Borouge Plc · ADX:BOROUGE
Borouge — Borouge Group International — Investor Presentation (March 2025)
26 slides from Borouge's investor presentation, Mar 10, 2025
Slide 1: Borouge Group International Follow-up materials
Borouge Group International Follow-up materials Prepared and delivered by ADNOC 10 March 2025
Slide 2: Disclaimer
DISCLAIMER THIS PRESENTATION, ITS CONTENTS AND ANY INFORMATION PROVIDED AT THIS PRESENTATION ARE STRICTLY CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, SOUTH AFRICA, JAPAN OR AUSTRALIA OR ANY OTHER
Slide 3: Table of Contents
Table of Contents Section Pages Through-the-Cycle EBITDA Review 5-8 Nova – Deep-Dive on Technology, AST2, Geismar & Nova@50 10-15 Borealis – Deep-Dive on Crackers, Specialty Products & Technology 17-21 Funding and Capital Structure 23 Appendix 25-27 3
Slide 4: Through-the-Cycle EBITDA Review
Through-the-Cycle EBITDA Review
Slide 5: Strong Foundations for the Future
Strong Foundations for the Future Ramp-Up of Growth Project and Cycle Normalizations Expected to Increase Run-Rate EBITDA Meaningfully Expected Through-the-Cycle EBITDA Borouge & Borealis Nova Chemicals Borouge, Borealis & Nova Chemicals EBITDA Breakdown ($bn) Nova Chemicals Borouge & Borealis ~0.5
Slide 6: Strong Pipeline of Near-term Organic Growth and Efficiency Projects
Strong Pipeline of Near-term Organic Growth and Efficiency Projects Borouge Group International’s near-term organic growth projects Efficiency Program 1 3 3 2 Baystar, USA AST 2, Canada PDH Kallo, Belgium Ethylene & PE Nova@50 Borealis AG Nova Chemicals Borealis AG expansion, UAE Nova Chemicals Boro
Slide 7: Significant Upside from Beginning Cycle Recovery Driving Volumes and Margin
4 Significant Upside from Beginning Cycle Recovery Driving Volumes and Margin L5Y prices have not reflected typical cycle L5Y cash margins below 2013-19 average Industry tailwinds emerging Index prices (US$ per metric ton) Cash margins (US$ per metric ton) Analyst estimated EBITDA for select peers (
Slide 8: Significant Identified Potential Synergies of c.$500m p.a.
5 Significant Identified Potential Synergies of c.$500m p.a. 25-Year Track Record of Strategic Cooperation Between ADNOC and OMV will Ensure Smooth Synergy Realisation Synergies Drivers Synergy Implementation Plan Agreed Between ADNOC & OMV Improved geographical sales coverage Cross-selling opportun
Slide 9: Nova – Deep-Dive on Technology, AST2, Geismar & Nova@50
Nova – Deep-Dive on Technology, AST2, Geismar & Nova@50
Slide 10: Borealis and Nova Complement Borouge to Create Compelling Market Position
Borealis and Nova Complement Borouge to Create Compelling Market Position Innovation Leaders with Differentiated Product Offering, Well-Positioned within their Respective Geographies 100% >75% 1st Quartile Exposure to AECO, Ethane Feedstock Cost Curve Positioning in Europe(2) Henry Hub & Mont Belvie
Slide 11: Nova’s Proprietary Technology & Innovation Underpins Trusted Brands
Nova’s Proprietary Technology & Innovation Underpins Trusted Brands Resin Brand NOVAPOL® SCLAIR® SURPASS® ASTUTE® SYNDIGO® Performance General Purpose Performance High Performance Recycled NOVAPOL (HD/LL and SCLAIRTECH(1) and Advance Technology Advanced SCLAIRTECH(1) Advanced SCLAIRTECH(1) Mechanica
Slide 12: Nova - AST2 Expansion
Nova - AST2 Expansion Near Term Growth with AST2 in Ramp-up, Enabling c.$0.3bn EBITDA Potential by 2029 AST 1 & 2 Together Enable Growth in NOVA’s Most Profitable Target AST2 Production Update Markets with AST Performance Grades SCLAIR® SURPASS® ASTUTE® • AST2 expansion ramp-up underway with record
Slide 13: Nova’s Geismar Plant Continues to Gain Strong Momentum
Nova’s Geismar Plant Continues to Gain Strong Momentum Geismar Completed a First Ever Major Turnaround Under Nova Ownership in 2024, Driving Strong Production Gains with the Plant Running Near Max Capacity Geismar Capex Spent Geismar Average Utilisation Rates(1) (US$m) (%) Major turnaround with exte
