, the short-term and long-term
variable compensation plans for the Executive Board, senior executives and
other key staff are incentive-driven rather than reward-based. Under these plans,
non-performance is not rewarded (nor through other remuneration components).
Supervisory board remuneration
Board membership fees
Supervisory Board remuneration comprises of two types of fees:
1. General fee for Board membership
2. Committee membership fee
Fees are set and adjusted within the boundaries of the longer-term median fee
levels of the relevant benchmark(s).
Candidates for Supervisory Board positions who have been nominated but not yet
appointed by the General Meeting, may be eligible for receiving (prorated)
remuneration on the basis of the above listed fees in light of the amount of
preparatory and advisory work these candidates would be required to deliver prior
to their appointment.
Travel expenses and other expenses
Supervisory Board members may be reimbursed for actual travel expenses made
for company-related travel outside the Netherlands, and, if they live outside the
Netherlands, also for company-related travel to the Netherlands.
Other reasonable expenses made by Supervisory Board members will only be
reimbursed if these are incurred in the course of performing their duties and qualify
as business expenses.
Other compensation
No other compensation, benefits, reimbursement or emoluments are provided for to
Supervisory Board members. Neither is Supervisory Board remuneration tax protected.
The company will not provide any personal loan, advance or guarantee to
Supervisory Board members.
Appointment and termination of Supervisory Board Members
Supervisory Board appointments are governed by Dutch employment law and
aligned with the current Dutch Corporate Governance Code. Supervisory Board
members are (re-)appointed for a term of four years in accordance with legal and
regulatory requirements.
No additional remuneration (“sign-on”) is paid upon recruitment. Compensation for
a (non-voluntary) termination of appointment or a change-in-control will not be
provided for.
Vopak Annual Report 2021
|
146
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Executive board remuneration
Annually, the Remuneration Committee reviews the Executive Board total
remuneration levels, as well as each remuneration component of their package,
such on behalf of the Supervisory Board. In doing so, the Remuneration Committee
takes the earlier stated remuneration objectives and principles into account.
The remuneration package of individual Executive Board members comprises
ofthefollowing main elements:
1. Annual base salary;
2. Short-term variable compensation: an annual cash-based incentive opportunity
related to the achievement on financial and non-financial targets for the
respective financial (performance) year;
3. Long-term variable compensation: a share-based incentive opportunity related
tothe achievement of financial and strategic targets during a three-year
performance period;
4. Pension arrangement.
Additionally, benefits and other emoluments are provided for in line with the
Vopak Netherlands policies, plans and arrangements which apply to all Vopak staff
in the Netherlands.
Annual base salary
Upon review, the annual base salary levels of the Executive Board are based on
theexternal and internal consistency considerations as described in the section
‘Remuneration objectives and principles’ of the policy.
Variable compensation
Executive Board members are eligible for both a short-term and a long-term
incentive opportunity. The Executive Board Short-term incentive plan (STIP) and the
Executive Board Long-term share plan (LTSP) are 100% performance-driven and
forward-looking. No guaranteed variable pay is offered. In determining (the changes
to) the design of the variable compensation plans, scenarios on possible outcomes
and consequences of these outcomes on the total remuneration levels are analyzed
and taken into consideration.
The pay-out opportunities for individual Executive Board members under these
plans are outlined in the table below.
Executive Board variable
compensation plan Type of incentive
Performance
result
Incentive opportunity
as a % of annual base salary
2017 CEO CFO COO
Short-term incentive
plan (STIP)
Cash
Maximum 90% 75% 75%
Target 60% 50% 50%
Minimum (= threshold) 15% 12.5% 12.5%
Below threshold 0% 0% 0%
Long-term share
plan (LTSP)
1
Perfromance
shares
Maximum 165% 135% 135%
Target 110% 90% 90%
Minimum (= threshold) 55% 45% 45%
Below threshold 0% 0% 0%
Target total variable compensation opportunity as a proportion of the
Annual Base Salary (%)
170% 140% 140%
Target total variable compensation opportunity as a proportion of
Target Total Direct Compensation
2
(%)
63% 58.33% 58.33%
1 Awards as a % of annual base salary at 1 January of the first year of the applicable performance period.
2 Target Total Direct Compensation = annual base salary + the target short-term incentive and the target
long-term incentive.
The Supervisory Board sets the targets for each of the STIP and LTSP key
performance indicators (KPIs) for the Executive Board at the beginning of the
performance period of each plan.
The Supervisory Board has the discretionary authority to adjust the payout of the
STIP as well as the number of performance shares that will vest under the LTSP,
ifthe Supervisory Board is of the opinion that such adjustment(s) would produce
afairer reflection of the performance of Vopak and/ or of the individual members
ofthe Executive Board. Upward or downward adjustment(s) may be made within
the limits of the policy.
All performance-based incentive plans are subject to ‘claw-back’ provisions which
may apply in the event that the company would be obliged to make a financial
restatement. The Supervisory Board may decide to apply these claw-back
provisions up to three years after the respective variable compensation was paid
out/ vested. A ‘change in control’ provision is incorporated in plan rules of the LTSP.
Vopak Annual Report 2021
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147
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Short-term incentive plan (STIP)
Executive Board members are eligible for a Short-term Incentive Plan (STIP) which
incentivizes achievements of Vopak as well as the performance of the Executive
Board, such to be realized in the performance year at hand. A mix of financial KPIs,
which are an indicator of the financial soundness of the company, and non-financial
KPIs, which reflect the company’s frontline execution and are enablers of future
growth, are selected. The STIP rewards the Executive Board if ambitious financial
and non-financial targets are met.
Currently, the KPIs for the Executive Board STIP are as follows:
• Profitability (EBIT): EBIT is defined as Net income, before income taxes, and
before net finance costs. This performance indicator is used by the company to
evaluate the financial performance of its operating entities. Targets are set with a
clear focus on sustainable EBIT improvements.
• Efficiency (Cost): An ambitious cost efficiency program runs throughout the
entire company. This performance indicator is used by the company in order to
create and maintain cost awareness to ensure productivity improvements.
• Frontline execution (safety): Vopak’s ‘License to Operate’ and its ‘License to
Grow’ are conditional upon its ability to operate with care for safety, health and
the environment. Our ambition is to be the sustainability leader in our industry
and to be as good as the safest and most sustainable of our customers. Safety is
measured by means of 2 equally weighted quantitative performance criteria:
Process Safety Event Rate (PSER) and Total Injury Rate (TIR). Process safety and
the occupational health and safety of employees and contractors are the
company’s top priorities. The long-term aim is zero incidents and no serious harm
to anybody working at a Vopak facility. Note that the pay-out on TIR will be
reduced to 50%, in case of one fatal incident, and to zero in case of two or more
fatal incidents during the performance year.
• Frontline execution (customer service): Vopak focuses on driving service
performance to the next level in order to achieve its commercial and customer
satisfaction goals. The realization of our customer service goals are directed by
ambitious, quantitative Net Promoter Scores.
• Growth (EB effectiveness): EB effectiveness is a qualitative performance
indicator, whereby the Supervisory Board assesses how well the Executive
Board has implemented and realized the Board agenda for the financial year at
hand. Both individual performance and the Executive Board’s performance as a
team are taken into account.
The table below is a graphic display of the Executive Board STIP design, including
the KPIs and their weights:
KPIs in the STIP and their weights
Strategy theme KPI Nature Threshold Target Max
Profitability EBIT
Financial
15% 30% 60%
Efficiency Cost 10% 20% 40%
Frontline execution
Safety
Non-
Financial
15%
Customer service 15%
Growth EB Effectiveness 20%
Total 25% 100% 150%
For the Executive Board, targets for each of the financial and non-financial KPIs are
set at the level of Vopak as a whole. Financial KPIs are measured on a sliding scale
ranging from a minimum target level which has to be met before any payout occurs
(= threshold) to a maximum target level which results in a maximum payout if this
level is met or exceeded. Target realization for the non-financial Vopak KPIs in the
STIP is on a ‘Meet – Not Meet’ basis, i.e. no payout occurs in case performance is
below target levels.
Long-term share plan (LTSP)
The Long-term Share Plan (LTSP) rewards the Executive Board for the profitable
growth of the company during a three-year period. The LTSP is intended to align
thelonger-term interests’ of the Executive Board and other senior executives with
the longer-term interests of investors and other shareholders, as well as serve as
aretention tool for this group of staff.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
The design of the LTSP is as follows:
• Performance period: three years, from 1 January of the year in which the
conditional award is made (= year 1) until 31 December of year 3.
• KPIs: Three (3) key performance indicators (‘KPIs’) are used, Earnings per Share
(EPS), Strategy Execution (previously named “Strategic Direction”), and
Sustainability Execution.
• Weights: EPS has a weight of 50%. Strategy Execution and Sustainability
Execution are weighted equally, i.e. 25% – 25%.
• EPS is used as the main financial indicator to measure shareholder value
creation for the Plans under this policy. Actual EPS realization during the
performance period is measured against pre-set targets derived from the
company’s longer-term planning.
• Strategy Execution is used to focus on the company’s longer-term value
creation. Realization of the company’s strategic agenda during the performance
period is rewarded, in particular the strategic shift in Vopak’s asset portfolio, and
the transition to global, standardized and digitized systems and processes, which
the Executive Board and Supervisory Board have set out to achieve for the next
years. The Supervisory Board, upon recommendation of the Remuneration
Committee, will assess the progress made in the realization of the company’s
strategic agenda at the end of each year during the performance period; a final
assessment will be made at the end of year 3. For this, it will take into account
both quantitative and qualitative achievements.
• Sustainability Execution is used to focus on the longer-term sustainability of
the company’s operations. The realization of the longer-term Vopak sustainability
agenda during the performance period is rewarded. The Supervisory Board, upon
recommendation of the Remuneration Committee, will assess the progress
made in the realization of the entire company’s longer-term sustainability agenda
at the end of year 3. For this, it will take into account both quantitative and
qualitative achievements.
• Fairness: The Supervisory Board may decide to adjust the overall outcome
upwards or downwards discretionarily, if this would produce a fairer reflection
ofthe results achieved.
• Vesting: Vesting takes place at the date of the first Annual General Meeting
heldafter the end of the performance period, such subject to the satisfaction
ofthe performance and other conditions and approval of the General Meeting.
Any vesting will be in Vopak shares.
The table below is a graphic display of the LTSP programs and grants thereunder
that are awarded conditionally and their scheduled vesting in the period 2022 –
2025 i.e. the period which includes the entire performance and vesting period of
the conditional grants under LTSP 2022 – 2024 program issued in the financial year
2022 to individual Executive Board members. The performance period of each LTSP
program issued in this period is marked green. LTSP awards from earlier years
which are scheduled to vest in the period 2022 – 2025 are also shown (in grey)
forafull understanding of the workings of the LTSP.
LTSP plan Plan period and years of award and vesting
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
LTSP 2019-2021 conditional award vesting
LTSP 2020-2022 conditional award vesting
LTSP 2021-2023 conditional award vesting
LTSP 2022-2024 conditional award vesting
LTSP 2023-2025 conditional award vesting
LTSP 2024-2026 conditional award vesting
LTSP 2025-2027 conditional award vesting
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Share ownership
The CEO is required to keep a portfolio of Vopak shares to the value of two (2) years
of the annual base salary. For the CFO and COO, this requirement is to keep a
portfolio of Vopak shares to the value of one (1) year annual base salary. Similar
shareholding requirements are in place for senior executives. New Executive Board
members are expected to accrue their required shareholding over time via the
vesting of the LTSP grants.
Under the Dutch Corporate Governance Code, Executive Board members are
required to hold shares acquired under company long-term share compensation
plans for a minimum of 5 years after the date on which these shares were
(conditionally) granted. The Supervisory Board considers the requirement that a
certain minimum portfolio of shares is held continuously during the entire Board
membership with the company more suited to the longer-term nature of Vopak’s
strategy and the business Vopak is in. On a day-to-day continuous basis, Vopak’s
shareholding requirement for Executive Board members results in a total number of
shares vested and delivered to individual Executive Board members, and subsequently
restricted from further sale, that is similar or higher compared to the shareholding
requirement arrangement included in the Dutch Corporate Governance Code, such
depending on the number of shares granted that actually vest.
Executive Board members may choose to sell the performance shares they receive
as a result of vesting under the company’s LTSP plans (if any), in accordance with
the company’s insider trading rules. After such sale, the value of their portfolio of
performance shares will still need to meet the applicable shareholding requirement.
Other compensation
For Executive Board members who are recruited externally, the Supervisory Board
may decide to provide additional one-off remuneration in the form of a sign-on
bonus and/ or a buy-out arrangement (to compensate for any variable compensation
forfeited as a result of joining Vopak), if this would be deemed fair and appropriate
and in line with established market practices. In addition, if such Executive Board
members would come from abroad, they may be eligible for expatriate benefits in
cash or in kind, including tax assistance, in line with the Vopak Global Mobility policies
applicable to all Vopak staff, such depending on their personal circumstances.
Benefits and other emoluments
Executive Board members are entitled to certain company benefits and emoluments
per the policies, plans and arrangements for all Vopak non-CLA staff in the
Netherlands. Certain emoluments are subject to personal choice. Of these the
Vopak pension plan is most notable.
Executive Board pension arrangements
Vopak’s Executive Board members participate in the same company pension plan
as other staff employed by Vopak in the Netherlands. As of January 1, 2018, this
plan is a defined contribution plan funded by contributions from both Vopak and
participants. The retirement age under the Vopak pension plan has been set at age
68 and includes various early retirement options on a cost neutral basis. In the
calculation of the pensionable base salary, an offset for state pension entitlements,
and a part of the actual annual bonus paid out in the year at hand under the
Short-Term Incentive Plan (STIP), such to a maximum of 15% of the pensionable
base salary, are included. With regard to death and disability, risk insurances apply.
Thepension plan includes three contribution arrangements, dependent on annual
pensionable salary levels:
• Basic arrangement for that part of the annual pensionable salary up to
EUR62,210 (2022).
• Surplus arrangement for that part of the annual pensionable salary from
EUR62,210 up to EUR 114,866 (2022).
• Net Surplus arrangement for that part of the annual pensionable salary above
EUR 114,866 (2022). Due to Dutch fiscal regulations, the employer contributions
to this arrangement are made to participants in the form of gross cash
compensation subject to tax withholdings, which can be used to fund a voluntary
net defined contribution plan.
The caps in these three arrangements are set by the Board of the Vopak Pension
Plan, and are largely driven by fiscal considerations as offered by the Dutch tax
authorities. They apply to all participants in the Vopak NL Pension Plan, including to
Executive Board members. Any changes in these caps are not subject to further
approval of the General Meeting.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
For Executive Board members who are appointed as Executive Board member after
1 January 2015, a 4% employee contribution is withheld from their gross salary, in
line with the employee contribution obligations for all Vopak employees in the
Netherlands. For Executive Board members who were in service prior to 1 January
2015, the difference between the Vopak contributions to the current pension plan
and to the Executive Board pension arrangement in place prior to 1 January 2015,
iscompensated for by a separate gross pension contribution allowance paid out
tothe individual (subject to tax withholdings).
In line with the arrangements in place for all Vopak employees in the Netherlands,
Executive Board members who were employees of the company prior to 1 January
2006, and Executive Board members who are appointed as Executive Board
member after 1 January 2015, are eligible for a gross cash allowance of 1.5% of
their annual base salary (subject to tax withholdings), which replaces the company
contributions to earlier pre-pension arrangements abolished in 2006.
Other
The company will provide the necessary business means to Executive Board members
as required for the execution of their role and responsibilities. Their use is for business
purposes only, and is subject to the general policies as applicable to all staff, which
among others restricts the use of these means for private purposes, where applicable.
Reasonable expenses will only be reimbursed to individual Executive Board
members, if these are incurred in the course of performing their duties; approval of
such business expenses is per the Vopak policies and procedures for such expenses.
The company will not provide any personal loan, advance or guarantee to Executive
Board members.
Appointment and termination of Executive Board Members
Executive Board appointments are governed by Dutch employment law and aligned
with the current Dutch Corporate Governance Code. Executive Board members are
(re-)appointed for a term of four years in accordance with legal and regulatory
requirements.
For Executive Board members, any additional remuneration (“sign-on”) paid upon
recruitment, compensation for a (non-voluntary) (early) termination of appointment
(“severance pay”), or a change-in-control will be decided upon by the Supervisory
Board thereby taking into account standards of reasonableness and fairness and
the Dutch Corporate Governance Code. In any case, a severance will not exceed
one year’s fixed remuneration. No severance will be paid in the event of voluntary
resignation by or seriously culpable or negligent behavior on the part of the
individual Executive Board member.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Corporate Governance
Vopak is incorporated and based in the Netherlands. As a result, Vopak’s
governance structure is based on the requirements of Dutch legislation including
securities laws, the company’s articles of association, complemented by internal
policies and procedures. Given the worldwide exposure of its businesses, the
international context is of vital importance and relevant international developments
are closely monitored.
Good corporate governance is a key component of Vopak’s way of doing business
and is embedded in its core values. The corporate governance is supported by a
strong focus on integrity, transparency and clear and timely communication. Good
governance and proper supervision are important prerequisites for generating and
maintaining trust in the company.
Vopak’s business, financial and investor strategy is focused on long-term value
creation for the company and its affiliated enterprises as formulated by the
Executive Board under the guidance of the Supervisory Board. Value creation is
closely connected with the culture within the company, the view on sustainability
matters and long-term value creation requires a culture aimed at that. Long-term
value creation also requires awareness and anticipation of new developments in
technology that can contribute to the continuing success of the company. All
stakeholder interests are hereby taken into careful consideration.
The leadership style within Vopak stimulates a culture that promotes desired
behavior and encourages employees to act with integrity and to lead by example.
By communicating this culture with its corresponding values, incorporating it into
the enterprise and maintaining it, guidance is provided in making everyday
decisions and monitoring ethical conduct by people in all tiers of the organization.
The top of the company has regular contact with employees at all levels of the
company as it is essential to know how the culture is experienced within the
organization. Culture is also monitored via the employee engagement survey. More
information on the culture within Vopak is provided in the People Leadership chapter.
The Vopak Code of Conduct is based on the Vopak corporate values to provide the
conditions for a healthy culture and effectively encourage an atmosphere of
openness. Neither leadership nor culture are considered tick the box items or
treated as such. All Vopak employees, partners, contractors and suppliers are
required to adhere explicitly to the Code of Conduct. Compliance is regularly
checked for example as part of the CSRA and internal business audits. These
monitoring tools also show and measure the effectiveness of the Code of Conduct.
Vopak complies with the vast majority of the principles and best practices laid down
in the 2016 Dutch Corporate Governance Code (the Code). The exceptions are
explained in the following paragraphs.
Set-up and policy
Vopak aims to strike a sound balance between the interests of the company’s
various stakeholders. Integrity, openness, supervision, transparent reporting and
accountability are the cornerstones of the corporate governance policy. The
company has also developed a clear policy with regard to reporting for financial
matters and sustainability. For details of the Sustainability Policy, reference is made
to the Vopak website.
Vopak confirms that the principles reflected in the Code are applied by Vopak except
for the deviations from the Code that are explained in the following paragraphs.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Corporate Governance
Corporate Governance
Vopak has a two-tier governance structure requiring a well-managed relationship
between the Executive Board solely composed of executive directors and the
Supervisory Board solely composed of non-executive directors. The two Boards are
independent of each other and have their own roles and responsibilities in the
governance structure.
The Executive Board is responsible for the management of the company and for the
realization of its objectives. These include the objectives for strategy and policy,
health, safety, the environment (part of sustainability), quality, as well as results.
The Executive Board is assisted in fulfilling its responsibilities by the Risk
Committee, the Compliance Committee and the Disclosure Committee. The
activities of the Risk Committee include facilitating and challenging risk reporting
within the company, providing oversight of main risks and related risk management
activities. The primary objective of the Compliance Committee is to support and
advise the Executive Board in fulfilling its oversight responsibilities on all
compliance matters relevant to Vopak’s activities. The Disclosure Committee assists
the Executive Board with ensuring that information is disclosed accurately and
timely to the outside world in line with the applicable laws and regulations.
The Supervisory Board reviews Vopak’s overall performance, including the policies
pursued and results achieved by the Executive Board, the company’s financial
situation, its financial statements, key risks and opportunities.
The Supervisory Board also reviews and approves the strategy of Vopak, as
proposed by the Executive Board. Similarly, it approves important proposals for
capital expenditure, acquisitions and divestments, changes in financial and other
corporate policies and the annual budget. The Supervisory Board evaluates the
performance of the Executive Board as a whole and that of its individual members,
and proposes any changes to the composition of the Executive Board to the
General Meeting. Similarly, the Supervisory Board reviews its own performance
annually and proposes changes to the composition of the Supervisory Board to the
General Meeting.
Finally, the Supervisory Board ensures that the company’s policies are formulated and
pursued in the interest of all its stakeholders, including shareholders and employees,
and that these policies are sustainable and meet the highest ethical standards.
The Supervisory Board is carefully selected to include members with diverse
backgrounds and experience in areas relevant to Vopak’s core business and the
foreign markets in which it operates. Their experience ranges from economic,
financial, technical, operational and social areas, to political and business-related
areas. The Supervisory Board, in performing its duties, focuses on the realization
of the objectives of the company, the strategy and its implementation. The
Supervisory Board appoints an Audit Committee, a Remuneration Committee and
a Selection and Appointment Committee from among its members. In accordance
with the provisions of the Code, Vopak has further specified the role and powers
of these committees in specific regulations that apply to them.
The General Meeting has the authority to appoint, suspend and dismiss members
of the Executive Board and Supervisory Board and other authorities such as passing
resolutions for legal mergers and split-offs, adopting financial statements, and the
appropriation of profits available for distribution on ordinary shares. Furthermore,
the General Meeting determines the remuneration policy for the Executive Board
and sets the remuneration of the members of the Supervisory Board. The
remuneration of the members of the Executive Board is set by the Supervisory
Board on the basis of a proposal from the Remuneration Committee, in accordance
with the remuneration policy as adopted by the General Meeting.
Vopak will continue to facilitate proxy voting. Dutch law provides for a mandatory
registration date to exercise voting and attendance rights 28 days before the date of
the General Meeting.
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153
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
The Dutch Corporate Governance Code
Vopak has evaluated its corporate governance structure against the Code and
concluded that in 2021 it satisfied the principles and best practice provisions of
the Code, with the exception of the following item:
1. Best practice provision 3.1.2 (blocking period of five years for shares
granted to the Executive Board without financial consideration)
Shares that vest to individual Executive Board members under the Executive Board
Long-Term Share Plans (LTIPs) are not subject to a blocking period of in total 5
years from the date of the (conditional) grants. Instead, as an alternative measure,
the total value of the portfolio of Vopak shares vested to individual Executive Board
members under these LTSPs which they are required to keep at all times during
their Board membership, must be at least equal to two years of the gross annual
base salary for the CEO, and one year of the gross annual base salary for the CFO
and COO. The Supervisory Board considers the requirement that a certain
minimum portfolio of shares is held continuously during their Board membership
with the company more suited to the longer-term nature of Vopak’s strategy and the
business Vopak is in. On a day-to-day continuous basis, Vopak’s shareholding
requirement for Executive Board members results in a total number of shares
vested and delivered to individual Executive Board members, and subsequently
restricted from further sale, that is similar or higher compared to the shareholding
requirement arrangement included in the Dutch Corporate Governance Code, such
depending on the number of shares granted that actually vest.
Vopak has several regulations in place governing the performance of its various
bodies and ensuring implementation of the rules applicable within Vopak. These
regulations are drafted in line with the Code, applicable legislation and decisions
made by the Executive Board and the Supervisory Board. The regulations can be
found in the Corporate Governance section of the Vopak website.
These regulations concern:
• Regulations of the Supervisory Board
• Regulations of the Audit Committee of the Supervisory Board
• Regulations of the Remuneration Committee of the Supervisory Board
• Regulations of the Selection and Appointment Committee
of the Supervisory Board
• Vopak Insider Trading Policy
• Regulations on suspected irregularities (‘whistleblower regulations’)
• Diversity policy.
The following items also appear on the Vopak website:
• Articles of Association
• Information on the members of the Executive Board and Supervisory Board and
the composition of the core committees
• Profile of the Supervisory Board
• Schedule of resignation for the Supervisory Board members
• Schedule of resignation for the Executive Board members
• Policy related to bilateral contacts with shareholders
• Code of Conduct
• Sustainability Policy
• Corporate Governance Compliance Manual
• Remuneration report, containing the main points of the remuneration policy
Response measures
Vopak’s principal defense against a (hostile) takeover is the ability to issue
cumulative preference shares (‘protective preference shares’) to Stichting Vopak.
Such defensive preference shares will be issued in the event that Stichting Vopak
exercises its option right. On 18 October 1999, the General Meeting decided to
grant Stichting Vopak the right to take up protective preference shares up to a
maximum nominal amount equal to 100% of the share capital issued at that time to
third parties in the form of ordinary and financing preference shares, less one
ordinary share. Vopak and Stichting Vopak further formalized their relationship with
regard to the option right in an option agreement of 1 November 1999. This
agreement was amended on 5 May 2004, whereby the original put option granted
to Vopak was cancelled. In light of the possible introduction in the future of other
classes of shares, the Extraordinary General Meeting of 17 September 2013
resolved to expand Stichting Vopak’s right to acquire protective preference shares in
such a way that it is not only related to share capital issued to third parties in the
form of ordinary and financing preference shares at the time Stichting Vopak
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
exercises this, but to all shares in the share capital of Vopak issued to third parties
at such time, less one ordinary share. The option agreement with Stichting Vopak
was amended on 17 September 2013 to reflect this change. Exercise by Stichting
Vopak of its option right in part does not affect its right to acquire the remaining
protective preference shares under the option granted to Stichting Vopak.
The option agreement provides that in the event that Stichting Vopak exercises
its option right and the results thereof are fully or partially cancelled (for instance
as a result of the cancellation of the protective preference shares issued),
Stichting Vopak will continue to be able to exercise its option right.
The granting of the call option to Stichting Vopak has been entered in the Company
Registry. The objective of Stichting Vopak is to promote the interests of Vopak and
companies affiliated to the Vopak group. It does this in a way that safeguards the
interests of Vopak and its stakeholders to the greatest possible extent and, to the
best of its ability, it resists influences opposing those interests, which could impair
the independence and/or continuity and/or identity of Vopak. It undertakes all
actions relating to or conducive to these objectives. The board of Stichting Vopak
therefore determines whether and when it is necessary to issue the protective
preference shares.
These measures can be taken for example (but not necessarily limited to) in the
event of a (hostile) takeover bid if the board of Stichting Vopak believes it is in the
interest of Vopak and its stakeholders to establish its position in respect of the
hostile party and its plans, and to create opportunities to seek alternative scenarios.
Information referred to in Section 1 of the Takeover Directive
(Article10)Decree
Capital structure
A description of Vopak’s capital structure, the various classes of shares and
the rights and obligations attached to them can be found in note 5.1 to the
Consolidated Financial Statements. On 31 December 2021 a total of 125,740,586
ordinary shares had been issued with a nominal value of EUR 0.50 each.
No financing preference shares and no protective preference shares have been
issued on 31 December 2021.
Restrictions on the transfer of shares
Vopak’s Articles of Association do not provide for a restriction on the transfer of
ordinary shares. They do, however, provide for a restriction on the transfer of
financing preference shares. Financing preference shares may only be transferred
to natural persons, subject to specific exceptions for a legal entity holding the
financing preference shares for the purpose of administration and other parties
pursuant to Article 10A, paragraph 7 of the Articles of Association. With regard to
the protective preference shares, the Articles of Association provide that any
transfer requires the approval of the Executive Board.
Major holdings subject to mandatory disclosure
More information on major shareholdings that are subject to mandatory
disclosure pursuant to the Financial Markets Supervision Act can be found in
the section Shareholder information. Furthermore, additional information on
the transactions with major shareholders can be found in note 7.3 of the
Consolidated Financial Statements.
System of control over employee share plans
Information on share plans can be found in note 7.2 to the Consolidated Financial
Statements of this Annual Report.
Rules governing the appointment and dismissal of members of
the ExecutiveBoard and Supervisory Board and the amendment
of the Articles ofAssociation
Under Vopak’s Articles of Association, members of the Executive Board and
Supervisory Board are appointed and dismissed by the General Meeting. The
Supervisory Board makes a non-binding nomination for the appointment of
members of the Executive Board. Upon the appointment of members of the
Supervisory Board, the Supervisory Board may make a non-binding nomination.
The General Meeting may only resolve to amend the Articles of Association
following a proposal from the Executive Board that is subject to approval by the
Supervisory Board. Such a resolution of the General Meeting requires a majority of
at least two-thirds of the number of votes validly cast.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Share issuance and repurchase
The General Meeting or the Executive Board, if so designated by the
GeneralMeeting, resolves or decides on the issuance of shares. Any share
issuance is subject to approval by the Supervisory Board. On 31 December 2021,
no authorization to issue shares had been granted to the Executive Board.
The Executive Board is authorized until 20 October 2022 to repurchase fully paid-up
ordinary shares in Vopak’s capital, subject to approval by the Supervisory Board.
Any repurchase must be limited to the maximum number held by virtue of the law
and the Articles of Association (10% at 31 December 2021). Their purchase price
must be between the nominal value of the ordinary shares and 110% of the
average share price listed on the five most recent trading days prior to the date of
the purchase.
Key agreements containing change of control provisions
Reference is made to the change of control provisions in connection with loans in
note 5.5 to the Consolidated Financial Statements.
With respect to agreements entered into with members of the Executive Board
and employees that provide for payment upon termination of their employment
following a public bid, reference is made to the description of the remuneration
policy on the Vopak website.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Corporate Governance statement
Introduction
This statement is included in pursuance of Section 2a of the Decree of
23December 2004 for the adoption of further regulations governing the contents
ofthe management report (the ‘Decree’). It sets out the statements referred
toinSections 3, 3a, and 3b of the Decree.
Compliance with the Dutch Corporate Governance Code
Vopak complies with the 2016 Dutch Corporate Governance Code (the ‘Code’)
andhas amended its rules and policies accordingly. The English and Dutch versions
of the Code can be downloaded from www.commissiecorporategovernance.nl.
Thestatement on compliance with the principles and best practice provisions
ofthe Code addressed specifically to the Executive Board or Supervisory Board
canbe found in the ‘Corporate Governance’ section of the Annual Report.
Management and control systems
The statement on the principal features of the management and control systems
ofVopak and of the group whose financial information is included in its financial
statements can be found in the ‘Risk management and internal control’ section
ofthe Annual Report.
The general meetings
Vopak’s shareholders exercise their rights in the annual and extraordinary general
meetings. The annual general meeting must be held no later than 30 June each year.
The agenda for the meeting must state certain subjects as described in Vopak’s
Articles of Association or in the law, including the adoption of the financial statements.
Extraordinary general meetings are held at the request of the Executive Board, the
Supervisory Board, or one or more holders of shares or depositary receipts that,
solely or jointly, represent at least one tenth of the company’s issued share capital.
A subject for which discussion has been requested in writing by one or more holders
of shares or depositary receipts that, solely or jointly, represent at least one-hundredth
of the company’s issued share capital, will be stated in the convocation of the
meeting or announced in the same manner, provided that Vopak receives such
request no later than on the sixtieth day before the date of the meeting.
In general meetings, resolutions may be passed by absolute majority of the number
of votes cast, unless Vopak’s Articles of Association or the law prescribe a larger
majority. The principal powers of the general meeting are:
• adopting the financial statements;
• approving a dividend proposal;
• discharging members of the Executive Board from liability;
• discharging members of the Supervisory Board from liability;
• adopting the remuneration policy with respect to the members of the
ExecutiveBoard;
• adopting the remuneration of the members of the Supervisory Board;
• appointing, suspending, and dismissing members of the Executive Board;
• appointing, suspending, and dismissing members of the Supervisory Board;
• appointing an external auditor;
• authorizing the Executive Board to repurchase shares;
• issuing shares and granting rights to acquire shares (option rights), and
designating the Executive Board as the body competent to make such decisions
during a set period;
• excluding or limiting shareholders’ rights of first refusal when issuing shares
andgranting rights to acquire shares, and designating the Executive Board
asthebody competent to make such decisions during a set period;
• approving decisions taken by the Executive Board pertaining to a major change
inVopak’s identity, nature or enterprise; and
• resolving to amend Vopak’s Articles of Association, dissolve Vopak, or enter into
amerger or demerger.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Corporate Governance statement
Corporate Governance statement
Membership and working methods of the Executive Board
Details of the members of the Executive Board can be found in section ‘Executive
Board members’ in the section ‘Executive Board report’ of the Annual Report.
The members of the Executive Board are collectively responsible for managing
Vopak as well as for its general affairs and that of the group companies affiliated
with it. In doing so, they aim to create long-term shareholder value.
A more detailed description of the working methods of the Executive Board can be
found in the Executive Board Rules, which have been posted on the Vopak website
(www.vopak.com), in the section Investors -Corporate Governance.
The responsibilities of the Executive Board include:
• evaluating Vopak’s objectives from time to time and, where appropriate,
adjustingthem;
• achieving Vopak’s objectives;
• determining the strategy and associated risk profile and the policy designed
forthe achievement of Vopak’s objectives;
• managing Vopak’s general affairs and results;
• the financing of Vopak;
• identifying and managing the risks connected to the business activities;
• seeking to make ongoing improvements to safety, health, and environmental
performance;
• considering corporate social responsibility issues that are relevant to
Vopak’sactivities;
• ensuring effective internal risk management and control systems and reporting
on this in the Annual Report;
• adopting values that contribute to a culture aimed at long-term value creation
forVopak;
• making preparations for and managing the financial reporting process, which
includes safeguarding the quality and completeness of the financial reports
tobepublished;
• closely involving the Supervisory Board in a takeover process if a takeover
bidforthe shares in Vopak is under preparation or has been made;
• complying with legislation and regulations;
• complying with the Code and maintaining Vopak’s corporate governance structure;
• publishing in Vopak’s Annual Report, on its website and otherwise,
thecorporategovernance structure and other information required under
theCode and providing an explanation regarding compliance with the Code;
• preparing Vopak’s financial statements, annual budget and important
capitalinvestments;
• rendering advice for the nomination of Vopak’s external auditor.
The Executive Board Rules include rules for internal decision-making, which are in
compliance with the relevant provisions of the Code and follow broadly applicable
laws and regulations in case of a conflict of interest of one or more members of
theExecutive Board. Both Vopak’s Articles of Association and the Executive Board
Rules can be found on Vopak’s website.
Details of the remuneration of the members of the Executive Board can be found
inthe section ‘Remuneration report’ of the Annual Report.
Membership and working methods of the Supervisory Board
and its committees
Details of the members of the Supervisory Board and membership of its committees
can be found in the section ‘Supervisory Board members’ of the Annual Report.
The Supervisory Board’s duty is to supervise and advise on the management of
Vopak and the general affairs of Vopak and the enterprise connected with it. In
discharging its duties, the Supervisory Board is guided by the interests of Vopak
and its group companies, taking into account the relevant interests of Vopak’s
stakeholders (which include its shareholders), aimed at creating long-term value for
Vopak. The Supervisory Board is responsible for the quality of its own performance.
The responsibilities of the Supervisory Board include:
• supervising, monitoring and advising the Executive Board on: (i) the achievement
of Vopak’s objectives, (ii) Vopak’s strategy and the risks inherent to its business
activities, (iii) the structure and management of the internal risk management
andcontrol systems including the internal audit function, (iv) the financial
reporting process, (v) the application of information and communication
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
technology (ICT), (vi) compliance with legislation and regulations; (vii) the
relationship with shareholders; (viii) a takeover process if a takeover bid for the
shares in Vopak is under preparation or has been made; and (ix) the aspects of
corporate social responsibility that are relevant to the enterprise and (x) the
values that contribute to a culture aimed at long-term value creation for Vopak;
• disclosing, complying with and enforcing Vopak’s corporate governance structure;
• approving Vopak’s annual accounts, annual budget, and major capital expenditures;
• selecting, nominating and evaluating Vopak’s external auditor;
• selecting and nominating members of the Executive Board for appointment,
proposing the remuneration policy for members of the Executive Board for
adoption by the general meeting, setting the remuneration (in accordance with
the remuneration policy) and the contractual terms and conditions of
employment of the members of the Executive Board;
• selecting and nominating members of the Supervisory Board for appointment
bythe general meeting and proposing the remuneration of its members for
adoption by the general meeting;
• evaluating and assessing the functioning of the Executive Board and the
Supervisory Board as well as their individual members, and evaluating the profile
for the Supervisory Board and the induction, education and training program;
• handling and deciding on reported (potential) conflicts of interest between Vopak,
on the one hand, and members of the Executive Board, the external auditor,
orthe major shareholder(s), on the other;
• handling and deciding on reported alleged irregularities that relate to the
functioning of the Executive Board.
The Supervisory Board Rules include rules for internal decision-making which are in
compliance with the relevant provisions of the Code and follow broadly applicable
laws and regulations in case of a conflict of interest of one or more Supervisory
Board members and Vopak. The Supervisory Board Rules have been posted on
Vopak’s website.
Details of the remuneration of the members of the Supervisory Board can be found
in the section ‘Remuneration report’ in the subsection ‘Remuneration of the
Supervisory Board 2021’ of the Annual Report.
Details on the committees of the Supervisory Board can be found in the section
‘Supervisory Board report’ of the Annual Report.
The Supervisory Board has drawn up a diversity policy for the composition of
theExecutive Board and the Supervisory Board addressing the diversity aspects,
the specific objectives set in relation to diversity; and the policy implementation.
The diversity policy can be found on Vopak’s website.
For information referred to in Section 1 of the Takeover Directive (Article 10) Decree,
reference is made to the statement in this respect as included in the Annual Report
in the section ‘Corporate Governance’ of the Annual Report.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Riskmanagement
&internal control
Vopak Control Framework – Risk Management and Internal
ControlComponents
Risk Management and internal control activities are at the core of the Vopak Control
Framework. This framework is applied at all layers and locations within the Group.
These principles are also applied at the joint ventures and associates of the Group.
Risk Management and Internal Control
The Executive Board, under the supervision of the Supervisory Board, bears
theresponsibility for identifying and managing the risks associated withthe
company’s strategy and activities. The Executive Board is assisted in carrying out
these responsibilities by senior management across the business inmanaging (line
management), monitoring (Divisions and Global Functions), advising (Risk
Committee and Compliance Committee) and assurance (Global Internal Audit)
activities.
Vopak applies the principles of the COSO Integrated framework – Internal Control
and Risk Management – resulting in an integrated cohesive approach starting with
determining Vopak’s risk appetite, identifying the key risks that may prevent the
Group from achieving the strategic objectives and then and how the identified risks
are to be managed through internal controls.
Vopak Control Framework
External environment
Vopak values
Supervisory Board
Executive Board
Strategic Committee
Code of Conduct
Enterprise Risk
Management
Standards and
Policies
Strategy, Planning
and Appraisal
Control activities
and Assurance
Divisions and Global Functions Group Companies
The foundation elements of the Vopak control framework define the principles that underpin
the Vopak Group’s activities.
The management processes define activities critical to an effective control framework.
The organization component defines how divisions and global functions organize and manage
their activities and how the various operating companies involved relate to each other.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Riskmanagement &internalcontrol
Riskmanagement &internalcontrol
A cohesive approach: Managing risks and internal control
• Leading assets in leading locations
• Service leadership
• Operational leadership
• Technology leadership
• People leadership
• Founder’s mentality
• Vopak values
• Standards, Procedures
& Guidelines
• Communication, training
• Organizational set-up
• Global – Functional
• Divisional – Regional
Self assesssments:
• CRSA
2
: operating companies level
• DMCSA
3
: Divisions
• Functional self-assessments
• Second line specifictopic reviews
• External run surveys
• Management review cycle
Strategy & Objectives Risks & Risk appetite Risk response Monitoring & Assurance
Strategic
Operational
Legal & Compliance
Financial & Reporting
Risk
appetite
determined
per risk
Vopak
Key
Control
Frame-
work
1
Code of Conduct, Culture & Values, Recognition, Whistleblower
Internal
audit
1 Vopak’s Key Control Framework covering 16 processes providing for effectivemanagementthrough effective controls for risks to be within the risk appetite.
2 Control Risk Self-Assessment.
3 Divisional Monitoring Controls Self-Assessment.
Enterprise Risk Management
Our Enterprise Risk Management (ERM) Framework, which is based on the
principles of the ‘COSO Enterprise Risk Management — Integrated Framework’,
isembedded within the quarterly functional performance reviews, the divisional
performance reviews and the mandatory Enterprise Risk Management (ERM)
reporting which takes place on a biannual basis.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
• Risks identified by the individual
terminals and divisions
• Strategic risk discussions with
global senior management
• Global principal risks reviewed by
the Risk Committee and agreed
with the Executive Board
• Risk appetites of all principal risks
are determined by the Executive
Board and shared within the
organization
• A standard risk management
methodology facilitates
communication within the group
• Mitigating actions are established
for the identified risks and
reviewed by the Risk Committee
• Separate action plans are
established and executed for
risks, which exceed the risk
appetite
• Effectiveness of the mitigating
actions is monitored across the
three lines of defense
• Risk Committee reviews
effectiveness of risk management
process and acts as the steward
of risk management
• The Risk Committee informs the
Executive Boardand the Supervisory
Board on the principalrisks and the
effectiveness of the risk management
process
1. Identify 2. Measure 3. Manage 4. Monitor 5. Report
Risk exposures aligned with the strategic objectives
Embedded in a risk conscious culture
Vopak’s Risk Management Framework
Vopak’s ERM process is guided and overseen by a global Risk Committee.
TheERMprocess is aimed at ensuring the timely identification and mitigation
ofrisks and risk trends while at the same monitoring that the Group remains
withinthe defined risk appetite. It requires all operating companies to assess
andreport their principal risks, the likelihood, financial impact and the mitigating
actions in place plus an assessment of the effectiveness of these actions.
Divisionsreview, discuss, supplement and report on these risks as the basis
forthebiannual discussions between Division Management and representatives
ofthe Risk Committee. A dialogue also takes place with Global Directors
andothermembers of senior management and the outcome of the process
isdiscussed by the full Risk Committee. The in-depth dialogue with the
ExecutiveBoard concludes the process prior to sharing and discussion
withtheAudit Committee and the Supervisory Board.
Confirmation of the process is provided through the work of Global Internal Audit,
which ensures that operating companies have a robust ERM process at the
locallevel and that the Control Risk Self-Assessments (CRSAs) are providing
atrueandfair view. The Executive Board accordingly considers the ERM process
tobeeffective.
Risk-reward appetite
The applicable risk-reward appetite for each risk category (in accordance with the
COSO) framework is defined by the Executive Board. It guides decisions on the
types and amount of risk the Group is willing to accept in order to meet its strategic
objectives, while ensuring compliance with laws and regulations. Our risk-reward
appetite throughout 2021 remained unchanged compared to prior year.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Risk Category (COSO) Strategic themes Vopak’s risk-reward appetite Very low Low Moderate High Very high
Strategic risks • Leading assets
in leading locations
Dependent on the fit-for-purpose value creation opportunities and
the corresponding future incremental expansion and growth options,
the company evaluates the entrepreneurial risk-return profiles on an
individual merit basis by consistently applying different metrics for
different purposes
Operational risks • Operational leadership
• Service leadership
• Technology leadership
• People leadership
Safety and sustainability
Other areas/topics with alignment of targetsand related cost,
and a clear focus on sustainable EBIT growth.
Legal and
Compliancerisks
• Operational leadership
• People leadership
The objective is to ensure full compliance with legal and regulatory
environments.
Financial and
reportingrisks
Aligned with the long-term nature of the business, the company
wants to ensure a robust financing position and solid cash flow
performance. Furthermore, the objective is to ensure full compliance
with financial and non-financial reporting laws and regulations.
Our principal risks and uncertainties and how we mitigate these General
The principal risks that could prevent Vopak from achieving its strategic objectives
are described in the table below, together with their mitigating actions applied.
When identifying our principal risks, we also take into account the industry-related
trends that could lead to future opportunities and uncertainties as described in the
chapter ‘Storing vital products with care’ of this Annual Report. Fourteen principal
risks are reported.
The nature of Vopak’s business model is long term, resulting in many risks being
enduring in nature. Nonetheless, risks may develop and evolve over time due to
internal and external developments. The risk overview should be read carefully
when making an assessment of the company’s business model, its historical
andpotential future performance, and the forward-looking statements contained
inthis Annual Report. Although the risk management process followed is
considered to be effective, there is no absolute certainty that the mitigating actions
with respect to the principal risks will be effective or that other risks may be
prevented from occurring.
Covid-19 impact on our principal risks:
Whilst our principal risks have not changed as compared to those disclosed
withinthe 2020 Annual Report, the pandemic spread of Covid-19 has impacted
thecompany in many ways. The pandemic has led to higher levels of uncertainty
inareas that were already addressed by our principal risks.
Since the start of the pandemic the company has monitored the latest developments
closely. Scenario based contingency plans and other mitigating actions were prepared
and were ready to be put in place when needed. To date, we have observed a limited
impact on our operations. All our terminals are operational and there have been no
significant disruptions to business continuity, notwithstanding the soft markets that
characterized the years 2020-21.
Risk developments
Increasingly a number of principal risks mutually influence and potentially
strengthen each other. Although the speed of change is uncertain and may differ
from region toregion, it is imminent that the global energy market is transitioning
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
(principle risk #3). This also has an impact on market volatility (principal risk #2),
representing bothrisks and opportunities to Vopak. Similarly it impacts price
developments in the oil and gas markets (principal risk #4). This combination of
factors, including increasing competition and overcapacity (principal risk #6) may
pose risks to Vopak’s ability to successfully execute its growth strategy (principal
risk #1), but it also presents new and potentially sizable avenues for growth.
