Lyondellbasell Industries Nv · NYSE:LYB
Lyondellbasell Industries Nv — Basell AF S.C.A. — Q4 2006 Earnings Presentation
11 slides from Lyondellbasell Industries Nv's earnings presentation, Mar 16, 2007
Slide 1: Quarterly review – Fourth Quarter 2006
Basell AF S.C.A. Quarterly review – Fourth Quarter 2006 Conference call 16 March 2007 We are the global leader in polyolefins technology, production and marketing 1 Disclaimer Forward looking statements – The presentation today may include forward-looking statements as that term is defined in secu
Slide 2: Fourth quarter 2006 performance review: Agenda
Fourth quarter 2006 performance review Agenda Introduction J. Gadbois 2006 at a glance Industry overview and business review – Technology – Advanced Polyolefins – Polyolefins – Performance summary Financials 3 Fourth quarter 2006 performance review Agenda Introduction 2006 at a glance V.
Slide 3: Basell's 2006 top highlights
Basell’s 2006 top highlights 9 World-class safety performance with a TTR of 1.6 9 Best-ever financial results 9 Technology leadership Al-Waha SEPC affirmed 9 Advanced polyolefins performance enhanced 9 Two new joint ventures formed 9 Catalyst business strengthened 9 Feedstock integration 5 enhanced
Slide 4: The polyolefins industry in Q4 2006
The polyolefins industry in Q4 2006 Highlights Challenges 9 Favourable supply-demand 8 North American polymer margin balance continued in Asia and squeeze continued in volatile Europe environment 9 Market growth continued in 8 Monomer and cracker feedstock Europe volatility remained 9 European crack
Slide 5: European cracker fundamentals; Technology business review
European cracker fundamentals Ethylene price increase combined with dropping naphtha prices have resulted in improved cracker margins in the fourth quarter Feedstock price development in EUR/ton Naphtha Price - €/t Ethylene Price - €/t 600 900 Naphtha 500 800 400 700 300 600 Ethylene 200 500 Jan-04
Slide 6: Advanced Polyolefins and Polyolefins business reviews
Advanced Polyolefins business review 9 2006 pro-forma EBITDA is 65% Q4 2006 Q4 2005 2006 2005 ahead of 2005 mln € 9 Sales volumes Revenue 377 342 1,536 1,251 grew by: Pro-forma 9 8% in fourth EBITDA 30 27 153 93 quarter 9 14% on an annual basis 9 Strong comeback for Catalloy process resins 11 Polyol
Slide 7: Joint venture business review; Summary of performance versus 2005
Joint venture business review Joint ventures Q4 2006 Q4 2005 2006 2005 9 Good mln € performance by Equity income(*) 25 9 103(**) 80 polyolefins joint ventures in the 4th Dividends and quarter 4 27 33 50 other cash 9 Implemented (*) The 2005 results excludes Petroken and Polibrasil joint ventures str
Slide 8: Pro-forma EBITDA
Fourth quarter 2006 performance review Agenda Introduction 2006 at a glance Industry overview and business review – Technology – Advanced Polyolefins – Polyolefins – Performance summary Financials A. Bigman 15 Pro-forma EBITDA (excluding licensing income recognition policy change) Continued
Slide 9: 2006 Pro-forma EBITDA; Free cash flow and working capital
2006 Pro-forma EBITDA Going forward pro-forma EBITDA (based on the new accounting policy) of €980 million will be use for comparison purposes Basell has moved away from its 8 year licensing income recognition policy but remain conservative in its approach 400 315 292 300 50 10 219 214 10 200 282 265
Slide 10: Basell's debt structure; Basell businesses in the news
Basell’s debt structure € million Total external funding Net debt to EBITDA ratio of 2.4 4000 3496 3419 3145 3.7 on 31/12/2005 517 514 3000 120 558 509 253 55 228 95 Net debt since 2000 1,019 1,100 966 acquisition is lower 3,122 2,829 by ~€650 million 2,475 1000 1,577 1,298 1,250 Revolver rema
Slide 11: First quarter 2007 current performance
First quarter 2007 current performance Technology – Continued strong catalyst sales – Excellent progress on a number of licensing projects Advanced Polyolefins – Demand has been strong across all three product lines Polyolefins – European polyolefin demand continues to be strong – Basell’s Nor