26 slides from Lyondellbasell Industries Nv's technical presentation, Sep 26, 2023
Slide 1: MoReTec Technology Webinar
MoReTec Technology Webinar September 26, 2023 1
Slide 2: Welcome and Opening Remarks
David Kinney WELCOME AND Head of OPENING REMARKS Investor Relations 2
Slide 3: Cautionary Statements and Information Related to Financial Measures
CAUTIONARY STATEMENTS AND INFORMATION RELATED TO FINANCIAL MEASURES CAUTIONARY STATEMENTS 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
Slide 4: Agenda
AGENDA 15:00 – 15:30 Ferrara, Italy 09:00 – 09:30 New York Welcome and Opening Remarks David Kinney, Head of Investor Relations MoReTec: LyondellBasell’s Advanced Recycling Technology Jim Seward, EVP and Chief Innovation Officer Growing a Profitable Circular & Low Carbon Solutions Business Yvonne va
Slide 5: LyondellBasell's Long-Term Strategy
LYONDELLBASELL’S LONG-TERM STRATEGY Impactful three-pronged strategy supported by exceptional cash generation and an investment grade balance sheet Focusing growth on attractive, resilient assets – enabled by industry-leading performance Grow & Acting decisively to shape our portfolio toward bus
Slide 6: MoReTec: LyondellBasell's Advanced Recycling Technology
MoReTec: LYONDELLBASELL’S Jim Seward ADVANCED RECYCLING EVP & Chief TECHNOLOGY Innovation Officer 6
Slide 7: Key Messages
KEY MESSAGES 1 2 3 4 Advanced recycling will MoReTec is LyondellBasell’s MoReTec’s scalability play a critical role in LyondellBasell’s integrated hub model underpins helping end the problem proprietary technology creates unique LyondellBasell’s of plastic waste that improves advantages as leadershi
Slide 8: Ending Plastic Waste and Improving Circularity
ENDING PLASTIC WASTE AND IMPROVING CIRCULARITY Plastics play a critical role for society but the problem of plastic waste must be addressed Plastics are essential for everyday sustainable living Reducing food spoilage Protecting water quality Providing materials that support renewable electr
Slide 9: Advanced Recycling Is a Critical Part of the Circular Value Chain
ADVANCED RECYCLING IS A CRITICAL PART OF THE CIRCULAR VALUE CHAIN Pyrolysis converts post-consumer plastic waste into valuable feedstocks to produce new polymers Capabilities Limitations of Traditional Advanced Recycling Advanced recycling provides a solution for hard-to-recycle mixed Higher cos
Slide 10: MoReTec: A Differential Advanced Catalytic Recycling Technology
MoReTec: A DIFFERENTIAL ADVANCED CATALYTIC RECYCLING TECHNOLOGY Maximizes plastic-to-plastic recycling at scale to address our world’s urgent need for a circular value chain Molecular How MoReTec Works Recycling 1 Plastic waste raw materials are processed 2 Reactor is fed with plastic waste flakes a
Slide 11: MoReTec: Maximizing Carbon Circularity to High Value Feedstocks
MoReTec: MAXIMIZING CARBON CIRCULARITY TO HIGH VALUE FEEDSTOCKS Increasing yield and conserving valuable carbon through innovation and integration Minimizes the loss of plastic waste to fuels and low-value by-products Fuels can generate energy and by-products conserve carbon but both fuels and by-
Slide 12: MoReTec: Further Advantaged by LYB's Catalyst Technology
MoReTec: FURTHER ADVANTAGED BY LYB’S CATALYST TECHNOLOGY Proprietary catalyst differentiates MoReTec relative to traditional pyrolysis processes Utilizing LyondellBasell’s deep expertise in catalyst technology for polymers and chemicals LyondellBasell has decades of multidisciplinary leadership in
Slide 13: MoReTec: Supporting Our Net Zero Goals
MoReTec: SUPPORTING OUR NET ZERO GOALS LyondellBasell’s unique process design allows for electrical heating and reduced emissions Renewable SCOPE 1 IMPACT SCOPE 2 IMPACT SCOPE 3 IMPACT energy Electrical heating Electrical heating of the Plastic waste displaces enables a reduction of process allows f
Slide 14: MoReTec: Focused on Scale to Meet Society's Needs
MoReTec: FOCUSED ON SCALE TO MEET SOCIETY’S NEEDS LyondellBasell’s integrated hub model provides meaningful cost advantage MoReTec is designed as a large single-train unit while many competing technologies are smaller and rely on modularization Modular designs could have roles in small advanced re
