Lyondellbasell Industries Nv · NYSE:LYB
Lyondellbasell Industries Nv — Q1 2017 Earnings Presentation
18 slides from Lyondellbasell Industries Nv's earnings presentation, Apr 28, 2017
Slide 1: First Quarter 2017 Earnings
First Quarter 2017 Earnings April 28, 2017
Slide 2: Cautionary Statement
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 which are believed to be reasonable at the time made and are subject to significant ri
Slide 3: Information Related to Financial Measures
Information Related to Financial Measures This presentation makes reference to certain “non-GAAP” financial measures as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. The non-GAAP measures we have presented include income from continuing operations excluding LCM, di
Slide 4: 1Q 2017 Highlights
1Q 2017 Highlights As Reported Excluding LCM (1 ) ($ in millions, except per share data) 1Q16 4Q16 1Q17 1Q16 4Q16 1Q17 EBITDA $1,807 $1,406 $1,617 $1,875 $1,435 $1,617 Income from Continuing Operations $1,030 $770 $805 $1,077 $788 $805 Diluted Earnings ($ / share) from Continuing Operations $2.37 $1
Slide 5: LyondellBasell Safety Performance
LyondellBasell Safety Performance Safety - Injuries per 200,000 Hours Worked (1) 0.80 ACC 2015 Average 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2012 2013 2014 2015 2016 1Q'17 Dedicated to Continue our Strong Safety Performance (1) Includes employees and contractors. 5
Slide 6: First Quarter 2017 and LTM Segment EBITDA
First Quarter 2017 and LTM Segment EBITDA First Quarter 2017 (1) LTM March 2017 (1) (USD, millions) EBITDA Op. Income (USD, millions) EBITDA Op. Income As Reported $1,617 $1,210 As Reported $6,412 $4,910 As Adjusted for LCM $1,617 $1,210 As Adjusted for LCM $6,373 $4,871 First Quarter 2017 EBITDA LT
Slide 7: Cash Flow
Cash Flow First Quarter 2017 LTM March 2017 USD, millions USD, millions $4,000 $10,000 3,500 8,000 3,000 2,500 6,000 2,000 4,000 1,500 $ 2,391 $ 2,158 1,000 2,000 $ 2,952 $ 2,158 500 1Q 2017 (1) CF from Working (2) Capex (3)Dividends &Net Debt Other 1Q 2017 (1) 2Q 2016 (1) CF from Working (2) Capex
Slide 8: Strong Cash Generation, Share Repurchases & Dividends
Strong Cash Generation, Share Repurchases & Dividends Cash From Operations Dividends & Share Repurchases USD, millions Free Cash Flow Capex USD, millions Interim Dividends Share Repurchases $7,000 $8,000 6,000 6,000 5,000 4,000 4,000 3,000 2,000 2,000 1,000 2014 2015 2016 LTM March 2017 2014 2015 20
Slide 9: Olefins & Polyolefins – Americas
Olefins & Polyolefins – Americas Highlights and Business Drivers – 1Q’17 EBITDA ex. LCM Performance vs. 4Q’16(1) USD, millions EBITDA Margin Volume As Reported Excluding LCM U.S. Olefins $1,000 Ethylene price up 2 ¢/lb Production up post Corpus turnaround 800 and expansion 600 Polyethylene Spr
Slide 10: Trends Support Further Increases in USGC Ethane Supply
Trends Support Further Increases in USGC Ethane Supply Ethane gal/Mscf Gas Rig Count Additions Natural Gas Demand Increasing Jun ’16 – Mar’17 Bcf/d 100 1.5 300 ~20% ? ~33% 200 1.0 50 0.5 100 2016 2021 2012 2016 TX, OK, NM Rest of U.S. Growing demand focused on Ethane content in natural gas Inc
Slide 11: Olefins & Polyolefins – Europe, Asia, International
Olefins & Polyolefins – Europe, Asia, International Highlights and Business Drivers – 1Q’17 EBITDA ex. LCM Performance vs. 4Q’16(1) USD, millions EBITDA Margin Volume As Reported Excluding LCM EU Olefins $700 Ethylene price up 3 ¢/lb 600 Volume up post turnaround 500 Polyethylene Sales volume
Slide 12: Global Ethylene Operating Rates Remain Strong Despite New Capacity
Global Ethylene Operating Rates Remain Strong Despite New Capacity Lb, billions Effective Operating Rate Capacity Demand 500 100% Range Of Consultant's / LYB Expectations 450 95% 400 90% 350 85% 300 80% 250 75% 200 70% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2017 – 2021 global ethylene ope
Slide 13: Intermediates & Derivatives
Intermediates & Derivatives Highlights and Business Drivers – 1Q’17 EBITDA ex. LCM Performance vs. 4Q’16(1) USD, millions EBITDA Margin Volume As Reported Excluding LCM $500 Propylene Oxide and Derivatives PO margins higher due to sales mix 400 300 Intermediates Methanol margin up 25 ¢/gal 200
Slide 14: Refining
Refining Highlights and Business Drivers – 1Q’17 EBITDA Performance vs. 4Q’16(1) USD, millions EBITDA Margin Volume As Reported Houston Refinery $100 Crude throughput: 202 MBPD 4Q benefited from a full year 50 adjustment reflecting consumption of low cost crude from inventory in 2016 Completed
Slide 15: First Quarter Summary and Outlook
First Quarter Summary and Outlook First Quarter Summary Near-Term Outlook Olefins and Polyolefins - Global olefin and polyolefin markets remain Continued strong global demand favorable Intermediates and Derivatives – Improved styrene and methanol results Oxyfuels and refining spreads followi
Slide 16: Guided by a Clear and Value-Oriented Strategy
Guided by a Clear and Value-Oriented Strategy Achieve Top Quartile Operations Cost Discipline Practice Relentless Financial Stewardship Prudent Value Creation Pursue Profitable Organic Growth In Cycles Capture Opportunities 16
Slide 17: We Can Generate Value by Leveraging Skills and Strategy
We Can Generate Value by Leveraging Skills and Strategy 2010 2016 Beyond 4. Sustainable 1. Formation 2. Establishment 3. Development Growth Build on Success and Skills Rapid Capture of Latent Opportunities Capabilities Optimize Footprint Establish and Stabilize Culture and Systems Manage Costs Incre
Slide 18: We Are Well-Positioned for Value-Driven Growth
We Are Well-Positioned for Value-Driven Growth Strong Foundation Global reach Leading technology World-class operator Balance sheet capacity Strong Earnings Upside at a Low Valuation Portfolio breadth with differentiated products Feedstock advantage and flexibility Strong and secure di
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