Also, the frequency of cyber attacks and ransom demands (principal risk #11) is
clearly on the rise. Vopak is actively mitigating these cyber security risks, amongst
others through a comprehensive IT/OT security program, effectively reducing the
residual risk.
The risk matrix and table below provides an overview of the principal risks of the
company and management’s current view of the effects of mitigating actions in place:
Legal and Compliance Risks
12
13
14
Operational Risks
7
8
9
Strategic Risks
1
2
3
4
5
6
Unable to deliver on growth strategy
Market volatility
Energy Transition
(Crude) Oil and Gas market price movements
Geopolitical developments
Increasing competition and overcapacity
Climate change
Major safety incident
Large complex construction projects
10
Unable to deliver digitalization strategy
11
Risk of cyber breach of IT and/or OT systems
Complex and changing laws and regulations
Behavior not in line with Vopak Values
Reputational damage to Vopak
Very low
Low
Medium
High
Very high
Impact
Likelihood
From Inherent Risks to Residual Risks
12
11
13
8
7
10
1
3
4
6
9
5
12
13
7
8
9
1
2
3
4
5
6
10
11
14
2
14
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Strategic risks
Risk Risk description Risk Horizon Risk appetite Mitigating actions Development
1
Unable to deliver on our growth strategy
Achieving our strategic goals could be prevented by:
• Not being able to find the right locations and right partners.
• Not having the right skills and capabilities to enable successful business
development execution given the complexities involved.
• Estimated Project returns not meeting risk/return requirements.
• Not being able to successfully convert existing terminals to meet customer
demands due to changing product flows.
• Projects being delayed or demand for storage and handling services
decreasing due to the negative effects that the Covid-19 pandemic may have
on the business of our customers.
• PT2SB. In March 2020 a fire incident took place in the adjacent RAPID facility,
leading to a subsequent closure of the facility. One of PT2SB’s anchor
customers has since been out of operation, while plans to restart the refinery
have repeatedly been delayed, most recently due to technical issues in the
hydrogen production units. The prolonged refinery closure may impact PT2SB’s
financial performance in 2022. Mitigating the situation is a priority for PT2SB
and its shareholders.
Medium to
long term
Low to high Clear growth strategy in place; fully understood by all relevant staff; Project
evaluation criteria on a merit-by-merit basis, ensuring we have the right staff at
the right location
• Dedicated Divisional Business Development Teams supported by the Global
Commercial and Business Development.
• Growth Funnel Execution Focus
• Dedicated team of central commercial analysts monitoring market developments
among others in connection with the energy transition
• Relationship programs with customers, port authorities and other potential
partners for growth projects.
• Instilling the Founder’s Mentality in our culture, among others via the LEAD
program for senior management.
• Applying a multi-dimensional and disciplined Risk/return approach to growth
opportunities.
2
Market volatility resulting in changing product flows with,
in some circumstances, unprecedented speed of market change
Changing industry market dynamics leading to structural changes in product
flows and increased volatility which are not adequately addressed timely by the
company.
Short,
medium to
long term
Low to high Successful execution of our strategy, while maintaining a diversified global terminal
network based on clear strategic criteria for certain product/ market combinations
Continuous in-depth analyses of scenarios and global trends by Global Commercial &
Business Development in conjunction with Divisions and Local teams with the objective
that the company is able to timely identify changing market developments and respond
accordingly. Updating our terminal portfolio based on the strategic criteria, shifting our
portfolio further towards industrial terminals, chemicals, LNG, LPG and chemical gasses.
3
Energy Transition brings both opportunities and uncertainties
The speed and precise direction of the energy transition is not fully known.
Atthe same time, it is observed that the Covid-19 pandemic appears to
accelerate the energy transition. Nevertheless, it is clear that this development
impacts global products flows:
• Increased environmental legislation leading to higher capital expenditure
levels (e.g.: improved vapor recovering treatment systems) and changing
operating requirements.
• Environment-induced regulations also create opportunities (Europe: IMO
2020) with the need for further segregation of products considered to
increase in storage tank demand.
• Demand for oil-based fuels decreasing in specific regions due to lower
economic growth, electrification of vehicles, changes in oil-based fuels
(diesel v gasoline) and more fuel-efficient cars. This may result in assets
that service certain fuel types becoming obsolete.
• Increasing overall negative sentiment towards fossil fuel usage. This can for
example have a negative impact on recruitment possibilities as potential
employees inappropriately consider the company a pure fossil fuel player.
Medium to
long term
Low
(legislation
and
infrastructure
protection)
to High
(opportunities
and adapting
to changing
market needs)
Strategic assessment program takes into account the long-term impact of the
energy transition
Dedicated focus in considering potential energy market transition impacts and
opportunities. Active role in developments demonstrating commitment to
opportunities that the energy transition could bring:
• Emphasizing the company as logistics service provider of vital products for end
consumer use demonstrating a broad product base.
• Setting up a new global New Energies unit ensuring focus on technology and
business development in the field of other vital products such as renewable energies.
• Continuous assessment of the impact on Vopak and the oil and gas industry of
agreements and directions per United Nations Global Climate Change Conference
(latest being COP26) and development of other international and national agreements
• Sustainability being an integral part of the management agenda.
Effective monitoring of:
• Existing and changing compliance requirements in place and follow up of
requirements as necessary.
• Longer-term expected changes in demand for certain product types in order to
adjust the asset base in a timely manner (e.g. conversions, divestments,
demolitions) to successfully adapt to these expected changes.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Risk Risk description Risk Horizon Risk appetite Mitigating actions Development
4
Exposure to (crude) oil and gas market price developments leading
torisks and opportunities
Fluctuating movements in (crude) oil and gas market pricing has consequences
for our customers putting pressure on the value chain although this can offer
storage opportunities in the short term. Differences per region are observed.
Short to
medium term
Low - high Continued focused strategy execution
Providing storage and handling services for structural product flows; limiting exposure
to potentially more volatile trading markets. In addition, having a well-diversified global
terminal network supporting different market/product combinations.
5
Geopolitical developments, unpredictable by nature, continue to present
challenges to our business going forward in both emerging and
non-emerging markets
Geopolitical developments such as trade sanctions and renegotiation oftrade
agreements can lead to unexpected and significant changes inproduct flows.
In addition, changes in governments can lead to uncertainty of the
Government’s stance towards energy programs.
Medium to
longterm
Low-
medium
The well-diversified global terminal network of Vopak supports different
market/product combinations, reducing dependency of locations and products
In seeking growth opportunities, Vopak avoids business development projects in
countries with an undue high geopolitical risk profile unless the risk can be mitigated or is
compensated by higher returns. Developments are continuously monitored – including
impact assessments by a combination of local management, Division and Global.
The diversified terminal portfolio of the Group ensures that adverse geopolitical
developments in a specific region has a significant undue effect.
6
Increasing competition and overcapacity can affect our market position
and earnings potential
Increased storage capacity constructed by existing and new competitors,
which increases competition, together with the potential future effects
oftheenergy transition, puts pressure on our occupancy rates, pricing
andcontract durations. The extent varies per location and terminal type.
Medium to
long term
Low-
medium
Service Leadership and Operational Leadership are cornerstones of our
competitive position
Service improvement objectives and optimisation of assets are key elements of our
strategy to at least maintain our competitive position in each market in which we
operate.
Good insight into existing markets combined with local entrepreneurship which ensure
that we capture business development opportunities before the competition does.
Leadership programs for senior management aimed at harnessing a better competitive
position and improving our way of doing business.
Increasing digitisation (MOVES) moving to real-time data to improve service performance
and cost efficiency. Dedicated programs to invest in innovation and new technologies
will further improve Vopak’s service offering and reduce costs.
Vopak Annual Report 2021
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166
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Operational risks
Risk Risk description Risk Horizon Risk appetite Mitigating actions Development
7
Climate Change: a global issue presenting both risks and opportunities
for Vopak
Climate Change consists of various segments of risks to which Vopak
is(potentially) exposed. These segments could briefly be categorized in
physical risks (chronic risks and extreme weather events), market risks
(changing market dynamics, product- and technological developments) and
policy developments (legislation, reputation).
Medium to
long term
Low to high Vopak has embraced and embedded the TCFD framework in its process to create
awareness and assess exposures and developments
The process is guided by a multidisciplinary team and resulted in a risk and
opportunity assessment, based on IPCC and IEA scenarios, regarding physical risks,
market risks and policy developments. The results of the assessment were shared
during the ‘Climate Day’, involving senior management of Vopak. Regarding the
physical risks, Vopak has performed stress tests for various terminals to identify the
exposure to climate change and extreme weather events.
This has led to enhanced investments in measures against adverse weather and
climate induced conditions and leverage of Global expertise and technical knowledge
for optimal cost-effective solutions.
Vopak has set ambitious targets of reducing its own environmental footprint and
lowering its own emissions of greenhouse gasses (GHG). While Vopak’s direct carbon
footprint is relatively small, it aims at making it even smaller. Vopak’s ambition is to be
climate neutral by 2050.
In this respect Volatile Organic Compounds (VOCs) are one of the important issues
for Vopak to address. VOCs cause air pollution and may pose health risks due to their
toxicity. Reducing VOC emissions is one of the priorities addressed in the
Sustainability Roadmap. By 2020, 55 projects were completed at 17 locations with a
total spend of over EUR 20 million, resulting in a societal impact reduction of 19%
compared to 2016. Actions are defined to meet the 30% reduction target (versus
2016) by 2025.
8
Occurrence of a major personal and/or process safety incident and
environmental risk
Incidents negatively affect the lives and health of not only staff working at
aVopak location but also those in close proximity. Our ‘License to Operate’
could be affected, impacting our earnings. Indicidents expose the company
topotential liabilities and will most likely have an adverse effect on the
company’s reputation.
Short term Very low Safety is our highest priority
Within Vopak, we have continuous attention to ensuring our safety culture is at the
required high level, through every level of the organization. Vopak Fundamentals,
Safety Standards and Vopak Way Standards are critical tools for clearly providing
procedures and instructions for safe working practices – regardless of geography
orlocal laws and regulations that could be less strict.
We have an Annual Audit Plan, ‘Trust and Verify’ Program, and a ‘Terminal Health
Assessment’ Program in place to safeguard adherence to the required safety and
quality standards.
9
Large complex construction projects, not delivered timely,
withinbudget or with the required quality
Projects under development represent sizeable long-term investments
andarerecognized as being individually complex due to different business,
engineering, financing, environmental, cultural and political circumstances.
When projects are not effectively managed in terms ofsafety, cost, time
andquality, increased costs and lost revenues canbe detrimental to the
desired end result.
Medium to
longterm
Low Vopak Project Management standard for mandatory application toallprojects
that fit within the criteria for its usage
A robust multi-disciplinary investment proposal decision-making process isin place.
Guidance is provided by the global functions and (external) experts during all stages
of the project. The use of Global Engineering andGlobal Projects provides a common
approach and the sharing of experience in developing new projects. Lessons learned
reviews are performed and shared within the company for future developments.
Vopak Annual Report 2021
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167
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Risk Risk description Risk Horizon Risk appetite Mitigating actions Development
10
Unable to deliver digitalization strategy
Key to our strategy is effective digitalization including innovation, organized
centrally providing improved service offering and process efficiency through
real-time data availability. The impact on our current way of working and
organizational change is significant but necessary inorder to harness the full
benefits. This requires clear leadership embracing the changes and
opportunities offered. Legacy systems untilfull roll-out of new systems have
to be maintained but are ageing with the risk of disruption.
Medium to
longterm
Low Dedicated approach and governance structure for program management in
place for MOVES with full Senior Leadership Focus
Vopak considers full embedding of system usage critical for success. Dedicated
sessions at Leadership courses have been organized to ensureSenior Leadership is
trained to embrace and drive the change that successful digitalisation requires. A
Business Impact Analysis is taking place at each location prior to the roll-out. A
robust project management approach is applied and governance in place ensuring
sufficient attention isgiven to the needs of legacy systems. Core systems are
developed in-house to ensure that the functionality of the systems meets the
business requirements to the highest extent possible.
At the end of 2021 significant progress is made in implementing the MOVES
program.
11
Risk of cyber breach of our IT and/or OT systems
A cyber breach could have various causes, e.g. via virus and malware attacks,
ransomware and unauthorized access attempts. Such a breach could lead to
confidentiality, integrity and availability (data) issues for the company or
hamper our operations, negatively impacting our reputation, financial position,
operations, and potentially lead to costs related to recovery and forensic
activities.
Short to
mediumterm
Low Cyber security is a ‘top of mind’ priority within Vopak
We have our comprehensive IT/OT security program (COINS) in place toaddress IT
and OT security globally. On a daily basis we monitor ‘cyber’attacks on our global
systems for follow up.
At the end of 2021 significant progress is made with regard to the implementation of
the COINS program.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Legal, compliance and social risks
Risk Risk description Risk Horizon Risk appetite Mitigating actions Development
12
Complex and changing laws and regulations can negatively impact being
Business, Operational and Environmental compliant
Obtaining, renewal and/or revisions to permits and licenses for product
storage from local and national governments, as well as compliance withlocal
laws and regulations are essential to start or continue operating our terminals.
Governments are becoming stricter often due to failings/incidents in the
industry, regulations are frequently changing and/or can be unclear making
100% compliance at all times at all locations globally a challenge. However,
Vopak’s objective is to ensure full compliance. Uncertainties given changing or
unclear requirements can also arise when applying for permit renewals/
applications.
More stringent demands on environmental requirements as required by our
permits may lead to additional sustaining capex investments which can not
always be recovered from customers.
Short to
mediumterm
Very low Operating and Business compliance is non-negotiable
Terminal management is primarily responsible for maintaining a robust general and
permit compliance program. Division/Global support and involvement of external
specialists is used when necessary. Operating permit compliance is being monitored
at various levels within the company and is a critical element of Vopak’s Terminal
Health Assessment program. Permit status is considered a critical path in all project
development activity and is actively monitored through Steering Committees.
Global policies and guidelines are in place addressing business compliance
requirements. The compliance committee ensures that appropriate compliance
processes are in place for dedicated compliance topics and that the principal
compliance risks are identified and mitigated
Commercial teams are in continuous dialogue with our customers on increasing
compliance and sustainability investment with the aim of recovering (part of) these
additional investments via the storage and handling fees.
13
Behavior not in line with Vopak values
Individuals and/or groups of individuals can behave in a manner that isnot in
line with our values which can lead to financial, business andreputational
consequences. It is recognized that certain regions/countries are more
susceptible to having a culture not in line with theVopak Values.
Short to
mediumterm
Clear guidance on culture, values and behavior for every employee
At all levels of the company, management sets the highest standards in respect of
desired culture, values and behavior based on the five global Vopak Values and the
Vopak Code of Conduct. Our Vopak Values are globally implemented and positively
and actively embedded in our culture. Adhering to the Vopak Values is non-
negotiable. Whistleblower rules are available globally for all terminals. All
whistleblower cases are followed up and investigated in line with Vopak’s policies.
14
Reputational damage to Vopak as a brand, company and employer
Sustainability, Climate Change and societal developments are becoming
increasingly important topics. The (public) perception in terms of sustainable
developments and societal developments is both a risk andopportunity to
Vopak.
Short to
mediumterm
Very low Vopak is very much aware of its social responsibility, role and involvement in
today’s society
It is Vopak’s responsibility to do what is reasonably possible to contribute to society
and the environment and minimize the negative impact the company may have on
both. We work hard to reduce our environmental footprint and minimize any negative
impact of our operations on people’s safety, health and wellbeing. The Vopak Values
and Code of Conduct serveas our moral compass and we embrace selected UN
Sustainable Development Goals (SDGs) to create a focus on where we can
contribute to society. Our ambition is to be the sustainability leader in our industry
and to be as good as the safest and most sustainable of our customers.
Vopak Annual Report 2021
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169
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Other general (inherent) risks not considered principal risks
Theme Description
Foreign Exchange
As a globally-operated company, Vopak is confronted with money flows that are not in its functional (Euro) currency. Operating globally provides an extent of ‘natural hedging’ but foreign exchange
exposure risk exists. This risk is continuously reviewed and measures taken to limit the exposure in line with the foreign exchange policy of Global Treasury.
Our financial risks are described in detail in Section 6 of the Consolidated Financial Statements.
Refinancing
andliquidity
Vopak is a capital-intensive company with long-term investments. Long-term access to funds is critical for achieving the strategic objectives of the company. Refinancing and liquidity risks are not
considered principal risks due to the effectiveness of the mitigating actions. Vopak’s funding strategy is focused on ensuring continued access to capital markets so that funding capital is available at
a time of our choice and at an acceptable cost. The development of our Senior Net Debt: EBITDA ratio is continuously monitored and discussed on a regular basis in the Strategic Finance Committee,
the Executive Board, the Audit Committee and the Supervisory Board to ensure that the company remains within its covenant ratios. A clear funding policy with respect to subsidiaries and joint
ventures is in place. Group liquidity requirements are monitored continuously. Long-term liquidity risks are reviewed each quarter and before every significant investment. Active cash management
takes place on a daily basis.
Liquidity risks are described in more detail in Section 6 of the Consolidated Financial Statements.
Insurance A general business risk exists that losses are suffered due to inappropriate coverage of the incident by third-party insurers. Our Global Insurance Policy aims to strike the right balance between
arranging insurance to cover Vopak’s risks and financing adverse implications ourselves. The principal factors underlying our insurance policy are risk tolerance and risk transfer costs. On this basis,
Vopak has purchased worldwide insurance cover for a wide range of risks, such as environmental and third-party liability, property damage, business interruption and cyber-related activities.
Thefinancial credit ratings of the insurance companies involved are reviewed on a regular basis and, where appropriate, risks are spread across several insurance companies.
Tax and Tax related Vopak operates terminals and other activities in many different countries. As tax laws and regulations differ per country and can be complex, the company runs the inherent risk of non-compliance
with the local tax legislation and the tax policy of the company. The Vopak Control Framework has a dedicated section stipulating the internal controls to address the risks related to tax and which
enforce compliance with the group tax policy. Furthermore, the highly skilled tax experts at the Global Tax department assist local and divisional management in complying with the tax requirements
and monitoring the effectiveness of the internal controls relating to tax as well as the tax position of the group.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Internal Control
Vopak has identified sixteen key business processes and has internal controls,
designed in a principle-based manner, to address risks foreseen in each of the
processes. This principle-based internal control framework is rolled out to all
operating companies.
Local management (‘first line’), supported by Divisions and Global Functions, is
responsible for ensuring this framework is implemented, operating effectively and
key risks are managed. Divisions and Global Functions are ‘second line’ responsible
for the monitoring of internal controls locally including assessing their effectiveness.
The ‘third line’ is Global Internal Audit providing independent assurance on internal
control existence and effectiveness.
Internal control framework
Executive Board
Compliance
Committee
Risk
Committee
Disclosure
Committee
Senior Management
Supervisory Board/Audit Committee
External nancial audit
1st line of defense
Terminal
Management
controls
Internal control
measures
2nd line of defense
Division/Global
Financial control
Risk management
Security
Quality
Compliance
3rd line of defense
Global
Internal Audit
Policies &
procedures
providing
detailed
control
guidance
Vopak Key Control Framework
Implementation responsibility Monitoring / guidance responsibility
Ensuring all
Vopak’s
pricipal risks
are covered
by
‘Assurance’
In addition to audits executed by Global Internal Audit, which includes a fraud
vulnerability assessment when a business process audit is executed, the maturity
of key control implementation per operating company is assessed each year
through the completion of the Control Risk Self-Assessment (CRSA). The CRSA
covers the sixteen key processes and related controls including those specifically
directed at fraud and corruption.
Complementing the CRSA, are a number of additional functional- and regional-
specific monitoring activities undertaken throughout the year by the Global
Functions all with the objective to assess the extent of implementation and
effectiveness of expected controls and establish further improvements from a
functional responsibility perspective.
Policies continued to be updated as appropriate during 2021. The introduction of
new IT systems via the MOVES program improves our control environment through
the further standardization of processes, systems and allowing for increased
transparency and monitoring of actions.
The Executive Board is assisted in fulfilling its responsibilities with regards to
internal controls by the Risk Committee, the Compliance Committee and the
Disclosure Committee. These three Committees have an important role in the
company’s overall internal control framework by providing cross-functional and
cross-divisional advisory insight on key topics directly to the Executive Board.
The internal control framework is reviewed and updated periodically to ensure
control design and guidance remains relevant and effective for the organization.
Management Review Cycle
Key to the control process is the regular reporting cycle. Monthly and quarterly
management reports are prepared by all operating companies and Divisions
including joint ventures in line with clearly defined mandatory reporting
requirements. The reports and related discussions between senior management,
including but not limited to the Executive Board, cover not only financial but also
key operational, sustainability, human resources and commercial performance
indicators aimed at monitoring the achievement of strategic objectives.
Vopak Annual Report 2021
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171
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Acriticalelement of these discussions is comparing progress against prior-year
performance and Vopak’s Annual Budget which, together with the two subsequent
plan years, is reviewed and approved by the Executive Board for all Divisions and
operating companies each year.
Role of Internal Audit
The primary role of Global Internal Audit is to provide independent assurance and
advise the Executive Board in relation to its responsibility to ensure both the
existence and effectiveness of internal controls in order to safeguard the company’s
goals. A broad range of audits are executed of an operational, investigative and
compliance nature with the audit of financial external reports being the
responsibility of Vopak’s external statutory auditor. Advising and consulting activities
also take place providing internal control input to projects undertaken by the
organization to support functional owners.
Internal audit to preserve and create value
Strategic
performance
Operational
performance
Governance
focus
Control and
compliance
Value
creation
Value
preservation
Consulting
Assurance
(In-Control
Statement)
Performance
and efciency
Regulation
and Control
Clear and objective in ndings;
Constructive and realistic in recommendations
Fraud and
whistleblower
investigations
New
‘development’
reviews/advice
Operational, IT
and Compliance
audits
Global Internal Audit reports directly to the Executive Board. Its activities are also
overseen by the (Audit Committee of the) Supervisory Board. The Internal Audit
Charter is endorsed by both the Executive Board and the Audit Committee. The
core audit team is located at the Global Head office, often supplemented by subject
matter experts either from the business or external support as appropriate.
The annual internal audit plan is developed using a risk-based approach focusing on
key objectives of the company and risks relating to those objectives. The Global
Internal audit universe includes all processes, entities and activities within the
company, including Global and Divisional functions. The plan takes into account the
feedback resulting from the dialogue with Senior Leadership. Throughout the year,
the results of all audits and advisory activities are shared and discussed with the
Executive Board and discussed each quarter with the Audit Committee. Progress
against the plan is reported.
The follow up of audit findings is the responsibility of the auditee with monitoring
thereof and subsequent closure being the responsibility of the Division and/or
Global as appropriate. The outcome of this process is formalized biannually with
reporting to Global Internal Audit through the ‘audit findings follow-up’ system.
Exceptions to what is expected are followed up proactively with Divisions by
Global Internal Audit. The audit findings follow-up meetings also take into account
follow-up from reviews undertaken by commercial and external financial auditors.
Continuous evaluation of the Global Internal Audit function takes place. The results
are reported to the Executive Board and Audit Committee on an annual basis. In
addition, an externally performed quality assurance audit by the Dutch Institute of
Internal Auditors takes place on a five-year basis. The first review at the end of 2016
was positive and re-confirmed that work is performed in accordance with the
International Internal Auditing Standards. An evaluation of the function by the
Executive Board and the Audit Committee has taken place during the year.
Vopak Annual Report 2021
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Management assessment, Letters of Representation
and In-Control Statement
Management consider that the processes in place as described including those in
the Corporate Governance chapter are of a maturity that enables implementation
and effectiveness of risk management and internal control to be assessed with the
view that there have been no material deficiencies in the internal risk management
and control systems relating to the risks observed during the financial year. Further
improvements noted, such as ongoing policy refinement and the update of the IT
systems, serve to further improve our maturity level and not to change the
processes. The view that there are no material deficiencies is underpinned by the
Letter of Representation that is signed by Terminal Management, Divisional Finance
Directors, Division Presidents and Global Directors at the end of each half year and
full year. This Letter represents the key elements of internal control and full
disclosure of deviations to that control as appropriate. The results of this process
including deviations are specifically discussed with the Executive Board and,
together with the results of the various monitoring and assurance activities as
described above (which are explicitly re-evaluated by both Global Control &
Business Analysis and Global Internal Audit for the purposes of the In-Control
Statement at year end) provide input for the In-control statement issued by our
Executive Board.
The In-Control Statement issued by the Executive Board is included directly after
the Financial Statements.
Vopak Annual Report 2021
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173
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Shareholder information
In EUR 2021 2020
Share price start of the year 43.28 48.60
Highest share price 44.40 54.24
Average closing share price 37.54 47.31
Lowest share price 29.47 40.27
Share price at year-end 30.80 42.99
Free float 52% 52%
Average number of shares traded per day 382,508 398,654
Market capitalization at year-end (in EUR billion) 3.9 5.4
Share price movement in 2021
In %
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec.
Vopak
30
40
50
Investor Relations
Vopak conducts an open and active information policy for all its stakeholders.
Theaim of Vopak’s investor relations is to provide relevant information to all
stakeholders and to ensure that this information is complete, consistent, accurate,
relevant and timely disclosed to all parties. Information is provided through annual
and half year reports, quarterly interim updates, press releases and investor
presentations, which are all available on the Vopak website. Vopak is transparent and
non-discriminatory in disclosing information to investors and other stakeholders.
Aseparate agreement on information sharing has been concluded with our major
shareholder HAL Holding N.V. We refer to note 7.3 of the Consolidated Financial
Statements for more information.
Vopak participated in international roadshows, attended broker-organized equity
conferences and undertook investor telephone calls to engage with shareholders
and investors. Due to Covid-19, most of these engagements were hosted in a
virtual manner in 2021. Vopak held more than 200 meetings with shareholders and
investors this year.
Vopak held press conferences and hosted live webcasts for financial analysts,
investors and other stakeholders following the publication of the annual results
andhalf-year results. The publication of the quarterly interim results were followed
by live webcasts. All webcasts could be attended live and on-demand via Vopak’s
website. Information presented at these meetings was also published on the website.
Vopak complies with the rules and regulations of the Dutch Financial Markets
Authority (AFM) and International Financial Reporting Standards (IFRS), as endorsed
by the European Union, in all its publications.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Shareholder information
Shareholder information
Information per ordinary share
In EUR 2021 Restated 2020
Basic earnings 1.71 2.33
Basic earnings -excluding exceptional items- 2.38 2.37
Diluted earnings 1.70 2.33
Diltuted earnings -excluding exceptional items- 2.37 2.36
Equity attributable to holders of ordinary shares 25.36 23.55
Dividend (proposal) 1.25 1.20
Payout ratio -excluding exceptional items- 53% 51%
Shares outstanding
2021 2020
Basic weighted average number of ordinary shares 125,416,945 126,524,451
Weighted average number of ordinary shares including dilutive effect 125,609,790 126,690,044
Total number of shares outstanding
(including treasury sharesend of period)
125,740,586 125,740,586
Treasury shares end of period 392,016 345,736
Total voting rights at year-end
125,348,570 125,394,850
10
20
30
40
50
60
Share price movement last 5 years
In EUR
2021
Vopak
20202017 2018 2019
Stock exchange listing
Vopak shares are listed on the Euronext stock exchange in Amsterdam, the
Netherlands, and Vopak is a constituent of the Amsterdam Midkap Index (AMX),
ticker symbol VPK (ISIN no. NL0009432491). Options on Vopak shares are also
traded on Euronext Amsterdam.
Silent periods
Silent periods are the periods prior to the publication of financial results. In
principle, no meetings are held with and no presentations are given to financial
analysts and investors during this period. No other communication with analysts
and investors takes place unless it relates to the factual clarification of previously
disclosed information. Usually, the length of the silent period is four weeks prior
topublication of the annual and half year results and quarterly interim updates.
Bilateral contacts
Vopak may engage in bilateral contacts with existing and potential shareholders.
The main objective would be to explain Vopak’s strategy and operational
performance and answer questions. Vopak takes the Dutch Corporate Governance
Code (December 2016) into account when engaging in bilateral contacts with
shareholders.
The following guidelines apply:
• A dialogue with shareholders outside the context of a formal shareholders’
meeting can be useful for both investors and Vopak.
• Vopak reserves the right to determine, at its sole discretion, whether it will
accept invitations from shareholders, or parties representing shareholders, to
engage in such a dialogue. Vopak may ask for further clarification of the views,
aims and investment objectives of such shareholders before accepting or
rejecting an invitation to engage in dialogue outside the context of a formal
shareholders’ meeting.
• Vopak communicates as openly as possible to maximize transparency.
• Responses to third-party publications, such as analyst reports or draft reports, are
only given by referring to public information and published guidance. Comments
on these reports are given only with regard to incorrect factual information.
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Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
• Vopak’s contacts with investors and sell-side analysts shall, at all times, comply
with the applicable rules and regulations, in particular those concerning selective
disclosure, price sensitive information and equal treatment.
Dividend policy
Vopak’s dividend policy targets to pay an annual stable to rising cash dividend in
balance with a management view on a payout ratio range of 25-75% of the net
profit excluding exceptional items attributable to holders of ordinary shares and
subject to market circumstances.
The net profit excluding exceptional items that forms the basis for dividends
tobedeclared may be adjusted, for instance, for the financial effects of one-off
events, such as changes in accounting policies, acquisitions and divestments.
Vopak proposes a dividend of EUR 1.25 per ordinary share over 2021 (2020: EUR
1.20) to the Annual General Meeting of 20 April 2022. The dividend increase of EUR
0.05 or 4% reflects Vopak’s performance throughout a turbulent 2021. The dividend
payout ratio will amount to 53% of earnings per ordinary share excluding
exceptional items (2020: 51%).
Vopak shareholders
Vopak’s shares are held by an international and diversified shareholder base.
Pursuant to the Financial Supervision Act, a shareholding of 3% or more in a
Dutchcompany must be disclosed to the AFM. As per the AFM register, the largest
shareholders in Vopak at 31 December 2021 were:
Ordinaryshareholdings Date ofnotication
HAL Trust 48.15% 01/01/2015
Maple-Brown Abbott >3.00% 23/04/2021
Sprucegrove Investment Management >3.00% 18/11/2021
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 rate
28 April 2022 Dividend payment date
27 July 2022 Publication of 2022 half-year results
11 November 2022 Publication of 2022 third-quarter interim update
15 February 2023 Publication of 2022 full-year results
Vopak Annual Report 2021
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176
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Financial
Statements
179 Consolidated Financial Statements
263 Company Financial Statements
270 Executive Board declaration
271 External auditor’s reports
Vopak Annual Report 2021
|
177
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
177
Financial Statements
Financial Statements
Financial Statements andnotes
Consolidated Financial Statements 179
Consolidated Statement of Income 179
Consolidated Statement of Comprehensive Income 179
Consolidated Statement of Financial Position 180
Consolidated Statement of ChangesinEquity 181
Consolidated Statement of Cash Flows 182
Section 1 Basis of preparation 183
Note 1.1 Basis of preparation 183
Section 2 Group operating performance 188
Note 2.1 Segment information 188
Note 2.2 Exceptional items 191
Note 2.3 Revenues 192
Note 2.4 Other operating income 194
Note 2.5 Personnel expenses 194
Note 2.6 Other operating expenses 195
Note 2.7 Result of joint ventures and associates 196
Note 2.8 Translation and operational currency risk 197
Note 2.9 Cash flows from operating activities (gross) 197
Section 3 Strategic investments
anddivestments 198
Note 3.1 Acquisition and divestment of subsidiaries 198
Note 3.2 Intangible assets 199
Note 3.3 Property, plant and equipment - owned assets 200
Note 3.4 Leases 202
Note 3.5 Joint ventures and associates 205
Note 3.6 Assets held for sale 210
Note 3.7 Depreciation and amortization 211
Note 3.8 Impairment tests and impairments 212
Section 4 Working capital 215
Note 4.1 Changes in working capital 215
Note 4.2 Trade and other receivables and related credit risk 215
Note 4.3 Trade and other payables 216
Section 5 Capital structure 217
Note 5.1 Issued capital, share premium,
treasury shares and capital management 217
Note 5.2 Other reserves 219
Note 5.3 Retained earnings 220
Note 5.4 Non-controlling interests 221
Note 5.5 Interest-bearing loans and net debt 222
Note 5.6 Net finance costs 225
Section 6 Financial risk management 226
Note 6.1 General 227
Note 6.2 Derivatives and hedge accounting 228
Note 6.3 Currency risk 232
Note 6.4 Interest rate risk 235
Note 6.5 Equity securities price risk 236
Note 6.6 Credit risk 236
Note 6.7 Liquidity risk 237
Section 7 Governance 240
Note 7.1 Remuneration of Board members 240
Note 7.2 Long-term incentive plans (LTIPs) 240
Note 7.3 Related parties 244
Note 7.4 Fees paid to auditors appointed
attheAnnualGeneralMeeting 244
Section 8 Income taxes 245
Note 8.1 Income taxes 245
Note 8.2 Deferred taxes 247
Section 9 Other disclosures 250
Note 9.1 Earnings per ordinary share - number of shares 250
Note 9.2 Loans granted and finance lease receivable 251
Note 9.3 Impact of COVID-19 pandemic 252
Note 9.4 Pensions and other employee benefits 252
Note 9.5 Provisions 255
Note 9.6 Investments and other financial assets 256
Note 9.7 Investment commitments undertaken 257
Note 9.8 Contingent assets and contingent liabilities 257
Note 9.9 Financial assets and liabilities and credit risk 258
Note 9.10 New standards and interpretations
notyetimplemented 259
Note 9.11 Principal subsidiaries, joint ventures,associates
andinvestments 260
Note 9.12 Events after the reporting period 262
Company Financial Statements 263
Company Statement of Income 263
Company Statement of Financial Position
beforeProfitAppropriation 264
Notes to the Company Financial Statements 265
Note 1. General 265
Note 2. Participating interests in Group companies 265
Note 3. Loans granted 266
Note 4. Shareholders’ equity 266
Note 5. Interest-bearing loans 267
Note 6. Derivative financial instruments 267
Note 7. Pension and other employee benefits provisions 268
Note 8. Personnel expenses 268
Note 9. Income taxes 268
Note 10. Remuneration of Supervisory Board members
andExecutiveBoard members 268
Note 11. Contingent liabilities 269
Executive Board declaration 270
External auditor’s reports 271
Independent auditor’s report 272
Assurance report of the independent auditor with respect to
the 2021 Sustainability Information of Koninklijke Vopak N.V. 279
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
178
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing Arrangements,
as detailed in Note 1.1.
In EUR millions Note 2021
Restated
2020
1
Revenues 2.3 1,227.9 1,190.0
Other operating income 2.4 41.1 60.0
Total operating income
1,269.0 1,250.0
Personnel expenses 2.5 342.7 331.2
Depreciation and amortization 3.7 331.8 296.0
Impairment 3.8 71.0 30.1
Other operating expenses 2.6 286.1 272.3
Total operating expenses
1,031.6 929.6
Operating profit 237.4 320.4
Result joint ventures and associates 2.7 172.3 161.2
Group operating profit (EBIT)
409.7 481.6
Interest and dividend income 5.6 5.6 5.9
Finance costs 5.6 - 112.1 - 92.2
Net finance costs
- 106.5 - 86.3
Profit before income tax 303.2 395.3
Income tax 8.1 - 60.0 - 71.1
Net profit
243.2 324.2
Attributable to:
Holders of ordinary shares 214.2 294.6
Non-controlling interests 5.4 29.0 29.6
Net profit
243.2 324.2
Basic earnings per ordinary share (in EUR) 9.1 1.71 2.33
Diluted earnings per ordinary share (in EUR) 9.1 1.70 2.33
In EUR millions Note 2021
Restated
2020
1
Net profit 243.2 324.2
Exchange differences on translation of foreign operations 5.2, 5.4 174.5 - 191.0
Net investment hedges 5.2 - 72.1 61.5
Use of exchange rate differences on translation of
foreignoperationsand use of net investment hedges 5.2, 5.4 0.5 2.4
Effective portion of changes in fair value of cash flow hedges 5.2, 5.4 - 2.5 3.1
Use of effective portion of cash flow hedges to statement of income 5.2 1.7 - 0.3
Share in other comprehensive income of joint ventures and associates 5.2 19.4 - 0.8
Other comprehensive income that may be reclassified to
statement of income in subsequent periods
121.5 - 125.1
Fair value change other investments 5.2, 9.6 33.2 - 1.9
Remeasurement of defined benefit plans 5.3, 9.4 13.6 - 5.2
Other comprehensive income that will not be reclassified
tostatement of income in subsequent periods
46.8 - 7.1
Other comprehensive income, net of tax
168.3 - 132.2
Total comprehensive income 411.5 192.0
Attributable to:
Holders of ordinary shares 374.5 174.1
Non-controlling interests 37.0 17.9
Total comprehensive income
411.5 192.0
Items are disclosed net of tax. The income tax relating to each component of other
comprehensive income is disclosed in Note 8.1.
Consolidated Financial Statements
Consolidated Statement of Income Consolidated Statement of Comprehensive Income
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
179
Consolidated Financial Statements
Consolidated Financial Statements
Consolidated Statexment of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
In EUR millions Note 31-Dec-21
Restated
31-Dec-20
1
ASSETS
Intangible assets 3.2 111.0 147.6
Property, plant and equipment - owned assets 3.3 3,834.9 3,798.9
Property, plant and equipment - right-of-use assets 3.4 640.2 632.2
- Joint ventures and associates 3.5 1,583.3 1,319.4
- Finance lease receivable 9.2 127.6 28.6
- Loans granted 9.2 44.8 91.0
- Other financial assets 9.6 83.6 36.5
Total financial assets 1,839.3 1,475.5
Deferred taxes 8.2 50.6 43.2
Derivative financial instruments 6.2 35.6 9.1
Other non-current assets 7.4 6.0
Total non-current assets
6,519.0 6,112.5
Trade and other receivables 4.2 259.6 276.1
Loans granted and finance lease receivables 9.2 4.4 –
Prepayments 30.0 36.6
Derivative financial instruments 6.2 8.0 5.1
Cash and cash equivalents 5.5 73.4 68.3
Assets held for sale 3.6 192.3 –
Total current assets
567.7 386.1
Total assets 7,086.7 6,498.6
In EUR millions Note 31-Dec-21
Restated
31-Dec-20
1
EQUITY
- Issued capital 5.1 62.9 62.9
- Share premium 5.1 194.4 194.4
- Treasury shares 5.1 - 15.7 - 15.0
- Other reserves 5.2 - 157.0 - 317.0
- Retained earnings 5.3 3,104.1 3,036.1
Equity attributable to owners of parent
3,188.7 2,961.4
Non-controlling interests 5.4 156.9 144.9
Total equity
3,345.6 3,106.3
LIABILITIES
Interest-bearing loans 5.5 1,822.3 1,616.3
Lease liabilities 5.5 676.1 668.5
Derivative financial instruments 6.2 – 5.4
Pensions and other employee benefits 9.4 34.7 49.0
Deferred taxes 8.2 217.4 183.3
Provisions 9.5 16.8 22.2
Other non-current liabilities 13.4 14.3
Total non-current liabilities
2,780.7 2,559.0
Bank overdrafts and short-term borrowings 5.5 464.6 214.3
Interest-bearing loans 5.5 0.3 127.9
Lease liabilities 5.5 35.2 30.7
Derivative financial instruments 6.2 7.6 20.6
Trade and other payables 4.3 330.1 361.7
Taxes payable 47.9 55.5
Pensions and other employee benefits 9.4 0.2 0.2
Provisions 9.5 24.3 22.4
Liabilities related to assets held for sale 3.6 50.2 –
Total current liabilities
960.4 833.3
Total liabilities
3,741.1 3,392.3
Total equity and liabilities 7,086.7 6,498.6
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing Arrangements,
as detailed in Note 1.1.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
180
Consolidated Statement of Financial Position
Consolidated Statement of ChangesinEquity
Equity attributable to owners of parent
In EUR millions Note Issued capital Share premium Treasury shares Other reserves
Retained
earnings Total
Non-controlling
interests Total equity
Balance at 31 December 2019
63.9 194.4 - 8.9 - 105.9 2,903.8 3,047.3 147.8 3,195.1
Change in accounting policy
1
– – – – - 13.0 - 13.0 – - 13.0
Balance at 1 January 2020 (restated)
63.9 194.4 - 8.9 - 105.9 2,890.8 3,034.3 147.8 3,182.1
Net profit – – – – 294.6 294.6 29.6 324.2
Other comprehensive income, net of tax – – – - 120.5 – - 120.5 - 11.7 - 132.2
Total comprehensive income
– – – - 120.5 294.6 174.1 17.9 192.0
Dividend paid in cash 5.3, 5.4 – – – – - 146.1 - 146.1 - 24.6 - 170.7
Capital injection 5.4 – – – – – – 3.8 3.8
Purchase treasury shares 5.1 – – - 8.0 – – - 8.0 – - 8.0
Share buyback/cancellation of shares issued 5.1 - 1.0 – – - 99.1 – - 100.1 – - 100.1
Measurement of equity-settled share-based
payment arrangements 5.3, 7.2 – – – – 4.5 4.5 – 4.5
Vested shares under equity-settled share-based
payment arrangements 5.3, 7.2 – – 1.9 – - 4.0 - 2.1 – - 2.1
Other – – – 8.5 - 3.7 4.8 – 4.8
Total transactions with owners
- 1.0 – - 6.1 - 90.6 - 149.3 - 247.0 - 20.8 - 267.8
Balance at 31 December 2020 (restated) 62.9 194.4 - 15.0 - 317.0 3,036.1 2,961.4 144.9 3,106.3
Net profit – – – – 214.2 214.2 29.0 243.2
Other comprehensive income, net of tax – – – 160.3 – 160.3 8.0 168.3
Total comprehensive income
– – – 160.3 214.2 374.5 37.0 411.5
Dividend paid in cash 5.3, 5.4 – – – – - 150.5 - 150.5 - 25.0 - 175.5
Purchase treasury shares 5.1 – – - 2.9 – – - 2.9 – - 2.9
Measurement of equity-settled share-based
payment arrangements 5.3, 7.2 – – – – 7.8 7.8 – 7.8
Vested shares under equity-settled share-based
payment arrangements 5.3, 7.2 – – 2.2 – - 3.5 - 1.3 – - 1.3
Other – – – - 0.3 – - 0.3 – - 0.3
Total transactions with owners
– – - 0.7 - 0.3 - 146.2 - 147.2 - 25.0 - 172.2
Balance at 31 December 2021 62.9 194.4 - 15.7 - 157.0 3,104.1 3,188.7 156.9 3,345.6
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing Arrangements,
as detailed in Note 1.1.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
181
Consolidated Statement of ChangesinEquity
Consolidated Statement of Cash Flows
In EUR millions Note 2021
Restated
2020
1
Cash flows from operating activities (gross) 2.9 741.2 810.4
Interest received 5.6 5.8 6.7
Income tax paid - 65.0 - 54.9
Cash flows from operating activities (net)
682.0 762.2
Investments:
Intangible assets 3.2 - 25.4 - 26.5
Property, plant and equipment - growth capex 3.3 - 202.5 - 335.6
Property, plant and equipment - sustaining, service
improvement and IT capex 3.3 - 290.5 - 276.9
Joint ventures and associates 3.5 - 53.0 - 73.8
Other equity investments 3.5 - 13.8 - 8.5
Loans granted 9.2 - 5.8 - 3.0
Other non-current assets - 1.3 - 0.5
Acquisitions of joint ventures and associates 3.5 – - 107.4
Total investments
- 592.3 - 832.2
Disposals and repayments:
Intangible assets 3.2 - 0.1 –
Property, plant and equipment 3.3 3.5 2.1
Joint ventures and associates 3.5 1.2 118.2
Loans granted 9.2 2.6 0.1
Finance lease receivable 9.2 9.5 5.1
Assets held for sale/divestments 3.1 – 131.3
Total disposals and repayments
16.7 256.8
Cash flows from investing activities (excluding derivatives) - 575.6 - 575.4
Settlement of derivatives (net investment hedges) - 12.8 2.7
Cash flows from investing activities (including derivatives)
- 588.4 - 572.7
In EUR millions Note 2021
Restated
2020
1
Financing:
Repayment from interest-bearing loans 5.5 - 210.9 - 669.1
Proceeds from interest-bearing loans 5.5 177.1 849.1
Repayment lease liabilities 3.4 - 34.3 - 26.7
Interest expenses paid on lease liabilities 3.4 - 22.4 - 21.1
Finance expenses paid - 76.5 - 94.0
Settlement of derivative financial instruments 3.6 - 5.1
Dividend paid in cash 5.3 - 150.5 - 146.1
Dividend paid to non-controlling interests 5.4 - 25.0 - 24.6
Share buyback/purchase treasury shares 5.1 - 2.9 - 108.1
Proceeds and repayments in short-term financing 5.5 257.0 27.0
Cash flows from financing activities
- 84.8 -218.7
Net cash flows
8.8 - 29.2
Exchange differences 3.1 - 2.3
Net change in cash and cash equivalents due to assets held for sale - 0.1 2.5
Net change in cash and cash equivalents (including bank overdrafts)
11.8 -29.0
Net cash and cash equivalents at 1 January (including bank overdrafts) 59.0 88.0
Net cash and cash equivalents at 31 December (including bank overdrafts) 70.8 59.0
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing Arrangements,
as detailed in Note 1.1.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
182
Consolidated Statement of Cash Flows
Section 1 Basis of preparation
Taking into account the characteristics of Vopak’s business and business model, the notes to
the financial statements have been grouped into eight thematic sections rather than in
consecutive order based on line items in the Consolidated primary statements. Each note in
a section starts with the Group’s accounting policies as well as the critical accounting
estimates and judgments made.
