Lyondellbasell Industries Nv · NYSE:LYB
Lyondellbasell Industries Nv — Q4 2024 Earnings Presentation
24 slides from Lyondellbasell Industries Nv's earnings presentation, Jan 31, 2025
Slide 1: Fourth Quarter 2024 Earnings
Fourth Quarter 2024 Earnings January 31, 2025
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 of LyondellBasell which are believed to be reasonable at the time made and are subject
Slide 3: Safety performance
Safety performance Outstanding 2024 results demonstrating our fundamental commitment to safe and reliable operations Injuries per 200,000 hours worked 0.4 0.3 0.2 0.1 2020 2021 2022 2023 2024 LyondellBasell ACC Top Quartile Sources: American Chemistry Council (ACC) and LyondellBasell. Notes: Medium
Slide 4: 2024 highlights
2024 highlights Excellent cash conversion and returns amid challenging market conditions $1.4 B $4.15 $3.5 B $3.8 B Cash from operating Net income Diluted EPS EBITDA activities $2.1 B $6.40 $4.3 B $1.9 B Net income Diluted EPS EBITDA Dividends and share ex. identified items ex. identified items ex.
Slide 5: Margins and operating rates are below historical average
Margins and operating rates are below historical average Material upside for LYB profitability from cycle recovery to past averages Industry margins1,2 (USD/t) • Portfolio upgrades at LYB provide leverage to margin upside that could surpass historical cycle performance $290 $120 $240 $830 $660 100%
Slide 6: Executing our long-term strategy
Executing our long-term strategy Focused on increasing resiliency, strengthening LYB’s advantage, and creating value 2025 Goal $0.4 - 0.7B Incremental Unlocked Normalized ~$0.4B EBITDA1 Unlocked Incremental ✓ Divested EO&D business ~$0.9B Normalized ✓ Unlocked additional $400 MM EBITDA1 for a year-e
Slide 7: Circular and Low Carbon Solutions (CLCS) growth
Circular and Low Carbon Solutions (CLCS) growth Strong volume growth and margin development in 2024 LYB recycled and renewable-based polymers1 (thousand metric tons) • 65% year over year volume growth in 2024 +57% CAGR3 • Robust demand for our Circulen solutions • Good volume and margin progress tow
Slide 8: Circular plastics market is structurally attractive
Circular plastics market is structurally attractive Upstream supply gap is creating a very tight market1 Market assessment for circular plastics1,2 • Consumer preferences driving robust demand growth for LYB’s CLCS products 4 MM ton supply gap 13 MM tons • European regulatory developments, such as P
Slide 9: PPWR: constructive regulatory progress in Europe
PPWR: constructive regulatory progress in Europe EU’s Packaging and Packaging Waste Regulation (PPWR) stimulates demand for circular solutions PPWR – Minimum recycling content targets 2030 and 2040, by product group 65% 65% • Mandates minimum recycled content requirements for packaging 50% • Sets sp
Slide 10: Disciplined capital allocation
Disciplined capital allocation Executing on our strategic priorities, maintaining balance sheet strength, with meaningful cash returns USD, billions Executing the strategy $8 • Invested in safety, reliability and productivity 7 • Acquisition of NATPET offset by divestment of EO&D 6 • Generated $3.8
Slide 11: Solid cash generation amid trough market conditions
Solid cash generation amid trough market conditions Strong cash conversion demonstrates ability to leverage existing market opportunities Cash conversion Cash from operating activities $3.8 B 2024 96% 98% 87% 88% 90% 83% Cash and cash equivalents $3.4 B December 31, 2024 Net debt to EBITDA ex. ident
Slide 12: 4Q24 segment highlights
4Q24 segment highlights Higher feedstock prices and lower seasonal demand in O&P, margin compression in oxyfuels EBITDA variance by segment ex. identified items USD, millions $1,211 $(262) $39 $- $689 $1,174 $(227) $(67) $(4) $(1) $(409) 3Q24 O&P O&P EAI I&D APS Refining Technology Other 4Q24 Americ
