Lyondellbasell Industries Nv · NYSE:LYB
Lyondellbasell Industries Nv — Q3 2016 Earnings Presentation
18 slides from Lyondellbasell Industries Nv's earnings presentation, Nov 1, 2016
Slide 1: Third Quarter 2016 Earnings
Third Quarter 2016 Earnings November 1, 2016
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 which are believed to be reasonable at the time made and are subject to significant ris
Slide 3: 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. The non-GAAP measures we have presented include income from continuing operations excluding LCM, di
Slide 4: 3Q 2016 Highlights
3Q 2016 Highlights (1) As Reported Excluding LCM ($ in millions, except per share data) 3Q15 2Q16 3Q16 3Q15 2Q16 3Q16 EBITDA $2,001 $1,783 $1,606 $2,182 $1,715 $1,606 Income from Continuing Operations $1,189 $1,092 $955 $1,303 $1,045 $955 Diluted Earnings ($ / share) from Continuing Operations $2.55
Slide 5: LyondellBasell Safety Performance
LyondellBasell Safety Performance Safety Benchmark: Injuries per 200,000 Hours Worked (1) 0.50 0.40 0.30 0.20 0.10 0.00 2009 2010 2011 2012 2013 2014 2015 2016 (Q3 YTD) Maintaining strong safety performance in 2016 (1) Includes employees and contractors. 2016 data as of September 30, 2016. 5
Slide 6: Third Quarter 2016 and LTM Segment EBITDA
Third Quarter 2016 and LTM Segment EBITDA Third Quarter 2016 LTM September 2016 (1) ($, millions) EBITDA Op. Income ($, millions) EBITDA Op. Income As Reported $1,606 $1,249 As Reported $6,590 $5,064 As Adjusted for LCM $1,606 $1,249 As Adjusted for LCM $6,874 $5,348 Third Quarter 2016 EBITDA USD, L
Slide 7: Cash Flow
Cash Flow Third Quarter 2016 LTM September 2016 USD, millions USD, millions 4,500 $10,000 $4,000 8,000 3,500 3,000 6,000 2,500 2,000 4,000 1,500 $2,545 $2,126 1,000 $3,524 2,000 $2,126 500 3Q 2016 (1) CF from Working (2) Capex(3) Dividends & Net Debt Other 3Q 2016 (1) 4Q 2015 (1) CF from Working (2)
Slide 8: Strong Cash Generation, Share Repurchases & Dividends
Strong Cash Generation, Share Repurchases & Dividends Cash From Operations Dividends & Share Repurchases USD, m illions USD, m illions Free Cash Flow Capex Interim Dividends Share Repurchases $7,000 $8,000 6,000 6,000 5,000 4,000 4,000 3,000 2,000 2,000 1,000 2013 2014 2015 Q3'16 LTM 2013 2014 2015
Slide 9: Olefins & Polyolefins – Americas Highlights and Business Drivers – 3Q'16
Olefins & Polyolefins – Americas Highlights and Business Drivers – 3Q’16 EBITDA Performance vs. 2Q’16(1) USD, EBITDA Margin Volume millions As Reported Excluding LCM U.S. Olefins $1,000 • Ethylene price up ~4 ¢/lb. • Internal Consumption and production 800 volume reduced by T/A‘s 600 Polyethylene •
Slide 10: Olefins & Polyolefins – Europe, Asia, International Highlights and Business Drivers – 3Q'16
Olefins & Polyolefins – Europe, Asia, International Highlights and Business Drivers – 3Q’16 EBITDA Performance vs. 2Q’16(1) USD, EBITDA Margin Volume millions As Reported Excluding LCM EU Olefins $700 • Ethylene margin up ~7 ¢/lb 600 • Volume up following Q2 T/A Polyethylene 500 • Spread down ~3 ¢/l
Slide 11: Intermediates & Derivatives Highlights and Business Drivers – 3Q'16
Intermediates & Derivatives Highlights and Business Drivers – 3Q’16 EBITDA Performance vs. 2Q’16(1) USD, As Reported Excluding LCM EBITDA Margin Volume Millions $600 Propylene Oxide and Derivatives • Margins lower due to sales mix & 500 increased propylene price 400 Intermediates 300 • Styrene margi
Slide 12: Refining Highlights and Business Drivers – 3Q'16
Refining Highlights and Business Drivers – 3Q’16 EBITDA Performance vs. 2Q’16(1) USD, As Reported Excluding LCM EBITDA Margin Volume millions Houston Refinery $200 • Maya 2-1-1: $18.98 per bbl, down $2.09 from 2Q’16 150 • Crude throughput: 209 MBPD 100 • Throughput and yield constrained by operation
Slide 13: Third Quarter Summary and Outlook
Third Quarter Summary and Outlook Third Quarter Summary Near-Term Outlook • Third quarter industry trends developed as • Global O&P markets remain balanced anticipated • Oxyfuels and refining spreads at typical • O&P Americas impacted by planned seasonal conditions maintenance and capacity expansion
Slide 14: LYB Maintenance and Expansion Investments in 2016 Provide Increased Available Capacity for 2017
LYB Maintenance and Expansion Investments in 2016 Provide Increased Available Capacity for 2017 Ethylene Derivatives: Ethylene Refining PE and EO Billion +2.2 Billion lbs. Billion +600 Million lbs. MBPD +40 MBPD lbs. lbs. 18 12 300 16 10 14 12 8 200 10 6 8 6 4 100 4 2 2 - - - 2016 2017 2016 2017 201
Slide 15: O&P: Steady Demand Growth
O&P: Steady Demand Growth Supported by Demographics, Urbanization and Rising Middle Class 2017 Population 2017 PE Demand per Capita Millions PE Demand per Capita (lbs.) 1,500 100 U.S. 75 1,000 WE 50 China 500 25 India $0 $20 $40 $60 $80 U.S. WE China India GDP per Capita (US$, thousands) 2017-2021 2
Slide 16: O&P: Industry Capacity Delays and Demand Growth Support Strong Operating Rates
O&P: Industry Capacity Delays and Demand Growth Support Strong Operating Rates Ethylene Downtime (1) Global Ethylene Supply / Demand (2) % Maintenance Downtime / Nameplate 8% 6% 4% 2% 2012-15 Average 2016 Forecast 2017 Forecast Updated View on 2018 Effective Operating Rates • NA Capacity Delays (per
Slide 17: Demand for World-scale Ethylene Crackers
Demand for World-scale Ethylene Crackers 2007 – 2011 2012 – 2016 2017 – 2021 Middle-East Buildout China Demand U.S. Shale Gas Loosening Tightening Balanced World China United States Western Europe ROW -5 0 5 10 15 20 25 -5 0 5 10 15 20 25 -5 0 5 10 15 20 25 Number of 3 Blb/yr World-scale Ethylene Cr
Slide 18: Investor Day 2017: Save the Date
Investor Day 2017: Save the Date April 5, 2017 Investor Day NEW YORK CITY LyondellBasell is planning an Investor Day to be held on April 5, 2017, in New York City. At this half-day session, you will have an opportunity to interact with members of our leadership team. Invitations and additional infor
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