This section contains the disclosures relevant for understanding the basis of preparation of
the Consolidated financial statements:
• Reporting entity
• Statement of compliance
• Functional and presentation currency
• Basis of measurement
• Changes in accounting policies for 2021
• Going concern
• Basis of consolidation
• Foreign currency translation
• Accounting policies, not attributable to a specific section
• Use of key accounting estimates and judgments
Note 1.1 Basis of preparation
Reporting entity
Koninklijke Vopak N.V. (Royal Vopak) has its registered office in Rotterdam (the Netherlands).
Vopak is listed on the Euronext Amsterdam.The Consolidated financial statements of the
company for the year ending on 31December2021contain the financial 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.
Vopak is the world’s leading independent tank storage provider, specialized in the storage
and handling of liquid chemicals, gases and oil products.
Statement of compliance
The Consolidated financial statements have been prepared in accordance with the
International Financial Reporting Standards (IFRS) as adopted by the European Union
(EU)and also comply with the financial reporting requirements included in Part 9 of Book 2
of the Dutch Civil Code, as far as applicable.The accounting policies based on IFRS, as
described in this section, have been applied consistently for the years presented by all
entities. There were no material changes in the accounting policies applied compared to
the previous year.
The financial statements were prepared by the Executive Board and approved by the
Supervisory Board on 15February2022and are subject to adoption by the shareholders
during the Annual General Meeting.
Functional and presentation currency
The Consolidated financial statements are presented in euros (EUR), which is the functional
and presentation currency of the Vopak Group. All amounts are presented in EUR million and
have been rounded to the nearest EUR100k, unless otherwise stated.
Basis of measurement
The Consolidated financial statements are based on the historical cost basis except for the
following assets and liabilities, which are measured at fair value: derivative financial
instruments, other financial assets (measured at fair value through other comprehensive
income), assets held for sale (when measured at fair value less cost of disposal) and defined
benefit pension plans (planassets measured at fair value).
Changes in accounting policies for 2021
The applied accounting principles adopted in the preparation of the Consolidated financial
statements are consistent with those described in Vopak’s 2020 Annual Report, except
for the following:
Interest Rate Benchmark Reform
Already in 2019, Vopak Group adopted the Interest Rate Benchmark Reform Amendments to
IFRS 9, IAS39 and IFRS7 as published by the IASB in September 2019 and endorsed by the
EU on 15January2020.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
183
Section 1 Basis of preparation
Note 1.1 Basis of preparation
The Group has initially adopted Interest Rate Benchmark Reform – Phase 2 (Amendments
toIFRS9, IAS39, IFRS7, IFRS4 and IFRS16) from 1January2021. In accordance with the
exceptions permitted in the Phase 2 amendments, Vopak Group has elected not to restate
comparatives for the prior periods to reflect the application of these amendments. The 2021
figures are not materially affected by the replacement of existing interest benchmarks.
IFRIC agenda decision on Configuration or Customization Costs in a Cloud
ComputingArrangement
In April 2021, the IFRS interpretation committee published the agenda decision
‘Configuration or customization costs in a cloud computing arrangement’ which considers
whether an intangible asset can be recognized in relation to configuration or customization
ofapplication software. Vopak has identified several assets that have configuration or
customization costs included in the asset’s cost base. The IFRIC agenda decision sets out
the following options for accounting for costs incurred for customization of cloud computing
arrangements that are considered to follow service contract accounting as follows:
• If the services received are distinct, the costs are recognized as an expense when the
supplier configures or customizes the application software; or
• If the services are not distinct, the costs are recognized as an expense when the supplier
provides access to the application software over the contract term; or
• When a third-party supplier, employees or inhouse contractors configure or customize
theapplication software, costs are recognised as an expense when incurred.
• In limited circumstances, certain configuration and custimization activities under taken in
implementing cloud computing arrangements may give rise to a separate intangible asset.
This may be the case if the arrangement results, for example in additional software code
(for interfaces with other software applications) from which the Group has the power to
obtain the future economic benefits and to restrict others’ access to those benefits. The
Group recognizes an intangible asset if the additional code is ‘identifiable’ and meets the
recognition criteria for an intangible asset.
The Group has considered the impact of the change in accounting policy on the results
reported in the current and comparative reporting periods. The Group has retrospectively
adjusted the carrying values of intangible software assets and related assets under
construction. As at 31 December 2021 the impact of this change in accounting policy
wasadecrease in software intangible assets and related assets under construction of
EUR28.1million (2020:EUR25.6million), a decrease in software amortization expense
ofEUR4.9million (2020:EUR3.5million) and an increase in other operating expenses
ofEUR7.4million (2020:EUR11.8million). The combined deferred income tax impacts on
the above, resulted in net income tax benefits of EUR0.5million (2020:EUR2.0million).
Impact of the change in accounting policy
The table below summarizes the impact of the change in accounting policy on the
Consolidated Financial Statements:
In EUR millions Reported
Increase/
(decrease) Restated
Consolidated Statement of Financial Position
31-12-2019 1-1-2020 1-1-2020
Intangible assets 3.2 164.8 -17.3 147.5
Deferred taxes 8.2 30.8 4.3 35.1
Retained earnings 5.3 - 2,903.8 13.0 - 2,890.8
Consolidated Statement of Income
2020 2020 2020
Depreciation and amortization 3.7 299.5 -3.5 296.0
Other operating expenses 2.6 260.5 11. 8 272.3
Profit before income tax
403.6 -8.3 395.3
Income tax 8.1 -73.1 2.0 -71.1
Net profit
330.5 -6.3 324.2
Earnings per share - basic 9.1 2.38 -0.05 2.33
Earnings per share - diluted 9.1 2.38 -0.05 2.33
Consolidated Statement of Cash Flows
2020 2020 2020
Net profit 330.5 -6.3 324.2
Adjustments for depreciation and amortization 3.7 299.5 -3.5 296.0
Adjustments for income tax 8.1 73.1 -2.0 71.1
Cash flows from operating activities (gross) 2.9
822.2 -11.8 810.4
Investment intangibles 3.2 -38.3 11. 8 -26.5
Cash flows from investing
activities (including derivatives)
-584.5 11.8 -572.7
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
184
Impact on segment disclosures
The following operating segments were affected by the change in accounting policy for the
period ended 31December2020:
Restated segment information
In EUR millions
Reported Americas
Asia & Middle
East
China & North
Asia Europe & Africa LNG
Global functions
and corporate
activities Total
Statement of income
2020 2020
Operating expenses - 591.5 - 1.9 - 1.8 – - 2.1 – - 6.0 - 603.3
EBITDA
791.5 - 1.9 - 1.8 – - 2.1 – - 6.0 779.7
Depreciation and amortization - 299.5 0.3 0.1 – 0.5 – 2.6 - 296.0
Total EBIT excluding exceptional items
492.0 - 1.6 - 1.7 – - 1.6 – - 3.4 483.7
Statement of financial position 31 December
2020 2020
Assets of subsidiaries 5,198.5 - 2.5 -1.5 – - 3.2 – - 12.1 5,179.2
Investments
2020 2020
Intangible assets 38.3 - 1.9 - 1.8 – - 2.1 – - 6.0 26.5
Several other amendments and interpretations apply for the Group for the first time for the
period beginning 1 January 2021, but do not have an impact on the consolidated financial
statements of the Group.For an overview of the estimated effect of issued, but not yet
effective new and amended IFRSstandards and IFRICs on the Vopak Group, reference is
made to note 9.10.
Going concern
TheExecutiveBoard has assessed the going-concern assumptions, during the preparation of
the Group’s Consolidated financial statements. The ExecutiveBoard believes that no events
or conditions, including those related to the current COVID-19 pandemic, give rise to doubt
about the ability of the Group to continue in operation in the next reporting period. This
conclusion is drawn based on knowledge of the Group, the estimated economic outlook and
identified risks and uncertainties in relation thereto.
Furthermore, this conclusion is based on a review of the budget for the next financial year,
including expected developments in liquidity and capital, current credit facilities available
including contractual and expected maturities and covenants. Consequently, it has been
concluded that it is reasonable to apply the going-concern concept as the underlying
assumption for the financial statements.
For further details on the impact of the Covid-19 pandemic to the Vopak Group, reference is
made to note9.3.
Basis of consolidation
Subsidiaries are entities controlled by the Group. Vopak controls an entity when it is
exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power over the entity. The financial statements of
subsidiaries are included in the Consolidated financial statements from the date on which
control commences until the date on which control ceases, using consistent
accounting policies.
Non-controlling interests in equity and in results are presented separately. Transactions
with non-controlling interests that do not result in loss of control are accounted for as
transactions with shareholders. For purchases of non-controlling interests, the difference
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between any consideration paid and the relevant share acquired of the carrying value of the
net asset of the subsidiary is recorded directly in equity. Gains or losses on disposals of
non-controlling interests are also recorded directly in equity.
Upon initial recognition, a non-controlling interest is measured either at its proportionate
interest in the fair value of the net assets acquired or full fair value, which is elected on a
transaction-by-transaction basis.
The Group’s interests in equity-accounted investees comprise interests in joint ventures
and associates.
A joint venture is an arrangement in which the Group has jointcontrol, whereby the Group
has rights to the net assets of the arrangement, rather than rights to its assets and
obligations for its liabilities.
Associatesare entities in which the Group has significant influence, but no control or
jointcontrol, over the financial and operating policies.
Uponloss of control, the Group derecognizes the assets and liabilities of the subsidiary, any
non-controlling interests and the other components of equity related to the subsidiary. Any
surplus or deficit arising on the loss of control is recognized in profit or loss.
When the Group ceases to consolidate or equity account for an investment because of a
loss of control, jointcontrol or significant influence, any retained interest in the entity is
remeasured to its fair value with the change in carrying amount recognized in profit or loss.
This fair value becomes the initial carrying amount for the purpose of subsequently
accounting for the retained interest as an associate, jointventure or financial asset. In
addition, any amounts previously recognized in other comprehensive income are reclassified
to the income statement.
If the ownership interest in a jointventure or an associate is reduced but jointcontrol or
significant influence is retained, only a proportionate share of the amounts previously
recognized in othercomprehensive income is reclassified to profit or loss where appropriate.
Transactions eliminated on consolidation: all inter-company balances and transactions,
including unrealized gains and losses on transactions, are eliminated on consolidation.
Unrealized gains arising from transactions with jointventures and associates are eliminated
to the extent of the Group’s interest in the equity. Unrealized losses are eliminated in the
same manner as unrealized gains, but only to the extent that there is no
evidence of impairment.
For a list of the principal subsidiaries, joint ventures and associates, reference is made to
note 9.11 ofthisreport.
Foreign currency translation
Items included in the financial statements of each of the Group’s entities are measured using
the currency of the primary economic environment in which the entity operates
(‘thefunctionalcurrency’).
Foreign currency transactions are translated into the functional currency using the exchange
rate at the dates of the transactions, or valuation date where items are remeasured. Foreign
exchange gains and losses resulting from the settlement of such transactions and from the
translation at period-end exchange rates of monetary assets and liabilities denominated in
foreign currencies are recognized in the statement of income, except when deferred in other
comprehensive income as qualifying cash flow hedges or net investment hedges.
Upon consolidation, the assets and liabilities of non-Euro entities, including goodwill and fair
value adjustments at the time of the acquisition, are translated into euros at the year-end
rates of exchange (closing exchange rates). The items of the statement of income of foreign
activities are translated at the average exchange rates for the reporting period.
The resulting translation differences of the net investments in foreign operations are recognized
as foreign currency translation reserve movements (translation reserve) in other comprehensive
income. The same applies to exchange differences arising from loans drawn and other financial
instruments to the extent that these hedge the currency risk related to the netinvestment.
Upon disposal of all or part of an interest in an entity, or upon liquidation of an entity,
cumulative currency translation differences related to that entity are recognized in the
income statement. When the Group disposes of only part of its interest in a subsidiary with
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a foreign operation, while retaining control, the relevant portion of the cumulative amount is
not transferred to profit or loss but reattributed to non-controllinginterests. Upon disposal of
a foreign activity with anon-controllinginterest, the cumulative amount relating to the
non-controllinginterests shall be derecognized, but shall not be reclassified to profit or loss.
A share capital or share premium distribution by an entity is not considered to be a partial
disposal when the Group retains its relative legal share in the entity.
The following main exchange rates are used in the financial statements:
Closing exchange rate Average exchange rate
EUR 1.00 is equivalent to 2021 2020 2021 2020
US dollar 1. 13 1.23 1. 18 1. 14
Singapore dollar 1.53 1.63 1.59 1.57
Chinese yuan 7.22 8.01 7.63 7.87
Australian dollar 1.56 1.60 1.57 1.66
Brazilian real 6.31 6.38 6.38 5.89
Accounting policies, not attributable to a specific section
The Group’s significant accounting policies are described in the relevant individual notes to
the Consolidated financial statements or otherwise stated below. A list of the notes is
shown in the table of contents preceding the financial statements.
Offsetting of financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet
only when there is a legally enforceable right to offset the recognized amounts and there is
an intention to settle on a net basis or realize the asset and settle the liability simultaneously.
Cash flow statement
The cash flow statement is prepared based on the indirect method. Cash flows denominated
in foreign currencies are translated at average exchange rates. Exchange and translation
gains and losses on cash and cashequivalents (including current liabilities arising from
short-term credit facilities) are presented separately.
The Consolidated statement of cash flows shows the Group’s cash flows from operating,
investing and financing activities for the year.
Use of key accounting estimates and judgments
Preparing the Consolidated financial statements means that the Group must use insights,
estimates and assumptions that could affect the reported assets and liabilities and the information
provided on contingent assets and liabilities as at the statement of financial position date as well
as the reported income and expenses. The actual results may ultimately differ from these
estimates. The estimates and the underlying assumptions are reviewed on a regular basis.
Adjustments are made in the period in which the estimates were reviewed if the adjustment
affects that period, or in the relevant period and the future periods if the adjustment affects both
current and future periods.
Management insights, estimates and assumptions that could have a significant impact on the
financial statements are:
• The lease term of our land lease contracts (note 3.4)
• Assets held for sale (note 3.6)
• Useful life and residual value of property, plant and equipment (note 3.7)
• Impairment tests (note 3.8)
• Derivative financial instruments (note 6.2)
• Deferred tax (note 8.2)
• Provisions (note 9.5).
Although the COVID-19 pandemic has a limited impact on the Vopak Group, a comprehensive
overview of the impact of the COVID-19 pandemic is included in note 9.3.
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Climate risk
Vopak’s business model of ‘storing vital products with care’ means that the Group connects
supply and demand for products and enables the delivery of products that are vital to the
economy and daily lives of people across the globe. Supply and demand and subsequent
imbalances remain a key driver behind storage and it is not foreseen that these imbalances
willberesolved in the near future, although demand for some of the products may change
asaresult of substitution for cleaner products. Nevertheless, as a large part of our current
business relates to fossil-based products, climate change and the transition to a lower
carboneconomy were considered in preparing the Consolidated financial statements.
The Group reviewedkey accounting estimates in the financial statements, including among others
useful lives of fixed assets (note 3.7), impairment considerations (note 3.8) and/or environmental
provisions (note 9.5).There is significant uncertainty surrounding the ways in which society
andthe world economy will change over the next 30 years and the extent to which such changes
will meet the aspirations of the Paris Agreement. The pace and severity of climate change,
aswellas accompanying government policy and the energy transition, impact the estimates.
Therefore these remain subject to constant review and monitoring.
Forour 2021 Financial Statements, the Group does not see any evidence that Vopak’s balance
sheet materially overstated assets or materially understated liabilities.
Section 2 Group operating performance
This section comprises notes which provide specifications and explanations related to the
Group’s operating performance for the year, including disclosures on segmentation.
The following notes are presented in this section:
• 2.1 Segment information
• 2.2 Exceptional items
• 2.3 Revenues
• 2.4 Other operating income
• 2.5 Personnel expenses
• 2.6 Other operating expenses
• 2.7 Result of joint ventures and associates
• 2.8 Translation and operational currency risk
• 2.9 Cash flows from operating activities (gross)
Note 2.1 Segment information
Accounting policies
The accounting policies of the reportable segments are the same as the Group’s accounting
policies described throughout the notes when relevant.
Reportable segments
Operating segments are reported in a manner consistent with the internal reporting provided
to the ExecutiveBoard, which is the chief operating decision maker. The division structure is
primarily based on geographical markets. Business activities that cannot be allocated to any
other segment are reported under ‘Global functions and corporate activities’. These include
primarily the head office costs, the Global IT costs and expenses related to other interests.
Vopak’s five divisions are Americas, Asia&MiddleEast, China&NorthAsia,
Europe&Africa andLNG.
The EBITDA and Group operating profit of the divisions include the neteffects of the company-
wide cost allocations. Costs that cannot be allocated to the divisions are part of the ‘Global
functions, and corporate activities’. The actual allocated costs can differ per reporting period.
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Section 2 Group operating performance
Note 2.1 Segment information
Statement of income
Americas
of which
United States
Asia &
Middle East
of which
Singapore
China &
North Asia Europe & Africa
of which
Netherlands LNG
Global functions
and corporate
activities Total
In EUR millions 2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
Revenues
1
326.6 322.9 184.7 184.6 284.1 289.3 217.7 224.3 44.7 42.0 566.0 532.9 421.1 412.3 n.a. n.a. 6.5 2.9 1,227.9 1,190.0
Other operating income 11. 3 2.1 8.6 0.6 12.8 14.7 1. 3 2.0 6.9 4.0 6.5 2.0 3.0 1. 8 3.7 4.2 - 0.1 – 41.1 27.0
Operating expenses - 159.9 - 149.8 - 92.3 - 84.8 - 100.0 - 99.4 - 62.4 - 64.6 - 22.1 - 22.4 - 276.8 - 265.2 - 202.1 - 200.6 - 11.1 - 9.5 - 58.2 - 57.0 - 628.1 - 603.3
Result joint ventures and
associates 12.0 11. 3 1. 5 0.8 83.9 70.2 0.5 0.7 38.9 33.3 4.0 3.3 1. 0 0.8 47.3 47.9 - 0.4 – 185.7 166.0
EBITDA 190.0
186.5 102.5 101.2 280.8 274.8 157.1 162.4 68.4 56.9 299.7 273.0 223.0 214.3 39.9 42.6 - 52.2 - 54.1 826.6 779.7
Depreciation and
amortization - 64.3 - 62.1 - 34.9 - 33.3 - 66.4 - 63.4 - 48.4 - 46.3 - 11.9 - 11.5 - 171.4 - 144.7 - 120.5 - 108.8 – – - 17.8 - 14.3 - 331.8 - 296.0
Total EBIT excluding
exceptional items
125.7 124.4 67.6 67.9 214.4 211.4 108.7 116.1 56.5 45.4 128.3 128.3 102.5 105.5 39.9 42.6 - 70.0 - 68.4 494.8 483.7
Exceptional items - 75.8 - 33.4 1. 5 – – 33.0 – - 1.7 - 10.8 – – – - 85.1 - 2.1
Total EBIT including
exceptional items
49.9 91.0 215.9 211.4 56.5 78.4 128.3 126.6 29.1 42.6 -70.0 - 68.4 409.7 481.6
Reconciliation consolidated net profit
2
Net finance costs - 106.5 - 86.3
Profit before income tax
303.2 395.3
Income tax - 60.0 - 71.1
Net profit
243.2 324.2
Non-controlling interests 29.0 29.6
Net profit holders of
ordinary shares
214.2 294.6
Occupancy rate subsidiaries
90% 92% 87% 87% 75% 80% 87% 88% 87% 88%
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing Arrangements, as detailed in Note 1.1.
2 The Group has one single global customer who contributed both years presented just above 10% of the consolidated revenues. All divisions provided services to this single global customer.
3 As the Group neither allocates interest expenses to segments, nor accounts for taxes in them, there is no segmented disclosure of the net profit.
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Statement of financial position at 31 December
Americas
of which
United States
Asia &
Middle East
of which
Singapore
China &
North Asia Europe & Africa
of which
Netherlands LNG
Global functions
and corporate
activities Total
In EUR millions 2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
Assets of subsidiaries 1,176.1 1,049.0 582.9 442.6 1,250.8 1,256.5 860.9 825.3 233.3 198.1 2,500.2 2,423.8 1,751.2 1,683.7 0.5 1. 2 342.5 250.6 5,503.4 5,179.2
Joint ventures and
associates 292.3 256.2 203.6 174.1 486.5 369.6 1. 1 1. 1 343.4 297.2 20.0 19.5 1. 5 1. 5 440.2 376.9 0.9 – 1,583.3 1,319.4
Total assets
1,468.4 1,305.2 786.5 616.7 1,737.3 1,626.1 862.0 826.4 576.7 495.3 2,520.2 2,443.3 1,752.7 1,685.2 440.7 378.1 343.4 250.6 7,086.7 6,498.6
Total liabilities 255.7 225.8 143.4 121.9 625.2 624.6 490.9 482.7 49.1 41.4 548.9 544.4 409.5 397.7 8.1 4.1 2,254.1 1,952.0 3,741.1 3,392.3
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing Arrangements,
as detailed in Note 1.1.
Investments
1
Americas
of which
United States
Asia &
Middle East
of which
Singapore
China &
North Asia Europe & Africa
of which
Netherlands LNG
Global functions
and corporate
activities Total
In EUR millions 2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
Intangible assets 3.0 3.0 2.1 1. 5 0.6 3.8 0.5 4.6 0.3 0.1 3.8 4.9 3.0 2.2 – – 1 7. 7 14.7 25.4 26.5
Property, plant and
equipment
2
172.4 189.1 122.1 99.9 63.9 75.5 40.6 40.7 13.0 12.1 230.2 340.2 177.6 184.3 – – 1. 8 2.5 481.3 619.4
Joint ventures and
associates 25.5 32.0 24.9 27.5 57.0 0.1 – – 9.6 22.4 – – – – 16.5 13.5 1. 4 0.5 110.0 68.5
Other non-current assets 0.2 0.2 – – - 0.2 0.3 - 0.2 0.2 0.2 – 1. 1 – 1. 1 – – – – – 1. 3 0.5
Total
201.1 224.3 149.1 128.9 121.3 79.7 40.9 45.5 23.1 34.6 235.1 345.1 181.7 186.5 16.5 13.5 20.9 1 7. 7 618.0 714.9
1 Excluding loans granted, finance lease receivables and acquisition of subsidiaries, joint ventures and associates.
2 Relates only to Property, plant and equipment - owned assets.
3 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing Arrangements,
as detailed in Note 1.1.
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Note 2.2 Exceptional items
Group policy
The items in the statement of income include items that are exceptional by nature from a
management perspective based on their size and/or nature. For the definition of exceptional
items applied by the company, reference is made to the Glossary. The material exceptional
items are disclosed separately in the notes when relevant in order to increase transparency.
Exceptional items
In EUR millions Note 2021 2020
Gains on assets held for sale/divestments 2.4 – 33.0
Loss on assets held for sale/divestments 2.6 - 0.7 - 1.7
Impairment 3.8 - 71.0 - 42.9
Reversal impairment 3.8 – 12.8
Personnel expenses 2.5 – 0.7
Other operating expenses 2.6 – 0.8
Operating profit
- 71.7 2.7
Result joint ventures and associates 2.7 - 13.4 - 4.8
Group operating profit
- 85.1 - 2.1
Finance costs 5.6 – –
Profit before income tax
- 85.1 - 2.1
Tax on above-mentioned items 8.1 1. 0 - 2.8
Total effect on net profit
- 84.1 - 4.9
For more information on the individual exceptional items, including their amount and nature,
reference is made to the corresponding notes. A reconciliation between the income
statement based on IFRS and the income statement excluding exceptional items, is
presented in the next table.
2021 Restated 2020
1
In EUR millions IFRS figures
Exceptional
items
Excluding
exceptional
items
Excluding
exceptional
items
Revenues 1,227.9 – 1,227.9 1,190.0
Other operating income 41.1 – 41.1 27.0
Total operating income
1,269.0 – 1,269.0 1,217.0
Personnel expenses - 342.7 – - 342.7 - 331.9
Impairment - 71.0 - 71.0 – –
Other operating expenses - 286.1 - 0.7 - 285.4 - 271.4
Result joint ventures and associates 172.3 - 13.4 185.7 166.0
Group operating profit before depreciation
and amortization (EBITDA)
741.5 - 85.1 826.6 779.7
Depreciation and amortization - 331.8 – - 331.8 - 296.0
Group operating profit (EBIT)
409.7 - 85.1 494.8 483.7
Interest and dividend income 5.6 – 5.6 5.9
Finance costs - 112.1 – - 112.1 - 92.2
Net finance costs
- 106.5 – - 106.5 - 86.3
Profit before income tax 303.2 - 85.1 388.3 397.4
Income tax - 60.0 1. 0 - 61.0 - 68.3
Net profit
243.2 - 84.1 327.3 329.1
Attributable to:
Holders of ordinary shares 214.2 - 84.1 298.3 299.5
Non-controlling interests 29.0 – 29.0 29.6
Net profit
243.2 - 84.1 327.3 329.1
Basic earnings per ordinary share (in EUR) 1.71 2.38 2.37
Diluted earnings per ordinary share (in EUR) 1.70 2.37 2.36
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a
change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing
Arrangements, as detailed in Note 1.1.
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Note 2.2 Exceptional items
Note 2.3 Revenues
The Group operates bulk liquids and gas storage terminals in key strategic ports. The Group
owns and operates specialized facilities including tanks, jetties, truck loading stations and
pipelines. In many instances, the Group stores the customers´ products for extended periods
at the terminals, often under strict specified conditions such as controlled temperatures.
TheGroup also blends components according to customer specifications.
The Group ensures safe, clean and efficient storage and handling of bulk liquid products
andgases for its customers. By doing so, the Group enables the delivery of vital products,
ranging from chemicals, oil, gases and LNG to biofuels and vegoils.
Accounting policies
Revenue from contracts with customers is recognized when control of the goods or services
are transferred to the customer at an amount that reflects the consideration to which the
Group expects to be entitled in exchange for those services or goods. Revenues excludes
amounts collected on behalf of third parties and are net of discounts and value added taxes.
Monthly storage rates and prices for other services are contractually agreed before the
services are rendered and do not contain material variable components. When it is probable
that the Group will collect the consideration to which it will be entitled, the recognition in the
statement of income is in proportion to the stage of the rendered performance as at the end
of the reporting period.
The Group has a right to a consideration from a customer in an amount that corresponds
directly with the value to the customer of the entity’s services completed to date. Tank
storage rentals, including minimum guaranteed throughputs, are recognized evenlyover the
contractual period during which the services are rendered. Revenues from excess
throughputs, heating/cooling, homogenization, product movements and other services are
recognized when these services are rendered. Customers simultaneously consume and
benefit from the services at the moment that these are rendered, resulting in a situation
where revenue is recognized over time. Modifications of property, plant and equipment
upfront paid by customers are accounted for as prepaid revenues and recognized in the
statement of income over the contractual period on a straight-line basis.
Storage fees are mostly invoiced upfront in the month preceding the month to which the
storage fees relate. Handling and other services are generally invoiced afterwards, based on
the actual usage.Invoices are generally paid by customers at relatively short notice in
agreement with the payment terms of the contracts.
Within the revenue related to storage and handling services, the following
categorization is made:
• Storageservices: relates to revenues from renting of storage capacity
• Productmovements: revenues related to product movements
• Storageandhandlingrelatedservices: relates to revenues for storage and handling
related services, such as blending, homogenization, temperature control.
• Otherservices: primarily relates to the agency services that vopak provides to customers
via Vopak Agencies.
The Group does not make any significant judgments with regards to revenue recognition,
among others due to the nature of the business.
Revenues
The table below provides an overview of the revenue per type of service that the Group
provides to its customers.
In EUR millions 2021 2020
Storage services 986.5 960.2
Product movements 101.8 98.2
Storage and handling related services 93.7 74.1
Other services 45.9 57.5
Revenues
1,227.9 1,190.0
Note 2.3 Revenues
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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 Other Total
In EUR millions 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Chemical products 144.0 150.5 115.3 123.3 43.7 40.4 192.0 186.3 – – 495.0 500.5
Oil products 136.5 123.7 148.5 141.8 1. 0 1. 4 259.4 238.0 – – 545.4 504.9
Vegoils and biofuels 38.0 36.6 2.0 2.0 – – 61.8 59.2 – – 101.8 97.8
Gas products – – 5.6 9.5 – 0.2 35.8 32.9 – – 41.4 42.6
Others 8.1 12.1 12.8 12.7 – – 1 7. 0 16.5 6.4 2.9 44.3 44.2
Revenues
326.6 322.9 284.2 289.3 44.7 42.0 566.0 532.9 6.4 2.9 1,227.9 1,190.0
The table below provides an overview of the assets and liabilities recognized in relation
tocontracts with customers and their movements during the periods presented.
2021 2020
In EUR millions
Trade
receivables
Provision for
impairment
Deferred
revenues Total
Trade
receivables
Provision for
impairment
Deferred
revenues Total
Balance at 1 January
103.9 - 2.4 - 18.6 82.9 115.1 - 0.4 - 16.6 98.1
Recognized as revenue in current period 1,209.3 – 18.6 1,227.9 1,173.4 – 16.6 1,190.0
Payments - 1,206.1 – - 32.0 - 1,238.1 - 1,179.7 – - 18.6 - 1,198.3
Impairments – - 4.5 – - 4.5 – - 2.1 – - 2.1
Reversal of impairments – 1. 8 – 1. 8 – – – –
Exchange differences 4.1 0.1 – 4.2 - 4.9 0.1 – - 4.8
Closing balance at 31 December
111.2 - 5.0 - 32.0 74.2 103.9 - 2.4 - 18.6 82.9
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Note 2.4 Other operating income
Accounting policies
Gains on the sale of assets and the divestment of interests in other entities are deemed
realized at the time the benefits and the risks of the assets are entirely borne by the buyer
and there is no uncertainty as to whether the agreed payment will be received. Gains on the
sale of subsidiaries, jointventures and associates are realized at the time control respectively
joint-control or significant influence is no longer exercised.
Dividend income is recognized when the right to receive payment is established. All dividend
income is related to dividends from equity investments held at Fair value through Other
comprehensiveincome (FVOCI). Reference is also made to note 9.6.
Other operating income
In EUR millions 2021 2020
Management fee joint ventures and associates 13.9 9.4
Gains on sale of property, plant and equipment 1. 3 0.1
Gains on divestments – 33.0
Dividends received from other financial assets 0.5 2.2
Other 25.4 15.3
Total
41.1 60.0
2021
There were no individually material items recognized in Other operating income in 2021.
2020
In the second and third quarter of 2020, Vopak received the remaining consideration
ofEUR33.0million relating totheDecember2019 divestment of its 49% equity share
inthejoint venture VopakSDICYangpu Terminal in Hainan, China. This receipt resulted
intherecognition of an exceptional gain for the same amount in 2020.
There were no other individually material items recognized in Other operating
income in 2020.
Note 2.5 Personnel expenses
Accounting policies
Short-term employee benefits: wages, salaries, social security contributions, annual leave
and sickness absenteeism, incentives and non-monetary benefits are recognized in the year
in which the related services are rendered by employees.
Termination benefits are payable when employment is terminated by the Group before the
normal retirement date, or whenever an employee accepts voluntary redundancy in exchange
for these benefits. The Group recognizes termination benefits at the earlier of the following
dates: (a) when the Group can no longer withdraw the offer of those benefits; and (b) when the
Group recognizes a restructuring provision that involves the payment of termination benefits.
The Group recognizes a provision for incentive plans where contractually obliged or where
there is a past practice that has created a constructive obligation.
For the accounting policies related toshare-based compensation, other types of
remuneration and pensions and other employee benefits reference is made to
note7.2 and note 9.4.
Capitalized personnel expenses: costs of employee benefits arising directly from the
construction of Intangible assets or Property, plant and equipment and which meet the
recognition criteria, are capitalized as part of the cost of the asset concerned.
Personnel expenses
In EUR millions Note 2021 2020
Wages and salaries 300.1 302.2
Social security charges 36.4 35.4
Contribution to pension schemes (defined contribution) 31.8 32.6
Pension charges (defined benefit plans) 9.4 7. 4 6.7
Long-term incentive plans 7. 2 8.5 4.9
Early retirement 4.7 3.8
Other personnel expenses 20.5 19.9
Capitalized personnel expenses - 66.7 - 74.3
Total
342.7 331.2
Note 2.4 Other operating income
Note 2.5 Personnel expenses
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2021
There were no individually material items recognized in Personnel expenses in 2021.For the
impact of the change in board composition, reference is made to the Remuneration report.
2020
During 2020, several of our legal entities in China and Singapore received in total
EUR4.0million of COVID-19 related incentives in connection with job support or other
employee related matters. These were general incentive schemes that were automatically
provided to all legal entities in these countries which met the requirements. There were no
Vopak subsidaries which actively applied for COVID-19 support measures.
An exceptional gain was recognized for the amount of EUR0.7million relating to the reversal of
a provision for reorganization at our terminal in Quebec City in Canada, as the prior year
uncertainty with respect to renewal of an expiring land lease contract was resolved during 2020.
Average number of employees (in FTEs)
During the year under review, the Group employed on average 4,250employees and
temporary staff (inFTEs)(2020:4,355). The movements in the number of own employees at
subsidiaries (in FTEs) were as follows:
In FTEs 2021 2020
Number at 1 January
3,713 3,722
Joiners 475 450
Leavers - 458 - 407
Divestment/deconsolidation – - 52
Number at 31 December
3,730 3,713
Note 2.6 Other operating expenses
Accounting policies
Operating expenses are recognized in the income statement when incurred, e.g. when
services are received or goods are consumed. In addition, operating expenses can result
from a decrease in future economic benefits related to a decrease of an asset or an increase
of a liability that has arisen and which can be measured reliably.
Losses on the sale of assets are presented under Other operating expenses and are
recognized as soon as they are foreseen. Costs relating to the identification and selection
phases of business development projects are recognized in the statement of income in the
year in which the costs are incurred.
Other operating expenses
In EUR millions 2021 Restated 2020
1
Maintenance 54.1 52.9
Energy and utilities 49.2 32.7
Environmental, safety and cleaning 37.9 28.5
Advisory fees 23.8 29.2
Insurance 14.2 1 7. 9
Rents and rates 22.2 23.3
Third party logistics 12.2 8.4
IT 33.8 39.6
Lease expenses - variable expenses, short and low value leases 5.7 0.6
Other 33.0 39.2
Total
286.1 272.3
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a
change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing
Arrangements, as detailed in Note 1.1.
Note 2.6 Other operating expenses
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2021
In the fourth quarter of 2021 an exceptional loss of EUR0.7million was recorded related
to a partial divestment of a 3%equitystake in the terminal Jubail Chemicals Storage and
Services Company(JCSSC) located in SaudiArabia.After divestment Vopak holds a
22%equitystakein this associate.
There were no other individually material items recognized in Other operating
expenses in 2021.
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 and was recognized
under the Other operating expenses. 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 December2020, an exceptional gain of EUR0.8million was recognized in relation to the
partial reversal of an environmental provision for our terminal in QuebecCity in Canada as a
result of theuncertainty with respect to renewal of the land lease contract thas was resolved
during the year.
In the Europe&Africadivision, settlement of a legal dispute relating to historical positions of
several long-term contracts with one of our suppliers resulted in a release of accruals for the
amount ofEUR7.4million. In addition, an increase in indirect taxes raised by local authorities
relating to multiple years, led to a one-off increase in the Operating expenses of
EUR4.3million in the Europe&Africadivision.
Note 2.7 Result of joint ventures and associates
Accounting policies
Joint ventures and associates are accounted for using the equitymethod. For the accounting
policies relating to joint ventures and associates, reference is made to note 3.5.
Result of joint ventures and associates
In EUR millions Note 2021 2020
Result of joint ventures and associates 3.5 215.8 161.2
Impairments joint ventures and associates 3.5, 3.8 - 43.5 –
Total
172.3 161.2
Joint ventures are an important part of the Group. Summarized financial information of our
joint ventures and associates on an IFRS basis is presented in note 3.5.
In addition, the effects of unaudited non-IFRS proportional consolidation on the statement
of financial position and statement of income of the Group are presented under ‘Additional
information’ accompanying this report.
2021
Exceptional gains/losses, were reported in Result of joint ventures and associates as follows:
In 2021, an exceptional gain of EUR2.2million was recognized in the result of joint ventures
and associates relating to a partial release of a tax provision that was recognized in a
jointventure terminal within the Asia&MiddleEast division at the end of 2019.
In the fourth quarter of 2021, an exceptional loss ofEUR4.8millionwas recognized in the
Moda Houston terminal (VMH) for business development costs. This impairment is the result
of a strategic review after which it was concluded that VMH will focus on ammonia and gas
projects going forward leading to a write-off of certain business development projects.
The results of joint ventures and associates were impacted by impairments recorded in 2021.
Reference is made to note 3.8 for more details.
2020
In 2020, other operating expenses were recognized as exceptional items for the total
amount of EUR4.8million in connection with the acquisition of the three industrial joint
venture terminals from Dow on the U.S. Gulf Coast. For more information, reference is
made to note 3.5.
Note 2.7 Result of joint ventures and associates
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Note 2.8 Translation and operational currency risk
The Group is exposed to a low level of currency risk on the transaction level, since operating
income and operating expenses are, as a rule, largely denominated in the same currency.
However, in some countries (in particular, in Latin America and Asia), a substantial portion
ofthe income flow is in USdollars, whereas the operating expenses are largely denominated
inlocal currencies. In these countries, the aim is to hedge the transaction risk naturally.
Anymaterial net transaction position can be hedged in full by means of forward exchange
contracts or other derivatives.
The Group is, however, exposed to risk in connection with the translation of income
statements and net assets of foreign entities into euros, since a significant portion of the
Group’s results is generated in foreign entities.
Sensitivity to exchange rates arising from the translation of the results
offoreign currency operations
The translation risk of converting the net result of foreign entities into euros mainly concerns
the Singapore dollar and the US dollar. The sensitivity to these currencies, based on a
reasonable change in the exchange rate at the reporting date, is as follows:
A 10 dollar cent change in the EUR/USD exchange rate approximately affects Vopak’s figures
as follows (basedonfiguresfor2021,excludingexceptionalitems):
• Revenues would differ byEUR22.2million (2020:EUR22.7million)
• Group operating profit before depreciation and amortization (EBITDA) would differ by
EUR20.6million (2020:EUR17.2million)
• Group operating profit (EBIT) woulddiffer by EUR16.1million (2020:EUR12.8million)
• Net profit would differ by EUR13.4million (2020:EUR10.1million).
A 10 dollar cent change in the EUR/SGD exchange rate approximately affects Vopak’s figures
as follows (basedonfiguresfor2021excludingexceptionalitems):
• Revenues would differ by EUR13.8million (2020:EUR14.3 million)
• Group operating profit before depreciation and amortization (EBITDA) would differ by
EUR10.9million (2020:EUR11.0million)
• Group operating profit (EBIT) would differ by EUR7.8million (2020:EUR8.0million)
• Net profit would differ by EUR4.5million (2020:EUR4.2million).
Note 2.9 Cash flows from operating activities (gross)
In EUR millions Note 2021
Restated
2020
1
Net profit 243.2 324.2
Adjustments for:
- Depreciation and amortization 3.7 331.8 296.0
- Impairment 3.8 71.0 30.1
- Net finance costs 5.6 106.5 86.3
- Income tax 8.1 60.0 71.1
- Movements in other non-current assets - 6.3 - 4.8
- Movements in other long-term liabilities - 1.8 - 8.1
- Movements in provisions excluding deferred taxes - 0.4 - 8.1
- Result joint ventures and associates 2.7 - 172.3 - 161.2
- Measurement of equity-settled share-based payment arrangements 5.3 6.1 - 1.3
- Result on sale of assets held for sale excluding transaction expenses 3.1 0.7 - 31.3
Total adjustments
395.3 268.7
Realized value adjustments of derivative financial instruments - 45.0 58.9
Movements in other current assets (excluding cash and cash equivalents) 43.8 - 15.5
Movements in other current liabilities (excluding bank overdrafts
and dividends) - 17.8 49.0
Dividends received from joint ventures and associates 3.5 133.3 134.2
Effect of changes in exchange rates on other current assets and liabilities - 11.6 - 9.1
Cash flows from operating activities (gross)
741.2 810.4
Realized value adjustments of derivative financial instruments 45.0 - 58.9
Cash flows from operating activities (gross excluding derivatives)
786.2 751.5
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a
change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing
Arrangements, as detailed in Note 1.1.
Note 2.8 Translation and operational currency risk
Note 2.9 Cash flows from operating activities (gross)
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Section 3 Strategic investments anddivestments
This section presents details on the core operating assets that form the basis for the
activities of the Vopak Group, including the main developments with regard to these assets
during the financial years presented.
The following notes are presented in this section:
3.1 Acquisition and divestment of subsidiaries
• 3.2 Intangible assets
• 3.3 Property, plant and equipment
• 3.4 Leases
• 3.5 Joint ventures and associates
• 3.6 Assets held for sale
• 3.7 Depreciation and amortization
• 3.8 Impairment tests and impairments
Note 3.1 Acquisition and divestment of subsidiaries
Accounting policies
Business combinations
Acquired businesses are recognized in the Consolidated financial statements from the
acquisition date, which is the date when the Group effectively obtains control of the acquired
business. Businesses that are divested or wound up are recognized in the Consolidated
financial statements until the date of divestment or winding up. Comparative figures are not
restated for businesses acquired, divested or wound up.
When the Group obtains control of a business, the acquisition method is applied. The
identifiable assets, liabilities and contingent liabilities are measured at fair value at the
acquisition date. Identifiable intangible assets are recognized if separable or if they arise from
contractual or other legal rights. Deferred tax related to fair value adjustments is
also recognized.
Any excess of the fair value of the consideration transferred, the recognized amount of any
non-controlling interests and the fair value of any existing equity interest in the acquired
entity over the fair value of identifiable assets, liabilities and contingent liabilities, is
recognized as goodwill. When the excess is negative, a bargain purchase gain is recognized
in the statement of income at the acquisition date.
If parts of the consideration are conditional upon future events (contingent consideration) or
satisfaction of agreed terms, these parts are recognized at fair value at the acquisition date.
Transaction costs that the Group incurs in connection with the business combination are
expensed as incurred under Other operating expenses.
Divestments
Gains or losses on the divestments or winding-up of subsidiaries, joint ventures or
associates are measured as the difference between the consideration received adjusted for
directly related divestment or winding-up costs and the carrying amount of the net assets at
the time of disposal or winding-up including any carrying amount of allocated goodwill.
Acquisitions and divestments
The table below provides an overview of the results realized as either part of the Other
operating income or Other operating expenses on all (step-)acquisitions and divestments
completed during the years presented, including joint ventures and associates.Reference is
also made to note 2.4.
In EUR millions Note 2021 2020
Share dilution JCSSC 3.5 - 0.7 –
Sale of subsidiary Algeciras – - 1.7
Sale joint venture SDIC Yangpu Terminal – 33.0
Total
- 0.7 31.3
For more information on the cash proceeds, reference is made to the
ConsolidatedStatement of Cash Flows.
The resultsrealized on (step-)acquisitions and divestments of subsidiaries are disclosed in
the paragraph below. For an overview of the acquisitions and divestments of joint ventures
and associates, reference is made to note 3.5.
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Section 3 Strategic investments and divestments
Note 3.1 Acquisition and divestment of subsidiaries
Acquisitions of subsidiaries
There were no acquisitions of subsidiaries in 2021 and 2020.
Divestments of subsidiaries
2021
There were no divestmentsof subsidiaries in 2021.
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 the second and third quarter of 2020, Vopak received the remaining consideration of
EUR33.0million relating totheDecember2019 divestment of its 49% equity share in the
joint venture VopakSDICYangpu Terminal in Hainan, China. This receipt resulted in the
recognition of an exceptional gain for the same amount in 2020.
Note 3.2 Intangible assets
Accounting policies
Intangible assets include goodwill, internally developed software, contractual relationships,
concessions and favourable leases ensuing from business combinations. For accounting
policy of Cloud Computing Arrangements, reference is made to note 1.1. Goodwill represents
the difference between the purchase price and Vopak’s share in the fair value of the acquired
identifiable assets, liabilities and contingent liabilities of the company acquired at the time
Vopak obtains control (acquisition method). Goodwill is carried at cost less
accumulated impairments.
For the purpose of impairment testing, goodwill acquired in a business combination is
allocated to the operating segments (divisions), which represents the lowest level within the
Vopak Group at which the goodwill is monitored for internal management purposes.
Goodwill relating to an associate or joint venture is included in the carrying amount of the
investment in the associate or joint venture and is not tested for impairment separately, but
is part of the impairment testing of the investment in the associate or joint venture.
Software is carried at historical cost, net of straight-line amortization based on its expected
useful life and any potential impairment.
Other intangible assets are carried at their initial fair value at the time of the acquisition,
net of straight-line amortization and impairments.
Other items are mainly licenses that are carried at historical cost, net of
straight-line amortization.