Slide 14: Nova’s Continuous Improvement Program – Nova@50
Nova’s Continuous Improvement Program – Nova@50 Nova@50 Exceeded its 2024 In-year Target And Realised EBITDA Benefits. Significant Progress Has Been Made in Digitalisation With Efforts Accelerating to Drive Data-driven Decision-making Through Advanced Digital Solutions • Launched in May 2022, Nova@5
Slide 15: Nova’s EBITDA with Expected Step-Change to Higher Mid-Cycle Levels
Nova’s EBITDA with Expected Step-Change to Higher Mid-Cycle Levels Nova Set to Benefit From Completed & De-risked Capacity Expansion and Improved Operations, Driving Higher and Specialty Volumes. L5Y Has Witnessed Multiple External Factors That Have Negatively Impacted the Broader Sector 3rd Party S
Slide 16: Borealis – Deep-Dive Crackers, Technology & Specialty Products
Borealis – Deep-Dive Crackers, Technology & Specialty Products
Slide 17: Borealis and Nova Complement Borouge to Create Compelling Market Position
Borealis and Nova Complement Borouge to Create Compelling Market Position Innovation Leaders with Differentiated Product Offering, Well-Positioned within their Respective Geographies 100% >75% 1st Quartile Exposure to AECO, Ethane Feedstock Cost Curve Positioning in Europe(2) Henry Hub & Mont Belvie
Slide 18: Europe Remains a Key Region for the Polyolefins Market, and Borealis is the Best Local Platform
Europe Remains a Key Region for the Polyolefins Market, and Borealis is the Best Local Platform Global Total Polyolefins Demand European Trends (mtpa) 2024-35 CAGR 330 CIS & Baltic 2.0% Europe is the 3rd largest region of the global 2% polyolefin market, after Asia and Americas, and 3% Africa 4.1% C
Slide 19: First Quartile Crackers With Feedstock Flexibility and Competitive PO Plants
First Quartile Crackers With Feedstock Flexibility and Competitive PO Plants High Feedstock Flexibility of Crackers Net Cash Margin • Advantages of Borealis assets (Amongst European peers, olefins(1)) - Nordic crackers – flexibility of feedstocks, combined with 2023 2021 2019 2017 access to sea and
Slide 20: Borealis – Highly Competitive in Specialty Products Segment with Resilient Margins
Borealis – Highly Competitive in Specialty Products Segment with Resilient Margins End-Use Industries Specialty Products Consumer products Energy Mobility Superior High customization properties (e.g., potential due to One of the exceptional multi- modal leading suppliers purity, durability, Borstar®
Slide 21: Borealis - Proprietary Technologies
Borealis - Proprietary Technologies Wire & cable is likely a key demand growth hub going forward as electrification accelerates Borstar® BorlinkTM BorceedTM BorcycleTM • Proprietary PE/PP production • Technology process platform • Technology process platform • Recycled polyolefin process technology
Slide 22: Funding and Capital Structure
Funding and Capital Structure
Slide 23: Funding and Capital Structure
Funding and Capital Structure 05 Borouge Group International will target a robust capital structure and a strong ✓ investment grade credit rating profile, with a through-the-cycle target net leverage of up to 2.5x EBITDA Acquisition of Nova, at completion, funded through acquisition debt, which is ✓
Slide 24: Appendix
Appendix
Slide 25: Borealis – Historical Financial Performance
Borealis – Historical Financial Performance EURm 2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024E Select Income Statement Items Net Sales 7,564 8,337 8,103 5,986 8,592 9,333 7,082 7,852 EBITDA 1,184 953 1,032 703 1,817 1,052 428 725(2) %Margin 16% 11% 13% 12% 21% 11% 6% 9% EBIT 791 496 605 239 1,390
Slide 26: Nova - Historical Financial Performance
Nova - Historical Financial Performance US$m 2018A 2019A 2020A 2021A 2022A 2023A Select Income Statement Items Revenue 4,195 3,343 3,207 5,061 4,472 3,350 EBITDA 1,368 842 755 2,345 1,020 360 % Margin 33% 25% 24% 46% 23% 11% EBIT 895 326 243 1,832 496 (207) Financial Expenses (148) (150) (181) (122)
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