LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — JP Morgan Diversified Industries Conference 2013
16 slides from LyondellBasell Industries NV's conference presentation, June 2013
Slide 1: JP Morgan Diversified Industries Conference
S E I Z E T H E M O M E N T S ECURING THE FUTURE JP Morgan Diversified Industries Conference Karyn Ovelmen Chief Financial Officer lyondellbasell.com
Slide 2: Cautionary Statement
Cautionary Statement The information in this presentation includes forward-looking statements. These statements relate to future events, such as anticipated revenues, earnings, business strategies, competitive position or other aspects of our operations or operating results. Actual outcomes and resu
Slide 3: Information Related to Financial Measures
Information Related to Financial Measures We have included EBITDA in this presentation, which is a non-GAAP measure, as we believe that EBITDA is a measure commonly used by investors. However, EBITDA, as presented herein, may not be comparable to a similarly titled measure reported by other companie
Slide 4: LYB Highlights
LYB Highlights ($ in millions, except per share data) LTM March 2013 FY 2012 FY 2011 EBITDA $6,166 $5,808 $5,469 Income from Continuing Operations $3,170 $2,858 $2,472 Diluted Earnings ($ / share) from Continuing Operations $5.49 $4.96 $4.32 EBITDA(1) Income from Continuing Operations(1) ($ in milli
Slide 5: Optimizing Our Businesses
Optimizing Our Businesses Segment LYB Market Position Portfolio Role Olefins & Polyolefins • NGL advantage Invest – Americas • Cyclical upside • Commodities – naphtha based, with cyclical upside Olefins & Polyolefins Restructure – EAI • Differentiated positions in Catalloy, PP compounding, and JVs I
Slide 6: Cost of Ethylene Production
Macroeconomic Background U.S. Crude Oil vs. Natural Gas Price Ethylene Production Cost Curve ($/ MMBTU) ($/ bbl) $25 $150 Crude Oil 20 120 Cost of Ethylene Production 15 90 Global Naphtha Cracking Delta 40-60 ¢/lb 10 60 N. America Ethane Crackers Natural Gas Middle East 10 - 15¢/lb 5 30 Ethane Crack
Slide 7: Cash Deployment Hierarchy
Cash Deployment Hierarchy Current Status Comments $700 - $800 Base Capex million/yr • First priorities for cash Interest ~$260 million/yr Foundation Interim ~$1,090 million • Fund through the cycle with Dividend per year cash flow from operations ~$750 million • High-return in advantaged Growth Cape
Slide 8: Growth and Operational Improvement Programs
Growth and Operational Improvement Programs Opportunities Capital Investments Pre-tax Earnings Operational Minimal $250 – 400 Million Improvements Previously Announced $600 – 700 Million $800 - 1,000 Million Growth Projects New Growth Projects $900 – 1,000 Million $500 – 600 Million At 2012 conditio
Slide 9: Value from Both Growth and Cash Distributions
Value from Both Growth and Cash Distributions Growth Projects Value Potential Annual Discretionary Cash Potential ($ in billions) $48 Potential Potential Discretionary Shareholder Cash Distributions Growth Projects 36 Potential Value(1) Special dividend 24 ~ $2.0 - $3.5 billion Dec. 31, 2012 Dec. 31
Slide 10: Appendix
S E I Z E T H E M O M E N T S ECURING THE FUTURE Appendix lyondellbasell.com
Slide 11: Reconciliation of Segment Information to Consolidated Financial Information
Reconciliation of Segment Information to Consolidated Financial Information Table 8 - Reconciliation of Segment Information to Consolidated Financial Information 2012 2013 (Millions of U.S. dollars) Q1 Q2 Q3 Q4 Total Q1 Sales and other operating revenues: Olefins & Polyolefins - Americas $ 3,349 $ 3
Slide 12: Reconciliation of EBITDA to Income from Continuing operations
Reconciliation of EBITDA to Income from Continuing operations Table 9 - EBITDA Calculation 2012 2013 (Millions of U.S. dollars) Q1 Q2 Q3 Q4 Total Q1 Net income attributable to the Company shareholders $ 600 $ 770 $ 846 $ 632 $ 2,848 $ 901 Net loss attributable to non-controlling interests (1) (2) (2
Slide 13: Future Operational and Financial Improvements
Future Operational and Financial Improvements Further structural and Further O&P – EAI To be completed by Restructuring product mix 2015 improvements Expand operating window / increase Further Houston To be completed by Refinery Flexibility feedstock capacity for 2014 lighter Canadian crude oil Futu
Slide 14: Previously Announced High-Return Growth Opportunities
Previously Announced High-Return Growth Opportunities La Porte Expansion Olefins Ethane Capability Methanol Restart Additional Remaining Potential Pre- O&P EAI Butadiene Expansion Projected Tax Earnings Spending Midwest Debottlenecks $800 - $1,000 $600 - $700 PO/TBA JV million per year million by 20
Slide 15: New Growth Opportunities
New Growth Opportunities Channelview Expansion Corpus Christi Expansion Potential Projected Pre-Tax Spending Earnings Olefins NGL Recovery $900 - $1,000 $500 - $600 PE Debottleneck million million per year by 2016(1) Potential New PE Line Combined projects will have average payback period less than
Slide 16: Appendix A
Appendix A Details of Assumptions: • O&P - Americas: – Growth projects potential values are based on LYB growth projects capacities and 2012 industry benchmark margins data from third party consultants as indicated in the 2013 Investor Day O&P Americas slides. • O&P - EAI: – Growth projects potentia
LyondellBasell Industries — JP Morgan Diversified Industries Conference 2013 on 6ix