Note 3.2 Intangible assets
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Movements in intangible assets
In EUR millions Note Goodwill Software Other
Under
develop-
ment Total
Purchase price of operating assets 41.4 142.2 55.2 27.7 266.5
Accumulated amortization and impairment – - 90.0 - 11.7 – - 101.7
Carrying amount at 31 December 2019
41.4 52.2 43.5 27.7 164.8
Change in accounting policy
1
– - 10.6 – - 6.7 - 17.3
Carrying amount at 1 January 2020
41.4 41.6 43.5 21.0 147.5
Movements:
Additions – 3.0 – 23.5 26.5
Reclassification – 13.5 – - 10.8 2.7
Amortization 3.7 – - 13.0 - 1.1 – - 14.1
Impairment 3.8 – - 0.2 - 8.6 – - 8.8
Exchange differences - 2.9 – - 3.1 - 0.2 - 6.2
Carrying amount at 31 December 2020
(restated)
38.5 44.9 30.7 33.5 147.6
Purchase price of operating assets 38.5 130.3 50.5 33.5 252.8
Accumulated amortization and impairment – - 85.4 - 19.8 – - 105.2
Carrying amount at 31 December 2020
(restated)
38.5 44.9 30.7 33.5 147.6
Movements:
Additions – 1. 4 – 24.0 25.4
Disposal – – 0.1 – 0.1
Reclassification to held for sale/divestments 3.6 - 35.1 - 0.1 - 1.3 - 0.8 - 37.3
Reclassification – 32.5 – - 29.4 3.1
Amortization 3.7 – - 16.8 - 0.8 – - 17.6
Impairment 3.8 – - 0.3 - 15.6 – - 15.9
Exchange differences 2.8 0.3 1. 9 0.6 5.6
Carrying amount at 31 December 2021
6.2 61.9 15.0 27.9 111.0
Purchase price of operating assets 6.2 164.5 47.8 27.9 246.4
Accumulated amortization and impairment – - 102.6 - 32.8 – - 135.4
Carrying amount at 31 December 2021
6.2 61.9 15.0 27.9 111.0
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a
change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing
Arrangements, as detailed in Note 1.1.
The increase in software assets in both years presented, is primarily related to internally
developed IT projects. For more information on the impairments recognized in 2021 and
2020, reference is made to note 3.8.
In 2021, as a result of the held for sale classification of the CRL terminal entity in Kandla
andfourCanadian terminals located in Hamilton, Montreal East and West and Quebec City,
goodwill and intangibles allocated to these terminals have been presented as held for sale
for respectivelyEUR19.3millionandEUR18.0million. Formore details, reference is
made to note 3.6.
Note 3.3 Property, plant and equipment - owned assets
Accounting policies
Property, plant and equipment mainly relate to the owned terminals assets of the company
which are used to service the customers in the various countries where the Group operates.
Property, plant and equipment are broken down into their components and carried at
historical cost, net of accumulated straight-line depreciation and less any impairment losses.
Interest during construction is capitalized (see also note 5.6). Historical cost includes the
initial acquisition cost plus other direct acquisition costs (such as unrecoverable taxes or
transport) and construction costs that can be allocated directly (such as hours of own
employees and advisory fees). To the extent that dismantling obligations exist at the end of
the useful life, these estimated costs and any amendments thereto are included in the cost
of the assets.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with
the item will flow to the Group and the cost of the item can be measured reliably. The
carrying amount of the replaced part is derecognized. Costs of repairs and maintenance that
do not increase the future economic benefits and are part of the day-to-dayservicing of the
assets are recognized as expenses.
Note 3.3 Property, plant and equipment - owned assets
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Movements inproperty, plant and equipment - owned assets
In EUR millions Note Land Buildings
Tank storage
terminals
Machinery and
equipment
Under
development Total
Purchase price of operating assets 44.4 285.7 5,404.3 134.2 676.8 6,545.4
Accumulated depreciation and impairment – - 147.7 - 2,661.8 - 95.1 – - 2,904.6
Carrying amount at 31 December 2019
44.4 138.0 2,742.5 39.1 676.8 3,640.8
Movements:
Additions – 4.9 78.1 3.2 533.2 619.4
Disposals – - 0.2 - 0.6 - 0.9 - 1.5 - 3.2
Reclassification – 39.9 407.6 7. 3 - 457.6 - 2.8
Depreciation 3.7 – - 15.0 - 225.6 - 4.1 – - 244.7
Impairment 3.8 – - 1.2 - 20.5 0.4 – - 21.3
Exchange differences - 5.2 - 5.7 - 135.3 - 1.5 - 41.6 - 189.3
Carrying amount at 31 December 2020
39.2 160.7 2,846.2 43.5 709.3 3,798.9
Purchase price of operating assets 39.2 315.7 5,638.1 132.3 709.3 6,834.6
Accumulated depreciation and impairment – - 155.0 - 2,791.9 - 88.8 – - 3,035.7
Carrying amount at 31 December 2020
39.2 160.7 2,846.2 43.5 709.3 3,798.9
Movements:
Additions – 4.0 54.8 2.8 419.7 481.3
Disposals - 0.3 - 0.6 - 2.8 0.1 0.1 - 3.5
Reclassification to assets held for sale/divestments 3.6 - 17.9 - 6.6 - 83.2 - 3.3 - 12.3 - 123.3
Reclassification – 27.1 729.3 25.5 - 785.0 - 3.1
Reclassification to finance lease 9.2 – – - 104.1 – – - 104.1
Depreciation 3.7 – - 14.3 - 249.4 - 10.6 – - 274.3
Impairment 3.8 – - 2.4 - 52.5 - 0.2 – - 55.1
Exchange differences 2.8 4.0 83.6 2.0 25.7 118.1
Carrying amount at 31 December 2021
23.8 171.9 3,221.9 59.8 357.5 3,834.9
Purchase price of operating assets 23.8 348.4 6,312.3 156.2 357.5 7,198.2
Accumulated depreciation and impairment – - 176.5 - 3,090.4 - 96.4 – - 3,363.3
Carrying amount at 31 December 2021
23.8 171.9 3,221.9 59.8 357.5 3,834.9
For an overview of the investment commitments of the Group in relation to property, plant and equipment reference is made to note 9.7.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
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Note 3.4 Leases
Accounting policies
In line with the nature of its activities, the Group has a large portfolio of long-term land
leases and leases of other non-current assets such as jetties, offices and other equipment.
Most of the contracts contain extension options.
Contracts typically contain both lease and non-lease components. The Group allocates the
consideration in the contract to the lease and non-lease components based on their relative
stand-alone prices. The non-lease components are normally relatively small.
Lease terms are negotiated on an individual basis and contain a wide range of different
terms and conditions. The lease agreements in general do not impose any covenants other
than the security interests in the leased assets that are held by the lessor. Leased assets
cannot be used as security for borrowing purposes by the Group.
Determining the right-of-use asset and the lease liability
Assets and liabilities arising from a lease are initially measured on a present value basis.
Lease liabilities include the net present value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable
• variable lease payment that are based on an index or a rate, initially measured using the
index or rate as at the commencement date
• amounts expected to be payable by the group under residual value guarantees (normally
not present)
• the exercise price of a purchase option if the group is reasonably certain to exercise that
option, and
• payments of penalties for terminating the lease, if the lease term reflects the group
exercising that option.
When it is reasonably certain that a lease extension option will be exercised, lease payments
that are to be made under these extension options are also included in the measurement
of the liability.
Determining the discount rate
The lease payments are in almost all instances discounted using the incremental borrowing
rateof the Vopak entity entering into the lease. This is because the interest rate implicit in
the lease can in most instances not be readily determined. The incremental borrowing rate is
the rate that the individual entity would have to pay to borrow the funds necessary to obtain
an asset of similar value to the right-of-useasset, in a similar economic environment with
similar terms, security and conditions.
Lease expenses
Lease payments are allocated between a principal and interest expense. The interest
expense is charged to profit or loss over the lease period to produce a constant periodic rate
of interest on the remaining balance of the liability for each period. Right-of-useassets are
depreciated over the shorter of the asset’s useful life and the lease term on a straight-line
basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset
is depreciated over the underlying asset’s useful life.
Short-term and low-value leases
Payments associated with short-term leases and all leases of low-value assets are
recognized on a straight-line basis as an expense in profit or loss. Short-term leases are
leases with a lease term of 12 months or less. Low-value assets primarily comprise IT and
communication equipment and small items of office furniture. Short-term leases may also
relate to long-term (land) leases for which the original maximum contract term has expired
and a new contract is currently under negotiation.
The risks associated with leases
The group is exposed to the risk of potential future increases in the periodic lease payments
based on an index or rate, which are not included in the lease liability until they take effect.
When such adjustments to lease payments occur, the lease liability is reassessed and
adjusted against the right-of-use asset.
Furthermore, the Group also runs the risks that critical lease contracts expire and cannot be
renewed. In such instances the Group has to decommission the terminal by either handing
over the site together with the assets to the lessor, or by demolishing the assets, cleaning
up the site and handing over the site to the lessor. In most instances the Group is able to
enter into a new lease contract, yet frequently at higher rates.
Note 3.4 Leases
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Key accounting estimates and judgments
Determining the term of a lease contract
Extension and termination options are included in most lease contracts held by the Group. These
options are used to maximize operational flexibility in terms of managing the assets used in the
Group’s operations. The majority of extension and termination options held are exercisable only by
the Group and not by the respective lessor. This is explicitly the case for the land lease contracts.
In determining the lease term, management considers all facts and circumstances that create an
economic incentive to exercise an extension option, or to not exercise a termination option.
Extension options (or periods after termination options) are only included in the lease term if the
lease is reasonably certain to be extended (or not terminated).
For leases of land, sea and jetties the following factors are normally the most relevant:
• Remaining useful lives of the tank terminal assets which depend on the lease
term of the lease contract
• Remaining duration of long-term customer contracts
• The amount of the penalties to terminate (or not extend)
• Other factors, including historical lease durations and the costs and business disruption that is
expected to be incurred to replace the leased asset.
For most of the land lease contracts it was assessed by management that it was reasonably
certain that the extension options will be exercised. The lease term is reassessed if an option is
actually exercised (or not exercised) or the group becomes obliged to exercise (or not exercise) it.
The assessment of reasonable certainty is only revised if a significant event or a significant
change in circumstances occurs, which affects this assessment, and that is within the control of
the lessee.
No other material estimates and judgments are applied by the Group with regards to leases.
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Movements in right-of-use assets and related lease liabilities
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.
Note Land Buildings
Tank storage
terminals
Machinery and
equipment Total Lease liabilities
Purchase price of operating assets 488.4 32.8 6.5 8.7 536.4 –
Accumulated depreciation and impairment - 23.7 - 6.4 - 0.5 - 2.8 - 33.4 –
Opening balance at 31 December 2019
464.7 26.4 6.0 5.9 503.0 - 564.9
Movements:
Additions 47.8 34.0 – 5.4 87.2 - 87.2
Disposal – - 0.5 – – - 0.5 1. 5
Depreciation 3.7 - 28.2 - 4.6 - 0.5 - 3.9 - 37.2 –
Remeasurement 115.4 - 16.9 0.1 0.4 99.0 - 99.0
Unwinding interest – – – – – - 21.1
Payments – – – – – 47.8
Exchange rate differences - 18.8 - 0.4 - 0.1 – - 19.3 23.7
Carrying amount at 31 December 2020
580.9 38.0 5.5 7. 8 632.2 - 699.2
Purchase price of operating assets 631.0 41.7 6.5 13.1 692.3 –
Accumulated depreciation and impairment - 50.1 - 3.7 - 1.0 - 5.3 - 60.1 –
Carrying amount at 31 December 2020
580.9 38.0 5.5 7. 8 632.2 - 699.2
Movements:
Additions – 1. 7 – 5.6 7. 3 - 7.3
Depreciation 3.7 - 30.8 - 4.2 - 0.5 - 4.4 - 39.9 –
Remeasurement 44.7 0.6 - 0.4 1. 1 46.0 - 46.0
Unwinding interest – – – – – - 22.4
Payments – – – – – 56.7
Divestments/reclassification to assets held for sale 3.6 - 21.7 - 0.7 – – - 22.4 26.5
Reclassifications 0.9 - 0.6 - 0.9 – - 0.6 –
Exchange rate differences 1 7. 1 0.2 0.3 – 1 7. 6 - 19.6
Carrying amount at 31 December 2021
591.1 35.0 4.0 10.1 640.2 - 711.3
Purchase price of operating assets 669.5 42.4 5.4 18.1 735.4 –
Accumulated depreciation and impairment - 78.4 - 7.4 - 1.4 - 8.0 - 95.2 –
Carrying amount at 31 December 2021
591.1 35.0 4.0 10.1 640.2 - 711.3
The weighted average incremental borrowing rate applied to the lease liabilities (excluding
those classified as held for sale) recognized at the end of 2021 was 3.1% (2020:3.2%).
The remaining weighted average lease term was 25.0years at 31December2021
(2020:25.9years).
The total cash outflows for leases for the year presented, including short-term and low-value
leases, amounted to EUR62.4million (2020:EUR53.4million).
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Amounts recognized in the income statement
Set out below are the amounts recognized in the income statement during the period.
In EUR millions 2021 2020
Low-value assets lease expenses 1. 0 1. 0
Short-term leases expenses 3.6 2.8
Short-term/variable lease expenses - reversal due to settlements – - 5.0
Variable lease expenses 1. 1 1. 8
Depreciation right-of-use assets 39.9 37.2
Interest expenses on lease liabilities 22.4 21.1
Total
68.0 58.9
Maturity profile of lease contract portfolio
The table below analyzes the Group’s contractual lease obligations into relevant maturity
categories based on the remaining period at the end of the reporting period. It includes the
nominal payments of the lease liabilities that are recognized in the balance sheet as well as
the nominal payments related to the short-term and low-value lease contracts. In addition,
also a graph is including depicting the maturity profile of the lease contract portfolio in a
graphical manner.
In EUR millions
< 1
year
1-5
years
5-10
year
10-15
years
15-20
years
20-25
years
25-30
years
30-35
years
35-40
years
> 40
years Total
Nominal
contractual
lease obligation 55.3 193.4 219.5 167.6 151.5 108.3 75.7 46.6 31.8 14.4 1,064.1
200
250
150
100
50
< 1 1-5 5-10 10-15 15-20 20-25 25-30 30-35 35-40 > 40
year years years years years years years years years years
Nominal contractual lease obligation
In EUR millions
As per 31December2021, there are no material lease contracts to which the Group is
committed but which have not yet commenced.
Note 3.5 Joint ventures and associates
Vopak’s interest in the principal joint ventures and associates at year-end2021consisted of
26(2020:27) unlisted joint ventures and 9 (2020: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. The nature of, and changes in,
the risks associated with its interests in joint ventures and associates is primarily linked to the
region and/or the activities. For the disclosure of the nature, extent and financial effects of our
joint ventures and associates, we make a distinction in the activities of the divisions
Europe&Africa (limited number of oil and chemical terminals), Asia&MiddleEast, (all types
of storage terminals, except LNG), LNG (joint ventures and associates with long-term
contracts), and China & North Asia (mainly industrial terminals). The Americasdivision currently
has a number of joint ventures and associates mainly operating gas and industrial terminals.
No significant judgments were made by the Group with regard to the classification of
jointventures and associates.All material joint arrangements are currently classified as
jointventures because joint control is established by contract and the Group only has rights
to the net assets of these entities. The Group currently has no material investment in a
joint operation.
The Group has four majority ownerships which qualify as joint ventures: a 60% majority
ownership in LNGTerminalAltamira in Mexico, a 51% majority ownership in Vopak
TerminalsKoreaLtd. and a 51% majority ownership inVopak(Qinzhou)JettyCo.,Ltd. and
inGuangxiHualinJettyCo.,Ltd, both in China. In Mexico, the Group has 50% of the voting
rights. In Korea, the partner owns an exercisable call option right at any time of 1% of the
shares and therefore the substantive voting rights of the Group are limited to 50%. In China,
for both entities all decisions about the relevant activities of the entity are made based on
unanimous consent of the shareholders in accordance with the shareholders
agreement concerned.
Note 3.5 Joint ventures and associates
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The Group has a 10%equity interest in Vopak Terminal Eemshaven in the Netherlands which
is classified as an associate as it was concluded that the Group has significantinfluence. The
Group has been appointed as operator of this terminal. As operator, Vopak has the right to
appoint the management board of the terminal. In addition, as 10% shareholder in the entity,
Vopak is entitled to appoint one of the three members of the SupervisoryBoard and is able
to participate in the decision-making process of the entity.
Reference is made to note 9.11 for an overview of the principaljoint ventures and associates.
Accounting policies
Joint ventures and associates are accounted for using the equity method, which involves
recognition in the Consolidated statement of income of Vopak’s share of the net result of the
joint ventures and associates for the year. Accounting policies of joint ventures and
associates have been aligned where necessary to ensure consistency with the policies
adopted by the Group. Vopak’s interest in a joint venture or associate is carried in the
statement of financial position at its share in the net assets of the joint venture or associate
together with goodwill paid on acquisition, less any impairment loss. When the share in the
losses exceeds the carrying amount of an equity-accounted company (including any other
receivables forming part of the net investment in the company), the carrying amount is
written down to nil and recognition of further losses is discontinued, unless we have incurred
legal or constructive obligations relating to the company in question.
Group’s share of the total comprehensive income and the carrying amount of joint ventures and associates
Joint ventures Associates Total
In EUR millions 2021 2020 2021 2020 2021 2020
Vopak's share in net assets 887.4 721.6 347.9 473.9 1,235.3 1,195.5
Goodwill on acquisition 74.2 66.9 9.9 10.4 84.1 77.3
Carrying amount at 31 December
961.6 788.5 357.8 484.3 1,319.4 1,272.8
Share in profit or loss 2.7 156.6 114.0 59.2 47.2 215.8 161.2
Impairments 2.7, 3.8 - 43.5 – – – - 43.5 –
Net profit
113.1 114.0 59.2 47.2 172.3 161.2
Other comprehensive income 5.2 9.7 4.9 10.5 - 5.0 20.2 - 0.1
Comprehensive income
122.8 118.9 69.7 42.2 192.5 161.1
Dividends received 2.9 - 91.9 - 75.9 - 42.7 - 58.3 - 134.6 - 134.2
Investments 104.3 63.9 5.7 4.6 110.0 68.5
Acquisitions – 107.4 – – – 107.4
Redemption share capital – – – - 85.2 – - 85.2
Transfers due to change in ownership – – - 7.7 – - 7.7 –
Other - 0.4 8.7 0.1 - 0.2 - 0.3 8.5
Exchange differences 69.1 - 49.9 34.9 - 29.6 104.0 - 79.5
Carrying amount at 31 December
1,165.5 961.6 417.8 357.8 1,583.3 1,319.4
Vopak's share in net assets 1,098.2 887.4 406.9 347.9 1,505.1 1,235.3
Goodwill on acquisition 67.3 74.2 10.9 9.9 78.2 84.1
Carrying amount at 31 December
1,165.5 961.6 417.8 357.8 1,583.3 1,319.4
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Other comprehensive income is primarily related to the effective portion of changes in the
fair value of cash flow hedges within the joint ventures, which are recognized through the
statement of comprehensive income.
For more information on the impairments recognized on the investments in joint ventures
and associates, reference is made to note 3.8.
Investments and divestments of joint ventures and associates
2021
Jubail Chemicals Storage and Services Company - partial divestment
In the fourth quarter of 2021 an exceptional loss of EUR0.7million was recorded related to a
partial divestment of a 3%equitystake in the terminal Jubail Chemicals Storage and
Services Company (JCSSC) located in Saudi Arabia.After divestment Vopak holds a
22%equitystakein the associate.
2020
United states - acquisition
In December 2020, Vopak and BlackRock (50/50) acquired three industrial terminals from
Dow on the U.S.GulfCoast.The new joint venture named Vopak Industrial Infrastructure
Americas (VIIA), LLC, has a diversified set of infrastructure assets, in three locations, with
each situated alongside an active Dow production complex.
The total consideration paid for this 50% shareholding, including transaction costs,
amounted to EUR107.4million (USD132.1million).In connection with this acquisition,
transaction expenses were incurred for the total amount of EUR 4.8 million, which were
classified as an exceptional item.
China - divestment
In the second and third quarter of 2020, Vopak received the remaining consideration of
EUR33.0million relating to the December 2019 divestment of its 49% equity share in the
joint venture Vopak SDIC Yangpu Terminal in Hainan, China. Due to earlier uncertainty this
deferred consideration was not yet recognized in 2019. As a result, the receipt of this amount
also led to the recognition of an exceptional gain of EUR 33.0 million. Reference is also
made to note 2.4.
United States - newly established terminal
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.
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Summarized information of joint ventures and associates on a 100% basis
The following information reflects the amounts presented 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 regard to the acquisition of the
jointventure or associate.
Summarized statement of total comprehensive income
Americas
Asia &
Middle East
China &
North Asia Europe & Africa LNG Others
Total joint
ventures and
associates
Of which
joint ventures
Of which
associates
In EUR millions
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Revenues 155.6 43.7 606.4 654.0 213.8 194.5 52.0 49.5 303.2 326.4 – – 1,331.0 1,268.1 810.1 727.7 520.9 540.4
Other income 39.1 34.6 10.7 4.0 12.0 7. 2 - 0.2 – 155.3 72.7 – – 216.9 118.5 109.9 8.8 107.0 109.7
Operating expenses - 123.3 - 51.9 - 133.8 - 150.1 - 58.3 - 42.7 - 18.5 - 17.2 - 99.9 - 94.2 - 0.9 0.1 - 434.7 - 356.0 - 276.8 - 196.0 - 157.9 - 160.0
EBITDA
71.4 26.4 483.3 507.9 167.5 159.0 33.3 32.3 358.6 304.9 - 0.9 0.1 1,113.2 1,030.6 643.2 540.5 470.0 490.1
Depreciation and amortization - 20.4 - 1.9 - 158.7 - 173.5 - 49.4 - 40.9 - 13.2 - 12.8 - 91.4 - 95.6 – – - 333.1 - 324.7 - 187.1 - 163.0 - 146.0 - 161.7
Impairment - 9.7 – - 2.1 – - 0.5 – – – - 29.0 – – – - 41.3 – - 41.2 – - 0.1 –
Operating profit (EBIT)
41.3 24.5 322.5 334.4 11 7. 6 118.1 20.1 19.5 238.2 209.3 - 0.9 0.1 738.8 705.9 414.9 377.5 323.9 328.4
Net finance costs - 12.9 2.4 - 47.6 - 70.5 - 9.1 - 6.8 - 5.6 - 9.8 - 65.5 - 78.0 – – - 140.7 - 162.7 - 52.3 - 46.3 - 88.4 - 116.4
Income tax - 0.2 - 0.1 - 20.8 - 61.5 - 16.6 - 29.4 - 2.7 - 1.5 - 62.1 - 40.6 – – - 102.4 - 133.1 - 78.5 - 80.5 - 23.9 - 52.6
Net profit
28.2 26.8 254.1 202.4 91.9 81.9 11.8 8.2 110.6 90.7 - 0.9 0.1 495.7 410.1 284.1 250.7 211.6 159.4
Other comprehensive income - 7.4 – 44.2 - 21.0 – – – – 22.9 11. 5 – – 59.7 - 9.5 19.9 9.4 39.8 - 18.9
Total comprehensive income
20.8 26.8 298.3 181.4 91.9 81.9 11.8 8.2 133.5 102.2 - 0.9 0.1 555.4 400.6 304.0 260.1 251.4 140.5
Vopak's share of net profit 7. 2 6.4 86.1 70.2 38.9 33.3 4.0 3.3 36.5 48.0 - 0.4 – 172.3 161.2 113.1 114.0 59.2 47.2
Vopak's share of other
comprehensive income - 3.7 – 12.5 - 5.9 – – – – 11. 4 5.8 – – 20.2 - 0.1 9.7 4.9 10.5 - 5.0
Vopak's share of total
comprehensive income
3.5 6.4 98.6 64.3 38.9 33.3 4.0 3.3 47.9 53.8 - 0.4 – 192.5 161.1 122.8 118.9 69.7 42.2
2021
In the third quarter of 2021, an exceptional gain of EUR2.2million was recognized in the result
of joint ventures and associates relating to a partial release of a tax provision that was
recognized in a joint venture terminal within the Asia&MiddleEastdivision at the end of 2019.
In March 2020 a fire incident took place in the adjacent RAPID facility, leading to a
subsequent closure of the facility. One of PT2SB’s anchor customers has since been out of
operation, while plans to restart the refinery have repeatedly been delayed, most recently
due to technical issues in the hydrogen production units. The prolonged refinery closure may
impact PT2SB’s financial performance in 2022. Mitigating the situation is a priority for PT2SB
and its shareholders.As at 31 December 2021, our PT2SB joint venture has reported
net accounts receivable balances for contractually delivered services of approximately
EUR 88 million.
For more information on the impairments recognized on the investments in joint ventures
and associates, reference is made to note 3.8.
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208
2020
In January2020, the associate PT2SB repaid part of its preference share capital, which
resulted in a cash inflow of EUR 85.2milion for the Group.
Furthermore, in the fourthquarterof 2020, our associate industrial terminal (PT2SB) in
Malaysia recognized an accounting loss of EUR19.8million (Vopakshare), partly in
connection with prior year. This was related to this terminal being fully commissioned, and
settlement of various customer contract discussions. As well as finalizing the accounting of
several specific non-cashitems related to depreciation charges on fixed assets and deferred
tax liabilities in connection with the complex tax environment.
Summarized statement of financial position at 31 December
Americas
Asia &
Middle East
China &
North Asia Europe & Africa LNG Others
Total joint
ventures and
associates
Of which
joint ventures
Of which
associates
In EUR millions
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Non-current assets 1,130.6 992.5 2,771.0 2,710.0 1,000.8 809.2 209.9 208.1 1,984.8 1,979.2 0.2 – 7,097.3 6,699.0 3,977.2 3,696.4 3,120.1 3,002.6
Cash and cash equivalents 18.6 9.7 319.2 294.6 146.2 133.0 10.6 10.4 139.4 108.3 1. 0 – 635.0 556.0 308.4 263.4 326.6 292.6
Other current assets 50.2 25.6 222.8 310.5 51.1 79.1 1 7. 3 21.3 104.1 66.5 0.9 – 446.4 503.0 169.1 288.0 277.3 215.0
Total assets
1,199.4 1,027.8 3,313.0 3,315.1 1,198.1 1,021.3 237.8 239.8 2,228.3 2,154.0 2.1 – 8,178.7 7,758.0 4,454.7 4,247.8 3,724.0 3,510.2
Financial non-current liabilities 363.1 324.8 1,476.0 1,526.6 319.2 207.6 149.6 151.1 989.3 1,098.4 – – 3,297.2 3,308.5 1,470.7 1,475.2 1,826.5 1,833.3
Other non-current liabilities 9.1 – 154.2 296.1 25.5 30.3 13.8 14.1 250.8 238.4 – – 453.4 578.9 205.4 316.5 248.0 262.4
Financial current liabilities 16.6 4.5 164.4 126.0 12.9 29.5 1 7. 6 18.1 125.6 126.3 – – 337.1 304.4 150.0 149.6 187.1 154.8
Other current liabilities 47.8 21.2 170.6 316.8 92.9 104.4 13.9 14.6 62.6 58.9 0.2 – 388.0 515.9 234.2 343.0 153.8 172.9
Total liabilities
436.6 350.5 1,965.2 2,265.5 450.5 371.8 194.9 197.9 1,428.3 1,522.0 0.2 – 4,475.7 4,707.7 2,060.3 2,284.3 2,415.4 2,423.4
Net assets 762.8 677.3 1,347.8 1,049.6 747.6 649.5 42.9 41.9 800.0 632.0 1.9 – 3,703.0 3,050.3 2,394.4 1,963.5 1,308.6 1,086.8
Vopak's share of net assets 257.9 245.4 481.1 364.5 336.5 290.9 20.0 19.5 408.7 315.0 0.9 – 1,505.1 1,235.3 1,098.2 887.4 406.9 347.9
Goodwill on acquisition 34.4 10.8 5.5 5.1 6.9 6.3 – – 31.4 61.9 – – 78.2 84.1 67.3 74.2 10.9 9.9
Vopak's carrying amount of net assets
292.3 256.2 486.6 369.6 343.4 297.2 20.0 19.5 440.1 376.9 0.9 – 1,583.3 1,319.4 1,165.5 961.6 417.8 357.8
2021
After completion of the purchase price allocation for theVopak Industrial Infrastructure
Americas(VIIA) joint venture in thefourthquarterof2021, the confirmed goodwill balance
amounts to EUR34.4million (2020 preliminary goodwill balance:EUR10.8million).
Contingent assets and liabilities
The joint ventures and associates of the Group are currently, and may from time to time
become, involved in a number of legal proceedings, including inquiries from, or discussions
with, governmental authorities (including tax authorities) that are incidental to their
operations. For the contingent liabilities of the joint ventures and associates as at year-end
related to legal cases, it is based on the current facts and circumstances not believed that
they may have a material adverse effect on the financial position or profitability of the Group.
Due to inherent uncertainties, the Group cannot make any accurate quantification of any
cost, or timing of such cost, which may arise from any of the legal proceedings referred to in
this report, however costs in complex litigation may be substantial.
For an overview of the commitments and contingent liabilities relating to our joint ventures
and associates, reference is made to note 9.8.
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Note 3.6 Assets held for sale
Accounting policies
Non-current assets and disposal groups are classified as held for sale when their carrying
amount is to be recovered principally through a sales transaction and a sale is considered
highly probable at the end of the reporting period. They are stated at the lower value of the
carrying amount and the fair value less expected selling costs. When the criteria for the
heldforsale classification have been met, the non-current assets subject to depreciation and
amortization are no longer depreciated or amortized. In addition, equity accounting for
jointventures and associates ceases once classified as held for sale.
Key accounting estimates and judgments
At the end of the reporting period, management has to assess if the value of the assets will be
recovered principally through a divestment transaction rather than through continued use and
what the likelihood is that an asset will be divested within a year. This assessment is based on the
facts and circumstances at that date. These facts and circumstances may change and could result
in a situation where assets are divested, which were not classified as held for sale at year-end.
When classifying non-current assets as held for sale, management makes estimates of their fair
value (sales price and expected costs to sell). Depending on the nature of the non-current assets,
the estimated fair value may be associated with uncertainty and possibly adjusted subsequently.
Measurement of the fair value of non-current assets is categorized as level 2 in the fair value
hierarchy as measurement is not based on observable market data.
Assets and liabilities classified as held for sale
In EUR millions 31-Dec-21 31-Dec-20
Property, plant and equipment 145.7 –
Other non-current assets 38.7 –
Current assets 7. 9 –
Total assets held for sale
192.3 –
Provisions 11. 1 –
Other non-current liabilities 32.4 –
Current liabilities 6.7 –
Total liabilities related to assets held for sale
50.2 –
Net assets held for sale of disposal groups 142.1 –
For the divestments realized during the years presented, reference is made to
note3.1 and note 3.5.
2021
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. Upon closing, Vopak’s existing CRLterminal entity in Kandla
will become a wholly owned subsidiary of AegisVopakTerminalsLtd. This terminal was
identified as held for sale as per 30June2021. In addition to the net assets of CRL, an
amount of EUR19.3million of goodwill that can be allocated to the CRLterminal was
classified as held for sale.At year-end the net assets held for sale for the terminal amounted
toEUR 37.5 millionand have beenreported in the Asia & Middle East operating segment.
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In 2021, Vopak initiated the review of the strategic options for four Canadian terminals
located in Hamilton, Montreal East and West and QuebecCity. On 4 January 2022, Vopak
signed a letter of intent for the sale of 100% of the shares in Vopak Terminals of CanadaInc.
and VopakTerminals of Eastern Canada Inc. These terminals were identified as held for sale
as per30November2021.In addition to the net assets of the four Canadian terminals, an
amount of EUR15.8million of goodwill that can be allocated to these terminals was
classified as held for sale.At year-end the net assets held for sale for the terminals
amounted toEUR 104.6 millionand have beenreported in the Americas operating segment.
Both transactions are currently expected to close before half-year 2022.
2020
As at year-end2020 there were no assets and liabilities classified as held for sale.
Note 3.7 Depreciation and amortization
Accounting policies
The expected useful life of software intangible assets is normally subject to a maximum of
seven years. Amortization of other intangible assets and licenses is based on the term of the
validity of the contract or term of the validity period and varies from 5-30 years.
Depreciation of property, plant and equipment is computed from the date the asset is
available for use, using the straight-line method over the expected useful life and taking the
estimated residual value into account. The useful life of the main assets is as follows:
• for buildings 10-40 years
• for main components of tank storage terminals 10-40 years
• for IT hardware 3-5 years
• for machinery, equipment and fixtures 3-10 years.
• Land is not depreciated.
The residual value and useful life of intangible assets and property, plant and equipment are
reviewed annually and adjusted if necessary.
For the accounting policies related to the amortization of the right-of-use assets recognized
in relation to the leases of the Group, reference is made to note 3.4.
Key accounting estimates and judgments
Property, plant and equipment form a substantial part of the total assets of the company, while
periodic depreciation charges form a substantial part of the annual operating expenses. The useful
life and residual value determined by the Executive Board based on its estimates and assumptions
have a major impact on the measurement and determination of results of property, plant and
equipment. The useful life of property, plant and equipment is partly estimated based on their
useful productive lives, experiences related to such assets, the maintenance history and the
period during which the company has the economic benefits from the utilization of the assets.
Periodic reviews show whether changes have occurred in estimates and assumptions as a result
of which the useful life and/or residual value need to be adjusted. Such an adjustment will be
made prospectively.
For the key accounting estimates and judgments made with regards to the right-of-use
assets recognized in relation to the leases of the Group, reference is made to note 3.4.
Depreciation and amortization
In EUR millions Note 2021
Restated
2020
1
Amortization intangible assets 3.2 1 7. 6 14.1
Depreciation owned assets 3.3 274.3 244.7
Depreciation right-of-use assets 3.4 39.9 37.2
Total
331.8 296.0
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a
change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing
Arrangements, as detailed in Note 1.1.
Note 3.6 Assets held for sale
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Note 3.8 Impairment tests and impairments
Accounting policies
The carrying amount of goodwill is tested for impairment annually in the fourth quarter
(unless there is reason to do so more frequently), while all assets are tested for impairment
whenever events or changes in circumstances indicate that the carrying amounts for those
assets may not be recoverable. If it is determined that assets are impaired, the carrying
amounts of those assets are written down to their recoverable amount, which is the higher
of fair value less costs of disposal and value in use.
Impairments of a cash-generating unit are allocated to the assets of the cash-generating unit
on a proportionate basis. Impairments of intangible assets and property, plant and equipment
are presented in the statement of income under Impairment. Impairments, except those
related to goodwill, are reversed as applicable to the extent that the events or circumstances
that triggered the original impairment have changed.
All financial assets, including joint ventures and associates, are reviewed for impairment. If
there is objective evidence of impairment as a result of one or more events after initial
recognition, an impairment loss is recognized in the statement of income. Theimpairments
for joint ventures and associates are presented under Result of joint ventures and associates.
Estimates used to measure the recoverable amount
Value in use is determined as the amount of estimated discounted future cash flows. For this
purpose, assets are grouped into cash-generating units based on separately identifiable and
largely independent cash flows. The cash flow projections are based on revenues, operating
expenses and sustaining capital expenditures of the approved budget for the coming year
and the two subsequent planning years. Cash flows beyond the previously mentioned period
of three years are extrapolated, using a stable or decreasing growth rate, unless an
increasing rate can be substantiated. Given that the cash flows are estimated before taxes,
the discount rates used to calculate the present value of the cash flows are pre-tax rates
based on the risk-free rates for 15-year bonds issued by the government in the relevant
market, adjusted for a risk premium and specific risks relating to the countries and risks
specific to the assets. The 15-year bonds period reflects the average remaining useful life of
the principal assets. As a company based in Europe, the Group assumes the long-term
market equity risk premium to be 6.5% (2020:6.4%).
Key accounting estimates and judgments
Impairment analysis
When performing an impairment test, management makes an assessment of whether the
cash-generating unit (mostly an individual terminal) will be able to generate positive net cash flows
that are sufficient to support the value of the intangible assets, property, plant and equipment, and
financial assets.
For valueinuse, the assessment is based on estimates of future expected cash flows
(valueinuse) made on the basis of the budget for the coming year and two subsequent plan
years, which form the basis for the 15-yearperiod discounted cash flow model. Key assumptions
applied are generally: the expected occupancy, the estimated storage rate per cbm (for revenues
not covered by long-term contracts), sustaining capex expenditures, expected growth rates and
the estimated terminalvalue after the 15-yearperiod, together with the applied discount rates.
Fair value less cost of disposal is primarily based either on comparable market-multiples
and/or (indicative)(non-)bindingbids or discounted cash flow models from the perspective
of a willing buyer in an orderly transaction.
In certain situations, the fairvaluelesscostofdisposal of a terminal may be based on
(preliminary) offers received from interested parties (level2fairvalue). Although such offers are
conditional/preliminary by nature, management considers whether these offers may be
representative of the fair value of the terminals concerned and assesses whether it is probable
that these terminals will be sold in the coming twelve months after the reporting period, resulting
in a situation where the carrying amount will be recovered principally through a sale instead of
through continued use.
These key assumptions are based on the current facts and circumstances and information available
to management. By nature, these assumptions are subject to developments and change in later
periods. This could potentially lead to (reversal of) impairments of individual terminals going forward.
Note 3.7 Depreciation and amortization
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Impairment test results
In EUR millions Note 2021 2020
Intangible assets 3.2 15.9 9.6
Reversal impairment intangible assets 3.2 – - 0.8
Property, plant and equipment - owned assets 3.3 55.1 33.3
Reversal impairment property, plant and equipment - owned assets 3.3 – - 12.0
Impairment
71.0 30.1
Intangible assets - Goodwill
A summary of the carrying amount of goodwill by geographical area, which is equal to the
operating segments, is presented below. An operating segment is also the level at which
goodwill is tested for impairment.
In EUR millions 2021 2020
Americas – 14.5
Asia & Middle East – 18.2
China & North Asia 4.4 4.0
Europe & Africa 1. 8 1. 8
Carrying amount at 31 December
6.2 38.5
The Group has limited goodwill balances as it mostly develops its own greenfield terminals
instead of acquiring new subsidiary terminals. At 31 December 2021, the goodwill carrying
amounts of the operating segments Americas and Asia & Middle East have been presented
as held for sale. No impairments of goodwillwere recognized in 2021 and 2020.
Assumptions applied
The recoverable value of an operating segment, which includes goodwill, is based on
thevalueinuse. In the impairment tests, the growth factors for years four through fifteen
were based on the inflation rate within the range of 1.5%to2.5% depending on the
operating segment (2020:1.8%to2.4%). The pre-tax discount rate used depends on the
(average) risk profile of the cash-generating unit and was10.7% (2020:10.4%) for
China&NorthAsia. The operating profit included in the calculations is based on the approved
budget for 2022 and the subsequent plan years.
Sensitivity
The value in use calculations indicated more than sufficient headroom, such that a
reasonably possible change in key assumptions would not result in an impairment of the
related goodwill.
Other intangible assets
No material impairments were recognized in other intangible assets in 2021 relating to
individual projects and/or assets. The net impairment of EUR15.9million was recognized in
connection with the impairment of the cash generating unit in Panama. For more information
reference is made to the paragraph on the Property, plant and equipment later in this note.
The net impairment of EUR8.8million that was recognized in 2020 relates to the (reversal
of) impairment of the cash generating units in Panama and Canada.
Property, plant and equipment
Cancelled projects
There were no material impairments related to cancelled projects in both years presented.
Terminals in operation
Based on consistently applied methodology, management has assessed that the valueinuse
for a very limited number of terminals in operation, is lower than the carrying amount. For
these individual terminals, also the fairvaluelesscostofdisposal has been calculated in
order to assess whether this value exceeds the valueinuse and the carrying amount of the
assets. In such situations, the fair value less cost of disposal for terminals or assets which
are actively being marketed by the company, may be based primarily on offers received from
interested parties (level2fairvalue).
The value in use assessments may change over time, among others due to changes in the
business environment and/or outcome of decisions taken by management, and when
applicable could result in (reversal of) impairment.
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2021 and 2020
Vopak Bahia las Minas terminal - Panama (impairment)
In the fourthquarterof2020 an impairment was recognized for the Vopak Bahia las Minas
terminal in Panama for an amount of EUR42.9million. The impairment is primarily related to
the business environment in which the terminal currently operates. Slow progress with
offshore bunkering opportunities is limiting the demand and the growth potential of the
Atlantic bunker market in Panama.
In the firsthalfyearof2021, an incremental impairment was recognized for the Vopak
Bahialas Minas terminal in Panama for the amount of EUR71.0million. Thisimpairment is
the result ofafurther deteriorating business environment andlower occupancy rates.
2020
Vopak Terminals of Canada - Quebec City (reversal of impairment)
In 2019, the Quebec City terminal in Canada was fully impaired due to uncertainty with
respect to renewal of the land lease contract. In 2020, this impairment has been fully
reversed which, offset by depreciation of expenses, resulted in an exceptional item of
EUR12.8million in 2020. This reversal was the result of positive and ongoing discussions
with the local authorities. Reversal of the provisions that were recorded in 2019, together
with the impairment resulted in additional exceptional items of EUR1.5million.
Joint ventures and associates
Impairment test results for joint ventures and associates can be summarized as follows:
2021
German LNG Terminal (impairment)
After a strategic review, Vopak decided to discontinue its active participation in the German
LNG project leading to an exceptional loss of EUR10.8million recognized in the
thirdquarter of 2021.
LNG Terminal Altamira (impairment)
Due to a new commercial agreement in place for our LNG Terminal Altamira in Mexico the
major assets in this joint venture are held under a finance lease arrangement. As a result, the
carrying amount of the joint venture increased significantly and exceeded its recoverable
amount resulting in a write down of the goodwill balance for an amount of EUR32.7million.
The overall positive result from this transaction recognized in the fourth quarter of 2021
amounts toEUR2.8million.
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Section 4 Working capital
This section presents details on the working capital items that the Group uses for operating
our assets and providing services to our customers. In line with the nature of the business,
the net working capital is only a relatively small part of the total assets of the Group.
This section comprises notes to understand the developments in working capital:
• 4.1 Changes in working capital
• 4.2 Trade and other receivables and related credit risk
• 4.3 Trade and other payables
Note 4.1 Changes in working capital
In EUR millions Note 2021 2020
Movements in other current assets
(excluding cash and cash equivalents) 2.9 43.8 - 15.5
Movements in other current liabilities
(excluding bank overdrafts and dividends) 2.9 - 17.8 49.0
Total
26.0 33.5
Note 4.2 Trade and other receivables and related credit risk
Trade and other receivables are exposed to credit risk which could result in impairment
losses. This note includes general information about trade and other receivables as well as
specifications and explanations of the related risk.
Accounting policies
Trade receivables are amounts due from customers for services rendered in the ordinary
course of business. Trade and other receivables are recognized initially at fair value. The
Group holds trade receivables with the objective to collect the contractual cash flows and
therefore the Group measures them subsequently at amortized cost using the effective
interest method, less any provision for impairment. Trade receivables are generally due for
settlement within 30daysand therefore are all classified as current.
The group applies the simplified approach for measuring expected credit losses which uses a
lifetime expected loss allowance for all trade receivables and contract assets.
Trade receivables are written off (impaired) when objective evidence indicates that there is
no reasonable expectation of recovery. This is based on an individual review for impairment
due to an increase of the credit risk of the customer, past due amounts and taking into
account any retention right on product stored for this customer.
The creation and release of a provision for impaired trade receivables are recognized under
Otheroperatingexpenses in the income statement.
Other receivables include amongst otherscontract assets for services transferred to the
customer andthe dividend receivables from jointventures and associates for which the
decision about dividend distribution was taken before year-end.
Trade and other receivables
In EUR millions 2021 2020
Trade debtors gross 111.2 103.9
Provision for impairment of trade debtors - 5.0 - 2.4
Trade debtors net
106.2 101.5
Taxes receivable 49.1 55.1
Other receivables 104.3 119.5
Total
259.6 276.1
The effect of the recognized expected credit losses is negligible for both years presented.
There was no indication as at the statement of financial position date that these receivables
will not be recovered, other than as already provided for. The Group does not have a
significant credit risk exposure on a single customer. For more information reference is also
made to note 2.3.
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Section 4 Working capital
Note 4.1 Changes in working capital
Note 4.2 Trade and other receivables and related credit risk
Trade receivables
Ageing of trade receivables
2021 2020
In EUR millions Gross Provision Net Gross Provision Net
Not past due 76.3 – 76.3 70.1 – 70.1
Past due up to 3 months 20.8 – 20.8 25.0 - 1.7 23.3
Past due 3 to 6 months 4.9 – 4.9 3.9 – 3.9
Past due more than 6 months 9.2 - 5.0 4.2 4.9 - 0.7 4.2
Total
111.2 - 5.0 106.2 103.9 - 2.4 101.5
Provision for bad debt
In EUR millions 2021 2020
Balance at 1 January
- 2.4 - 0.4
Impairments - 4.4 - 2.0
Reversal of impairments 1. 8 –
Balance at 31 December
- 5.0 - 2.4
Exposure to bad debts is mostly related to rendering services to international manufacturers
and traders. The value of the products stored for these customers usually exceeds the value
of the receivables and Vopak generally has the right of retention.
Historically, amounts written off as uncollectible have been very low, in line with the nature
of the business model, which is also the case for the years presented. Also the
COVID-19pandemicdid not result in a material increase in the provision for bad debt as no
material increase in the credit risk of the accounts receivable portfolio was observed, despite
the fact that the monitoring of the credit risk of our customers was further intensified in
connection with the pandemic.
Other receivables
The total dividend receivable from joint ventures and associates amounted to EUR 1.3 million
at the end of 2021(2020:nil). There were also no material amounts overdue nor impaired for
the other items included in the Otherreceivables.
