LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Q1 2022 Earnings Presentation
19 slides from LyondellBasell Industries NV's earnings presentation, Apr 29, 2022
Slide 1: First Quarter 2022 Earnings
FIRST QUARTER 2022 EARNINGS April 29, 2022 1
Slide 2: Cautionary Statement and Information Related to Financial Measures
CAUTIONARY STATEMENT AND INFORMATION RELATED TO FINANCIAL MEASURES CAUTIONARY STATEMENT The statements in this presentation relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell wh
Slide 3: First Quarter 2022 Highlights
FIRST QUARTER 2022 HIGHLIGHTS SOLID RESULTS DRIVEN BY HEALTHY MARKET DEMAND AND IMPROVING INTERMEDIATES AND DERIVATIVES MARGINS $1.3 B $4.00 $2.0 B $1.5 B NET INCOME DILUTED EPS EBITDA CASH FROM OPERATING ACTIVITIES 3
Slide 4: Safety Performance
SAFETY PERFORMANCE UNWAVERING COMMITMENT TO SAFETY Injuries per 200,000 hours worked 0.6 0.5 0.4 0.3 0.2 0.1 2018 2019 2020 2021 1Q22 LyondellBasell ACC Top Quartile 4 Sources: American Chemistry Council (ACC) and LyondellBasell. Note: Medium and large companies only. Number of hours worked includes
Slide 5: 5th Annual Sustainability Report
5th ANNUAL SUSTAINABILITY REPORT FUTURE FOCUSED ON MEANINGFUL SUSTAINABILITY GOALS DECARBONIZATION CIRCULARITY THRIVING SOCIETY 30% CO2 reduction by 2030 Launched Circulen portfolio Focused on GoalZero safety performance Net zero by 2050 2MM tons of recycled and renewable polymers New diversity, equ
Slide 6: Advancing Sustainability
ADVANCING SUSTAINABILITY COLLABORATING ON CIRCULEN PRODUCT DEVELOPMENT THROUGHOUT THE SUPPLY CHAIN 6 Products (left to right): Nippon Paint, L’Occitane en Provence, McDonald’s.
Slide 7: Strongest First Quarter Since 2015
STRONGEST FIRST QUARTER SINCE 2015 SOLID PERFORMANCE POWERED BY A DIVERSE GLOBAL PORTFOLIO EBITDA ex. LCM and Impairment USD, billions $ 3.5 HEALTHY WESTERN MARKETS 3.0 Solid consumer and industrial demand supporting margins 2.5 2.0 VOLATILE GLOBAL MARKETS Ongoing geopolitical tensions and supply ch
Slide 8: Stepping Up Earnings
STEPPING UP EARNINGS LYONDELLBASELL BENEFITING FROM STRONG MARKETS AND GROWING ASSET BASE EBITDA ex. LCM and Impairment USD, billions $9.7 $10 9 8 $6.7 7 6 5 4 3 2 1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22 LTM EBITDA EBITDA ex. LCM and Impairment 2011-2019 Average 8
Slide 9: Stepping Up Cash Generation
STEPPING UP CASH GENERATION INCREASED CASH FROM OPERATING ACTIVITIES DRIVEN BY STRONG MARKETS AND GROWING ASSET BASE Cash from Operating Activities USD, billions $8.6 B $9 CASH FROM OPERATING ACTIVITIES 8 1Q22 LTM 7 6 5 88% 4 CASH CONVERSION 3 1Q22 LTM 2 1 2017 2018 2019 2020 2021 1Q22 LTM 23% FREE
Slide 10: Cash Generation and Allocation
CASH GENERATION AND ALLOCATION MAKING PRUDENT INVESTMENTS AND FOCUSING ON SHAREHOLDER RETURNS DELIVERING RESULTS USD, billions $3 Generated $1.5 B in cash from operating activities 2 GENERATING VALUE FOR SHAREHOLDERS $1.8 Paid $0.4 B in dividends $1.5 Repurchased $0.2 B of our shares 1 GROWING THROU
Slide 11: 1Q22 Segment Highlights