Slide 13: Olefins & Polyolefins – Americas
Olefins & Polyolefins – Americas Lower integrated polyethylene margins partially offset by robust polyethylene export volumes EBITDA Inventory valuation USD, millions • LIFO charge of ~$20 MM 4Q24 market dynamics $758 • 2024 North American polyethylene and polypropylene $670 industry sales increased
Slide 14: Olefins & Polyolefins – Europe, Asia & International
Olefins & Polyolefins – Europe, Asia & International Higher feedstock costs and 4Q maintenance pressured margins and volumes EBITDA ex. identified items USD, millions Impairments and inventory valuation $70 $81 • ~$1 billion of Europe and Asia asset write-downs $14 • LIFO benefits of ~$10 MM 4Q24 ma
Slide 15: Refining
Refining Margins improved as lower crack spreads were offset by improved FCC performance EBITDA ex. identified items Inventory valuation USD, millions • LIFO charges of ~$15 MM 4Q24 market dynamics $71 • Lower Maya 2-1-1 crack spread partially offset by higher by- product spreads $51 Near-term outlo
Slide 16: Intermediates & Derivatives
Intermediates & Derivatives Oxyfuels margins declined to typical winter lows on weaker gasoline spreads and lower crude prices EBITDA ex. identified items Inventory valuation USD, millions $794 • LIFO charges of ~$10 MM 4Q24 market dynamics • Seasonally lower gasoline cracks and falling crude prices
Slide 17: Advanced Polymer Solutions
Advanced Polymer Solutions Improved margins for polypropylene compounds EBITDA ex. identified items Impairments and inventory valuation USD, millions • $55 MM impairment of specialty powders business $40 • LIFO benefits of ~$5 MM $35 4Q24 market dynamics $19 • Lower automotive demand drove volume he
Slide 18: Technology
Technology Licensing milestones achieved during 4Q EBITDA USD, millions Inventory valuation • LIFO benefits of ~$10 MM 4Q24 market dynamics • Higher licensing revenue as milestones achieved $118 • Catalyst revenue moderated on seasonality $108 Near-term outlook $84 $77 • Seasonally higher catalyst s
Slide 19: Near-term market outlook
Near-term market outlook Challenging, but stable markets with good demand for North American polyolefins • Seasonal demand recovery Packaging • Steady global demand North • Limited capacity additions • High levels of ethylene cracker America maintenance across industry during 1Q25 • U.S. infrastruct
Slide 20: Continuing to advance our strategy
Continuing to advance our strategy 2025 outlook Progressing LYB’s long-term strategy • Cyclical downturn is overdue for inflection Growing and upgrading the core through strategic acquisitions and divestments, organic growth projects, • Encouraged by U.S. polyolefin demand growth on-going European r
Slide 21: Appendix
Appendix
Slide 22: LyondellBasell 2025 modeling information
LyondellBasell 2025 modeling information Capital Expenditures (USD, millions) 1Q 2Q 3Q 4Q 2025 Total CAPEX ~$1.9 B Sustaining | Profit Generating CAPEX O&P Americas ~$105 ~$85 -- -- ~$190 ~$1.2 B | ~$0.7 B Major Planned Financial Metrics Maintenance Estimated Net Interest Expense EBITDA ~$390 MM O&P
Slide 23: 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. We report our financial results in accordance with U.S. generally accepted accounting principles, b
Slide 24: Information related to financial measures (continued)
Information related to financial measures (continued) Normalized EBITDA - Assumes 2013-2022 historical average margins and operating rates and reflects the benefits associated with the following strategic initiatives: Grow & Upgrade the Core, Building a Profitable CLCS Business and Step Up Performan
LyondellBasell Industries — Q4 2024 Earnings Presentation on 6ix