Note 4.3 Trade and other payables
Accounting policies
Trade and other payables represent liabilities for goods and services provided by suppliers to
the Group prior to the end of the financial year which are unpaid. These are presented as
current liabilities unless payment is not due within 12months after the reporting period.
Trade and other payables are initially recognized at their fair value and subsequently
measured at amortized cost using the effective interest method.
Trade and other payables
In EUR millions 2021 2020
Trade payables 70.1 51.4
Accrued expenses 107.3 147.8
Deferred revenues 32.0 18.6
Accrued interest expenses 4.0 4.8
Wage tax and social security charges 6.7 6.9
Other creditors 110.0 132.2
Total
330.1 361.7
Note 4.3 Trade and other payables
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Section 5 Capital structure
Vopak is a capital-intensive company. Vopak’s funding strategy is focused on ensuring
continuous access to capital markets so that funding capital is available at a time of the
company’s choice and at an acceptable cost. The notes in this section provide insight into the
capital structure and financing items of the Group.
In this section, the following notes are presented:
Equity:
• 5.1 Issued capital, share premium, treasury shares and capital management
• 5.2 Other reserves
• 5.3 Retained earnings
• 5.4 Non-controlling interests
Borrowings:
• 5.5  Interest-bearing loans and net debt
• 5.6 Net finance costs
The financial risk management applied by the Group can be found in
Section6FinancialRiskManagement.
EQUITY
Note 5.1 Issued capital, share premium,
treasury shares and capital management
Accounting policies
Treasury shares that are reacquired are recognized at cost and deducted from equity until the
shares are cancelled or reissued. Upon cancellation, treasury shares are deducted from the
share capital at their nominal value of EUR0.50 per share. Any difference between the
carrying amount and the consideration received when treasury shares are reissued, is
recognized directly in equity.
Share capital
The company´s authorized share capital amounted to EUR190,800,000as at
31December2021divided into 140,000,000 ordinary shares, 190,800,000 protective
preference shares and50,800,000 cumulative finance preference shares, all with a nominal
value of EUR0.50each.
The issued share capital at 31December2021consisted of 125,740,586 (2020:125,740,586)
ordinary shares, of which 392,016(2020:345,736) were held in the treasury stock in
connection with existing commitments under the long-term incentive plans. No cumulative
finance preference shares were issued during the years presented.
During 2020, the company completed a share buyback program to return approximately
EUR100million to shareholders. In the period 13February2020 up to and
including23October2020, a total of 2,094,844 ordinaryshares, 1.6% of the company’s
outstanding shares, were repurchased, at an average price of EUR47.74 pershare.
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Section 5 Capital structure
Note 5.1 Issued capital, share premium, treasury shares and capitalmanagement
Numbers Amounts in EUR millions
Issued ordinary
shares
Financing
preference
shares Total shares Treasury shares Issued capital Share premium
Treasury shares
reserve
Balance at 31 December 2019
127,835,430 – 127,835,430 - 209,984 63.9 194.4 - 8.9
Purchase treasury shares – – – - 180,000 – – - 8.0
Share buyback – – – - 2,094,844 – – - 100.1
Cancellation of shared issued - 2,094,844 – - 2,094,844 2,094,844 - 1.0 – 100.1
Vested shares under equity-settled share-based payment arrangements – – – 44,248 – – 1. 9
Balance at 31 December 2020
125,740,586 – 125,740,586 - 345,736 62.9 194.4 - 15.0
Purchase treasury shares – – – - 91,714 – – - 2.9
Vested shares under equity-settled share-based payment arrangements – – – 45,434 – – 2.2
Balance at 31 December 2021
125,740,586 – 125,740,586 - 392,016 62.9 194.4 - 15.7
Capital management
Vopak is a capital-intensive company. Vopak’s funding strategy is directed at establishing and
maintaining an optimal financing structure that takes due account of the current asset base
and the current and future investment programs. Vopak seeks access to capital markets and
flexibility at acceptable terms and conditions, including finance cost.
A solid capital structure supports Vopak’s objective to create long-term shareholder value
while meeting the agreed financial ratios included in the debt covenants (see note 5.5) and
other requirements with its other capital providers. Vopak aims to maintain a healthy financial
position through capital-disciplined investment decisions, effective working capital
management, long-term funding and a balanced dividend policy and is continuously
reviewing its capital structure options, including but not limited to equity(-linked) or other
(debt) capital instruments, to effectively finance the future growth that Vopak aims for. The
Group works actively to maintain and further develop the already established diversified
funding base, with regard to the number of markets and the number of investors.
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Note 5.2 Other reserves
In EUR millions Translation reserve
Revaluation reserve
derivatives
Revaluation reserve
financial assets Other reserves Total other reserves
Balance at 31 December 2019
- 8.5 - 117.2 18.5 1.3 - 105.9
Exchange differences on net investments - 180.6 – – – - 180.6
Effective part of hedges of net investments 61.5 – – – 61.5
Tax effect on exchange differences and hedges 1. 2 – – – 1. 2
Use of exchange differences on net investments (to statement of income) - 0.1 – – – - 0.1
Use of effective part of hedges of net investments (to statement of income) 2.5 – – – 2.5
Fair value change other investments – – - 1.9 – - 1.9
Movements in effective part of cash flow hedges – 3.7 – – 3.7
Tax effect on movements in cash flow hedges – - 0.5 – – - 0.5
Use of effective part of cash flow hedges (to statement of income) – - 0.4 – – - 0.4
Tax effect on use of cash flow hedges – 0.1 – – 0.1
Movements in effective part of cash flow hedges joint ventures – - 0.8 – – - 0.8
Other – – – 8.5 8.5
Cancellation of shares issued – – – - 99.1 - 99.1
Remeasurements of defined benefit plans
1
– – – - 6.8 - 6.8
Tax on remeasurements of defined benefit plans – – – 1. 6 1. 6
Balance at 31 December 2020
- 124.0 - 115.1 16.6 - 94.5 - 317.0
Exchange differences on net investments 167.3 – – – 167.3
Effective part of hedges of net investments - 72.1 – – – - 72.1
Tax effect on exchange differences and hedges - 2.4 – – – - 2.4
Use of exchange differences on net investments (to statement of income) 0.5 – – – 0.5
Fair value change other investments – – 33.2 – 33.2
Movements in effective part of cash flow hedges – - 1.2 – – - 1.2
Tax effect on movements in cash flow hedges – 0.3 – – 0.3
Use of effective part of cash flow hedges (to statement of income) – 1. 6 – – 1. 6
Tax effect on use of cash flow hedges – 0.1 – – 0.1
Movements in effective part of cash flow hedges joint ventures – 19.4 – – 19.4
Other – – – - 0.3 - 0.3
Remeasurements of defined benefit plans
1
– – – 1 7. 8 17. 8
Tax on remeasurements of defined benefit plans – – – - 4.2 - 4.2
Balance at 31 December 2021
- 30.7 - 94.9 49.8 - 81.2 - 157.0
1 Remeasurements of defined benefit plans includes defined benefit costs included in other comprehensive income of joint ventures for EUR 0.3 million (2020: nihil).
Note 5.2 Other reserves
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The translation reserve includes all exchange differences resulting from the translation of the
financial statements of foreign entities. It also includes the exchange differences on liabilities
and the effective currency component of fair value changes of derivative financial
instruments (net of tax), to the extent that they hedge the net investments of the Group in
foreign entities and hedge accounting is applied.
The Group has elected to recognize changes in the fair value of specific investments in
equity securities in other comprehensive income. These changes are accumulated within the
Revaluation reserve financial assets. Amounts are transferred from this reserve to retained
earnings when the equity securities concerned are derecognized.
The revaluation reserve derivatives contains the effective part of the accumulated change in
the fair value of the cash flow hedges, net of tax, in respect of which the hedged future
transaction has not yet taken place. The table below provides an overview of the estimated
maturity profile of the revaluation reserve derivatives.
In EUR millions 2022 2023 2024 2025 2026 > 2026 Total
Use of revaluation reserve derivatives 14.4 71.0 8.3 7. 3 4.0 - 10.1 94.9
Note 5.3 Retained earnings
In EUR millions 2021 Restated 2020
1
Balance at 31 December 3,036.1 2,903.8
Change in accounting policy
1
– - 13.0
Balance at 1 January
3,036.1 2,890.8
Dividend paid in cash - 150.5 - 146.1
Measurement of equity-settled share-based payment arrangements 7. 8 4.5
Vested shares under equity-settled share-based payment
arrangements - 3.5 - 4.0
Net profit attributable to owners of parent 214.2 294.6
Other – - 3.7
Balance at 31 December
3,104.1 3,036.1
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a
change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing
Arrangements, as detailed in Note 1.1.
Of the reserves, EUR2,273.5million (2020:EUR2,203.9million) can be distributed freely
(see note 4 of the Company Financial Statements). The actual dividend paid in cash per
ordinary sharepaid in 2021 was EUR1.20(2020:EUR1.15).
For the proposed dividend per share, reference is made to the paragraph Profit Appropriation.
Note 5.3 Retained earnings
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Note 5.4 Non-controlling interests
In EUR millions 2021 2020
Balance at 31 December
144.9 147.8
Net profit 29.0 29.6
Dividend paid in cash - 25.0 - 24.6
Capital injection – 3.8
Movements in effective part of cash flow hedges - 1.6 - 0.1
Exchange differences 9.6 - 11.6
Balance at 31 December
156.9 144.9
The Group has one subsidiary with a material non-controlling interest (NCI). The aggregated
information of NCI and the information of the material subsidiary is shown in the table below.
NCI %
Profit allocated
toNCI
(in EUR millions)
Dividends
paidtoNCI
(in EUR millions)
Accumulated
NCI
(in EUR millions)
2021 2020 2021 2020 2021 2020
31-Dec-
21
31-Dec-
20
Total
29.0 29.6 25.0 24.6 156.9 144.9
of which VopakTerminals
Singapore Pte. Ltd. 30.5% 30.5% 25.3 25.8 24.1 21.1 109.9 101.3
The summarized financial information (at100%) regarding
VopakTerminalsSingaporePte.Ltd. is as follows:
In EUR millions 31-Dec-21 31-Dec-20
Total non-current assets 778.3 740.5
Cash and cash equivalents 5.5 8.7
Other current assets 54.1 51.3
Total assets
837.9 800.5
Current liabilities 51.4 76.3
Total non-current liabilities 442.9 409.2
Total liabilities
494.3 485.5
Total net assets
343.6 315.0
In EUR millions 2021 2020
Revenues 217.7 224.3
Net profit 83.1 83.1
Other comprehensive income 22.9 - 26.0
Total comprehensive income
106.0 57.1
Operating cash flow 127.0 96.6
Increase/decrease (-) in cash and cash equivalents - 3.2 - 0.5
Note 5.4 Non-controlling interests
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Borrowings
Note 5.5 Interest-bearing loans and net debt
Accounting policies
Interest-bearing loans and borrowings are recognized initially at fair value net of directly
attributable transaction costs.After initial recognition, these items are subsequently
measured at amortizedcost, applying the effective interest method unless the interest rate
has been converted in a hedge relation from fixed into floating by means of a fair value
hedge. Inthatcase, the carrying amount is adjusted for the fair value changes caused by
the hedged risk.
Borrowings are removed from the balance sheet when the obligation specified in the
contract is discharged, cancelled or expired.
Fees paid on the establishment of loan facilities are recognized as transaction costs of the
loan to the extent that it is probable that some or all of the facility will be drawn down. In this
case, the fee is deferred until the drawdown occurs. To the extent there is no evidence that it
is probable that some or all of the facility will be drawn down, the fee is capitalized as
pre-payment for liquidity services and amortized on a straight-line basis over the period of
the facility to which it relates.
For the accounting policies of the Lease liabilities, reference is made to note 3.4.
(Net) Debt reconciliation
In EUR millions
Cash and cash
equivalents
Short-term
borrowings
Interest-bearing
loans
Net interest-
bearing debt
1
Interest-bearing
loans - lease
liabilities
Total interest-
bearing debt
Carrying amount at 31 December 2019
88.0 - 178.0 - 1,680.4 - 1,770.4 - 564.9 - 2,335.3
Cash flows - 29.2 - 27.0 - 180.0 - 236.2 47.8 - 188.4
Other non-cash movements 2.5 – - 1.1 1. 4 - 205.9 - 204.5
Exchange differences - 2.3 – 11 7. 3 115.0 23.8 138.8
Carrying amount at 31 December 2020
59.0 - 205.0 - 1,744.2 - 1,890.2 - 699.2 - 2,589.4
Cash flows 8.8 - 257.0 33.8 - 214.4 56.7 - 157.7
Other non-cash movements - 0.1 – 5.1 5.0 - 49.3 - 44.3
Exchange differences 3.1 – - 117.2 - 114.1 - 19.5 - 133.6
Carrying amount at 31 December 2021
70.8 - 462.0 - 1,822.6 - 2,213.8 - 711.3 - 2,925.1
Current assets 73.4 – – 73.4 – 73.4
Non-current liabilities – – - 1,822.3 - 1,822.3 - 676.1 - 2,498.4
Current liabilities - 2.6 - 462.0 - 0.3 - 464.9 - 35.2 - 500.1
Carrying amount at 31 December 2021
70.8 - 462.0 - 1,822.6 - 2,213.8 - 711.3 - 2,925.1
1 Net interest-bearing debt forms the basis for the net-debt : EBITDA calculation mentioned in our financial ratios.
Note 5.5 Interest-bearing loans and net debt
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2021
In December 2021, the Group repaid part of the USPrivatePlacement2009 (USPP2009)for
an amount of USD150million (approximately EUR133million).
In the fourth quarter of 2021 Vopak Vietnam fully repaid its bank loan amounting to
VND60million (approximately EUR2million).
For draw downs under credit facilities, reference is made to note 6.7 Cash management.
2020
In July2020, Vopak entered into agreements for a new debt issuance 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. The
notional amounts of these USPPs were received in the fourth quarter of 2020.
In July2020, Vopak Terminals Singapore completed its refinancing by entering into a new
3-year financing of SGD300million (approximatelyEUR190million), consisting of a
termloan and a revolving credit facility.
Financial ratios reconciliation
To provide insight into how financial ratios for debt covenant purposes are calculated and on
how these reconcile to the IFRS figures, a financial ratios reconciliation is provided in
the table below:
In EUR millions Note 2021
Restated
2020
2
EBITDA 741.5 777.6
-/- Result joint ventures and associates 172.3 161.2
+/+ Gross dividend received from joint ventures and associates 134.1 142.4
-/- IFRS 16 Adjustment in operating expenses for former operating
leases 1.1, 3.4 53.8 46.2
-/- Exceptional items - 71.7 2.7
-/- Divestments full year adjustment – 1. 1
EBITDA for ratio calculation
721.2 708.8
Net interest-bearing debt - 2,925.1 - 2,589.4
-/- IFRS 16 Adjustment in lease liabilities for former operating leases 1.1, 3.4 - 702.1 - 689.8
Derivative financial instruments (currency) 31.0 3.3
Credit replacement guarantees 9.8, 9.9 - 85.8 - 80.8
-/- Subordinated loans - 176.6 - 162.6
Cash equivalent included in HFS assets - 5.9 –
Restricted Cash - 7.8 - 13.0
Senior net debt for ratio calculation
- 2,114.9 - 1,827.5
Financial ratios
Senior net debt : EBITDA 2.93 2.58
Interest cover
1
8.4 10.7
1 Interest cover is the ratio of the EBITDA and the net finance costs.
2 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a
change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing
Arrangements, as detailed in Note 1.1.
With a Seniornetdebt:EBITDA ratio of2.93(2020:2.58) and an interest cover ratio of
8.4(2020:10.7), Vopak met the applicable financial ratios as at 31December2021.
Like prior year, the application of IFRS16 has no effect on the debt covenants of the Group
as the related ratios are based on the accounting policies that were applicable on the date of
enteringinto the debt agreements (‘frozen GAAP’).
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Average remaining maturities and main covenant ratios
Atyear-end2021, the interest-bearing loans mainly consisted of unsecured Private
Placements (PPs) in the US and Asian market, the Revolving credit facility of Royal Vopak,
Money Market Loans as well as a bank loan and a credit facility of Vopak Terminal Singapore
Pte Ltd. (VTS). ThePPs consisted of various financing programs entered into in 2009, 2012
and 2020.For further details on currency andinterest rate risks, reference is made to notes
6.3 and 6.4 and 9.9.
Interest-bearing loans
In EUR millions USPPs Asian PPs VTS Bankloan RCFs Other Bank loans Total
Interest-bearing
loans - lease
liabilities
Total interest-
bearing loans
Non-current 1,327.3 157.6 122.9 – 8.5 – 1,616.3 668.5 2,284.8
Current 121.3 – – 6.7 – 205.0 333.0 30.7 363.7
Carrying amount at 31 December 2020
1,448.6 157.6 122.9 6.7 8.5 205.0 1,949.3 699.2 2,648.5
Average remaining terms (in years) 5.8 20.0 2.6 2.5 1. 9 – 6.1 25.9
Non-current 1,429.1 153.5 130.6 109.1 – – 1,822.3 676.1 2,498.4
Current - 0.5 – – – 0.8 462.0 462.3 35.2 497.5
Carrying amount at 31 December 2021
1,428.6 153.5 130.6 109.1 0.8 462.0 2,284.6 711.3 2,995.9
Average remaining terms (in years) 5.2 19.0 1. 6 1. 4 0.2 – 4.7 24.9
Required ratios
Senior net debt : EBITDA (maximum) 3.75 3.75 3.75 3.75 3.75 3.75
Interest cover (minimum)
1
3.50 3.50 3.50 3.50 3.50 3.50
1 Interest cover is the ratio of the EBITDA and the net finance costs.
The fair value of the interest-bearing loans is disclosed in note 9.9.
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224
Change of control clauses
Certain lenders have the right to demand complete repayment of outstanding amounts in
case any person or any group of persons acting together,other than HALHoldingN.V,
acquires control, directly or indirectly, of more than 50% of the voting rights of the
KoninklijkeVopakN.V.
Cash and cash equivalents
In EUR millions 31-Dec-21 31-Dec-20
Cash and bank 58.2 60.9
Short-term deposits 15.2 7. 4
Total
73.4 68.3
Cash and cash equivalents include all cash balances, short-term deposits and other
short-term, highly liquid investments with original maturities of three months or less that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of
changes in value, net of specific outstanding bank overdrafts when they are considered an
integral part of the Group’s cash management. For the years presented, there were no
material short-term deposits positions outstanding peryear-end.
The reconciliation with the Consolidated Cash Flow Statement and the net debt
reconciliation is as follows:
In EUR millions 31-Dec-21 31-Dec-20
Cash and cash equivalents 73.4 68.3
Bank overdrafts - 2.6 - 9.3
Total
70.8 59.0
The cash and cash equivalents were at the free disposal of the Group for the years
presented, except for cashand cash equivalent balances amounting to EUR7.8million
(2020:EUR13.0million) for which certain usage restrictions apply.
Note 5.6 Net finance costs
Accounting policies
General and specific borrowing costs, including the cost of hedging, that are directly
attributable to the acquisition or construction of a qualifying asset are capitalized during the
period of time that is required to complete and prepare the asset for its intended use or sale.
Qualifying assets are assets that necessarily take a substantial period of time (>1year) to
get ready for their intended use or sale. Other borrowing costs are expensed in the period in
which they are incurred.
Interest income from granted loans and dividends from other financial assets (over whose
financial and operating policies the Group has no significant influence) are presented under
Interest and dividend income. Interest income is calculated by applying the effective interest
rate to the gross carrying amount of a financial asset except for financial assets that
subsequently become creditimpaired. For credit impaired financial assets, the effective
interest rate is applied to the net carrying amount of the financial asset (after deduction of
the loss allowance).
Dividend income is recognized when the right to receive payment is established.All dividend
income is related to dividends from equity investments held at Fair value through Other
comprehensive income (FVOCI). This dividend income is presented as part of Other income
as it relates to income from investments which are related to the core activities of the
Group. Reference is also made to note 2.4.
Finance costs consist primarily of interest, fair value gains/losses on derivatives not in a
hedge relationship and exchange differences on loans drawn and of results on hedging
instruments recognized in the statement of income. Interest expenses are recognized in the
period to which they relate, taking into account the effective interest rate.
Note 5.6 Net finance costs
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Net finance costs
In EUR millions 2021 2020
Interest income 5.6 5.9
Interest and dividend income
5.6 5.9
Interest expense on interest-bearing loans
1
89.5 79.1
Interest expense on lease liabilities 22.4 21.1
Capitalized interest - 5.9 - 18.5
Interest component of provisions 0.2 0.2
Fair value movements of (part of) derivative financial instruments
(no hedge accounting) - 7.4 - 23.9
Exchange differences on underlying items
2
9.3 30.6
Other 4.0 3.6
Finance costs
112.1 92.2
Net finance costs 106.5 86.3
1 Interest expense includes the impact of interest rate derivatives that are part of a fair value hedge accounting
relationship and/or the recycling of results from the cash flow hedge reserve.
2 Exchange differences on underlying items includes the impact of foreign currency derivatives that are part of a fair
value hedge accounting relationship and/or the recycling of results from the cash flow hedge reserve.
In 2021, the Group’s net finance costs amounted to EUR106.5million compared to
EUR86.3million in 2020. The increase is resultingfrom lower interest capitalization on
qualifying projects and higher interest expenses on increased interest-bearing debt
compared to 2020.
In 2021, capitalized interest during construction was subject to an average interest rate of
2.7%(2020:3.3%).
Section 6 Financial risk management
As a global player in the capital-intensive tank terminal industry, the Vopak Group is exposed
to a number of financial risks inherent in the nature of its operations. This section comprises
the disclosures on the Group’s financial risk management objectives and policies, as well as
the Vopak Group’s exposure to currency risk, interest rate risk, equity securities price risk,
liquidity risk and credit risk together with the policies and procedures established to monitor
and manage these risks.
In addition, a sensitivity analysis is also provided in this section detailing how these risks
could affect the Group’s future financial performance.
The following notes are presented in this section:
• 6.1 General
• 6.2 Derivatives and hedge accounting
• 6.3 Currency risk (market risk)
• 6.4 Interest rate risk (market risk) 
• 6.5 Equity securities price risk (market risk)
• 6.6  Credit risk
• 6.7  Liquidity risk
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Section 6 Financial risk management
Note 6.1 General
Overview of financial risk management by the Group
The table below provides an overview of the financial risks to which the Group is exposed,
where these financial risks are arising from and how these risks are measured and
managed by the Group.
Note Risk Where is the risk exposure arising from How is the risk management by the Group
6.3 Currency risk
(market risk)
• Recognized financial assets and liabilities
denominated in a currency other than the
functional currency of the entity concerned
• Future transactions
• Net investments in foreign operations
• Sensitivity analysis
• Cash flow forecasting
Vopak hedges its foreign currency risk exposure resulting
from net interest-bearing debt and intercompany positions
contracts and cross-currency interest rate swaps (CCIRSs).
• Of the total interest-bearing debt denominated in another
currency than the functional currency concerned, 36% wa
s
• Of the total net investments in foreign currencies held by
the Group 55% was under a net investment hedge.
• The remaining currency risk on the net interest-bearing
debt and intercompany positions for which neither cash
flow hedge accounting or net investment hedge
accounting is applied, is hedged via currency derivatives.
Since no hedge accounting is applied the gains and losses
on the derivatives and the foreign currency gains and
losses on the net interest-bearing debt are always
recognized in the income statement in the same period,
establishing the same effect as when hedge accounting
would be applied.
6.4 Interest rate risk
(market risk)
• Net interest bearing debt at variable interest rates • Sensitivity analysis
• Fixed-to-floating ratio
Per year-end 2021, 69% of the total interest-bearing
presented no use was made of Interest rate swaps (IRSs)
and cross-currency interest rate swaps (CCIRSs) to hedge
the interest rate risk.
6.5 Equity securities price risk
(market risk)
•
• Sensitivity analysis
The group has a limited number of equity investments whic
h
value of these investments is EUR 83.6 million.
6.6 Credit risk • Cash and cash equivalents
• Trade and other receivables
• Finance lease receivables
• Derivatives
• Loans granted
• Committed credit facilities
• Aging analysis
• Credit ratings
• Exposure per counterparty
• Operational receivables: relatively short payment periods,
combined with in many instances a retention right on
• Loans granted relate to financing of Vopak network
companies (joint ventures and associates).
•
of high rated financial institutions limiting undue e
xposure
• During the years presented no material impairments were
recognized on financial receivables.
6.7 Liquidity risk Net interest bearing debt, other (current) liabilities
and off-balance sheet commitments
• Long-term scenario planning
• Cash flow forecasts
(incl. annual budget cycle)
• Amount of unused credit facilities
Diversified funding and availability of committed
At year-end 2021 the Group had unused committed credit
Note 6.1 General
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Financial risk management
The Group is exposed to a number of financial risks inherent in its day-to-day operations.
These risks are connected with the effects of movements in exchange rates and interest
rates. The Group is also exposed to credit risk and liquidity risk.
Financial risk management,except for customer credit risk and operational working capital
management, is controlled by Global Treasury, the central treasury department, based on
policies approved by the Executive Board. Global Treasury identifies the financial risks and
discusses these, together with the related hedge proposals, in detail with the CFO. The
Executive Board provides written principles for overall risk management as well as written
policies covering specific areas such as foreign exchange risk, interest risk, counterparty
credit risk, use of derivative financial instruments and non-derivative financial instruments,
and investment of excess liquidity. Reports on risk and risk management are submitted on
a regular basis.
Hedging alternatives are discussed by the Global Treasury and Global Control departments in
close co-operation with the CFO.
In order to control the risks attached to fluctuations in foreign currencies and interest rates,
Vopak uses derivative financial instruments in accordance with a currency risk management
policy approved by the Executive Board. This financial policy is designed to control the effects
of such risks on cash flows, equity and results. Derivatives are used exclusively for hedging
purposes and are not permitted to be used as trading or speculative instruments.
The areas involving the most significant financial risks are trade and other receivables,
foreign currency exchange risk arising from future commercial transactions, recognized
assets and liabilities and net investments in foreign operations, net finance costs resulting
from fluctuations in market interest rates and liquidity risks.
Detailed information on the specific risk exposures is included in the relevant disclosure
notes in this section.
The Group has not identified additional financial risk exposures in 2021 compared to the
previous year. The approach to capital management and financial risk management activities
remained unchanged compared to prior year. Reference is also made to note 5.1.
Note 6.2 Derivatives and hedge accounting
Note 6.2 Derivatives and hedge accounting
In order to control the risks attached to fluctuations in foreign currencies and interest rates,
Vopak uses derivative financial instruments in accordance with a financial policy approved by
the Executive Board. This financial policy is designed to control the effects of such risks on
cash flows, equity and results. Speculative positions are not allowed.
The main derivative financial instruments used by the Group are forward exchange contracts
(Forwards), interest rate swaps (IRSs) and cross-currency interest rate swaps (CCIRSs).
Hedge accounting is applied to remove the accounting mismatch between the hedging
instrument and the hedged item. This will effectively result in recognizing interest expense at
a fixed interest rate for the hedged loans, and removing the currency exposure from loans
and receivables as well as purchases of property, plant and equipment at the fixed foreign
currency rate for the hedged items.
Accounting policies
Derivative financial instruments are recognized in the statement of financial position on the
transaction date and measured at fair value. Changes in fair value are recognized in the
statement of income unless hedge accounting is applied. With respect to hedge accounting,
Vopak makes a distinction between fair value hedges, cash flow hedges and hedges of net
investments in foreign operations.
Derivatives are only used for economic hedging purposes and not as speculative
investments. However, where derivatives do not meet the hedging criteria, they are
classified as ‘held for trading’ for accounting purposes.
At the inception of the hedging transaction, the Group formally designates and documents
the economic relationship between eligible hedging instruments and hedged items to which
it will apply hedge accounting and the risk management objective and strategy for
undertaking the hedge.
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The documentation includes identification of the hedging instrument, the hedged item, the
nature of the risk being hedged and how the Group will assess whether the hedging
relationship meets the hedge effectiveness requirements (including the analysis of sources
of hedge ineffectiveness and how the hedge ratio is determined). A hedging relationship
qualifies for hedge accounting if it meets all of the following effectiveness requirements:
• There is ‘an economic relationship’ between the hedged item and the hedging instrument
• The effect of credit risk does not ‘dominate the value changes’ that result from that
economic relationship
• The hedge ratio of the hedging relationship is the same as that resulting from the quantity
of the hedged item that the Group actually hedges and the quantity of the hedging
instrument that the Group actually uses to hedge that quantity of hedged item.
Hedge effectiveness is determined at the inception of the hedge relationship, and through
periodic prospective effectiveness assessments, to ensure that an economic relationship
exists between the hedged item and hedging instrument.
Fair value hedges
The Group normally only applies fair value hedge accounting for hedging fixed-interest risk on
loans drawn. Changes in the fair value of derivatives that are designated and qualify as fair
value hedges are recorded in the income statement, together with any changes in the fair
value of the hedged item that are attributable to the hedged risk. The gain or loss relating to
the effective and ineffective portion of the derivative is recognized in the income statement
within Net finance costs, together with changes in the fair value of the hedged fixed-rate
borrowings attributable to interest rate risk.
For fair value hedges relating to items carried at amortized cost, any adjustment to carrying
value is amortized through the income statement over the remaining term of the hedge
using the EIR method. The EIR amortization may begin as soon as an adjustment exists and
no later than when the hedged item ceases to be adjusted for changes in its fair value
attributable to the risk being hedged.
If the hedge no longer meets the criteria for hedge accounting, the adjustment to the
carrying amount of a hedged item for which the effective interest method is used is
amortized to the income statement over the period to maturity using a recalculated
effective interest rate.
Cash flow hedges
A cash flow hedge is applicable for those derivatives qualifying and designated as a hedge of
the change in cash flows to be received or paid relating to a recognized asset or liability or a
highly probable forecasted transaction. Hedge effectiveness is determined at the inception
of the hedge relationship, and through periodic prospective effectiveness assessments to
ensure that an economic relationship exists between the hedged item and hedging
instrument. The Group enters into hedge relationships where the critical terms of the
hedging instrument match exactly with the terms of the hedged item, and thus a qualitative
assessment of effectiveness is performed. If changes in circumstances affect the terms of
the hedged item such that the critical terms no longer match exactly with the critical terms
of the hedging instrument, the Group uses the dollar offset method to assess effectiveness.
The effective parts of changes in the fair value of derivative financial instruments are
recognized in Other comprehensive income.Ineffectiveness on cash flow hedges is
recognized where the cumulative change in the designated component value of the hedging
instrument exceeds, on an absolute basis, the change in value of the hedged item
attributable to the hedged risk.
The gain or loss as a result of ineffectiveness and the interest component that is a result of
the time value of money in the valuation of the derivative financial instrument are recognized
directly in the statement of income. This also applies to the credit risks on derivatives, unless
the cumulative change in the fair value of the hedging instrument is lower than
the hedged item.
Amounts accumulated in equity are reclassified to profit or loss at the same date as the
hedged transaction affects profit or loss or if the hedged transaction is no longer probable.
The effects are shown under Finance costs. If the established agreement or the foreseeable
transaction that is hedged results in the recognition of a non-financial asset, the accumulated
gains or losses previously deferred in equity are reclassified from equity and recognized in
the initial recognition of the asset or liability.
If a hedging instrument or the hedge relationship is terminated but the hedged transaction is
still expected to take place, the accumulated gains or losses will remain in equity at that time
and will subsequently be recognized in the statement of income when the previously
hedged transaction takes place.
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Net investment hedges
Net investments in foreign operations can be hedged (net investment hedge) by qualifying
and designated derivative financial instruments or debt instruments denominated in foreign
currency. Hedges of a net investment in a foreign operation, including a hedge of a monetary
item that is accounted for as part of the net investment, are accounted for in a way similar to
cash flow hedges. Gains or losses on the hedging instrument relating to the effective portion
of the hedge are recognized in the translation reserve (equity component) via OCI to the
extent that they relate to the hedging of net investments in foreign activities. The gain or loss
relating to the ineffective portion is recognized immediately in the income statement.
Reversal through the statement of income takes place proportionately if all or part of the
underlying position is sold. The ineffective part and the interest component are recognized
directly in the statement of income.
Derivatives that do not qualify for hedge accounting
Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value
of any derivative instrument that does not qualify for hedge accounting are recognized
immediately in the income statement and are included in the Finance costs. This mainly
comprises derivatives that are used to hedge the foreign currency risk on intra-group
positions. Although the derivatives have not been designated in a hedge relationship, they
act as an economic hedge and will offset the underlying transactions when they occur.
Key accounting estimates and judgments
The fair value of a derivative financial instrument not traded on active markets is measured
as the present value of the expected future cash flows under the contract (level 2 fair value).
In determining this value, a valuation model is used that is based on the interest rates and the
exchange rates as at the end of the reporting period. Reference is made to note 9.9 for
more information.
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Reconciliation ofderivativefinancial instruments
The next table shows the effects of combining the currency derivative financial instruments
(see note 6.3 and the interest derivative financial instruments (seenote6.4) as well as the
offsetting applied on the individual contractual positions and a reconciliation to the
Consolidated statement of financial position.
31 December 2021 31 December 2020
In EUR millions Note Assets Liabilities Total Assets Liabilities Total
Currency derivative financial instruments 6.3 43.6 7. 6 36.0 14.2 26.0 - 11.8
Total derivative financial instruments
43.6 7. 6 36.0 14.2 26.0 - 11.8
Non-current 35.6 – 35.6 9.1 5.4 3.7
Current 8.0 7. 6 0.4 5.1 20.6 - 15.5
Total
43.6 7. 6 36.0 14.2 26.0 - 11.8
The table below shows the movements in the Group’s total derivative portfolio for the year.
In EUR millions Note Forwards Swaps Total
31 December 2020
13.1 - 24.9 - 11.8
Settlement of derivatives 2.9 57.8 - 3.6 54.2
Effective part of hedges of net investments
to other comprehensive income 5.2 - 15.0 – - 15.0
Effective part of cash flow hedges to other
comprehensive Income 5.2 – - 1.2 - 1.2
Fair value movement of derivatives not in a
hedge relationship 5.6 9.8 – 9.8
31 December 2021
65.7 - 29.7 36.0
For an overview of the movements in the hedging reserve in shareholders’ equity, reference
is made to note 5.2.
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Note 6.3 Currency risk
The Group is exposed to foreign currency exchange risks. These arise mainly from the
USdollar (USD) and Singaporedollar (SGD). Foreign currency exchange risk arises from
future commercial transactions, recognized assets and liabilities and net investments in
foreign operations.
The primary objective of the currency risk management policy is to protect Vopakagainst
fluctuations in the value of the assets, liabilities and expected cash flows caused by changes
in currency exchange rates. Account is taken of future cash flows from investments and
disposals as well as cash flows from operating and financing activities. Each quarter,
currency risks are identified and the hedging strategy is reviewed and subsequently
presented to the Executive Board for approval. The main derivative financial instruments used
by the Group to hedge currency risks are forward exchange contracts and cross-currency
interest rate swaps (CCIRSs).
The table below provides an overview of the contractual currencies of the interest-bearing
loans and short-term borrowings (excluding transaction costs):
Local currency Euro
In millions 2021 2020 2021 2020
Euro (EUR) 712.8 355.8 712.8 355.8
US dollar (USD) 1,384.4 1,534.4 1,222.4 1,247.7
Pound sterling (GBP) 35.0 35.0 41.7 38.8
Canadian dollar (CAD) 25.0 25.0 1 7. 3 15.9
Singapore dollar (SGD) 214.0 211.0 139.8 129.6
Japanese yen (JPY) 20,000.0 20,000.0 153.5 157.6
India Rupee (INR) – 500.0 – 5.6
Vietnam dong (VND) – 60,000.0 – 2.1
Total
2,287.5 1,953.1
Currency risk arising from operating activities
The risks associated with commercial transaction positions arising from operating activities
are limited for Vopak, as operating income and operating expenses are, as a rule, largely
denominated in the same currency. However, in some countries (in particular, in Latin
America), a substantial portion of the income flow is in USdollars whereas the operating
expenses are largely denominated in local currencies. In these countries, the aim is to hedge
the transaction risk naturally. Any material remaining net transaction position can be hedged
in full by means of forward exchange contracts.
Intra-group financing
All intra-group long-term financing is provided by Vopak’s Global Treasury function which acts
as an in-house bank. In principle, all intra-group financing is denominated in the functional
currency of the local entity concerned. This set-up exposes the Vopak Group to foreign
currency risk for long-term intra-group positions which are not part of a net-investment.
Following the Group’s currency risk management policy this currency risk is fully hedged by
means of derivatives where possible. The derivatives used to hedge these positions are not
included in a hedge relationship and as a result movements in the fair value of these
derivatives are directly recognized in the income statement. The timing of these fair value
movements coincides with the timing of the recognition of the foreign currency gains/losses
on the intra-group loans and receivables denominated in a currency other than the Euro,
which are effectively offset.
Currency risk arising from the investments in foreign operations
Net investment in foreign activities are hedged by loans in the same currency and/or forward
exchange contracts, while applyingnetinvestment hedge accounting. The amount of the
hedge is determined mainly by limiting the maximum netexposure per currency taking into
account a maximum impact on the total net investment position.
Currency risk arising from net-debt position
Due to the Private Placements and other net-debt items in foreign currency, the Group is
exposed to currency risk. It is the Group’s policy to hedge this exposure to leave the Group
with no material risks by making use of foreign currency contracts, cross-currency swaps
and natural hedges (netinvestmenthedges). All currency hedges for the years presented
were highly effective.
Currency risk arising from lease liabilities
The Group is also exposed to currency risk related to lease liabilities in the limited instances
where the contract currency is different from the functional currency of the entity concerned.
This primarily concerns joint ventures and associates and not subsidiaries. These currency
risks are normally not hedged.
Note 6.3 Currency risk
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The effects of the foreign currency related hedging instruments on the Group’s financial
position and financial results are shown in the table below:
Carrying amount
In EUR millions Maturity Assets
1
Liabilities
1
Notional amount Hedge ratio
Change in value of
hedged item
Ineffectiveness
recognized in
income statement
31 December 2020
Forward foreign currency contracts
2
< 1 year 1. 4 – 137.4 10 0%
Total net investment hedges
1.4 – 137.4 100% 7. 5 –
Cross-currency interest rate swaps
3
1-5 years 9.1 – 307.3 100%
Cross-currency interest rate swaps
3
> 5 years – 5.4 66.6 10 0%
Total cash flow hedges
9.1 5.4 373.9 100% 3.7 0.4
Forward foreign currency contracts < 1 year 3.7 20.6 940.8 N/A
Total derivatives no hedge accounting
3.7 20.6 940.8 N/A N/A N/A
Total derivative financial instruments 14.2 26.0 1,452.1 100% 11.2 0.4
31 December 2021
Forward foreign currency contracts
2
< 1 year – 3.9 189.9 100%
Total net investment hedges
– 3.9 189.9 100% - 15.0 –
Cross-currency interest rate swaps
3
1-5 years 35.1 – 458.6 100%
Cross-currency interest rate swaps
3
> 5 years 0.5 – 66.6 10 0%
Total cash flow hedges
35.6 – 525.2 100% - 1.2 0.4
Forward foreign currency contracts < 1 year 8.0 3.7 836.3 N/A
Total derivatives no hedge accounting
8.0 3.7 836.3 N/A N/A N/A
Total derivative financial instruments
4
43.6 7. 6 1,551.4 100% - 16.2 0.4
1 At fair value.
2 Foreign currency forwards accounted for as hedges on net investments.
3 Cross currency interest swaps accounted for as cash flow hedges are used to hedge currency (2021: USD 468 million and JPY 20 billion; 2020: USD 468 million) on fixed debt denominated in foreign currency.
4 This is the ineffectiveness resulting from the FX as well as the interest part of the hedge.
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Of the total amount of interest-bearings debt denominated in a foreign currency per
year-end2021, 100% (2020:100%)was hedged via derivatives for which either cash flow
hedge accounting, net investment hedge accounting or no hedge accounting was applied.
At year-end2021, 36% (2020:34%)of the currency risk was hedged via cash flow hedges.
The total nominal amount of net investments (hedged items) included in a net investment
hedge relationship amounted to EUR889.5million as at year-end
2021(2020:EUR955.5million). Of this amount EUR695.3million (2020:EUR819.2million)
was hedged via foreign currency interest-bearing debt and EUR 194.2million
(2020:EUR136.3million) via derivatives. Also taking into account the investment in
EURentities, the total unhedged position amounted to EUR1,484.7million or 47%
(2020:EUR1,110.0millionor38%).
Reference is made to note6.2 for a reconciliation between the amounts presented in the
table above and the amounts recognized in the Consolidated Statement of Financial Position.
For all cash flow hedges related to currency and interest rate risk, a loss of EUR94.9million,
net of tax was recognized in equity via OCI up to 31 December 2021
(2020: EUR115.1million loss) (see note 5.2).
Currency translation risk
Furthermore, a foreign currency translation risk results from investments in foreign
operations of which the net assets are exposed to foreign currency translation risk. The
Group result is also impacted by translating the results of these foreign currency operations.
Thisnon-economic currency risk is caused by the accounting conventions applied for
translating thenetassets and results of foreign operations to the presentation currency of
the Group, which is the euro. For more information, reference is made to note 2.8.
Sensitivity of exchange rate changes of financial instruments on net profit and equity
The value of debt and hedging instruments denominated in currencies other than the
functional currency of the entities holding them is subject to exchange rate movements. The
sensitivity analysis for the main currencies and their positions at 31December2021and
31December2020shows how changes in exchange rates by 10% affect net profit and
equity, while taking into account the effect of the use of derivatives and the hedge
accounting applied. 
Depreciation
1
Appreciation
1
In EUR millions Net profit Equity Net profit Equity
31 December 2020
USD - 1.7 - 12.2 2.1 14.7
SGD - 1.0 - 25.5 1. 2 31.2
CNY - 0.4 - 26.5 0.5 32.3
BRL - 0.3 - 6.9 0.3 8.4
JPY – – – –
Total effect
- 3.4 - 71.1 4.1 86.6
31 December 2021
USD - 1.2 - 32.7 1. 5 40.0
SGD - 0.5 - 30.7 0.7 37.5
CNY - 1.3 - 30.4 1. 5 37.1
BRL - 0.2 - 7.9 0.3 9.6
JPY – - 1.0 – 1. 3
Total effect
- 3.2 - 102.7 4.0 125.5
1 Foreign currency against the euro.
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Note 6.4 Interest rate risk
Vopak’s policy on interest rate risks aims to control the interest expenses resulting from
fluctuations in the financial market interest rates,to protect the projected gross result of Vopak
and taking into account the long-term profile of the company. Fixed-rate debt exposes the
Group to fair value risk. Floating-rate debt exposes the Group to cash flow risk. The
specification of the total interest-bearingloans is disclosed in note 5.5. It is Vopak’s long-term
policy to manage its interest exposure to an acceptable level of fixed/floating to optimize net
finance expenses and reduce volatility on the net result within the bandwidth of the interest
related financial covenants.
Interest rate swaps may be used in order to minimize the interest rate risks associated with the
financing of the Group and at the same time optimize the net interest costs. Interest rate risks
are identified and possible hedges considered when obtaining or providing new financing.
There were no interest rate derivatives present in the years presented.
As at 31December2021, taking into account the interest rate swaps, 69%(2020:83%) of the
total interest-bearing loans and bank loans of EUR2,284.6million (2020:EUR1,949.3million)
was financed at a fixed interest rate with remaining terms of up to 18years (2020:19years).
The average fixed interest and the average floating interest on the interest-bearing loans and
bankloans at 31December2021were 3.8%(2020:3.9%) and 1.3%(2020:1.4%) respectively.
The following statement provides insight into the interest repricing calendar for the
interest-bearingloans and the bankloans at the statement of the financial position date, while
taking into account the effects of the derivatives that may be present and the hedge accounting
applied. All interest-bearing loans with a floating interest rate are re-priced within one year.
31 December 2021 31 December 2020
In EUR millions Floating Fixed Total Floating Fixed Total
< 1 year - 462.0 - 0.3 - 462.3 - 211.8 - 121.2 - 333.0
1-2 years - 239.8 - 265.2 - 505.0 – - 2.0 - 2.0
2-3 years – - 203.3 - 203.3 - 128.4 - 244.2 - 372.6
3-4 years – - 256.9 - 256.9 – - 187.4 - 187.4
4-5 years – - 66.0 - 66.0 – - 236.6 - 236.6
> 5 years – - 791.1 - 791.1 – - 817.7 - 817.7
Total
- 701.8 - 1,582.8 - 2,284.6 - 340.2 - 1,609.1 - 1,949.3
Sensitivity to changes in market interest rates
The sensitivity analysis shows how changes in market interest rates affect net profit and
equity, while taking into account the effects of the derivatives and the hedge accounting
applied and assuming that all other variables remain constant. Due to the volatility of
market interest rates, Vopak has used a fixed percentage of 25% as a reasonable change at
year-end2021and year-end2020.
Increase 25% Decrease 25%
In EUR millions
Closing
level
3-month Net profit Equity
1
Net profit Equity
1
31 December 2020
EUR - 0.55% 0.1 3.4 - 0.1 - 3.5
USD 0.24% – 0.5 – - 0.6
SGD 0.20% - 0.4 0.1 0.4 - 0.1
JPY - 0.08% – – – –
Total effect
- 0.3 4.0 0.3 - 4.2
31 December 2021
EUR - 0.57% - 1.4 1. 0 - 0.4 - 1.0
USD 0.21% – 2.3 – - 2.4
SGD 0.36% - 0.5 0.1 0.5 - 0.1
JPY - 0.08% – – – –
Total effect
- 1.9 3.4 0.1 - 3.5
1 Revaluation reserve derivatives through Other comprehensive income.
Note 6.4 Interest rate risk
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Note 6.5 Equity securities price risk
Accounting policies
Equity investments that are not classified as a subsidiary, joint venture or associate are
measured at fair value (level 3). Gains and losses on these investments will either be
recorded in the Income statement or Other comprehensive income, depending on whether
the Group has made an irrevocable election at the time of initial recognition to account for
the equity investment at fair value through other comprehensive income. The fair value is
based on the discounted cash flow approach or recent market transaction.