Slide 15: MoReTec: Path to Commercialization
MoReTec: PATH TO COMMERCIALIZATION LyondellBasell’s innovation capabilities and integrated assets accelerate commercial scalability Leveraging LyondellBasell’s unique innovation capabilities Integrated R&D team rapidly developed MoReTec from concept to pilot scale to address the urgent need for sc
Slide 16: Key Takeaways
KEY TAKEAWAYS 1 2 3 4 Advanced recycling will MoReTec is LyondellBasell’s MoReTec’s scalability play a critical role in LyondellBasell’s integrated hub model underpins helping end the problem proprietary technology creates unique LyondellBasell’s of plastic waste that improves advantages as leadersh
Slide 17: Growing a Profitable Circular and Low Carbon Solutions Business
GROWING A PROFITABLE CIRCULAR AND LOW Yvonne van der Laan CARBON SOLUTIONS EVP, Circular & BUSINESS Low Carbon Solutions 17
Slide 18: Key Messages
KEY MESSAGES 1 2 3 4 Growing and LyondellBasell has a We are well- Our Circular & Low sustained demand for clear path to value positioned to lead in Carbon Solutions recycled and creation in circular and this market at scale business is expected renewable-based low carbon solutions with our integrat
Slide 19: LyondellBasell's Comprehensive Strategy for Long-Term Profitable Growth
LYONDELLBASELL’S COMPREHENSIVE STRATEGY FOR LONG-TERM PROFITABLE GROWTH Expect to capture at least $1 B in incremental EBITDA1 by 2030 OUR SUCCESS FACTORS CONTINUE TO BE VALIDATED GROWTH TARGETS $25 B+ (USD, billions) O&P EAI 1 Access to large customers and brand owners Total addressable market2,3 O
Slide 20: Urgent Demand for Recycled and Renewable-Based Packaging
URGENT DEMAND FOR RECYCLED AND RENEWABLE-BASED PACKAGING Brand owners and retailers both facing substantial gaps to 2025 targets SUBSTANTIAL SHORTAGE TO RETAILER COMMITMENTS2 MEET 2025 TARGETS Major Retailer Recycled Content Targets by 2025 % of total packaging content 70% 50% 65% 30% 25% 20% 25% 17
Slide 21: Persistent Supply Shortage Creating a Strong Business Case for Investment
PERSISTENT SUPPLY SHORTAGE CREATING A STRONG BUSINESS CASE FOR INVESTMENT Our target of 2 MM+ tons per year of recycled and renewable-based polymers by MARKET ASSESSMENT 2030 would establish our market leadership in North America and Europe More than 50% of total demand growth for PE/PP driven by
Slide 22: Customer Needs Are Integral to Our Strategy
CUSTOMER NEEDS ARE INTEGRAL TO OUR STRATEGY LyondellBasell is collaborating with converters, brand owners and retailers to be the global supplier of choice for circular and low carbon solutions CUSTOMER NEEDS FOR RECYCLED AND RENEWABLE-BASED MATERIAL Indistinguishable Drop-In Solutions Traceable Glo
Slide 23: Today's Circularity Value Chain
TODAY’S CIRCULARITY VALUE CHAIN KEY DYNAMICS LyondellBasell is participating across complex and complementary value chains Plastic waste is localized and WASTE TO FINAL PRODUCT VALUE CHAIN extremely fragmented Regulations vary by region Waste to Landfill Opportunity to divert plastic Energy LY
Slide 24: LyondellBasell's Integrated Hub Model Provides Advantage
LYONDELLBASELL’S INTEGRATED HUB MODEL PROVIDES ADVANTAGE Building scale, reducing cost and capturing value to establish leadership in circular solutions Integrated Hub Concept Cologne, Germany Houston, Texas Regional hubs to access and supply feedstock into integrated hubs • Cyclyx agreement Plast
Slide 25: MoReTec: Differentiated and Advantaged Technology
MoReTec: DIFFERENTIATED AND ADVANTAGED TECHNOLOGY Cost-advantaged continuous single-train technology with innovative design and scale Opportunity with MoReTec MoReTec IS COST-ADVANTAGED RELATIVE TO THIRD PARTY TECHNOLOGIES Differentiated technology with improved MoReTec vs. Third Party Operating C
Slide 26: Creating Value Through Leadership in Sustainability
CREATING VALUE THROUGH LEADERSHIP IN SUSTAINABILITY Accelerating circular solutions to meet increasing demand from our customers and society Grow our position as a trusted partner for suppliers of plastic waste feedstocks Develop regional hubs to access and supply plastic waste feedstocks into integ