Slide 1: Analyst & Investor Presentation
ADNOC Classification: Public BOROUGE ANALYST & INVESTOR PRESENTATION FOR THE THREE-MONTH AND TWELVE-MONTH PERIODS ENDED 31 DECEMBER 2022 2nd February 2023
Slide 2: Disclaimer
ADNOC Classification: Public DISCLAIMER This presentation has been prepared by the Borouge PLC and its subsidiaries (the “Company”) based on publicly available information and non-public information to assist you in making a preliminary analysis of the content referenced herein solely for informatio
Slide 3: Agenda and Presenters
ADNOC Classification: Public AGENDA AND PRESENTERS Hazeem Sultan Al Suwaidi Chief Executive Officer Q4 & FY 22 Results Market Update Rainer Hoefling Chief Marketing Officer Operational Highlights Financial Highlights Jan-Martin Nufer Chief Financial Officer Outlook Concluding remarks Louis Roland R.
Slide 4: Q4 & FY22 Results
ADNOC Classification: Public Q4 & FY22 RESULTS
Slide 5: Strong Volume Growth Despite Challenging Market Environment
ADNOC Classification: Public STRONG VOLUME GROWTH DESPITE CHALLENGING MARKET ENVIRONMENT Highlights from the three and twelve months ended 31 December 2022 FY22 Revenue of $6,727m, up 8% y-o-y driven by growing sales volumes, despite challenging market environment $1,593m Q4 22 revenue, -5% q-o-q FY
Slide 6: Macroeconomic Challenges and Opportunities
ADNOC Classification: Public MACROECONOMIC CHALLENGES AND OPPORTUNITIES While global, industry-wide challenges exist… Inflationary environment Economic slowdown Volatility in oil and gas markets Global price softening IMPACTS Conversion & logistics Softening product demand Rising feedstock costs Pre
Slide 7: Polyolefins Market & Premia Update
ADNOC Classification: Public POLYOLEFINS MARKET & PREMIA UPDATE Product Prices and Premia Evolution Commentary 1,421 1,441 1,432 1,318 1,313 1,271 1,222 1,166 1,172 1,133 1,087 1,118 1,116 1,016 Benchmark 1,007 967 899 1,014 949 899 ▪ Q4 average selling price continued to soften, Prices vs Avg. driv
Slide 8: Operational Performance
ADNOC Classification: Public OPERATIONAL PERFORMANCE Sales Volumes(1) Commentary 2,509 2,676 ▪ Q4 22 sales volumes grew 6% q-o-q (24% y- +7.6% +10.9% o-y) supported by strong production Polyethylene (kt) +6.7% volumes 661 733 681 733 ▪ PP volumes higher in Q4 22 following ramp- FY 21 FY 22 Q4 21 Q4
Slide 9: Revenue & Profitability
ADNOC Classification: Public REVENUE & PROFITABILITY Key Metrics(1) Commentary 6,727 PE PP Others (3) 6,216 247 132 -4.9% 2,538 2,706 -6.0% Revenue 1,694 ($m) +8.2% 1,593 1,674 1,593 ▪ FY 22 revenue up 8% y-o-y, supported by 3,775 19 41 85 41 significant volume growth offsetting price 3,547 687 672
Slide 10: Costs
ADNOC Classification: Public COSTS Key Metrics(1) Commentary (3) % of Revenue 43.7% 48.1% 48.2% 54.1% 51.3% 54.1% 3,237 Cost of Sales 2,719 +5.6% +0.3% (excl. D&A) +19.1% ($m) 816 861 858 861 ▪ Overall cost base flat in Q4 22 vs Q3 22 FY 21 FY 22 Q4 21 Q4 22 Q3 22 Q4 22 ▪ S&D costs in Q4 22 vs. Q4 2
Slide 11: Value Enhancement Programme
ADNOC Classification: Public VALUE ENHANCEMENT PROGRAMME Reinforcing robust financial profile Positioning for sustainable future growth Proactively addressing market challenges $400 million value enhancement programme, focused on high-impact cost efficiencies and revenue optimisation, directly suppo
Slide 12: Capex & Free Cash Flow
ADNOC Classification: Public CAPEX & FREE CASH FLOW Key Metrics(1) Commentary 254 189 -22.6% Capital +162.7% Expenditure ($m) -25.7% 98 • Cashflow conversion of 86% in Q4 22 versus 76 76 95% in the previous quarter 29 FY 21 FY 22 Q4 21 Q4 22 Q3 22 Q4 22 • Higher capex in Q4 mainly related to operati
Slide 13: Outlook
ADNOC Classification: Public OUTLOOK ▪ Activity in Borouge’s core Asia Pacific and Middle East markets remains stronger than in developed Market markets, with economic growth rates ahead of developed economies ▪ Management re-iterates over-the-cycle premia guidance of $200 / tonne for PE and $140 /
Slide 14: Borouge 4 Update
ADNOC Classification: Public BOROUGE 4 UPDATE Significant, positive impact on capital structure and growth Located in Al Ruways Industrial City adjacent to Borouge 1, 2, 3 and PP5 Optimised capital structure Access to competitive feedstock ▪ Recontribution expected to be accretive to operating cash
Slide 15: Concluding Remarks
ADNOC Classification: Public CONCLUDING REMARKS Robust sales volume Value enhancement Board support to Committed to $975 million post- growth, despite programme to explore international product innovation IPO dividend for challenging market mitigate headwinds growth and differentiation, FY22 conditi
Slide 16: Thank You
ADNOC Classification: Public THANK YOU www.borouge.com/en/investor-relations ir@borouge.com