Where the Group has elected to present fair value gains and losses on equity investments in
OCI, there is no subsequent reclassification of fair value gains and losses to the income
statement following the divestment of equity investment. Dividends from equity
investments are recognized in the income statement as dividend income, which is classified
as Other income,when the Group’s right to receive payments is established.
The Group has 15equity investments (2020:12) for a total amount of EUR83.6million
atyear-end2021(2020:EUR36.5million), of which the investment in SabTank (Saudi Arabia)
and Hydrogenious are the largest.Our 100% investment in Venezuela is also classified as an
equity investment. The other equity investments are investments held by Vopak Ventures B.V.
The Group elected to measure all investments at fair value through Other comprehensive
income as these entities are part of the Vopak network, provide storage and handling (related
services) and are not held for trading.
Deconsolidation of Vopak Venezuela
In 2018, Vopak deconsolidated its wholly-owned terminal in Venezuela (Americas division),
reflecting the conclusion that the Group no longer had control from an accounting
perspective. It was observed that the economic, legal, social and political environment in
which the terminal operates was continuously deteriorating. Strict currency controls
continued to be applicable and inflation exceeded one million percent in 2018.
Vopak continues to monitor the situation and will periodically assess whether facts and
circumstances have changed and whether control has been regained over the entity in
Venezuela. Vopak remains the 100% shareholder in the entity and continues to operate the
company in line with Vopak’s standards.
For more information on the equity investments, other than investments in subsidiaries,
jointventures and associates, reference is made to note 9.6.
Note 6.6 Credit risk
Credit risk arises when a customer or other counterparty of a financial instrument fails to
discharge its contractual obligation.
Vopak’s credit risk arises primarily from loans granted, finance lease receivables, trade and
other receivables, cash and cash equivalents, and derivative financial instruments. Vopak’s
maximum exposure to credit risks is the carrying amount of these financial assets,
amounting to EUR553.4million (2020:EUR478.2million), and the credit replacing
guarantees amounting to EUR85.8million(2020:EUR80.8million). Of this amount, nil was
recognized in the statement of financial position at year-end2021(2020:nil). Furthermore,
the COVID-19pandemic had no material effect on the credit risk exposure of the financial
instruments in an asset position.
No loans were granted to joint ventures and associates at year-end2021. Loans to other third
parties are generally secured, and mainly relate to loans to non-controlling shareholders.
For more information on the credit risk of the trade receivables, reference is made tonote 4.2.
Risk management
The credit risk with regard to trade receivables and lease receivables from customers is
limited as the value of the product stored for these clients usually exceeds the value of the
receivables and Vopak generally has the right of retention although other claims may have
priority ranking over the right of retention in a bankruptcy case. Vopak constantly monitors
the outstanding receivables and the value of the stored products. See note 4.2 for
further details.
Vopak has spread itscash and cash equivalents and other liquidity investments across a
select group of high rated financial institutions while daily limiting the cash and cash
equivalents within the Group and assessing the exposure to each financial institution. Vopak
applies credit limits per institution, depending on their credit ratings and credit default swap
spread, and regularly reviews these limits. These treasury activities are concluded with
Note 6.5 Equity securities price risk
Note 6.6 Credit risk
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financial institutions that have at least an A-Standard&Poor’s credit rating.At
31December2021, the maximum risk in the event of the default of a single financial
institution amounted to EUR20.7million(2020:EUR17.0million).
The derivative financial instruments will be settled on a gross basis. The credit risk of
derivative financial instruments with a positive value is mitigated by ISDA Master
Agreements with counterparties, which have the option to settle all gross amounts on a net
basis in the event of a default of the counterparty, and by setting qualitative and financial
limits for the derivative counterparties. The Group maintains a control system that includes
the authorization, reporting and monitoring of derivative activities including the Credit Default
Swaps developments of counterparties observed on the secondary market. Vopak believes
there are no material credit risks related to derivatives in the Group’s financial position. At
year-end2021, the derivatives with a counterparty credit risk amounted to
EUR0.5million(2020:EUR3.9million).
Assessing the financial positions of customers and other counterparties is part of the
Group’s credit risk management and tendering process; however, this cannot exclude
all credit risk.
Note 6.7 Liquidity risk
The primary objective of liquidity management is providing sufficient cash and cash
equivalents at all times to enable Vopak to meet its payment obligations.
Cash management
The liquidity requirements are monitored continuously and funding is planned in such a way
as to avoid excessive short-term financing needs. The long-term liquidity risk is assessed
prior to every major investment obligation. Active cash management is a daily responsibility
and the liquidity requirements are identified each quarter based on thorough scenario
planning. Surplus cash is invested, if available, in interest-bearing current accounts and
deposit accounts.
Vopak’s Global Treasury function acts as an in-house bank that allocates funds internally,
which are raised centrally within the Group. Surplus cash held by the operating entities over
and above balances required for working capital management is transferred to Global
Treasury and operating companies are normally funded by a combination of equity and
inter-company loans. Exceptions to this are the bank loan of EUR130.6million
(SGD200million), drawdowns under the revolving credit facilities of EUR9.1million
(SGD14million) of Vopak Terminals Singapore Pte. Ltd.and the bank loan ofEUR5.9million
(INR500million) of our terminal in India which have been raised locally.
Joint ventures and associates, where possible, are normally funded optimally with external
debt on a non-recoursebasis for Vopak, taking into account local circumstances and
contractual obligations. Reference is made to note9.8 for more information with regard to
commitments and guarantees provided to joint ventures and associates.
Available credit facilities
Atyear-end2021, the company had two revolving credit facilities (RCFs) which provide
flexibility to finance Vopak´s long-term growth strategy.
31 December 2021 31 December 2020
In EUR millions
Total
facility
1
Used Unused
Total
facility
1
Used Unused
Royal Vopak - Revolving credit facility 1,000.0 100.0 900.0 1,000.0 – 1,000.0
VTS - Revolving credit facility 65.3 9.1 56.2 61.4 6.7 54.7
Total committed facilities
1,065.3 109.1 956.2 1,061.4 6.7 1,054.7
Royal Vopak - Bank loan facilities 595.0 462.0 133.0 405.0 205.0 200.0
Total uncommitted facilities
595.0 462.0 133.0 405.0 205.0 200.0
Total facilities 1,660.3 571.1 1,089.2 1,466.4 211.7 1,254.7
1 At nominal value.
On1June2018, Vopak reached agreement with all 15 lenders of the EUR1billion senior
unsecured multicurrency revolving credit facility regarding a second extension of the facility.
The maturity date has been extended until 1June2023. This facility was utilized for an
amount of EUR100.0millionat year-end2021(2020:notutilized).
At 31December2021, the Group also had unused lines of credit of EUR133.0million
(2020:EUR200.0million) that are available to meet short-term liquidity needs. The Group
can be requested to repay these short-term loans on demand. There are no significant
restrictions on the use of these facilities.
Note 6.7 Liquidity risk
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Purpose
&strategy
Governance,risk
&compliance
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237
Maturity analysis
The graph below provides an overview of the repayment profile of the Group’s interest-
bearing loans (excluding lease liabilities) based on the contractual undiscounted cash flows.
For the maturity overview of the lease liabilities, reference is made to note 3.4.
Repayment Schedule Net interest-bearing debt
2022 2023 2024 20262025 2027 20292028 2030 20352032
2040
600
500
400
300
200
100
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Governance,risk
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The table below analyzes the Group’s non-derivative financial liabilities and net-settled
derivative financial liabilities into relevant maturity categories based on the remaining period
at the end of the reporting period to the contractual maturity date. Derivative financial
instruments are included in the analysis if their contractual maturities are essential for an
understanding of the timing of the cash flows. The table also analyzes the maturity profile of
financial assets in order to provide a complete overview of the contractual commitments and
liquidity. Theamounts disclosed in the table are the contractual undiscounted cash flows. The
financial guarantees and securities issued (see note 9.8) are included for their full amount
and it is assumed for disclosure purposes that these can be called within one year.
< 1 year 1-2 years 2-5 years > 5 years
In EUR millions - at 31 December 2021 2020 2021 2020 2021 2020 2021 2020
Cash and cash equivalents 73.4 68.3 – – – – – –
Trade and other receivables 259.6 276.1 – – – – – –
Loans to joint ventures and associates – 54.8 – – – – – –
Other loans 1. 7 – 1. 7 – 6.6 – 36.6 36.2
Finance lease receivable 13.2 5.2 13.3 5.3 40.4 22.5 140.5 47.0
Total undiscounted financial assets (excluding gross settled
derivatives)
347.9 404.4 15.0 5.3 47.0 22.5 177.1 83.2
Bank overdrafts 2.6 9.3 – – – – – –
Redemption of interest-bearing loans 0.8 128.8 505.5 2.8 527.0 797.9 792.2 818.6
Short-term borrowings 462.0 205.0 – – – – – –
Lease liabilities 55.3 51.7 52.9 51.1 140.5 135.8 815.4 824.5
Interest payments 63.6 66.2 57.9 58.8 113.9 133.2 124.8 150.4
Interest rate swaps 4.1 2.5 3.3 2.5 4.4 4.6 1. 2 1. 5
Trade and other creditors (excluding non-financial instruments) 184.1 206.0 – – – – – –
Total undiscounted financial liabilities (excluding gross settled
derivatives)
772.5 669.5 619.6 115.2 785.8 1,071.5 1,733.6 1,795.0
Derivative financial instruments outflow – – - 246.1 – - 212.6 - 307.3 - 66.6 - 66.6
Derivative financial instruments inflow – – 278.0 – 219.7 317.0 68.9 63.4
Total undiscounted gross settled derivatives
– – 31.9 – 7. 1 9.7 2.3 - 3.2
Financial guarantees and securities issued 116.7 11 7. 9 – – – – – –
Total financial guarantees and securities
116.7 11 7. 9 – – – – – –
Liquidity movements - 541.3 - 383.0 - 572.7 - 109.9 - 731.7 - 1,039.3 - 1,554.2 - 1,715.0
Introduction Sustainability
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&strategy
Governance,risk
&compliance
Business&market
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Performance
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Vopak Annual Report 2021
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239
Section 7 Governance
This section comprises notes related to the Governance of the company, including
BoardRemuneration, ExternalAuditor fees and transactions with related parties.
The following notes are presented in this section:
• 7.1 Remuneration of Board members
• 7.2 Long-term incentive plans (LTIPs)
• 7.3 Related parties
• 7.4 Fees paid to auditors appointed at the Annual General Meeting
Note 7.1 Remuneration of Board members
Reference is made to the section of the Remunerationreportfor information regarding the
remuneration and related costs of the SupervisoryBoard members and the
ExecutiveBoard members.
Note 7.2 Long-term incentive plans (LTIPs)
At year-end2021, as in prior year, the Group operated three Long-TermSharePlans (LTSPs)
and Long-TermCashPlans (LTCPs).
For the Executive Board, all share-based payment plans are 100% equity-settled. As an
exception, the LTSP 2017-2019 was amended into fully cash-settled for the former Executive
Board member Jack de Kreij in accordance with the plan rules, following his decision and
announcement to step down early 2018.w
For eligible senior management, the LTSPs also consisted of equity-settled share-based
compensation plans.
The LTCPs are otherlong-term remuneration plans settled in cash. LTCPs are granted to staff
in countries where local legal, regulatory and/ or tax regulations and requirements make it
administratively very complex and burdensome to provide shares of a foreign based
company to local staff, or in countries where this is simply not allowed. The periods to which
the plans relate are presented below:
• LTSP and LTCP 2019-2021
• LTSP and LTCP 2020-2022
• LTSP and LTCP 2021-2023
The LTSP and LTCP 2018-2020werevested and settled during 2021.
Accounting policies
Share-based compensation
The fair value of equity-settled share-based compensation plans is determined at the date of
granting and expensed in the statement of income based on the Group's estimate of the
shares that will eventually vestover the period in which the serviceis rendered (vesting
period) with a corresponding adjustment directly in equity. The fair value of cash-settled
share-based compensation plans is determined at the date of granting and is remeasured at
each reporting date until the liability is settled and is recognized over the vesting period as an
expense to the extent to which participants have rendered services to date.
Generally, the compensation cost is recognized on a straight-line basis over the vesting
period. The amounts expensed are adjusted over the vesting period for changes in the
estimate of the number of shares and the equivalent in cash that will eventually vest.
Adjustments are made at the end of each reporting period to reflect expected and actual
forfeitures during the vesting period due to the failure to satisfy service conditions or
non-market performance conditions, beingprofitability growth targets (EPS) and Strategy
Execution (previously named “Strategic Direction”)as well as service conditions such as
remaining an employee of the Group over a specified time period.
An equity-settled share-based payment award with a net settlement feature for withholding
tax obligations is treated as equity-settled in its entirety.
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240
Section 7 Governance
Note 7.1 Remuneration of Board members
Note 7.2 Long-term incentive plans (LTIPs)
Other long-term remuneration
Long-term remuneration settled in cash that depends on the development of the earnings
per ordinary share (EPS)-excludingexceptionalitems- during a period of three years is
allocated to these years based on the latest estimates of the
EPS-excludingexceptionalitems- and are not treated as share-based payment plans.
Liabilities are remeasured at the end of each reporting period.
Costs of long-term incentive plans
In EUR thousands
LTSP 2021
equity-settled
LTSP 2020
equity-settled
LTSP 2019
equity-settled
LTSP 2018
equity-settled Cash Plan Total 2021 Total 2020
E.M. Hoekstra 673.0 547.1 451.1 63.2 N/A 1,734.4 734.9
F. Eulderink 139.8 170.8 219.2 40.4 N/A 570.2 461.8
G.B. Paulides 321.3 266.0 207.9 36.6 N/A 831.8 393.0
Members Executive Board
1,134.1 983.9 878.2 140.2 N/A 3,136.4 1,589.7
J.P. de Kreij (retired) N/A N/A N/A N/A N/A – 37.9
Former members Executive Board
N/A N/A N/A N/A N/A – 37.9
Other 1,434.2 1,585.9 1,435.5 198.3 739.2 5,393.1 3,283.4
Total
2,568.3 2,569.8 2,313.7 338.5 739.2 8,529.5 4,911.0
1 The total carrying amount of liabilities for cash-settled share-based payment at 31 December 2021 was nil (31 December 2020: nil).
For more information on the remuneration policy and the remuneration of the Executive
Board members and the Supervisory Board members, reference is made to
theRemuneration report as included in the Governance and compliance chapter.
Long-Term Share Plans
The currentLong-Term Share Planprograms reward participantsfor(considerable and
ambitious) improvementsin Vopak's Earnings per Share-excludingexceptionalitems-(EPS)
performance andStrategy Executionachievements during the three-year performance
period, respectively from start date of the plan to the end date of the plan (either 2019-2021,
2020-2022or 2021-2023), evaluated against the EPS-excluding exceptional
items-andStrategy execution targets.
IftherealizedEPS-excludingexceptionalitems-andStrategyExecutionwhichhave been
achieved during the three-year performance periodfalls within or exceeds the target range, a
long-term remuneration will be awarded based on a percentage oftheir target grants
(i.e.numberofshares) madeat date of grant,and thisfor all plans that are active.
The incentive ranges that apply to the various plans for the different groups of participants
are presented in the following table.
Incentive opportunities LTSP 2021 LTSP 2020 LTSP 2019
E.M. Hoekstra 0% to 165% 0% to 165% 0% to 150%
F. Eulderink 0% to 135% 0% to 135% 0% to 120%
G.B. Paulides 0% to 135% 0% to 135% 0% to 120%
Eligiblesenior management 0%to60% 0%to60% 0%to60%
Long-Term Cash Plans
To senior managers who are eligible for receiving long-term variable remuneration, yet not in
shares, grants in (deferred) cash will be made. The company'sLong-Term
CashPlanprograms operate in a similar way as thecompany'sLong-Term Share
Planprograms,with the exception that vesting takes place in cash rather than in shares.
The LTCPs provide for additional pay in the form of deferred compensation under the terms
and conditions of the plan after the vesting period. The financial performance is measured by
the EPS-excludingexceptionalitems- development during the three-year performance
period, the incentive can rise from 0% to a maximum of 22.5% or 30.0% per annum of the
salary at the grant date.
Introduction Sustainability
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&strategy
Governance,risk
&compliance
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241
Movements in the number of conditional awards
In numbers E.M. Hoekstra F. Eulderink G.B. Paulides J.P. de Kreij(retired) Other Total
Outstanding at 31 December 2019
49,570 31,338 20,234 9,322 167,517 277,981
Vested and settled - 14,636 - 9,277 – - 9,322 - 48,925 - 82,160
Forfeited – – – – - 459 - 459
Newly awarded 16,643 10,375 10,097 – 82,661 119,776
Outstanding at 31 December 2020
51,577 32,436 30,331 – 200,794 315,138
Vested and settled - 17,554 - 11,235 - 10,183 – - 59,941 - 98,913
Forfeited – – – – - 5,393 - 5,393
Newly awarded 18,176 11,330 11,330 – 92,717 133,553
Outstanding at 31 December 2021
52,199 32,531 31,478 – 228,177 344,385
1 For LTSP 2019, 2020 and 2021, the conditional awards are based on the salary on the date of grant.
Valuation and cost allocation
Long-term incentive plans (LTIPs) valuation (former) Executive Board members and other senior executives
Conditional awards
1
Number of expected shares
2
Allocated cost to
3
In EUR thousands Number Value at grant Number Value at vesting Value for cost allocation 2021 2020
LTSP 2021, equity-settled (conditional) 18,176 659.8 18,539 N/A 673.0 673.0 –
LTSP 2020, equity-settled (conditional) 16,643 803.4 16,975 N/A 819.4 547.1 272.3
LTSP 2019, equity-settled (conditional) 17,380 721.8 23,897 736.0 992.4 451.1 216.5
Total outstanding LTIPs - E.M. Hoekstra
52,199 2,185.0 59,411 736.0 2,484.8
LTSP 2018, equity-settled (settled) 17,554 701.7 15,799 630.4 631.5 63.2 176.8
LTSP 2017, equity-settled (settled) 14,636 577.3 17,563 908.4 692.8 – 69.3
Total LTIP cost - E.M. Hoekstra
5
1,734.4 734.9
LTSP 2021, equity-settled (conditional) 11,330 411.3 11,556 N/A 419.5 139.8 –
LTSP 2020, equity-settled (conditional) 10,375 500.8 10,582 N/A 510.8 170.8 169.8
LTSP 2019, equity-settled (conditional) 10,826 449.6 14,885 458.5 618.2 219.2 134.9
Total outstanding LTIPs - F. Eulderink
32,531 1,361.7 37,023 458,5 1,548.5
LTSP 2018, equity-settled (settled) 11,235 449.1 10,112 403.5 404.1 40.4 113.2
LTSP 2017, equity-settled (settled) 9,277 365.9 11,132 575.7 439.1 – 43.9
Total LTIP cost - F. Eulderink
570.2 461.8
LTSP 2021, equity-settled (conditional) 11,330 411.3 11,556 N/A 419.5 321.3 –
LTSP 2020, equity-settled (conditional) 10,097 487.4 10,298 N/A 497.1 266.0 165.2
LTSP 2019, equity-settled (conditional) 10,051 417.5 13,821 425.7 574.0 207.9 125.2
Total outstanding LTIPs - G.B. Paulides
31,478 1,316.2 35,675 425.7 1,490.6
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&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
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242
Conditional awards
1
Number of expected shares
2
Allocated cost to
3
In EUR thousands Number Value at grant Number Value at vesting Value for cost allocation 2021 2020
LTSP 2018, equity-settled (conditional) 10,183 407.0 9,165 365.7 366.3 36.6 102.6
Total LTIP cost - G.B. Paulides
6
831.8 393.0
Total Outstanding LTIPs - Members Executive Board 116,208 4,862.9 132,109 1,620.2 5,523.9
Total LTIP cost - Members Executive Board
3,136.4 1,589.7
LTSP 2017, cash-settled (settled) 9,322 367.7 11,186 578.5 578.5 – 37.9
Total LTIP cost - J.P. de Kreij (retired)
4
– 37.9
Total LTIP cost - (former) members Executive Board 3,324.5 1,627.6
LTSP 2021, equity-settled (conditional) 90,455 3,197.6 92,269 N/A 3,831.9 1,434.2 –
LTSP 2020, equity-settled (conditional) 80,314 3,729.0 81,920 N/A 3,411.1 1,585.9 1,265.7
LTSP 2019, equity-settled (conditional) 57,408 2,390.4 78,932 2,431.1 3,286.7 1,435.5 790.7
Total outstanding LTIPs - Other senior executives
228,177 9,317.0 253,121 2,431.1 10,529.7
LTSP 2018, equity-settled (settled) 59,941 2,303.3 53,949 2,319.3 2,073.0 198.3 592.4
LTSP 2017, equity-settled (settled) 46,431 1,851.6 55,717 2,692.8 2,221.9 – 222.2
LTSP 2017, cash-settled (settled) 2,494 99.5 2,992 154.7 154.7 – 10.1
Total LTIP cost - Other senior executives
4,653.9 2,881.1
Total outstanding LTIPs and total LTIP cost 344,385 14,179.9 385,230 4,051.3 16,053.6 7,790.3 4,508.7
1 On a target level of 100%. For the LTSP 2017 of the Executive Board, the conditional awards are based on the average salary over the vesting period since date of appointment. For LTSPs 2018 and 2019 of the Executive Board, the
conditional awards are based on the salary on the date of grant. The value at grant is the conditional number of shares multiplied by the average share price at the grant date.
2 The value for cost allocation for the equity-settled LTSPs is based on the number of expected or vested shares and multiplied by the fair value per share award at the grant date, which has been reduced with the expected discounted future
dividends payable during the respective vesting periods since the holders of shares are not entitled to receive dividends during the vesting period. The value for cost allocation for the cash-settled LTSPs is based on the number of expected
or vested shares and multiplied by the fair value per award at the reporting date less discounted expected future dividend payments. Expected dividends have been applied in accordance with the dividend policy of the company.
The estimated vesting percentages of the LTSPs are based on a Monte Carlo simulation scenario analysis.
3 The (fair) value of the employee services received in exchange for the awards is recognized rateably over the vesting period of the plan.
4 On 15 November 2016, Mr. de Kreij, Chief Financial Officer and Vice Chairman of the Executive Board has informed the Supervisory Board that he has decided to step down as per 1 February 2018. The recognition of the LTSP 2016 and
2017 was amended into fully cash settled for Mr De Kreij in accordance with the plan rules, due to his announced resignation early in 2018. The costs of the LTSP were allocated to the remaining period of service.
5 On 19 October 2021, Mr. Hoekstra, Chief Executive Officer and Chairman of the Executive Board has informed the Supervisory Board that he has decided to step down as per 31 December 2021. The recognition of the LTSP 2019,
2020 and 2021 remains fully equity settled for Mr Hoekstra in accordance with the plan rules. The costs of the LTSP were allocated to the remaining period of service.
6 On 10 December 2021, Mr. Paulides, Chief Financial Officer has informed the Supervisory Board that he has decided to step down as per 20 April 2022. The recognition of the LTSP 2019, 2020 and 2021 remains fully equity settled for
MrPaulides in accordance with the plan rules. The costs of the LTSP were allocated to the remaining period of service.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
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Vopak Annual Report 2021
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243
Note 7.3 Related parties
Transactions with Supervisory Board members and Executive Board members
For the remuneration of Supervisory Board members and Executive Board members, the key
management of the Group, reference is made to the sections Remuneration of the
Supervisory Board in 2021 and Executive Board Remuneration in 2021of the
Remunerationreport, which are deemed part of these financial statements.
No loans, advances or guarantees have been provided to current or former members of the
SupervisoryBoard and the ExecutiveBoard.
For both years presented, the Group has not conducted any transactions with companies in
which ExecutiveBoard members and/or persons closely related to them have a significant
financial interest.
Transactions with joint ventures and associates
The transactions with our joint ventures and associates, other than providing equity and
receiving dividends, principally consist of fees for services provided by the Group, loans
issued by the Group and the related interest income.
Joint ventures Associates Total
In EUR millions 2021 2020 2021 2020 2021 2020
Other operating income 13.6 8.7 0.3 0.7 13.9 9.4
Amounts owed by – 54.8 – – – 54.8
Transactions with major shareholders
Besides the annual dividend distribution, no material related party transactions have been
entered into with the major shareholders during the years presented.
Vopak has been informed by HAL Holding N.V. (‘HAL’), that it is technically required for HAL
to consolidate Vopak in its Consolidated financial statements as from 1January2014.
Accordingly, HAL has requested Vopak to provide detailed accounting information with
respect to the Consolidated financial statements in order for HAL to be able to consolidate
Vopak in its Consolidated statements. To facilitate HAL in complying with its obligations
under IFRS10, a Memorandum of Understanding was signed between Vopak and HAL with
respect to confidentiality, the process of exchanging information, subsequent events
procedures, external auditor involvement and attendance rights to the Audit Committee
meetings for an independent financial expert on behalf of HAL.
Transactions with pension funds
Related party transactions with Vopak's pension funds are presented in note 9.4.
Note 7.4 Fees paid to auditors appointed attheAnnualGeneralMeeting
The fees listed in the table below relate to the procedures applied to the company and its
consolidated Group entities by Deloitte Accountants B.V., theNetherlands, the external
auditor as referred to in Section1(1) of the DutchAccountingFirmsOversightAct
(Dutchacronym:Wta), as well as by other Dutch and foreign-based Deloitte individual
partnerships and legal entities, including their tax services and advisory groups.
In EUR millions 2021 2020
Financial statements audit fees 1. 6 1. 5
Other assurance fees 0.1 0.1
Total
1.7 1.6
The financial statements audit fees include the aggregate fees in 2021 and 2020 for
professional services rendered for the audit of Vopak's annual financial statements and
annual statutory financial statements of subsidiaries or services that are normally provided
by the auditor in connection with the audits.
The other assurance fees include the aggregate fees invoiced for assurance and services for
other audit services, which generally only the company's independent auditor can reasonably
provide, such as the sustainability review, comfort letters and audit of grant statements.
In line with the Dutch independence legislation, no tax advisory, compliance services or
other non-audit services were provided in the years presented.
The total fees charged by Deloitte Accountants B.V., theNetherlands to the company and its
consolidated Group entities amounted to EUR1.0million in 2021(2020:EUR0.9million).Of
the 2021 fees, an amount of EUR0.1million (2020: EUR0.1million) relates to non-recurring
fees for the 2020 audit.
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&strategy
Governance,risk
&compliance
Business&market
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244
Note 7.3 Related parties
Note 7.4 Fees paid to auditors appointed at the Annual General Meeting
Introduction Sustainability
Purpose
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Governance,risk
&compliance
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245
Section 8 Income taxes
Note 8.1 Income taxes
Section 8 Income taxes
This section comprises all relevant disclosures and specifications regarding tax recognized in
the Consolidated financial statements.
The following notes are presented in this section:
• 8.1 Income taxes
• 8.2 Deferred taxes
Note 8.1 Income taxes
Accounting policies
Taxes on profit or loss for the financial year comprise current and deferred taxes. Taxes are
recognized in the statement of income unless they relate to items directly recognized in
Other comprehensive income or directly in equity.
Current taxes are the expected taxes payable on the taxable income for the year, using tax
rates enacted at the end of the reporting period, plus any adjustments toprior-
yeartax payable.
Deferred taxes are provided for, using the liability method, whereby provisions are made for
all taxable temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and their tax base. No deferred taxes are provided for the
following temporary differences: goodwill not deductible for tax purposes; the initial
recognition of assets and liabilities that neither affect accounting nor taxable profit; and
differences relating to investments in subsidiaries to the extent that they will not reverse in
the foreseeable future. The calculation is based on tax rates enacted or substantively
enacted, at the end of the reporting period.
Deferred tax assets, including assets arising from losses carried forward, are recognized to
the extent that it is probable that future taxable profits will be available against which these
temporary differences or unused tax losses can be utilized. Deferred tax assets and liabilities
are stated at nominal value.
The Group recognizes liabilities for potential tax audit issues based on estimates of whether
additional taxes will be due. Where the final tax outcome of these matters differs from the
amounts that were initially recorded, such differences will impact the current and deferred
income tax assets and liabilities in the period in which such determination is made.
A provision is formed for tax, principally regarding withholding tax, for which a liability might
arise in connection with the distribution of retained earnings if a decision has been made to
distribute such earnings.
Income tax recognized in the Consolidated statement of income
In EUR millions 2021 Restated 2020
1
Current taxes
Current financial year 48.9 60.3
Adjustments for prior years - 7.3 0.6
41.6 60.9
Deferred taxes
Adjustments for prior years 2.8 5.3
Temporary differences 42.4 8.4
Recognition of tax losses and tax credits - 26.5 - 2.0
Changes in tax rates - 0.3 - 1.5
18.4 10.2
Tax on profit 60.0 71.1
Income tax paid 65.0 54.9
Movements in current and deferred tax balances - 5.0 16.2
Income tax expense
60.0 71.1
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a
change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing
Arrangements, as detailed in Note 1.1.
In 2021, EUR1.0million of exceptional tax gains were recognized in the income tax
expenses (2020:EUR2.8milliontaxexpense).For both years, these are related to the
income tax effects on the exceptional items. 
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The main difference between the tax expenses for the year and the current tax charge was
caused by deferred tax expenses mostly related to differences in the depreciation rates of
Property, plant and equipment as well as lease accounting. For further details on the
deferred tax position, reference is made to note 8.2.
Tax expenses per share
The tax expense per share amounted to EUR0.48in 2021(2020:EUR0.57).
More information on Vopak's responsibility towards taxation can be found in the
Sustainability chapter.
Reconciliation of effective tax rate
In EUR millions 2021 Restated 2020
1
Profit before income tax 303.2 395.3
Tax on profit 60.0 71.1
Effective tax rate
19.8% 18.0%
Composition: Amount % Amount %
Weighted average statutory tax rate 68.7 22.7 91.9 23.2
Participation exemption - 40.0 - 13.2 - 45.7 - 11.6
Non-deductible expenses 9.8 3.2 9.0 2.3
Changes in tax rates - 0.3 - 0.1 - 1.5 - 0.4
Recognition of tax losses and tax credits 20.0 6.6 10.7 2.7
Tax facilities - 1.0 - 0.3 - 0.9 - 0.2
Movements in prior-year taxes - 4.5 - 1.5 5.8 1. 5
Other effects 7. 3 2.4 1. 8 0.5
Effective tax (rate)
60.0 19.8 71.1 18.0
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a
change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing
Arrangements, as detailed in Note 1.1.
Income tax expenses -including exceptional items- amounted to EUR60.0million in2021,
adecrease of EUR11.1million compared toEUR71.1million in 2020. The effective tax rate
-including exceptional items- was 19.8% compared to18.0% in 2020. This increase was
mainly due to changes in profit before income taxes, the applicability of participation
exemptions thereto, corrections for previous years and withholding tax on undistributed
reserves of associates and joint ventures.
Income tax expenses -excluding exceptional items- amounted to EUR61.0million in 2021,
an increase of EUR7.3millioncompared to EUR68.3million in 2020. The effective tax rate
-excluding exceptional items- was 15.7%compared to 17.2% in 2020.This increase was
mainly due to changes in profit before income taxes, the applicability of participation
exemptions thereto, corrections for previous years and withholding tax on undistributed
reserves of associates and joint ventures.
The non-deductible expenses category which is included as part of the effective tax
reconciliation includes business expenses which are not tax deductible under local (tax) law.
The movements in prior-year taxes includes several tax positions which have been confirmed
by the local tax authorities resulting in a true-up of tax provisions.
As the Group extensively operates via investments in jointventures and associates, which
fall under the Dutchparticipationexemption, and of which the profits have been taxed in the
country of establishment while the net profits of these entities are part of the EBIT(DA)of
the Group, the effective tax rate of the Vopak Group is per definition always lower than the
weighted average tax rate of that of its subsidiaries.
For an overviewof the effects of the joint ventures and associates on the effective tax rate of
the Group, as well as the proportionate effective tax rate, reference is made to Note 23of
the Sustainability Section.
Income tax recognized in other comprehensive income
In EUR millions Note 2021 2020
On changes in the value of cash flow hedges 5.2 - 0.3 0.5
On exchange differences and hedges 5.2 2.4 - 1.2
On use of cash flow hedges 5.2 - 0.1 - 0.1
On remeasurements of defined benefit plans 4.2 - 1.6
Total
6.2 - 2.4
Note 8.2 Deferred taxes
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Note 8.2 Deferred taxes
Key accounting estimates and judgments
Deferred tax assets, including those arising from carry-forward losses, are recognized if it is
probable that taxable profit is available against which losses can be offset. In determining this,
Vopak uses estimates and assumptions that also affect the measurement of the deferred tax
assets. A maturity schedule of the unrecognized carry-forward losses is shown on the next page.
Accounting policies
Deferred tax assets and liabilities are offset against each other to the extent that this is a
legally enforceable right and the deferrals belong to the same fiscal unit. The decision to
account for deferredtaxassets is taken periodically for each fiscal unit after critically
assessing whether conditions are sufficient to realize these deferred tax assets, based on
the strategic plans and related tax plans.
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Deferred tax assets and liabilities
Temporary differences
In EUR millions
Carry forward
losses
Property, plant
and equipment
1
Loans granted
Employee
benefits Lease liabilities Other
Offset assets
and liabilities
Statement of
financial
position
Assets 18.9 2.0 0.4 12.6 11 7. 6 24.0 - 144.7 30.8
Liabilities – - 309.2 - 0.3 – – - 16.7 144.7 - 181.5
Balance 31 December 2019
18.9 - 307.2 0.1 12.6 11 7. 6 7. 3 – - 150.7
Change in accounting policy – – – – – 4.3 – 4.3
Carrying amount at 1 January 2020
18.9 - 307.2 0.1 12.6 11 7. 6 11.6 – - 146.4
Movements:
- Statement of income 7. 8 18.1 – - 0.9 48.9 - 84.1 - 10.2
- Other comprehensive income – - 0.1 – 1. 6 – 1. 6 3.1
- Acquisitions/divestments – 4.2 – – – - 3.3 0.9
- Exchange differences - 2.6 15.0 0.1 - 0.8 - 4.0 4.8 12.5
Balance 31 December 2020 (restated)
2
24.1 - 270.0 0.2 12.5 162.5 - 69.4 - 140.1
Assets 24.1 2.1 0.4 12.6 162.5 32.7 - 191.2 43.2
Liabilities – - 272.1 - 0.2 - 0.1 – - 102.1 191.2 - 183.3
Balance 31 December 2020 (restated)
2
24.1 - 270.0 0.2 12.5 162.5 - 69.4 – - 140.1
Movements:
- Statement of income 30.8 - 50.0 0.5 0.3 2.8 - 2.8 - 18.4
- Other comprehensive income – – - 1.1 - 4.2 – 0.4 - 4.9
- Acquisitions/divestments – 12.0 – – – - 4.5 7. 5
- Exchange differences 0.4 - 10.9 0.2 0.7 3.6 - 4.9 - 10.9
Balance 31 December 2021
55.3 - 318.9 - 0.2 9.3 168.9 - 81.2 - 166.8
Assets 55.3 0.1 0.8 9.7 168.9 30.5 - 214.7 50.6
Liabilities – - 319.0 - 1.0 - 0.4 – - 111.7 214.7 - 217.4
Balance 31 December 2021
55.3 - 318.9 - 0.2 9.3 168.9 - 81.2 – - 166.8
1 Owned and right of use assets
2 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing Arrangements,
as detailed in Note 1.1
In determining the deferred tax liabilities for taxable temporary differences associated with
investments in associates and joint ventures, withholding tax due on undistributed reserves
have been recognized to the extent that its probable that these differences will reverse in the
foreseeable future.For these temporary differences, deferred tax liabilities amounting to
EUR 6.8 million have been recognised at 31 December 2021 (2020: nihil).
In determining the deferred tax liabilities, withholding tax and any other tax due for
unremitted earnings of subsidiaries were not recognized. These earnings are deemed to have
been permanently reinvested.
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Deferred tax assets not recognized in the Consolidated statement
of financial position
Carry-forward losses for which deferred tax assets have not been recognized amounted
toEUR0.5million at 31December2021(2020:EUR1.3million). The maturity schedule
is as follows:
In EUR millions 2022 2023 2024 2025 2026+ unlimited Total
Offsettable
carry-forward losses – – – 0.1 0.2 0.2 0.5
Deferred tax assets regarding these carry-forward losses have not been recognized because
it is not probable that sufficient taxable profit will be available to utilize the deferred tax
asset in time.
Section 9 Other disclosures
This section provides details on items that are not included in other sections, but which are
of statutory or secondary importance for understanding the Group's financial performance of
the Group due to their nature. A list of principal subsidiaries, joint ventures and associates of
the Vopak Group is also included in this section.
The following notes are presented in this section:
• 9.1 Earnings per ordinary share - number of shares
• 9.2 Loans granted and finance lease receivables
• 9.3 Impact of COVID-19 pandemic
• 9.4 Pensions and other employee benefits
• 9.5 Provisions
• 9.6 Investments and other financial assets
• 9.7 Investment commitments undertaken
• 9.8 Contingent assets and contingent liabilities
• 9.9 Financial assets and liabilities and credit risk
• 9.10 New standards and interpretations not yet implemented
• 9.11 Principal subsidiaries, joint ventures and associates
• 9.12 Events after the reporting period
Note 9.1 Earnings per ordinary share - number of shares
Basic earnings per ordinary share are calculated by dividing the net profit attributable to
holders of ordinary shares by the time-weighted average number of outstanding ordinary
shares (excluding the average number of treasury shares). The weighted average number of
outstanding shares was 125,416,945in 2021(2020:126,524,451).
In calculating the diluted earnings per ordinary share, the weighted average number of
outstanding shares is adjusted for the dilutive effects of all dilutive potential ordinary shares,
such as share-based payment arrangements.
The composition of the weighted average number of outstanding shares and of the diluted
weighted average number of outstanding shares is as follows:
In thousands Note 2021 2020
Outstanding ordinary shares at 1 January 5.1 125,395 127,625
Effects of cancellation shares issued/share buyback program 5.1 – - 1,114
Movements treasury shares 5.1 22 13
Basic weighted average number of ordinary shares
125,417 126,524
Dilutive effect of LTSPs (equity-settled part) 193 166
Weighted average number of ordinary shares including dilutive effect
125,610 126,690
At 31December2021, the company owned 392,016treasury shares (2020:345,736). The
treasury shares have no voting rights attached to them, nor are they eligible for dividends
during the period when these are held by the company.
When the vesting conditions of the equity-settled share-based payment arrangements are
met, the settlement will result in an increase of the number of shares outstanding, which
will have a dilutiveeffect. During 2021, the LTSP2018-2020share-based payment
arrangement was settled resulting in the transfer of45,434treasury shares to eligible
employees (2020:44,248shares).
The LTSP2019-2021will be settled in 2022. For more information, reference is
made to note 7.2.
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Section 9 Other disclosures
Note 9.1 Earnings per ordinary share - number of shares
Note 9.2 Loans granted and finance lease receivable
Accounting policies
The Group classifies its loans granted and other debt investments at amortized cost only if
both of the following criteria are met:
• the asset is held within a business model with the objective of collecting the contractual
cash flows, and
• the contractual terms give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal outstanding.
All loans granted and other debt investments meet these criteria and are measured at
amortized cost.
At initial recognition, the Group measures loans granted at its fair value plus directly
attributable transaction costs. Subsequently, these items are carried at amortized cost using
the effective interest method.
Assets held under afinance lease are presented in the Statement of financial position as a
receivable at an amount equal to thenet investment in the lease. The income on the finance
lease receivable is based on a pattern reflecting a constant periodic rate of return on the
lessor’snet investmentin thefinance lease and is presented as Other income.
The expected credit losses associated with its loans granted and other issued debt
instruments carried at amortized cost are assessed by the Group on a forward looking basis.
The impairment methodology applied depends on whether there has been a significant
increase in credit risk.
Loans to joint ventures and
associates
Other loans Total loans granted Finance lease receivable
In EUR millions
2021 2020 2021 2020 2021 2020 2021 2020
Carrying amount at 1 January
54.8 54.9 36.2 31.8 91.0 86.7 28.6 28.5
Movements:
Loans granted – 5.4 13.0 6.8 13.0 12.2 – –
Repayments – – - 3.8 - 0.1 - 3.8 - 0.1 - 9.5 - 5.1
Reclassification - 57.0 – – – - 57.0 – 104.7 –
Finance lease interest income – – – – – – 6.6 5.0
Exchange differences 2.2 - 5.5 0.2 - 2.3 2.4 - 7.8 0.8 0.2
Carrying amount at 31 December
– 54.8 45.6 36.2 45.6 91.0 131.2 28.6
Non-current receivables – 54.8 44.8 36.2 44.8 91.0 127.6 28.6
Current receivables – – 0.8 – 0.8 – 3.6 –
Carrying amount at 31 December
– 54.8 45.6 36.2 45.6 91.0 131.2 28.6
At 31 December 2021, there were no loans oustanding with joint ventures and associates
after theposition with one of our joint ventures in theAsiaandMiddleEastdivisionwas
converted to equity in 2021.
The increase of the Other loans granted for both years presented includes a loan to the
non-controlling shareholder of our terminals in South Africa.Apart from these movements,
there were no material movements in the loans granted during the years presented.
In 2021 a new finance lease of EUR104.1million was recorded by Vopak Terminal Corpus
Christi, in the United States, after the assets were commissioned. The commercial contract
has a duration of 20-years after which the assets will automatically transfer to the customer.
Loans granted do notinclude any subordinated loans.
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Note 9.2 Loans granted and finance lease receivable
Reference is made to note 9.9 for the fair value information and note 6.7 on the remaining
period at the end ofthereportingperiodto the contractual maturity date.
With respect to the loans granted and the finance lease receivables, which are neither
impaired nor past due, there are no indications as of the reporting date that the debtors will
not meet their payment obligations.
Note 9.3 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 remains on the health of the people working
at our terminals, offices or at home around the world 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.We have monitored developments
closely throughout the year andscenario-based contingency plans and other mitigating
measures were ready to implement, if needed. To date, thanks to the adjustments and
efforts of our people, we have observed a limited impact on our operations. All our 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.
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 work
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
plans and unchanged strategy.
Note 9.4 Pensions and other employee benefits
The majority of employees are either covered by defined benefit plans, definedcontribution
plans or mandatory external pension plans. The defined benefit plans are plans that apply in
the UnitedStates, Germany and Belgium. These countries mostly operate final-pay pension
plans, administrated by pension funds separate from the company.
Accounting policies
Defined benefit plans
The Group's net pension obligation is calculated by an independent actuary, using the
projected unit credit method. This calculation is performed separately for each plan by
estimating the amount of the benefit that employees have earned in relation to their past
services. The liability recognized in the balance sheet is the present value of these benefits
at the end of the reporting period (defined benefit obligation) less the fair value of plan
assets. The defined benefit obligation is determined by discounting the estimated future
cash flows using interest rates of high-quality corporate bonds with durations matching the
terms of the benefits.
The increase in the defined benefit obligation due to the passage of time and the expected
return on plan assets, using the same interest rate as for the defined benefit obligation, are
included in the pension costs.
Past-service costs are recognized immediately in the statement of income. Actuarial gains
and losses arising from experience adjustments and changes in actuarial assumptions are
recognized in equity via Other comprehensive income in the period in which they arise.
When a plan is changed, settled or when a plan is curtailed, the resulting change in the
defined benefit obligation that relates to past-service or the gain or loss on curtailment is
recognized immediately in the statement of income under Personnel expenses. The Group
recognizes gains and losses on the settlement of a defined benefit plan when the
settlement occurs.
Defined contribution plans
Contributions to defined contribution plans are recognized as an expense in the statement of
income as incurred.
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Note 9.3 Impact of COVID-19 pandemic
Note 9.4 Pensions and other employee benefits
Accounting estimates and judgments applied
The defined benefit obligation is determined on the basis of assumptions for future
developments in variables such as salary increase, price index increase, life expectancy and
discount rate. All assumptions are assessed at the reporting date. Changes in the
assumptions may significantly affect the liabilities and pension costs under the defined
benefit plans. The weighted average of these assumptions as well as sensitivities of key
assumptions are disclosed in this note.
Pensions and other employee benefits
The table below provides an overview of the movements in the plan assets and defined
benefits obligation for the years presented, showing separately the amounts that were
recognized in the income statement, the statement of other comprehensive as well as the
cash flows for the period.