1Q22 SEGMENT HIGHLIGHTS IMPROVEMENTS IN I&D AND APS PROFITABILITY OFFSETTING O&P AMERICAS MARGIN COMPRESSION EBITDA variance by segment ex. LCM and Impairment USD, millions $101 $2,019 $2,020 $294 $(2) $(70) $(4) $33 $(351) $1,000 4Q21 O&P O&P I&D APS Refining Technology Other 1Q22 Americas EAI 11
Slide 12: Olefins & Polyolefins – Americas
OLEFINS & POLYOLEFINS – AMERICAS INTEGRATED MARGINS COMPRESSED DUE TO HIGHER FEEDSTOCK COSTS EBITDA USD, millions $1,576 $1,568 OLEFINS Margins declined driven by higher feedstock costs $1,262 and lower co-product pricing Planned cracker maintenance completed in 1Q $867 $911 POLYOLEFINS Margins decr
Slide 13: Olefins & Polyolefins – Europe, Asia & International
OLEFINS & POLYOLEFINS – EUROPE, ASIA & INTERNATIONAL SOLID DEMAND AND HIGHER PRICES PARTIALLY OFFSET BY INCREASED FEEDSTOCK AND ENERGY COSTS EBITDA OLEFINS USD, millions Margins improved with monomer price increases exceeding $708 rising feedstock and energy costs Volumes flat due to planned cracker
Slide 14: Demand Growth Through Recessions
DEMAND GROWTH THROUGH RECESSIONS POLYETHYLENE MARKETS ARE GLOBAL AND HIGHLY RESILIENT Market Trends Indexed to 1990 ESSENTIAL PRODUCTS FOR MODERN LIFE Food packaging Hygiene Healthcare Consumer staples 1990 1995 2000 2005 2010 2015 2020 Recessions Global PE Demand U.S. GDP (Real) U.S. Vehicle Assemb
Slide 15: Intermediates & Derivatives
INTERMEDIATES & DERIVATIVES RECORD FIRST QUARTER PROFITABILITY EBITDA PO & DERIVATIVES USD, millions Higher butanediol margins supported by tight markets $596 Volumes flat on continued solid demand $546 INTERMEDIATE CHEMICALS Higher styrene and acetyls margins due to tight supply $348 Volume increas
Slide 16: Advanced Polymer Solutions
ADVANCED POLYMER SOLUTIONS HIGHER VOLUMES AND MARGINS DRIVEN BY RECOVERING AUTOMOTIVE PRODUCTION EBITDA USD, millions COMPOUNDING & SOLUTIONS Volumes higher with improved automotive production $135 $129 Margins increased due to improved product mix and $121 $125 capacity utilization ADVANCED POLYMER
Slide 17: Refining
REFINING INCREASED CRACK SPREADS DRIVEN BY HIGHER DEMAND FOR TRANSPORTATION FUELS EBITDA ex. LCM and Impairment USD, millions CRUDE THROUGHPUT $150 $148 95% utilization rate $41 MARGIN Maya 2-1-1 increased by $7.24 to $30.82 $(81) Lower by-product prices $(110) INVENTORY VALUATION Absence of 4Q21 LI
Slide 18: Technology
TECHNOLOGY INCREASED CATALYST SALES WITH LOWER LICENSING REVENUES EBITDA USD, millions $173 $155 LICENSING $103 Lower licensing revenue after a $94 $92 record 4Q21 CATALYST Higher catalyst volumes supported by strong demand 1Q21 2Q21 3Q21 4Q21 1Q22 18
Slide 19: Stepping Up
STEPPING UP STRONG PERFORMANCE AMID GLOBAL VOLATILITY SOLID EARNINGS & ADVANCING PRUDENT STRONG CASH GENERATION SUSTAINABILITY CAPITAL ALLOCATION Resilient O&P demand in Collaborating on Rewarding shareholders with Americas and Europe Circulen product development dividends and share repurchases Marg
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