Plan assets Defined Benefit Obligation Total
in EUR millions 2021 2020 2021 2020 2021 2020
Opening balance defined benefits position at 1 January
11 7. 2 115.2 - 165.4 - 156.5 - 48.2 - 41.3
Movements:
Current service costs – – - 6.2 - 5.3 - 6.2 - 5.3
Administration costs and taxes – – - 0.4 - 0.5 - 0.4 - 0.5
Interest income/(expenses) 3.0 3.5 - 3.8 - 4.4 - 0.8 - 0.9
Components of defined benefit income/(costs) recorded in profit or loss
3.0 3.5 - 10.4 - 10.2 - 7.4 - 6.7
Return on plan assets (excluding interest income on plan assets) 8.4 9.4 – – 8.4 9.4
Actuarial gains (-) and losses from changes in demographic assumptions (remeasurement) – – 2.3 1. 5 2.3 1. 5
Actuarial gains (-) and losses from experience – – 1. 2 - 1.1 1. 2 - 1.1
Actuarial gains (-) and losses from changes in financial assumptions (remeasurement) – – 5.6 - 16.6 5.6 - 16.6
Components of defined benefit income/(costs) recorded in other comprehensive income
8.4 9.4 9.1 - 16.2 17. 5 - 6.8
Benefits paid from the pension fund - 5.6 - 5.4 4.9 4.6 - 0.7 - 0.8
Employer's contibutions 6.5 4.2 0.7 0.8 7. 2 5.0
Exchange differences 9.2 - 9.7 - 11.1 12.1 - 1.9 2.4
Closing balance defined benefits position at 31 December
138.7 11 7. 2 - 172.2 - 165.4 - 33.5 - 48.2
Other net pension obligations – – - 1.4 - 1.0 - 1.4 - 1.0
Total pension position recognized at 31 December
138.7 11 7. 2 - 173.6 - 166.4 - 34.9 - 49.2
Current liabilities - 0.2 - 0.2
Non-current liabilities - 34.7 - 49.0
Net pension obligation recognized at 31 December
- 34.9 - 49.2
1 The defined benefits obligation related to unfunded pension plans amounted to EUR 3.0 million at year-end 2021 (2020: EUR 3.3 million).
Defined Benefit Obligation
2021 2020
Defined benefits obligations Allocated to the plans' participants:
Active members - 84.8 - 84.1
Deferred members - 35.9 - 31.8
Pensioners - 51.5 - 49.5
Defined benefit obligation at 31 December
- 172.2 - 165.4
Market volatility had a positiveimpact on the Group's defined benefit plans in 2021, which resulted in a
remeasurementgain(gross) of EUR17.5million (2020:lossesofEUR6.8million), being recorded, net of
tax, in other comprehensive income. These remeasurements were caused bythe defined benefit
obligation impact of deviations from the assumptions set at the beginning of the year which were only
partly offset by the higher than expected return on plan assets.
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253
Change in the fair value of plan assets and major classes of plan assets
The following tables summarize the characteristics/main elements of the plan assets
at 31December.
Total
in EUR millions 2021 2020
Major classes of plan assets
Bonds - investment grade 47.9 42.5
Bonds - high yield 26.6 24.8
Equity instruments 64.2 49.9
Fair value of plan assets at 31 December
138.7 11 7. 2
The investments consist of participations in investment funds from reputable asset
managers and are therefore well-diversified, such that the failure of any single investment
would not have a material impact on the overall value of the investment fund.
The pension fund has not invested directly in shares of RoyalVopak, parts of the Group or in
realestate of the Group.
Expected maturity, contribution and impact on result
The expected maturity analysis of undiscounted pension benefits at
31December2021is as follows:
In EUR millions 2022 2023 2024 2025 2026 2027+ Total
Undiscounted
pension benefits 5.5 6.0 7. 3 6.8 6.8 237.1 269.5
Based on the latest funding agreements, the employer’s contribution is expected to be
around EUR7.0million in 2022.
Assumptions and sensitivity analysis
Assumptions
Total
2021 2020
Assumptions based on weighted average at 31 December
Discount rate on net liability 2.62% 2.26%
Expected general salary increase 5.03% 4.18%
Expected price index increase 2.81% 2.74%
Average Life expectancy in years for man: 20.4 20.6
Average Life expectancy in years for women: 22.7 22.9
The discount rates used in the determination of defined benefit obligations and pension
expenses are based on high quality corporate bonds (AA) with a duration matching the
duration of the pension liabilities. In addition, the calculations were based on recent mortality
tables, taking future developments in mortality rates into account through projections or
surpluses.Local historical data were used for employee turnover and disability assumptions.
The liabilities and pension expenses related to definedbenefit plans are subject to risks
regarding changes in discount rates, plan assets and returns derived from these assets,
future salary increases, inflation and life expectancy. Such changes can negatively or
positively influence the liabilities and necessitate additional future pension charges under
IAS19. The table below shows the estimated impact on the defined benefit obligations for
defined benefit plans for each risk variable.
Sensitivity analysis
In EUR millions Change Increase Decrease
Sensitivity assumptions
Price inflation 1.0% 6.2 - 5.4
Salary growth 0.25% 1. 8 - 1.7
Discount rates 1.0% - 24.4 31.5
Life expectation 1 year 5.4 N/A
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The sensitivity analysis is based on changes that are realistically possible as at the end of the
financial year. Each change in a significant actuarial assumption was analyzed separately as
part of the test. Interdependencies were not taken into account.
Note 9.5 Provisions
Accounting policies
Provisions are recognized for legal or constructive obligations that arose in the past, the
amount of which, though uncertain, can be reliably estimated and where it is probable that
the settlement of the obligations will entail a cash outflow.Provisions are measured at the
present value of the expenditures expected to be required to settle the obligation using a
pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the obligation. The increase in the provision due to the passage of time is
recognized as interest expense.
In accordance with current legislation, environmental plans and other measures to be
adopted are agreed with local, regional and national authorities as appropriate. As soon as
such plans are approved or other statutory obligations arise, a provision is formed based on
the most reliable estimate possible of the future expenses.
A provision for reorganization is formed when Vopak has approved a detailed and formalized
reorganization plan and when the reorganization has either commenced or been announced.
Provisions for other deferred long-term employee benefits, other than pensions and other
employee benefits, for example, redundancy benefits, anniversary incentives and long-term
remuneration settled in cash, are calculated using the method for defined benefit plans. Any
actuarial results arising are recognized immediately in the statement of income. The same
applies to any changes relating to past service.
Key accounting estimates and judgments
The amount recognized as a provision is management's best estimate of the amount
required to settle the obligation. The outcome depends on future events that are uncertain by
nature. In assessing the likely outcome of lawsuits and tax disputes, management also
bases its assessment on external legal assistance and established precedents.
The Group is exposed to risks regarding environmental obligations arising from past
activities. For example, anumber of sites have to be decontaminated before being handed
back at the end of the contractual period. Under current legislation, environmental plans and
any other measures to be adopted have to be agreed with local, regional and national
authorities as appropriate. As soon as such plans are approved or other legal obligations
arise, a provision is formed based on the most reliable estimate of possible future expenses.
Given the degree of difficulty in making estimates, this does not guarantee that no additional
costs will arise in the future.
Movements in provisions
In EUR millions
Environmental
liabilities Other Total
Non-current liabilities 10.8 11. 4 22.2
Current liabilities 5.2 1 7. 2 22.4
Balance at 31 December 2020
16.0 28.6 44.6
Movements:
Additions 5.0 5.7 10.7
Withdrawals - 1.3 - 7.1 - 8.4
Reclassification assets held for sale - 2.7 – - 2.7
Releases - 0.2 - 3.3 - 3.5
Exchange differences 0.3 0.1 0.4
Balance at 31 December 2021
1 7. 1 24.0 41.1
Non-current liabilities 10.9 5.9 16.8
Current liabilities 6.2 18.1 24.3
Balance at 31 December 2021
1 7. 1 24.0 41.1
Expected withdrawals
< 1 year 6.2 18.1 24.3
2nd year 2.6 0.6 3.2
3rd year 1. 0 0.5 1. 5
4th year 0.9 1. 1 2.0
5th year 1. 4 0.4 1. 8
> 5th year 5.0 3.3 8.3
Total
1 7. 1 24.0 41.1
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
255
Note 9.5 Provisions
Environmental provisions
Vopak is obliged to clean up soil contamination at different locations. In general, an accurate
and reliable estimate of the provision for this environmental risk can only be made after
conducting a thorough survey and drawing up a management plan for the site, on the basis
of which the governmental authorities issue an order.
The environmental provisions primarily relate to historical contaminations. Financial
exposures to potential new soil contaminations in relation to products spills are very limited.
If a spill or any unwanted discharge takes place, emergency mitigation procedures are in
place at all the terminals which contain and remediate the spill immediately, according to the
Vopak standards.
Atyear-end2021, the total provision for environmental liabilities amounted to
EUR17.1million(2020: EUR16.0million). The provision is mainly related to environmental
liabilities at various terminals in the divisions Europe & Africa and Americas. During 2021
no significant movements have been recorded. For more information, reference is
made to note 3.8.
Other provisions
The other provisions primarily relate to legal and claims-related provisions and the provisions
for the LTIPs. Many of the claims-related provisions concern insured events, for which the
receivable on the insurance company is recognized separately under the Other receivables.
LTIPs
Other provisions included an amount of EUR2.7million (2020:EUR2.6million) for the
LTCPs (see note 7.2), andnonefor the cash-settled share-basedpayments of the
LTSPsin2021and2020(seenote1 to the first table of note 7.2). EUR2.3million of the total
provision in relation to the LTIPs will be settled in 2022(2020:EUR1.8million).
The movement in the provisions in connection with the LTIPs recognized in the income
statement amounted to an expense of EUR 0.7 million in 2021 (2020: expense of
EUR0.9million). Reference is also made to note 7.2.
Other
Atyear-end2021, EUR21.3million (2020:EUR25.9million) was recognized under the
Otherprovisions, which primarily comprises various smaller legal cases and claim
settlements of which the larger part was related to insured events. The movement in these
other provisionsamounted to an expense of EUR5.3millionin2021 (2020:EUR5.1million).
No other individual items within the remaining provisions are considered to be individually
material. The company expects that the current cases provided for will be substantively
resolved within the coming fiveyears.
Note 9.6 Investments and other financial assets
The group has investments in the equity of other entities which do not classify as either a
subsidiary, joint venture or associate. These investments primarily concern the investments
in Sabtank in Saudi Arabia, Vopak Terminal Venezuela and the investments held by Vopak
Ventures B.V. These investments in unlisted entities are not held for trading and are
considered to be strategic investments.
Accounting policies
The group makes an irrevocable election on an investment-by-investment basis at the time of
initial recognition to measure these investments either as:
• Fair value through profit and loss (FVPL); or
• Fair value through Other comprehensive income (FVOCI).
Investments and other financial assets are measured at fair value (level 3). At initial
recognition, the Group measures a financial asset at its fair value. Transaction costs of
financial assets measured at FVPL are expensed in profit or loss, while these are recognized
in Other comprehensive income for financial assets measured at FVOCI.
The Group subsequently measures all equity investments at fair value. Where the group’s
management has elected to present fair value gains and losses on equity investments in
OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss
following the derecognition of the investment. Dividends from such investments continue to
be recognized in profit or loss as dividend income as part of the Other operating income.
Reference is also made to note 2.4.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
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|
256
Note 9.6 Investments and other financial assets
At year-end2021, all equity investments are classified as FVOCI. The total fair value of the
investments amounted to EUR83.6million (2020:EUR36.5million) at year-end2021. The
total dividend income in 2021 from these investments amounted to EUR0.5milion
(2020:EUR2.2million).
Note 9.7 Investment commitments undertaken
The investment commitments undertaken by the Group for subsidiaries amounted to
EUR85.4million as at 31December2021(2020:EUR199.7million), and were primarily
related to property, plant and equipment.
Note 9.8 Contingent assets and contingent liabilities
Contingencies in respect of joint ventures and associates
Joint ventures Associates Total
In EUR millions
31-Dec-
2021
31-Dec-
2020
31-Dec-
2021
31-Dec-
2020
31-Dec-
2021
31-Dec-
2020
Commitments to provide debt or
equity funding 16.1 58.5 – 6.3 16.1 64.8
Guarantees and securities
provided 98.7 101.3 11. 4 10.5 110.1 111.8
The amounts of guarantees and securities can potentially be called within one year.
The joint venture and associates of the Group are currently, and may from time to time
become, involved in a number of legal proceedings, including inquiries from, or discussions
with, governmental authorities (including tax authorities) that are incidental to their
operations. For the contingent liabilities of the joint ventures and associates as at year-end
related to legal cases, it is based on the current facts and circumstances not believed that
they may have a material adverse effect on the financial position or profitability of the Group.
Due to inherent uncertainties, the Group cannot make any accurate quantification of any
cost, or timing of such cost, which may arise from any of the legal proceedings referred to in
this report, however costs in complex litigation may be substantial.
Guarantees and securities included in ratio calculations
The notional amount of guarantees and securities provided on behalf of participating
interests in joint ventures and associates, which is also included in ratios, increased from
EUR80.8million at 31December2020to EUR85.8million at 31December2021. Of this
amount, nil was recognized in the statement of financial position (2020:nil). Reference is
also made to note 5.5.
Other contingencies
Environmental obligations
The Group is exposed to risks regarding environmental obligations arising from past
activities. For example, a number of sites have to be decontaminated and restored to their
original condition before being handed back at the end of the contractual period. Under
current legislation, environmental plans and any other measures to be adopted have to be
agreed with local, regional and national authorities as appropriate. As soon as such plans are
approved or other legal obligations arise, a provision is formed based on the most reliable
estimate possible of future expenses. TheExecutiveBoardis of the opinion that the currently
recognized provisions are adequate, based on information currently available. However, given
the degree of difficulty in making estimates, this does not guarantee that no additional costs
will arise going forward.
Other legal proceedings and risks
As a result of its day-to-day activities, the Group is involved in a number of other legal
proceedings.The ExecutiveBoard is of the opinion that for the legal cases and risks for
which no provisions have been recognized, it is not probable at year-end that the final
outcome will result in a cash outflow, therefore no provisions have been formed.
Furthermore, as explained in the Risksandriskmanagement section, the Group can be held
liable for any non-compliancewith laws and regulations. The risks in connection with
non-compliance, as well as the potential impact on the company, are disclosed in the
Internalcontrol andriskmanagementsection of this report.
As part of divestments of terminals and assets, Vopak has provided certain customary
representations and warranties in the relevant sales purchase agreements. These
representations and warranties will generally terminate, depending on their specific features,
a number of years after the relevant transaction completion date. Based on the current facts
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
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|
257
Note 9.7 Investment commitments undertaken
Note 9.8 Contingent assets and contingent liabilities
and circumstances, management has determined that for the items for which no provision is
currently recognized, the likelihood of a cash outflow relating to these items is
considered to be remote.
Note 9.9 Financial assets and liabilities and credit risk
Financial assets and liabilities
Carrying amount
Fair value
In EUR millions Note 2021 2020 2021 2020
Other financial assets 9.6 83.6 36.5 83.6 36.5
Currency derivatives 6.2 36.0 - 11.8 36.0 - 11.8
Financial instruments at fair value
119.6 24.7 119.6 24.7
Loans granted 9.2 45.6 91.0 45.6 91.0
Trade and other receivables 4.2 259.6 276.1 259.6 276.1
Cash and cash equivalents 5.5 73.4 68.3 73.4 68.3
Finance lease receivable 9.2 131.2 28.6 131.2 28.6
Loans and receivables
509.8 464.0 509.8 464.0
Bank overdrafts and short-term borrowings 5.5 - 464.6 - 214.3 - 464.6 - 214.3
US Private Placements 5.5 - 1,428.6 - 1,448.6 - 1,611.7 - 1,677.1
JPY Private Placement 5.5 - 153.5 - 157.6 - 206.1 - 215.3
Bank loans 5.5 - 130.6 - 122.9 - 132.8 - 126.3
Lease liabilities 5.5 - 711.3 - 699.2 - 711.3 - 699.2
Credit facilities and other long-term loans 5.5 - 109.9 - 15.1 - 109.9 - 15.1
Trade creditors 4.3 - 70.1 - 51.4 - 70.1 - 51.4
Other creditors 4.3 - 110.0 - 132.2 - 110.0 - 132.2
Other financial liabilities
- 3,178.6 - 2,841.3 - 3,416.5 - 3,130.9
Net at amortized cost - 2,668.8 - 2,377.3 - 2,906.7 - 2,666.9
Standby credit facility 5.5, 6.7 956.2 1,054.7
Standby bank facility 6.7 133.0 200.0
Unrecognized financial instruments
1,089.2 1,254.7
Determination of fair value for financial instruments
A number of the Group’s accounting policies and disclosures require the determination of fair
value for the financial instruments. A fair value measurement is an estimate of the price that
would be received upon the sale of an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. 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). No material financial instruments were measured at fair value
using level3 (inputs not based on observable market data). Inputs derived from external
sources are corroborated or otherwise verified, as appropriate.
The fair values 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 profiles of the
instruments. The calculations include credit spreads based on the most recent
borrowing contracts.
The fair values of interest rate swaps, cross-currency interest rate swaps and forward foreign
exchange contracts are determined by discounting the future cash flows using the applicable
period-end observable yield curve, taking into account credit risk and the risk of
non-performance.
In view of the short-term nature or the magnitude of the amounts, the Group considers that
the fair value of loans granted, trade and other receivables, cash and cash equivalents, bank
overdrafts, credit facilities, other long-term loans and trade creditors are not materially
different from their carrying value.
The fair value of the Other equity investments (level 3) are based on discounted cash flow
projections based on reliable estimates of future cash flows or recent transactions.
The initial measurement at the trade date of all financial instruments is the fair value. Except
for derivatives, the initial measurement of financial instruments is adjusted for directly
attributable transaction costs.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
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258
Note 9.9 Financial assets and liabilities and credit risk
Note 9.10 New standards and interpretations notyetimplemented
There are no new accounting standards, amendments to existing standards or new IFRIC
interpretations published that are not yet effective that are expected to have a material
impact on the Group in future reporting periods and on foreseeable future transactions.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
259
Note 9.10 New standards and interpretations not yet implemented
Note 9.11 Principal subsidiaries, joint
ventures,associates andinvestments
Overview as per 31 December 2021
SUBSIDIARIES
Europe, Middle East & Africa
Belgium
Vopak Agencies Antwerpen N.V.
Vopak Terminal Eurotank N.V.
Vopak Chemical Terminals Belgium N.V.
Germany
Vopak Agencies Germany GmbH
The Netherlands
Vopak Agencies Amsterdam B.V.
Vopak Agencies Rotterdam B.V.
Vopak Agencies Terneuzen B.V.
Vopak Chemicals Logistics Netherlands B.V.
Vopak Global Engineering Services B.V.
Vopak Europe & Africa B.V.
Vopak Finance B.V.
Vopak Global IT B.V.
Vopak Global Procurement Services B.V.
Vopak Global Shared Services B.V.
Vopak LNG Holding B.V.
Vopak Maasvlakte Terminal B.V.
Vopak Nederland B.V.
Vopak Energy Terminals Netherlands B.V.
Vopak Terminal Botlek B.V. 
Vopak Terminal Chemiehaven B.V.
Vopak Terminal Europoort B.V.
Vopak Terminal Laurenshaven B.V.
Vopak Terminals North Netherlands B.V.
Vopak Terminal TTR B.V.
Vopak Terminal Vlaardingen B.V.
Vopak Terminal Vlissingen B.V.
Vopak Ventures B.V.
South Africa
Vopak Terminal Durban (Pty) Ltd. (70%)
Vopak South Africa Developments (Pty) Ltd. (70%)
Vopak Reatile Richards Bay (Pty) Ltd. (70%)
Switzerland
Monros AG
United Kingdom
Vopak Holding Bacrippuls Ltd.
Asia Pacific
Australia
Vopak Terminals Australia Pty Ltd.
Vopak Terminals Sydney Pty Ltd.
Vopak Terminal Darwin Pty Ltd.
China
Vopak China Management Company Ltd.
Vopak Terminal Zhangjiagang Ltd.
Vopak Terminal Shangdong Lanshan Ltd. (60%)
1
Vopak Terminal Ningbo Co. Ltd. (85%)
Vopak (Huizhou) Terminal Services Co. Ltd.
India
Vopak Terminals Kandla (CRL Terminals Pvt, Ltd.)
Indonesia
PT Vopak Terminal Merak (95%)
Singapore
Vopak Agency Singapore Pte Ltd.
Vopak Asia Pte. Ltd.
Vopak Terminals Singapore Pte. Ltd. (69.5%)
2
Vopak Terminal Penjuru Pte. Ltd. (100%)
3
Vopak Gas Terminal LLP (80%)
4
Monros Insurance Pte. Ltd.
Vietnam
Vopak Vietnam Co. Ltd.
Americas
Brazil
Vopak Brasil S.A.
Canada
Vopak Terminals of Canada Inc.
Vopak Terminals of Eastern Canada Inc.
Colombia
Vopak Colombia S.A.
Mexico
Vopak Mexico S.A. de C.V.
Panama
Vopak Panama Atlantic Inc.
United States
Vopak North America Inc.
Vopak Terminals North America Inc.
Vopak Terminal Deer Park Inc.
Vopak Terminal Corpus Christi
5
Vopak Terminal Savannah Inc.
Vopak Terminal Los Angeles Inc.
Vopak Terminal Long Beach Inc.
Vopak Agencies Americas Corp.
JOINT VENTURES
Europe, Middle East & Africa
Germany
German LNG Terminal GmbH (33.3%)
1 Vopak Terminal Penjuru Pte. Ltd. 60% ownership in Vopak Terminals Shangdong Lanshan
2 Vopak Holding Singapore Pte. Ltd 69.5% ownership in Vopak Terminals Singapore Pte. Ltd.
3 Vopak Terminals Singapore Pte. Ltd. 100% ownership in Vopak Terminals Penjuru Pte. Ltd.
4 Vopak Terminals Singapore Pte. Ltd. 80% ownership in Vopak Gas Terminal LLP
5 Legally part of Vopak Terminal Deer Park Inc.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
260
Note 9.11 Principal subsidiaries, joint ventures,associates andinvestments
The Netherlands
Gate terminal B.V. (50%)
MultiCore C.V. (25%)
NxtPort B.V.(50%)
Pakistan
Engro Vopak Terminal Ltd. (50%)
Spain
Terminales Quimicos S.A. (Terquimsa) (50%)
Sweden
Vopak Agencies Sweden A.B. (50%)
United Arab Emirates
Vopak Horizon Fujairah Ltd. (33.33%)
AsiaPacific
China
Vopak Shanghai Logistics Co. Ltd. (50%)
Vopak Nanjiang Petrochemicals Terminal Tianjin Co. Ltd. (50%)
Vopak Bohua (Tianjin) TerminalCo.Ltd.(50%)
Tianjin Lingang Vopak Bohua Jetty Co. Ltd. (30%)
Vopak (Qinzhou) Jetty Co. Ltd. (51%)
Indonesia
PT Jakarta Tank Terminal (49%)
Korea
Vopak Terminals Korea Ltd. (51%)
Malaysia
Kertih Terminals Sdn. Bhd. (30%)
6
Pengerang Terminals Sdn.
7
Bhd. (49%)
Pengerang Independent Terminals Sdn. Bhd. (90%)
Singapore
Banyan Cavern Storage Services Pte. Ltd. (45%)
8
Thailand
Thai Tank Terminal Ltd. (49%)
Americas
Brazil
Uniao-Vopak Armazens Gerais Ltda. (50%)
Mexico
Terminal de Altamira
de S. de R.L. de C.V. (60%)
Panama
Payardi Terminal Company S. de R.L. (50%)
United States
Vopak Industrial Infrastructure Americas LLC (VIIA) (50%)
Vopak Moda Houston LLC (50%)
ASSOCIATES
Canada
Ridley Island LPG Export GP Inc. (30%)
China
Zhangzhou Gulei Haiteng Jetty Investment and Management
Co. Ltd. (30%)
Colombia
Sociedad Portuaria El Cayo
SA ESP (SPEC) (49%)
Malaysia
Pengerang Terminals (Two) Sdn. Bhd. (25%)
Saudi Arabia
Jubail Chemicals Storage & Services Company LLC /
Chemtank (22%)
Pakistan
Engro Elengy Terminal Pakistan Ltd. (44%)
The Netherlands
Vopak Terminal Eemshaven B.V. (10%)
Helios Eemshaven B.V. (8%)
9
Maasvlakte Olie Terminal N.V. (16.67%)
INVESTMENTS
Germany
Hydrogenious LOHC Technologies GmbH (10.3%)
Netherlands
Falcker Holding B.V. (25.4%)
Harbour Stone B.V. (24.9%)
Harbour Oil B.V. (33.3)
HyET Holding B.V. (5%)
HyET Energy Systems B.V. (13%)
HyET Hydrogen B.V. (5%)
HyperSoniq B.V. (29.7%)
Teqplay B.V. (24%)
TWTG Group B.V. (30.3%)
Saudi Arabia
SABIC Terminal Services Company Ltd./ Sabtank (10%)
Singapore
Performance Rotors Pte. Ltd. (20%)
United Kingdom
Advanced 3D Laser Solutions Limited (25%)
United States
Aquacycl Inc. (9.5%)
Data.world Inc. (2%)
Venezuela
Vopak Venezuela S.A. (100%)
6 Vopak Terminal Penjuru Pte. Ltd. 30% ownership in Kertih Terminals Sdn. Bhd.
7 Vopak Terminal Pengerang B.V. 49% ownership in Pengerang Terminals Sdn. Bhd.
8 Vopak Terminals Singapore Pte. Ltd. 45% ownership in Banyan Cavern Storage Services Pte. Ltd
9 Vopak Terminal Eemshaven B.V,. in which Vopak has a 10% share, holds 80% of the shares in Helios Eemshaven B.V.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
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|
261
Note 9.12 Events after the reporting period
No subsequent events have occured after the reporting date.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
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262
Note 9.12 Events after the reporting period
Company Financial Statements
Company Statement of Income
In EUR millions Note 2021
Restated
2020
1
Other operating income – 0.7
Total operating income
– 0.7
Personnel expenses 8 43.8 38.0
Other operating expenses 30.5 26.6
Depreciation and amortization 3.0 3.3
Total operating expenses
77.3 67.9
Interest and similar expenses - 72.7 - 62.9
Result before income tax
- 150.0 - 130.1
Income tax 9 40.5 32.9
Share in result of subsidiaries and participations 2 323.7 391.8
Net profit
214.2 294.6
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a change
in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing Arrangements,
as detailed in Note 1.1. of the Consolidated Financial Statements.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
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263
Company Financial Statements
Company Statement of Financial Position beforeProfitAppropriation
Company Statement of Financial Position beforeProfitAppropriation
In EUR millions Note 31-Dec-21
Restated
31-Dec-20
1
Participating interests in group companies 2 2,568.5 2,125.2
Property, plant and equipment - owned assets 5.1 6.0
Property, plant and equipment - right-of-use assets 30.8 32.6
Loans granted 3 2,254.6 2,437.2
Derivative financial instruments 6 35.6 9.1
Deferred taxes 36.6 29.0
Total non-current assets
4,931.2 4,639.1
Trade and other receivables 1. 3 0.9
Prepayments 5.3 0.6
Derivative financial instruments 6 0.1 1. 4
Cash and cash equivalents 11. 2 1. 9
Total current assets
1 7. 9 4.8
Bank overdrafts 2.6 –
Interest-bearing loans 5 - 0.5 121.2
Lease liabilities 2.2 2.2
Derivative financial instruments 6 3.9 7. 1
Trade and other payables 32.8 23.7
Provisions 3.3 2.2
Total current liabilities
44.3 156.4
Current assets less current liabilities - 26.4 - 151.6
Total assets less current liabilities 4,904.8 4,487.5
In EUR millions Note 31-Dec-21
Restated
31-Dec-20
1
Interest-bearing loans 5 1,682.5 1,485.0
Lease liabilities 29.4 30.9
Derivative financial instruments 6 – 5.4
Provisions 4.2 4.8
Non-current liabilities
1,716.1 1,526.1
Share capital 62.9 62.9
Share premium 194.4 194.4
Legal reserve for participating interests 4 517.4 404.0
Translation reserve - 30.7 - 123.9
Revaluation reserve derivatives - 94.8 - 115.0
Revaluation reserve assets 49.7 16.5
Transaction reserve non-controlling interest 0.9 1. 3
Other reserves 4 2,274.7 2,226.6
Unappropriated profit 4 214.2 294.6
Shareholders' equity
3,188.7 2,961.4
Total 4,904.8 4,487.5
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing Arrangements,
as detailed in Note 1.1. of the Consolidated Financial Statements.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
264
Notes to the Company Financial Statements
Note 1. General
Koninklijke Vopak N.V. (Vopak) has its registered office in Rotterdam, the Netherlands. Vopak
is listed on the Euronext Amsterdam and is part of the AMX index. Vopak is the world's
leading independent tank storage provider, specialized in the storage and handling of liquid
chemicals, gases and oil products.
The company is registered at the Company Registry of the Rotterdam Chamber of
Commerce under number24295332.
All amounts are presented in EUR million and have been rounded to the nearest EUR 100k,
unless otherwise stated.
Accounting policies
The Company financial statements have been drawn up in accordance with Dutch law
(Part9of Book2 of the DutchCivilCode). In doing so, the company made use of the
possibility to apply the accounting policies (including the policies for the presentation of
financial instruments as equity or loan capital) used in the Consolidated financial statements
to the Company financial statements, as provided for in Section362(8) of Book2 of the
DutchCivilCode.
The accounting policies applied in the Company financial statements are the same as those
applied in the Consolidated financial statements, unless stated otherwise.
In April 2021, the IFRS interpretation committee published agenda decision Configuration
orcustomisation costs in a cloud computing arrangement which considers whether an
intangible asset can be recognised in relation to configuration or customisation of application
software.Vopak has considered the impact of the accounting policy change on the results
reported in the current and comparative reporting periods and applied to the Group.
Vopakhas retrospectively adjusted the carrying values of intangible software assets.
Formore information onthis topic reference is made to note 1.1. of the Consolidated
Financial Statements.
The effect of the IFRIC agenda decision as per 1 January 2020 is summarized below:
• Participating interests in group companies: EUR 13.0million (decrease)
• Other reserves: EUR 13.0 million (decrease)
Participating interests in Group companies
Interests in Group companies and other companies over which Vopak exercises control or
which it manages are carried at net asset value. The net asset value is determined by
measuring the assets, provisions and liabilities and calculating the result according to the
accounting policies applied in the Consolidated financial statements.
Note 2. Participating interests in Group companies
In EUR millions 2021 Restated 2020
1
Carrying amount at 31 December 2,125.2 2,004.7
Change in accounting policy
1
– - 13.0
Carrying amount at 1 January 2020
2,125.2 1,991.7
Investments – 130.9
Disposal - 14.7 –
FV change equity investment - 33.1 1. 9
Dividends received - 116.9 - 209.1
- Other – - 8.5
- Exchange differences 269.1 - 189.4
- Hedging 15.2 15.9
Other comprenhensive income from Participating interests
in Group Companies 284.3 - 173.5
Profit 323.7 391.8
Carrying amount at 31 December
2,568.5 2,125.2
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a
change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing
Arrangements, as detailed in Note 1.1. of the Consolidated Financial Statements.
The majority of 2021 dividend relates to settlement of intra-group positions by intra-group
dividends (upstreamingofdividends).
For an overview of the investments in subsidiaries, joint ventures and associates held
(indirectly) by the company, reference is made to note 9.11 of the Consolidated
financial statements.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
265
Notes to the Company Financial Statements
Note 1. General
Note 2. Participating interests in Group companies
Note 3. Loans granted
In EUR millions 2021 2020
Carrying amount at 1 January
2,437.2 2,486.5
Loans granted 231.2 421.9
Repayments - 413.8 - 471.2
Carrying amount at 31 December
2,254.6 2,437.2
Loans granted mainly related to various loans to subsidiaries. At 31 December 2021 loans
granted did not include any subordinated loans (2020: nil).
Note 4. Shareholders’ equity
Reference is made to note 5.1 to the Consolidated Financial Statementsfor movements in
the number of shares, share capital and share premium.
The share premium can be distributed in full, free of tax.
For the translation reserve, the revaluation reserve derivatives the revaluation reserve assets
and the transaction reserve of non-controlling interests (NCI), reference is made to note 5.2
to the Consolidated Financial Statements.
Movements in the remaining components of shareholders’ equity for the years presented
are shown in the following tables.
Legal reserve for participating interests
In EUR millions 2021 2020
Carrying amount at 1 January
404.0 383.8
Dotation from Other reserves 113.4 20.2
Carrying amount at 31 December
517.4 404.0
Other reserves
In EUR millions 2021 Restated 2020
1
Carrying amount at 31 December 2,226.6 1,940.1
Change in accounting policy
1
– - 13.0
Carrying amount at 1 January 2020
2,226.6 1,927.1
Profit appropriation from Unappropriated profit 144.1 424.9
Measurement of equity-settled share-based payment arrangements 7. 8 4.5
Purchase treasury shares - 2.9 - 8.0
Share buyback – - 99.1
Vested shares under equity-settled share-based
payment arrangements - 1.3 - 2.1
Actuarial Reserve 13.8 - 5.3
Other – 4.8
Release to Legal reserves - 113.4 - 20.2
Carrying amount at 31 December
2,274.7 2,226.6
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a
change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing
Arrangements, as detailed in Note 1.1. of the Consolidated Financial Statements.
The other reserves as presented in the Company Statement of Financial Position includes a
legal reserve for internally developed intangibles of EUR89.8million (2020:EUR78.4million).
Unappropriated profit
In EUR millions 2021 Restated 2020
1
Carrying amount at 1 January 294.6 571.0
Profit appropriation to Other reserves - 144.1 - 424.9
Dividend in cash - 150.5 - 146.1
Profit for the year 214.2 294.6
Carrying amount at 31 December
214.2 294.6
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a
change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing
Arrangements, as detailed in Note 1.1. of the Consolidated Financial Statements.
After adjustment for the legal reservesat 31December2021, a total of EUR2,273.5million
(2020:EUR2,203.9million) is freely distributable from reserves, including
unappropriatedprofit for the year.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
266
Note 3. Loans granted
Note 4. Shareholders’ equity
Note 5. Interest-bearing loans
Nominal value in
EUR millions
> 5 years in EUR
millions
Average term in
years
Average interest in
%
2021 2020 2021 2020 2021 2020 2021 2020
Current portion -0.5 121.2 –
Non-current
portion 1,682.5 1,485.0 792.2 818.6
Total
1,682.0 1,606.2 792.2 818.6 6.5 7. 2 3.4 3.5
Note 6. Derivative financial instruments
31 December 2021 31 December 2020
In EUR millions Maturity Assets
1
Liabilities
1
Notional
amount Assets
1
Liabilities
1
Notional
amount
Forward foreign currency contracts
2)
< 1 year – 3.9 189.9 1. 4 – 137.4
Total net investment hedges
– 3.9 189.9 1.4 – 137.4
Cross-currency interest rate swaps
3
1-5 years 35.1 – 458.6 9.1 – 307.3
Cross-currency interest rate swaps
3
> 5 years 0.5 – 66.6 – 5.4 66.6
Total cash flow hedges - currency part
35.6 – 525.2 9.1 5.4 373.9
Forward foreign currency contracts < 1 year 0.1 – 48.2 – 7. 1 205.4
Total derivatives no hedge accounting
0.1 – 48.2 – 7. 1 205.4
Total derivative financial instruments 35.7 3.9 763.3 10.5 12.5 716.7
Non-current 35.6 – 9.1 5.4
Current 0.1 3.9 1. 4 7. 1
Total
35.7 3.9 10.5 12.5
1 At fair value.
2 Forward foreign currency contracts accounted for as hedges on net investments.
3 Cross currency interest rate swaps accounted for as cash flow hedges are used to hedge currency (2021: USD 468 million and JPY 20 billion; 2020: USD 468 million) on fixed debt denominated in foreign currency.
4 Interest part of long-term cross currency interest rate swaps entered into in the past for variable interest loans, currently no longer present.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
267
Note 5. Interest-bearing loans
Note 7. Pension and other employee benefits provisions
Reference is made to note 9.4 Pensions and other employee benefits which contains further
information on pensions and other employee benefits of the Netherlands.
Note 8. Personnel expenses
During the year under review, the company employed an average of 178employees and
temporary staff (inFTEs) (2020:170),ofwhichthe company employed on average 168
employees (in FTEs) (2020: 158) and on average 10 temporary staff (in FTEs) (2020: 12).They
were all posted in the Netherlands, with the exception of 4 average FTEs who worked from
abroad in 2021 (2020: 5).
In EUR millions 2021 2020
Wages and salaries 29.1 26.6
Social security charges 1. 8 1. 7
Contribution to pension schemes (defined contribution) 5.1 4.3
Long-term incentive plans 6.2 2.3
Other personnel expenses 5.6 9.1
Recharged to group companies - 4.0 - 6.0
Total
43.8 38.0
Note 9. Income taxes
Royal Vopak is the head of a corporate income tax fiscal unity which includes almost all
Dutch wholly-owned subsidiaries. The company is therefore jointly and severally liable for the
tax liabilities of the fiscal unity as a whole. The tax expense of Royal Vopak represents the tax
impact of its share in the taxable income of the fiscal unity based on Royal Vopak's earnings.
In EUR millions 2021 Restated 2020
1
Result before income tax - 150.0 - 130.1
Income tax 40.5 32.9
Effective tax rate
27.0% 25.3%
Composition: Amount % Amount %
Weighted average statutorytax rate 37.5 25.0 32.5 25.0
Non-deductible expenses 1. 1 0.7 0.7 0.5
Recognition of tax losses and tax credits 1. 9 1. 3 - 0.3 - 0.2
Effective tax (rate)
40.5 27.0 32.9 25.3
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a
change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing
Arrangements, as detailed in Note 1.1. of the Consolidated Financial Statements.
The 2021 effective tax rate of 27.0% (2020:25.3%) deviates from the applicable tax rate of
25.0% as a result of non-deductible expenses and recognition of tax losses and tax credits.
Note 10. Remuneration of Supervisory Board members
andExecutiveBoard members
For the remuneration of the Supervisory Board members and the Executive Board members,
reference is made to the section of the Remuneration report.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
268
Note 6. Derivative financial instruments
Note 7. Pension and other employee benefits provisions
Note 8. Personnel expenses
Note 11. Contingent liabilities
Guarantees and security provided on behalf of participating interests and third parties
amounted to EUR107.8million (2020:EUR109.7million).Guarantees and security provided
on behalf of Group companies amounted to EUR49.3million (2020:EUR50.2million).
Joint and several liability undertakings for an amount of EUR80.0million
(2020:EUR80.0million) were issued for bank credits granted to Royal Vopak. Furthermore,
joint and several liability undertakings for an amount of EUR41.5million
(2020:EUR41.5million) were issued for bank credits granted to subsidiaries.
The company has filed joint and several liability undertakings (403 exemptions) for a number
of its Dutch Group companies at the office of the Company Registry in whose area of
jurisdiction the Group company concerned has its registered office. The list of interests filed
at the office of the Company Registry for inspection states for which Group companies Royal
Vopak has issued joint and several liability undertakings.
The members of the Executive Board and Supervisory Board have signed the financial
statements in order to comply with the statutory obligation pursuant to article 2:101
paragraph 2 of the DutchCivilCode and article 5:25c sub c of the Act on Financial
Supervision (Wft).
Rotterdam, 15 February 2022
The Executive Board
D.J.M. Richelle - Chairman of the Executive Board and CEO
F. Eulderink - Member of the Executive Board and COO
G.B. Paulides - Member of the Executive Board and CFO
The Supervisory Board
B.J. Noteboom (Chairman)
M.F. Groot (Vice-chairman)
L.J.I. Foufopoulos - De Ridder
N. Giadrossi
R.M. Hookway
B. van der Veer
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
269
Note 9. Income taxes
Note 10. Remuneration of Supervisory Board members and Executive Board members
Note 11. Contingent liabilities
Executive Board declaration
In-control statement
In the‘Internalcontrolandriskmanagement’ paragraph, we set out in detail our risks and
risk management framework, as well as the responsibilities of the ExecutiveBoard.
The ExecutiveBoard is responsible for the design and operation of the internal risk
management and control systems and processes. In discharging this responsibility, the
ExecutiveBoard has made an assessment of the effectiveness of the design and operation
of the internal control and risk management systems and processes. The ExecutiveBoard
concluded, on the basis of such assessment, that the internal risk management and control
systems and processes are operating adequately.
On the basis of this report and in accordance with bestpractice1.4.3 of the
Dutchcorporategovernancecode of December 2016, and Article5:25c of the Financial
Supervision Act, the aforementioned assessment, the current state of affairs and to the best
of its knowledge and belief, the ExecutiveBoardconfirms that:
• the internal risk management and control systems and processes of the Group provide
reasonable assurance that the financial statements give a true and fair view of the Group’s
financial position, profit or loss, and cash flows;
• there have been no material failings in the effectiveness of the internal risk management
and control systems and processes of the Group;
• this report states those material risks and uncertainties that are relevant to the
expectation of the continuity of the Group's operations in the coming twelve months; and
• there is a reasonable expectation that the Group will be able to continue its operations
and meet its liabilities for at least twelve months, therefore, it is appropriate to adopt the
going concern basis in preparing the financial statements.
Please note that our internal risk management and control systems and processes are
unable to offer absolute assurance that the strategic, operational and financial objectives will
be fully achieved, or that laws and regulations are always complied with. Furthermore, the
systems and processes cannot prevent all human errors of judgments and mistakes. It is
also inherent that in business, cost-benefit assessments must be made for the acceptance
of risks and the implementation of controls. We continuously monitor the effectiveness of
our internal risk management and control systems and processes, and when needed these
are further improved and optimized.
Executive Board declaration
In view of all of the above, the ExecutiveBoard confirms that, to the best of its knowledge,
the financial statements give a true and fair view of the assets, liabilities, financial position
and profit or loss of the Group, and the management report (‘bestuursverslag’) in this
Annual Report includes a fair review of the position at the balance sheet date and the
development and performance of the business during the financial year, together with a
description of the principal risks and uncertainties that the company faces.
Rotterdam, 15 February 2022
The Executive Board
D.J.M. Richelle - Chairman of the Executive Board and CEO
F. Eulderink - Member of the Executive Board and COO
G.B. Paulides - Member of the Executive Board and CFO
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
270
Executive Board declaration
272 Independent auditor’s report
279 Assurance report of the independent auditor with respect
to the 2021 Sustainability Information of Koninklijke Vopak N.V.
External
auditor’s reports
Vopak Annual Report 2021
|
271
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
271
External auditor’s reports
External auditor’s reports
Independent auditor’s report
To the shareholders and Supervisory Board of Koninklijke Vopak N.V.
Report on the audit of the financial statements 2021 included in the
annual report
Our opinion
We have audited the accompanying financial statements 2021 of Koninklijke Vopak N.V.
(“company” or “group”), based in Rotterdam, the Netherlands. The financial statements
include the Consolidated Financial Statements and the Company Financial Statements.
In our opinion:
• The accompanying Consolidated Financial Statements included in the Annual Report give
a true and fair view of the financial position of Koninklijke Vopak N.V. as at 31 December
2021, and of its result and its cash flows for 2021 in accordance with International
Financial Reporting Standards as adopted by the European Union (“EU-IFRS”) and with
Part 9 of Book 2 of the Dutch Civil Code.
• The accompanying Company Financial Statements included in the Annual Report give a true
and fair view of the financial position of Koninklijke Vopak N.V. as at 31 December 2021, and
of its result for 2021 in accordance with Part 9 of Book 2 of the Dutch Civil Code.
The Consolidated Financial Statements comprise:
• The Consolidated Statement of Financial Position as at 31 December 2021.
• The following statements for 2021: the Consolidated Statement of Income,
Comprehensive Income, Changes in Equity and Cash Flows.
• The notes comprising a summary of the significant accounting policies and other
explanatory information.
The Company Financial Statements comprise:
• The Company Statement of Financial Position before Profit Appropriation as at
31 December 2021.
• The Company Statement of Income for 2021.
• The notes comprising a summary of the accounting policies and other
explanatory information.
Basis for our opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on
Auditing. Our responsibilities under those standards are further described in the ‘Our
responsibilities for the audit of the financial statements’ section of our report.
We are independent of Koninklijke Vopak N.V. in accordance with the EU Regulation on
specific requirements regarding statutory audit of public-interest entities, the ‘Wet toezicht
accountantsorganisaties’ (Wta, Audit firms supervision act), the ‘Verordening inzake de
onafhankelijkheid van accountants bij assurance-opdrachten’ (ViO, Code of Ethics for
Professional Accountants, a regulation with respect to independence) and other relevant
independence regulations in the Netherlands. Furthermore, we have complied with the
‘Verordening gedrags- en beroepsregels accountants’ (VGBA, Dutch Code of Ethics).
We believe the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Materiality
Based on our professional judgement we determined the materiality for the financial
statements as a whole at EUR 19 million (2020: EUR 20 million). The materiality is based on
5% of profit before income tax, adjusted for certain non-recurring items. We have also taken
into account misstatements and/or possible misstatements that in our opinion are material
for the users of the financial statements for qualitative reasons.
Component audits are performed using the materiality levels determined by the judgement of
the group engagement team, considering materiality for the consolidated financial statements
as a whole and the reporting structure of the group. For the largest reporting entities the
audits are performed using the following component materialities: Netherlands of EUR 8.6
million (2020: EUR 8.6 million), Singapore of EUR 7.2 million (2020: 7.2 million) and the United
States of America of EUR 7.9 million (2020: EUR 7.9 million). For the other reporting entities
the component materiality did not exceed EUR 7.2 million (2020: EUR 7.2 million) and for the
majority of these components the component materiality is significantly less than this amount.
We agreed with the Supervisory Board that uncorrected misstatements in excess of EUR 0.95
million (2020: EUR 1.0 million), which are identified during the audit, would be reported to them,
as well as smaller misstatements that in our view must be reported on qualitative grounds.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
272
Independent auditor’s report
Scope of the group audit
Koninklijke Vopak N.V. is at the head of a group of entities. The financial information of this
group is included in the Consolidated Financial Statements of Koninklijke Vopak N.V.
Because we are ultimately responsible for the opinion, we are responsible for directing,
supervising and performing the group audit. In this respect we have determined the nature
and extent of the audit procedures to be carried out for reporting entities. Decisive were the
size and/or the risk profile of the reporting entities or operations. On this basis, we selected
reporting entities for which an audit had to be carried out on the complete set of financial
information or specific items.
The group’s financial statements are a combination of:
• Consolidated reporting entities, comprising the operating terminals under the group’s
control and centralized functions.
• Unconsolidated reporting entities comprised of operating terminals under joint control
with unrelated parties (joint ventures) and operating terminals where the group exercises
significant influence (associates); all accounted for under the equity method.
In establishing the overall group audit strategy and plan, we determined the type of work
that needed to be performed at the reporting entities by the group engagement team, by
component auditors from other Deloitte network firms and by component auditors from non-
Deloitte network firms primarily working under our instruction at the joint ventures and
associates. Where the work was performed by component auditors, we determined the level
of involvement we needed to have in the audit work at those reporting entities so as to be
able to conclude whether sufficient appropriate audit evidence has been obtained as a basis
for our opinion on the group financial statements as a whole. For each reporting entity we
determined whether we required an audit of their complete financial information or whether
other procedures would be sufficient.
Those where a full audit was required included the three largest (consolidated) reporting
entities (Netherlands, Singapore and United States of America), because they each make up
more than 10% of the group’s revenue or underlying profits. We included additional reporting
entities in the scope of our group audit to have audit coverage on the group’s consolidated
financial statements and to cover a geographic spread across the group’s divisions.
Audit coverage
• Audit coverage of consolidated revenues: 90%
• Audit coverage of group operating profit: 84%
• Audit coverage of total assets: 81%
In addition, we performed other procedures with respect to the remaining reporting entities.
The group consolidation, financial statements disclosures and a number of complex items
were audited by the group engagement team. These include impairment testing of terminal
assets and joint ventures, general IT controls, derivative financial instruments, hedge
accounting and share-based payments. Specialists were involved among others in the areas
of treasury, information technology, tax, accounting, pensions and valuation of terminal
assets, joint ventures and associates. Due to the COVID-19 travel restrictions during 2021 we
were not able to execute the tentatively planned visits to (un)consolidated reporting entities.
Consequently, we revised our strategy for direction and supervision of the component
auditors, whereby we varied the nature, timing and extent of these procedures based on
both quantitative and qualitative considerations. The group engagement team, among others,
held audit planning calls with all the individual component auditors and participated at a
minimum in the component auditor closing calls. For selected component auditors we
conducted remote file reviews to evaluate the work undertaken and to assess their findings.
By performing the procedures mentioned above at reporting entities, together with additional
procedures at group level, we have been able to obtain sufficient and appropriate audit
evidence about the group’s financial information to provide an opinion about the Consolidated
Financial Statements.
Our key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements. We have communicated the key audit
matters to the Supervisory Board. The key audit matters are not a comprehensive reflection of
all matters discussed. The key audit matters are consistent with these identified in the prior year.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
273
These matters were addressed in the context of our audit of the financial statements as a
whole and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Impairment testing of terminal assets, joint ventures and associates
Description Our response Our observations
The group controls a number of tank storage terminals with a total carrying
value of owned property, plant and equipment of EUR 3,834.9 million as
per 31 December 2021 (note 3.3). Furthermore, the group has an interest
in a number of joint ventures and associates, with a total carrying value of
EUR 1,583.3 million as per 31 December 2021 (note 3.5).
This area is significant to our audit as the determination whether these assets
are not carried at more than their recoverable amounts is subject to significant
management judgment. Such judgment focuses predominantly on future
cash flows, which are, among others, dependent on economic conditions
(including the impact of COVID-19), the continued attractiveness of the
terminal location for users along the major shipping routes and local market
circumstances and is inherently surrounded by uncertainties. The future cash
flows are also potentially impacted by climate risks and the energy transition,
and judgement has to be applied to reflect the potential changes in supply
and demand as a result of climate risks and the energy transition.
Our impairment testing included, among others, evaluating the group’s
policies and procedures, including internal controls, to identify triggering
events for potential impairment of terminal assets, joint ventures and
associates.
For the terminal locations that triggered management’s impairment testing,
we evaluated the policies and procedures regarding impairment testing, we
challenged management’s primary cash flow assumptions and corroborated
them by comparison to commercial contracts, customer relationship
management information, available market reports, historical trend analyses
or market multiples from recent tank terminal sales transactions in the
region. Furthermore, we obtained an understanding of Vopak’s Sustainability
Roadmap and inquired with management on the outlook and future plans for
their oil and gas terminals in the light of the climate risks and energy
transition to obtain an understanding on the potential impact on their cash
flow forecasts.
Further, we involved our valuation experts to validate the weighted average
cost of capital as applied by the group and the appropriateness of certain
assumptions in the applied value in use calculations or, where applicable, the
fair value less cost of disposal calculations.
We further assessed whether the main assumptions and related uncertainties
are appropriately reflected in the disclosures in the financial statements.
As described in note 3.8 and 3.5 of the financial statements, the group
recognized an impairment of EUR 71.0 million on property, plant and
equipment and intangibles assets and recognized an impairment of EUR
43.5 million on joint ventures in 2021.
The group has provided disclosures for its key accounting estimates in note
3.8 of the financial statements which include disclosures of:
• The impairment recognized on the carrying amount of the assets of
the Vopak Bahia las Minas terminal – Panama of EUR 71.0 million;
• The impairment recognized on the carrying amount of the joint venture
German LNG Terminal of EUR 10.8 million;
• The impairment of EUR 32.7 million recognized on the goodwill
balance of the joint venture LNG Terminal Altamira, following a new
commercial agreement that qualifies as a finance lease arrangement.
The transaction resulted in an overall positive result of EUR 2.8 million;
• The uncertainties with respect to the recoverable value of the group’s
other terminal assets, joint ventures and associates.
We did not identify any material reportable matters in management’s
assessment of the recoverability of terminal assets and joint ventures and
the corresponding disclosures in note 3.8.
By nature, the assumptions applied in measuring the recoverable amount are
subject to developments and change in later periods. This could potentially
lead to (reversal of) impairments of individual terminals going forward.
Report on the other information included in annual report
In addition to the financial statements and our auditor’s report thereon, the Annual Report
contains other information on the pages 1 to 176 and 286 that consists of:
• Management report.
• Supervisory Board report.
• Remuneration report.
• Other information as required by Part 9 of Book 2 of the Dutch Civil Code.
Based on the following procedures performed, we conclude that the other information:
• Is consistent with the financial statements and does not contain material misstatements.
• Contains all the information regarding the management report and the other information
as required by Part 9 of Book 2 of the Dutch Civil Code.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
274
We have read the other information. Based on our knowledge and understanding obtained
through our audit of the financial statements or otherwise, we have considered whether the
other information contains material misstatements.
By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the
Dutch Civil Code and the Dutch Standard on Auditing 720. The scope of the procedures performed
is substantially less than the scope of those performed in our audit of the financial statements.
Management is responsible for the preparation of the other information, including the
management report in accordance with Part 9 of Book 2 of the Dutch Civil Code, and the
other information as required by Part 9 of Book 2 of the Dutch Civil Code.
Report on other legal and regulatory requirements
Engagement
We were engaged by the Annual General Meeting as auditor of Koninklijke Vopak N.V. on
23April2014 as of the audit for the year 2015 and have operated as statutory auditor ever
since that financial year.
European Single Electronic Format (“ESEF”)
In the Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 supplementing
Directive 2004/109/EC of the European Parliament and of the Council with regard to
regulatory technical standards on the specification of a single electronic reporting format is
regulated that the Annual Report of the Company has to be prepared in a single electronic
reporting format (“ESEF”). The requirements to be met are set out in the aforementioned
delegated regulation (these requirements are hereinafter referred to as: the RTS on ESEF).
In our opinion, the Annual Report made up in XHTML format, including the partly tagged
Consolidated Financial Statements as included in the reporting package by the Company, has
been prepared in all material respects in accordance with the RTS on ESEF.
Management is responsible for preparing the Annual Report including the financial
statements in accordance with the RTS on ESEF, whereby management combines the various
components in a reporting package. Our responsibility is to obtain reasonable assurance for
our conclusion whether the Annual Report in this reporting package, is in accordance with the
requirements. We have taken into consideration what is stated in Alert 43.
Our procedures included:
• Obtaining an understanding of the entity’s financial reporting process, including the
preparation of the reporting package;
• Obtaining the reporting package and performing validations to determine whether the
reporting package containing the Inline XBRL instance document and the XBRL extension
taxonomy files have been prepared in accordance with the technical specifications; and
• Examining the information related to the Consolidated Financial Statements in the
reporting package to determine whether all required tagging has been applied and
whether they are in accordance with the RTS on ESEF.
No prohibited non-audit services
We have not provided prohibited non-audit services as referred to in Article 5(1) of the EU
Regulation on specific requirements regarding statutory audit of public-interest entities.
Description of responsibilities regarding the financial statements
Responsibilities of management Supervisory Board for
the financial statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code.
Furthermore, management is responsible for such internal control as management
determines is necessary to enable the preparation of the financial statements that are free
from material misstatement, whether due to fraud or error.
As part of the preparation of the financial statements, management is responsible for
assessing the company’s ability to continue as a going concern. Based on the financial
reporting frameworks mentioned, management should prepare the financial statements
using the going concern basis of accounting unless management either intends to liquidate
the company or to cease operations, or has no realistic alternative but to do so.
Management should disclose events and circumstances that may cast significant doubt on
the company’s ability to continue as a going concern in the financial statements.
The Supervisory Board is responsible for overseeing the company’s financial reporting process.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
275
Our responsibilities for the audit of the financial statements
Our objective is to plan and perform the audit assignment in a manner that allows us to
obtain sufficient and appropriate audit evidence for our opinion.
Our audit has been performed with a high, but not absolute, level of assurance, which
means we may not detect all material errors and fraud during our audit.
Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these financial statements. The materiality affects the nature,
timing and extent of our audit procedures and the evaluation of the effect of identified
misstatements on our opinion.
Consideration of fraud in the audit of financial statements
Description Our response
An auditor conducting an audit in accordance with Dutch Standards on Auditing is
responsible for obtaining reasonable assurance that the financial statements taken
as a whole are free from material misstatement, whether caused by fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some
material misstatements of the financial statements may not be detected. The risk of
not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
We have exercised professional judgement and have maintained professional
skepticism throughout our audit in identifying and assessing the risks of material
misstatement of the financial statements due to fraud, designing and performing
audit procedures responsive to those risks, and obtaining audit evidence that is
sufficient and appropriate to provide a basis for our opinion.
We performed the following procedures:
• We made inquiries of management, those charged with governance and others within Vopak regarding the risk of material misstatements in
the financial statements due to fraud, their process for identifying and responding to the risk of fraud, the internal communication regarding
their views on business practices and ethical behavior and whether they have knowledge of any actual, suspected or alleged fraud affecting
the company.
• We obtained an understanding of how those charged with governance exercise oversight of management’s processes for identifying and
responding to the risks of fraud in the company and the internal control that management has established to mitigate these risks.
• We evaluated whether unusual or unexpected relationships have been identified in performing analytical procedures, including those related
to revenue accounts, that may indicate risks of material misstatement due to fraud.
• We held discussions amongst team members and component auditors to identify fraud risk factors and considered whether other
information obtained from our risk assessment procedures indicated risks of material misstatement due to fraud. Fraud risk factors identified
include among others:
- Fraud, bribery and corruption;
- Compliance with respect to trade regulations/sanctions;
- Compliance with respect to environmental requirements and operating licensing requirements;
Compliance with procurement policies.
• We involved forensic specialists, focused on our fraud and non-compliance risk assessment, inquiries with management and the evaluation
of the internal control environment.
• We determined overall responses to address the assessed risks of material misstatement due to fraud at the financial statement level or at
the assertion level by:
- assigning and supervising personnel with the adequate knowledge, skills and ability;
- evaluating whether the selection and application of accounting policies by the group, particularly those related to subjective measurements
and complex transactions, may be indicative of fraudulent financial reporting;
- incorporated an element of unpredictability in the selection of the nature, timing and extent of our audit procedures. Among others, these
include a periodical reassessment of the group audit scope, planning and audit findings meetings or video calls with auditors of reporting
entities and expanding the group audit scope where appropriate. Reference is made to the section “Scope of the group audit”;
- tested the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial
statements;
- evaluated whether the judgments and decisions made by management in making the accounting estimates included in the financial
statements indicate a possible bias that may represent a risk of material misstatement due to fraud. Management insights, estimates and
assumptions that might have a major impact on the financial statements are disclosed in note 1.1 of the financial statements. Impairment
testing of terminal assets and joint ventures is a significant area to our audit as the determination whether these assets are not carried at
more than their recoverable amounts is subject to significant management judgment. Reference is made to the section “Our key audit matters”;
- performed a retrospective review of management judgments and assumptions related to significant accounting estimates such as future
cash flows used in the impairment testing, recognition of provisions and the evaluation of uncertain tax positions reflected in prior year
financial statements;
- for significant transactions such as the completion of the purchase price allocation for Vopak Industrial Infrastructure Americas, we evaluated
the business rationale of the transactions and the related management judgment and assumptions.
Based on our procedures performed we have no matters to report.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
276
Consideration of laws and regulations in the audit of financial statements
Description Our response
We are responsible for obtaining reasonable assurance that the financial
statements, taken as a whole, are free from material misstatement, whether due to
fraud or error taking into account the applicable legal and regulatory framework.
However, we are not responsible for preventing non-compliance and cannot be
expected to detect non-compliance with all laws and regulations.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some
material misstatements in the financial statements may not be detected, even
though the audit is properly planned and performed in accordance with the auditing
standards. In the context of laws and regulations, the potential effects of inherent
limitations on the auditor’s ability to detect material misstatements are greater for
such reasons as the following:
• There are many laws and regulations, relating principally to the operating
aspects of an entity, that typically do not affect the financial statements and are
not captured by the entity’s information systems relevant to financial reporting.
• Non-compliance may involve conduct designed to conceal it, such as collusion,
forgery, deliberate failure to record transactions, management override of
controls or intentional misrepresentations being made to the auditor.
• Whether an act constitutes non-compliance is ultimately a matter to be
determined by a court or other appropriate adjudicative body.
Ordinarily, the less directly non-compliance is linked to the events and transactions
reflected in the financial statements, the less likely the auditor is to become aware
of it or to identify the non-compliance.
We performed the following procedures:
• As part of obtaining an understanding of Vopak and its environment we obtained a general understanding of the legal and regulatory
framework applicable to Vopak and the industry in which it operates.
• We obtained sufficient appropriate audit evidence regarding provisions of those laws and regulations generally recognized to have a direct
effect on the determination of material amounts and disclosures in the financial statements such as (corporate) tax and pension laws and
financial repoting regulations, the requirements under the International Financial Reporting Standards as adopted by the European Union
(EU-IFRS) and Part 9 of Book 2 of the Dutch Civil Code.
• Our procedures are more limited with respect to other laws and regulations that do not have a direct effect on the determination of the
amounts and disclosures in the financial statements. These laws and regulations compliance may be fundamental to the operating
aspects of the business, to Vopak’s ability to continue its business, or to avoid material penalties (e.g., compliance with the terms of
operating licenses and permits or compliance with environmental regulations) and therefore non-compliance with such laws and
regulations may have a material effect on the financial statements. In addition, we considered major laws and regulations applicable to
listed companies. Our responsibility is limited to undertaking specified audit procedures to help identify non-compliance with those laws
and regulations that may have a material effect on the financial statements.
• Our procedures are limited to (i) inquiry of management, the Supervisory Board and others within Vopak as to whether the company is in
compliance with such laws and regulations and (ii) inspecting correspondence, if any, with the relevant licensing or regulatory authorities
to help identify non-compliance with those laws and regulations that may have a material effect on the financial statements.
• We remained alert to the indications of (suspected) non-compliance throughout the audit.
• We obtained written representations that all known instances of (suspected) fraud or non-compliance with laws and regulations have
been disclosed to us.
Based on our procedures performed we have no matters to report.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
277
Audit approach going concern
Description Our response
We are responsible for obtaining reasonable assurance that the group is able to
continue as a going concern. Management is responsible to assess the group’s
ability to continue as a going concern and disclosing in the financial statements any
events or circumstances that may cast significant doubt on the group’s ability to
continue as a going concern.
As described in note 1.1., the Executive Board believes that no events or conditions,
including those related to the current COVID-19 pandemic, give rise to doubt about
the ability of the group to continue in operation in the next reporting period.
• We evaluated management’s assessment of the going concern assumption and related disclosures in note 1.1 of the 2021 financial
statements;
• We challenged management’s cash flow forecasts and primary assumptions, also in the light of our understanding obtained with regards
to management’s outlook as reported in their Sustainability Roadmap;
• We audited the company’s repayment obligations as disclosed in note 6.7;
• We evaluated that Vopak met the financial covenant ratios.
Although there always remains an inherent level of uncertainty in relation to future events, we concur with management’s application of the
going concern assumption in preparing the 2021 financial statements.
For an overview of our responsibilities we refer to NBA’s website.
Rotterdam, 15 February 2022
Deloitte Accountants B.V.
Signed on the original: M.J. van der Vegte
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
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278
Assurance report of the independent auditor with
respect to the 2021 sustainability information ofKoninklijke Vopak N.V.
To the shareholders and Supervisory Board of Koninklijke Vopak N.V.
Our conclusion
We have reviewed the 2021 sustainability information in the 2021 Annual Report (“the
sustainability information”) of Koninklijke Vopak N.V. at Rotterdam. A review is aimed at
obtaining a limited level of assurance.
Based on our review nothing has come to our attention that causes us to believe that the
sustainability information does not present, in all material respects, a reliable and adequate
view of:
• The policy and business operations with regard to sustainability; and
• the thereto related events and achievements for the year 2021 in accordance with the
reporting criteria as included in the section ‘Reporting Criteria’.
The sustainability information consists of the performance information in the chapter
‘Sustainability’ in the 2021 Annual Report (pages 74 – 124). Our limited assurance scope
excludes note 25 ‘EU Taxonomy’ included in chapter ‘Sustainability’ in the 2021 Annual
Report (pages 123 – 124).
Basis for our conclusion
We have conducted our review on the sustainability information in accordance with Dutch
law, including Dutch Standard 3810N ‘Assurance-opdrachten inzake maatschappelijke
verslagen’ (Assurance engagements relating to sustainability reports). Our responsibilities
under this standard are further described in the section ‘Our responsibilities for the review of
the sustainability information’ section of our report.
We are independent of Koninklijke Vopak N.V. in accordance with the ‘Verordening inzake de
onafhankelijkheid van accountants bij assurance-opdrachten’ (ViO, Code of Ethics for
Professional Accountants, a regulation with respect to independence) and other relevant
independence regulations in The Netherlands. This includes that we do not perform any
activities that could result in a conflict of interest with our independent assurance
engagement. Furthermore we have complied with the ‘Verordening gedrags- en
beroepsregels accountants’ (VGBA, Dutch Code of Ethics).
We believe that the assurance evidence we have obtained is sufficient and appropriate to
provide a basis for our conclusion.
Reporting criteria
The sustainability information needs to be read and understood together with the reporting
criteria. Koninklijke Vopak N.V. is solely responsible for selecting and applying these reporting
criteria, taking into account applicable law and regulations related to reporting.
The reporting criteria used for the preparation of the sustainability information are the
Sustainability Reporting Standards of the Global Reporting Initiative (GRI) and the applied
supplemental reporting criteria as disclosed in the chapter ‘Governance and basis of
preparation of the 2021 Annual Report.
The absence of an established practice on which to draw, to evaluate and measure non-
financial information allows for different, but acceptable, measurement techniques and can
affect comparability between entities and over time.
Limitations to the scope of our review
The sustainability information includes prospective information such as ambitions, strategy,
plans, expectations and estimates. Inherent to prospective information, the actual future
results are uncertain. We do not provide any assurance on the assumptions and achievability
of prospective information in the sustainability information.
The references to external sources or websites in the sustainability information are not part
of the sustainability information as reviewed by us. We therefore do not provide assurance
on this information.
Our conclusion is not modified in respect to these matters.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
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279
Responsibilities of management and the Supervisory Board for the
sustainability information
The management board is responsible for the preparation of reliable and adequate
sustainability information in accordance with the reporting criteria as included in the section
‘Reporting Criteria’, including the identification of stakeholders and the definition of material
matters. The choices made by the management board regarding the scope of the
sustainability information and the reporting policy are summarised in the chapter
‘Sustainability’ of the Annual Report.
Furthermore, the management board is responsible for such internal control as it determines
is necessary to enable the preparation of the sustainability information that is free from
material misstatement, whether due to fraud or error.
The Supervisory Board is responsible for overseeing the reporting process
of Koninklijke Vopak N.V.
Our responsibilities for the review of the sustainability information
Our responsibility is to plan and perform the review in a manner that allows us to obtain
sufficient and appropriate evidence for our conclusion.
Procedures performed to obtain a limited level of assurance are aimed to determine the
plausibility of information and vary in nature and timing from, and are less in extent, than for
a reasonable assurance engagement. The level of assurance obtained in review is therefore
substantially less than the assurance obtained in an audit.
We apply the ‘Nadere voorschriften kwaliteitssystemen)’ (NVKS, regulations for quality
management systems) and accordingly maintain a comprehensive system of quality control
including documented policies and procedures regarding compliance with ethical
requirements, professional standards and other relevant legal and regulatory requirements.
We have exercised professional judgement and have maintained professional scepticism
throughout the review, in accordance with the Dutch Standard 3810N, ethical requirements
and independence requirements.
Our review included among others:
• Performing an analysis of the external environment and obtaining an understanding
ofrelevant social themes and issues, and the characteristics of the company.
• Evaluating the appropriateness of the reporting criteria used, their consistent application
and related disclosures in the sustainability information. This includes the evaluation
oftheresults of the stakeholders’ dialogue and the reasonableness of estimates made
bythe management board.
• Obtaining an understanding of the reporting processes for the sustainability information,
including obtaining a general understanding of internal control relevant to our review
• Identifying areas of the sustainability information with a higher risk of misleading or
unbalanced information or material misstatements, whether due to fraud or error.
• Designing and performing further assurance procedures aimed at determining
theplausibility of the sustainability information responsive to this risk analysis.
Theseprocedures consisted amongst others of:
- Interviewing management (and/or relevant staff) at corporate (and business/division/
cluster/local) level responsible for the sustainability strategy, policy and results;
- Interviewing relevant staff responsible for providing the information for, carrying out
internal control procedures on, and consolidating the data in the sustainability information;
- Determining the nature and extent of the review procedures for the group components
and locations. For this, the nature, extent and/or risk profile of these components are
decisive. Based thereon we selected the terminals to perform additional testing. Due to
the COVID-19 travel restrictions during 2021 we were not able to undertake visits to
selected terminals so the analysis was performed remotely. The additional testing at
terminals is aimed at, on a local level, validating source data and evaluating the design
and implementation of internal controls and validation procedures;
- Obtaining assurance information that the sustainability information reconciles with
underlying records of the company;
- Reviewing, on a limited test basis, relevant internal and external documentation; and
- Performing an analytical review of the data and trends.
• Evaluating the consistency of the sustainability information with the information in the
Annual Report which is not included in the scope of our review.
• Evaluating the presentation, structure and content of the sustainability information;
Our responsibilities for the review of the sustainabilityinformation
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
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280
• Considering whether the sustainability information as a whole, including the disclosures,
reflects the purpose of the reporting criteria used.
• Assessing whether the sustainability information has been prepared in accordance with
the Sustainability Reporting Standards Comprehensive option of the Global Reporting
Initiative.
We communicated with the Management and Supervisory Board regarding, among other
matters, the planned scope, timing and outcome of the review and significant findings that
we identified during our review.
Rotterdam, 15 February 2022
Deloitte Accountants B.V.
Signed on the original: M.J. van der Vegte
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
281
Additional information
Additional
information
283 Non-IFRS proportional financial information (unaudited)
286 Profit Appropriation
287 Stichting Vopak (Vopak Foundation)
288 Five-year consolidated summary
289 Glossary
292 Contact details
Vopak Annual Report 2021
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282
Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
282
Introduction
Non-IFRS proportional financial information (unaudited)
Proportional 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.
Statement of income
2021 Restated 2020
1
In EUR millions IFRS figures
Exclusion
exceptional
items
Effects
proportional
consolidation
Proportional
consolidated IFRS figures
Exclusion
exceptional
items
Effects
proportional
consolidation
Proportional
consolidated
Revenues 1,227.9 – 437.4 1,665.3 1,190.0 – 407.4 1,597.4
Other operating income 41.1 – 93.3 134.4 60.0 33.0 41.0 68.0
Operating expenses - 628.8 - 0.7 - 172.0 - 800.1 - 603.5 - 0.2 - 101.6 - 704.9
Result joint ventures and associates 172.3 - 13.4 - 185.7 – 161.2 - 4.8 - 166.0 –
Impairment - 71.0 - 71.0 – – - 30.1 - 30.1 – –
Group operating profit before depreciation and amortization
(EBITDA)
741.5 - 85.1 173.0 999.6 777.6 - 2.1 180.8 960.5
Depreciation and amortization - 331.8 – - 110.8 - 442.6 - 296.0 – - 107.6 - 403.6
Group operating profit (EBIT)
409.7 - 85.1 62.2 557.0 481.6 - 2.1 73.2 556.9
Net finance costs - 106.5 – - 46.2 - 152.7 - 86.3 – - 55.1 - 141.4
Income tax - 60.0 1. 0 - 45.0 - 106.0 - 71.1 - 2.8 - 47.7 - 116.0
Net profit 243.2 - 84.1 - 29.0 298.3 324.2 - 4.9 - 29.6 299.5
Non-controlling interests - 29.0 – 29.0 – - 29.6 – 29.6 –
Net profit owners of parent 214.2 - 84.1 – 298.3 294.6 - 4.9 – 299.5
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing Arrangements,
as detailed in Note 1.1. of the Consolidated Financial Statements.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
283
Non-IFRS proportional financial information (unaudited)
Statement of financial position
31-Dec-21 Restated 31-Dec-20
1
In EUR millions IFRS figures
Effects
proportional
consolidation
Proportional
consolidated IFRS figures
Effects
proportional
consolidation
Proportional
consolidated
Non-current assets (excl. joint ventures and associates) 4,935.7 2,595.9 7,531.6 4,793.1 2,363.9 7,157.0
Joint ventures and associates 1,583.3 - 1,583.3 – 1,319.4 - 1,319.4 –
Current assets 567.7 414.2 981.9 386.1 447.7 833.8
Total assets
7,086.7 1,426.8 8,513.5 6,498.6 1,492.2 7,990.8
Non-current liabilities 2,780.7 1,310.1 4,090.8 2,559.0 1,323.0 3,882.0
Current liabilities 960.4 273.6 1,234.0 833.3 314.1 1,147.4
Total liabilities
3,741.1 1,583.7 5,324.8 3,392.3 1,637.1 5,029.4
Equity attributable to owners of parent 3,188.7 – 3,188.7 2,961.4 – 2,961.4
Non-controlling interests 156.9 - 156.9 – 144.9 - 144.9 –
Total equity 3,345.6 - 156.9 3,188.7 3,106.3 - 144.9 2,961.4
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing Arrangements, as detailed in
Note 1.1. of the Consolidated Financial Statements.
Other information
2021 Restated 2020
1
EBITDA margin -excluding exceptional items- 55.5% 57.6%
Occupancy rate subsidiaries, joint ventures and associates 88.0% 90.0%
Sustaining, service improvement and IT capex (in EUR million) 355.2 317.4
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a
change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing
Arrangements, as detailed in Note 1.1. of the Consolidated Financial Statements.
Net interest-bearing debt
In EUR millions 31-Dec-21 31-Dec-20
Non-current portion of interest-bearing loans 3,649.3 3,397.5
Current portion of interest-bearing loans 132.6 251.3
Total interest-bearing loans 3,781.9
3,648.8
Short-term borrowings 496.4 232.1
Bank overdrafts 2.6 9.3
Cash and cash equivalents - 309.4 - 269.7
Net interest-bearing debt 3,971.5 3,620.5
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
284
Statement of income
Americas
of which United
States
Asia & Middle
East
of which
Singapore
China & North
Asia
Europe & Africa
of which
Netherlands
LNG
Global functions
and corporate
activities
Total
In EUR millions 2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
2021
Restated
2020
1
Revenues 397.0 338.7 242.7 190.0 411.1 430.4 153.4 157.4 131.2 120.4 567.8 540.6 424.0 415.2 151.7 164.5 6.5 2.8 1,665.3 1,597.4
Other operating income 22.8 13.2 9.2 0.5 12.0 10.3 0.1 – 5.8 4.1 5.0 0.9 2.2 1. 2 88.9 39.5 - 0.1 – 134.4 68.0
Operating expenses - 213.1 - 165.6 - 132.7 - 89.7 - 120.9 - 122.9 - 44.4 - 45.0 - 39.8 - 37.6 - 277.4 - 267.5 - 201.9 - 200.5 - 90.3 - 54.4 - 58.6 - 56.9 - 800.1 - 704.9
EBITDA 206.7
186.3 119.2 100.8 302.2 317.8 109.1 112.4 97.2 86.9 295.4 274.0 224.3 215.9 150.3 149.6 - 52.2 - 54.1 999.6 960.5
Depreciation and
amortization - 74.4 - 63.0 - 45.1 - 34.1 - 102.1 - 104.1 - 33.3 - 31.9 - 32.3 - 27.6 - 170.9 - 146.9 - 121.2 - 109.5 - 45.1 - 47.6 - 17.8 - 14.4 - 442.6 - 403.6
EBIT excluding
exceptional items 132.3 123.3 74.1 66.7 200.1 213.7 75.8 80.5 64.9 59.3 124.5 127.1 103.1 106.4 105.2 102.0 - 70.0 - 68.5 557.0 556.9
Occupancy rate 90%
92% 86% 91% 86% 89% 87% 88% 96% 97% 88% 90%
Net interest-bearing debt 3,971.5 3,620.5
1 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing Arrangements,
as detailed in Note 1.1. of the Consolidated Financial Statements.
Revenue per product type per reporting segment
Americas Asia & Middle East
China & North Asia Europe & Africa LNG
Global functions and
corporate activities Total
In EUR millions 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Chemical products 203.3 157.2 167.8 180.4 109.8 99.4 200.1 193.5 – – – – 681.0 630.5
Oil products 136.5 123.7 207.2 213.5 0.5 0.6 249.5 234.7 – – – – 593.7 572.5
Vegoils and biofuels 38.0 36.6 1. 9 2.0 – – 62.8 60.2 – – – – 102.7 98.8
Gas products 11. 1 9.1 15.1 1 7. 3 20.5 19.9 35.7 32.9 151.7 164.5 – – 234.1 243.7
Others 8.1 12.1 19.1 1 7. 2 0.4 0.5 19.7 19.3 – – 6.5 2.8 53.8 51.9
Total 397.0 338.7 411.1 430.4 131.2 120.4 567.8 540.6 151.7 164.5 6.5 2.8 1,665.3 1,597.4
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
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|
285
Profit Appropriation
Articles of Association Provisions Governing Profit Appropriation
The Articles of Association provisions governing profit appropriation are contained in
Articles 19 and 27.
The relevant paragraphs of these articles are as follows:
Article 19.2.
In the Annual General Meeting of Shareholders:
b. the annual accounts as prepared by the management board will be presented to the
general meeting for adoptionand the allocation of profits will – with due observance of the
provisions of article 27 – be determined.
Article 27.12.
The profits remaining after application of the previous paragraphs shall be at the free disposal
of the generalmeeting, with due observance of the fact that no dividend can be distributed
when, at the time of the distribution, the dividend reserve finance preference shares has a
positive balance and furthermore provided that no further distributions shall be made on the
anti-takeover preference shares and the finance preference shares and no profits shallbe
(further) reserved for the account of the finance preference shares.
Proposed Profit Appropriation
The proposal to the Annual General Meeting will be to distribute a dividend in cash of
EUR 1.25 (2020:EUR1.20incash) per ordinary share, with a nominal value of EUR 0.50.
Provided that the Annual General Meeting adopts the financial statements, the dividend
forthe 2021 financial year will be made payable on 28 April 2022.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
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|
286
Profit Appropriation
Stichting Vopak (Vopak Foundation)
The objectives of StichtingVopak, established in Rotterdam, are to promote the interests
ofKoninklijke Vopak N.V.(Royal Vopak) and all those involved with the company and any of its
affiliated companies in order to safeguard, among other things, Royal Vopak’s and these
companies’ continuity and/or identity and/or independence.
During the year 2021, the Board of StichtingVopak met twice. At these meetings, it
discussed the protection of Vopak and its effectiveness, the composition of the Board of
Stichting Vopak as well as the financing of Stichting Vopak. Furthermore, the Board of
Stichting Vopak was briefed by the Chairman of the ExecutiveBoard of RoyalVopak on
developments in the company. The Chairman of the SupervisoryBoard attended these
meetings as an observer.
The current members of the Board of Stichting Vopak are:
• Mr. J.H.M. Lindenbergh, Chairman
• Mr. M.H. Muller
• Mrs. A.P. Aris
• Mr. J.C.M. Schönfeld
No cumulative preference shares in Royal Vopak had been issued at the date of the
statement of financial position.
Cumulative preference shares will be issued if Stichting Vopak exercises its option right.On
18October1999,the AGM decided to grant the right to StichtingVopak to acquire protective
preference shares to a maximum amount of the full nominal value of the share capital issued
to third parties in the form of ordinary and financing preference shares, less the nominal
value of one ordinary share. Royal Vopak and Stichting Vopak have specified their mutual
relationship with regard to the option in an option agreement dated 1November1999, which
was amended on 5May2004 in such a manner that the original put option granted to Royal
Vopak was cancelled.
On 17September2013, the EGM resolved to increase the right of Stichting Vopak to acquire
cumulative preference shares in such a way that the right to acquire cumulative preference
shares is related to all shares in the share capital of Vopak issued to third parties at such
time, less one ordinary share. Pursuant to this RoyalVopakand StichtingVopak amended on
17September2013 the option agreement accordingly.
The Board of Stichting Vopak decides independently whether and when there is a need to
exercise its option right for the issue of protective preference shares to Stichting Vopak.
Rotterdam, 15February 2022
Stichting Vopak
Declaration of independence
In the opinion of the Board of Stichting Vopak and the Executive Board of Royal Vopak,
Stichting Vopak is independent as meant by Section 5:71(1c) of the Financial Supervision Act.
Rotterdam, 15February 2022
Stichting Vopak Koninklijke Vopak N.V. (Royal Vopak)
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
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|
287
Stichting Vopak (Vopak Foundation)
Five-year consolidated summary
In EUR millions 2021 Restated 2020
2
2019
1
2018 2017
Consolidated abridged statement of income
Revenues 1,228 1,190 1,253 1,254 1,306
Other operating income 41 60 276 32 23
Total operating income 1,269
1,250 1,529 1,286 1,329
Operating expenses - 629 - 604 - 635 - 647 - 676
Depreciation and amortization - 332 - 296 - 291 - 273 - 273
Impairment - 71 - 30 - 17 2 - 2
Total operating expenses - 1,032
- 930 - 943 - 918 - 951
Operating profit 237
320 586 368 378
Result of joint ventures and associates 173 162 162 114 44
Group operating profit (EBIT) 410
482 748 482 422
Net finance costs - 107 - 87 - 86 - 133 - 122
Profit before income tax 303
395 662 349 300
Income tax - 60 - 71 - 58 - 58 - 25
Net profit 243
324 604 291 275
Non-controlling interests - 29 - 30 - 33 - 36 - 40
Net profit holders of ordinary shares 214 295 571 255 235
Consolidated abridged statement of income excluding exceptional items
Operating profit 309
318 363 349 379
Result of joint ventures and associates 186 166 176 114 111
Group operating profit (EBIT) 495
484 539 463 490
Net finance costs - 107 - 87 - 87 - 82 - 98
Profit before income tax 388
397 452 381 392
Income tax - 61 - 68 - 61 - 55 - 65
Net profit 327
329 391 326 327
Non-controlling interests - 29 - 30 - 33 - 36 - 40
Net profit holders of ordinary shares 298 299 358 290 287
Consolidated abridged statement of financial position
Intangible assets 111 148 165 156 149
Property, plant and equipment 4,475 4,431 4,144 3,736 3,488
Financial assets 1,839 1,476 1,418 1,146 1,019
Deferred tax 51 43 31 8 5
Other 43 15 25 47 41
Total non-current assets 6,519
6,113 5,783 5,093 4,702
Total current assets 568
386 590 422 413
Total assets 7,087 6,499 6,373 5,515 5,115
Total equity
3,346
3,106 3,195 2,844 2,636
Total non-current liabilities 2,781
2,559 2,240 2,060 1,978
Total current liabilities 960
834 938 611 501
Total liabilities
3,741
3,393 3,178 2,671 2,479
Total equity and liabilities 7,087 6,499 6,373 5,515 5,115
1 The Group has applied IFRS 16 per 1 January 2019 and the comparative figures are not restated.
2 The period ended 31 December 2020 has been restated, due to mandatory full retrospective application of a change in accounting policy for the IFRIC agenda decision made in March 2021 on Cloud Computing Arrangements,
as detailed in Note 1.1. of the Consolidated Financial Statements.
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
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288
Five-year consolidated summary
Glossary
3YMP
Three-Year Maintenance Program
AFM
Dutch Authority for Financial Markets
AGM
Annual General Meeting
API (connection)
Application Programming Interface
API RP 754
American Petroleum Institute Recommended
Practice 754, Process Safety Performance
Indicators for the Refining and
Petrochemical Industries
Assure program
Focuses on the prevention of major accidents and
minimizing the consequences if such
accidents would occur.
Audit Committee
Committee within the Supervisory Board that
assists the Supervisory Board in performing the
supervisory tasks relating to matters such as, the
integrity of the financial statements, the financial
reporting, the internal audit procedures and the
relationship with and the independence of the
external auditors
Biofuels/Biodiesel
Products of vegetable origin or from animal fats
that are added to gasoline or diesel
Brownfield
Expansion of an existing terminal
Capex
Capital expenditure
Capital employed
Total assets less current liabilities, excluding
assets and current liabilities not related to
operational activities
Cbm
Cubic meter
CCIRS
Cross-currency interest rate swap
CDI-T
The Chemical Distribution Institute audit
protocol for Terminals
CEO
Chief Executive Officer, the highest ranking
executive with the overall responsibility for
the organization
CFO
Chief Financial Officer, member of the Executive
Board, specifically charged with Finance
CO
2
Carbon dioxide
Contamination
Any situation where a customer’s product is out
of contract specification and cannot be used as
intended or is reduced in value, or needs
unplanned after treatment (e.g. mixing, blending,
sparging), due to the action of another substance
on that product and not classified as a process
safety contamination. A contamination is
independent of its financial loss
Contractor
A contractor is any person who is not an
employee of Vopak but is providing contract-based
services to the Vopak company or one of its
subsidiaries, joint ventures or associates either on
Vopak premises or off the Vopak premises, where
Vopak exercises supervisory or procedural control
COO
Chief Operating Officer, member of the Executive
Board, specifically charged with
Operations & Technology
COP24:
The 2018 United Nations Climate Change
Conference (‘COP24’), held in Katowice, Poland,
from 2to15December2018. It was the 24th
Conference of the Parties (‘COP’) to the 1992
United Nations Framework Convention on Climate
Change (UNFCCC)
Corporate Governance
The manner in which the company is managed
and the supervision of management is structured
COSO
Committee of Sponsoring Organizations of the
Treadway Commission, an international
organization whose aim is to create a model for
information on and management of business risks
CRSA
Control Risk Self-Assessment
Damage
The loss of, impaired functioning, or impaired
condition of anything (except people) which is
considered to have some value, including company
assets, the environment, and third party losses
DMCSA
Divisional Monitoring Controls Self-Assessment
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
EGM
Extraordinary General Meeting of Shareholders
Employee
An employee is any person who has a permanent
or temporary, written or unwritten employment
contract with a Vopak company or one of its
subsidiaries, joint ventures or associates
EPS
Earnings Per Share
ERM
Enterprise Risk Management
ERP
Emergency Response Plan
EU
European Union
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
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289
Glossary
Exceptional items
Exceptional items are non-recurring gains and
losses resulting from incidental events, which are
not representative of the underlying business
activities and operating performance of the Vopak
group, and are resulting from:
Events for which no threshold is applied:
• Acquisitions and (partial) divestments, as
wellasany post-transaction results related to
these events (including related hedge results,
results caused by changes of the accounting
classification of investments in other entities,
results from classification as ‘held for sale’ or
‘discontinued operation’, contingent and deferred
considerations, and related transaction costs);
• Impairments and reversal of impairments
onindividual Cash Generating Units (CGU),
aGroup of Assets (not being one CGU),
Business Development Projects and/or Goodwill.
Events for which a threshold of EUR 10 million
is applied:
• Legal, insurance, damage, anti-trust, and
environmental cases, including related
reimbursements;
• Financial liabilities in relation to financial
guarantees provided;
• Restructurings and integrations of businesses;
• Impairments and reversals of impairments at
the individual asset-level.
FSRU
Floating Storage Regasification Unit
FTE
Full-time Equivalent
GDP
Gross Domestic Product
GHG
Greenhouse gases
Greenfield
Building a new terminal on undeveloped land
GRI
Global Reporting Initiative (for more information
visit www.globalreporting.org)
Gross assets / Gross capital employed
Gross assets are based on the carrying amount of
non-current assets, excluding loans granted, and
are grossed up by means of adding back the
accumulated depreciation, amortization and
impairment. Subsequently, the net trade working
capital (trade debtors minus trade creditors) is
added. Balances related to assets under
construction are excluded from the gross assets.
The average historical investment is based on the
quarter-endbalances in the measurement period
relevant to the quarter concerned
HR
Human Resources
Hub
Regional storage and transport center
IaaS
Infrastructure as a Service
IAS
International Accounting Standards
ICT
Information and Communication Technology
IFRS
International Financial Reporting Standards
I-IoT/IoT
(Industrial) Internet of Things
IMO
International Maritime Organization
IPCC
Intergovernmental Panel on Climate Change
IRS
Interest Rate Swap
ISDA
International Swaps and Derivatives Association
ISPS
International Ship and Port Security Code
mandated by the United States
ISPT
Institute for Sustainable Process Technology
IT/OT
Information Technology/Operational Technology
LNG
Liquefied Natural Gas
LPG
Liquefied Petroleum Gas
LTI
Lost Time Injury
LTIP
Long-term Incentive Plan
LTIR
Lost Time Injury Rate; number of accidents
entailing absence from work per 200,000 hours
worked (of own personnel and contractors at
subsidiaries, joint ventures and associates)
LTSP
Long-term Share Plan
Management Report
The ‘Management Report’ (‘bestuursverslag’),
within the meaning of section 2:391 of the
DutchCivil Code, comprises the chapters CEO
Statement up to and including Internal Control
and Risk Management, with the exception
ofthechapters Supervisory Board Members,
Supervisory Board Report and Remuneration Report
ME2
Vopak's Maintenance Management System
MLO
My Learning Operations
NCI
Non-Controlling Interest
NGO
Non-Governmental Organization
NO
x
NO
x
is a generic term for mono-nitrogen oxides
NO and NO
2
(nitric oxide and nitrogen dioxide)
NPS
Net Promoter Score; a method of measuring the
strength of customer loyalty for an organization
N.R.
Not reported
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
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290
OCI
Other comprehensive income
OECD
Organization for Economic Cooperation
and Development
Other information
The ‘Other information’ (‘overige gegevens’),
within the meaning of section 2:392 of the Dutch
Civil Code, comprises the chapters Independent
Auditor’s Report, the Profit Appropriation and
Stichting Vopak
PaaS
Platform as a Service
PDH
Propanedehydrogenation
PP
Private Placement, US Private Placement (USPP),
Asian Private Placement (APP)
PSER
Process safety incidents per 200,000 hours
worked for own personnel and contractors
Q.R.
Qualitative reporting
RCF
Revolving Credit Facility
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 employed
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
SaaS
Software as a Service
SDG
Sustainable Development Goal
Shale gas
A natural gas formed as a result of being trapped
within shale formations
SHE
Safety, Health and Environment
SO
x
SO
x
refers to all sulphur oxides, the two major
ones being sulphur dioxide (SO
2
) and
sulphur trioxide (SO
3
)
THA
Terminal Health Assessment
Throughput
Volume of a product handled by a terminal in a
given period, calculated as (in + out)/2
TIR
Total number of injuries per 200,000 hours
worked (own personnel)
UN
United Nations
US
United States
VOC
Volatile Organic Compound
VPM
Vopak Project Management
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
|
291
Royal Vopak
Global Communication & Investor Relations
Telephone: +31 (0)10 400 2911
Email: global.communication@vopak.com
www.vopak.com
Visiting address
Westerlaan 10
3016 CK Rotterdam
The Netherlands
Postal address
P.O. Box 863
3000 AW Rotterdam
The Netherlands
Media contact
Liesbeth Lans
Telephone: +31 (0)10 400 2777
Email: global.communication@vopak.com
Investor Relations contact
Fatjona Topciu
Telephone: +31 (0)10 400 2776
Email: investor.relations@vopak.com
Sustainability contact
Willem van der Zon
Telephone: +31 (0)10 400 2561
Email: willem.van.der.zon@vopak.com
Credits
Consultancy, concept and design
DartGroup, Amsterdam
Technical realization
DartGroup, Amsterdam
Introduction Sustainability
Purpose
&strategy
Governance,risk
&compliance
Business&market
environment
Financial
Statements
Performance
&outlook
Additional
information
Vopak Annual Report 2021
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292
Contact details
Contact details
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