LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Q3 2010 Earnings Presentation
19 slides from LyondellBasell Industries NV's earnings presentation, Oct 29, 2010
Slide 1: Third-Quarter 2010 Earnings
Third-Quarter 2010 Earnings Jim Gallogly, Chief Executive Officer Kent Potter, Chief Financial Officer Sergey Vasnetsov, Senior Vice President – Strategic Planning and Transactions October 29, 2010
Slide 2: Disclaimer and Notice
Disclaimer and Notice 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 r
Slide 3: Third-Quarter Highlights
Third-Quarter Highlights • Net income: $467 million; Earnings per share: $0.84 • EBITDA: $1,230 million excluding $32 million Lower of Cost or Market (LCM) inventory valuation adjustment • Generally steady business conditions - Global Olefins & Polyolefins results in line with strong second quarter
Slide 4: LyondellBasell Safety Performance 2003-2010
LyondellBasell Safety Performance 2003-2010 0.60 Injuries per 200,000 hours worked - Employees and Contractors 0.50 0.40 0.30 0.20 0.10 0.00 2003 2004 2005 2006 2007 2008 2009 Sep-10 YTD lyondellbasell.com Third-Quarter 2010 Earnings 4
Slide 5: Third-Quarter and Year-to-Date 2010 Segment EBITDA(R)
LyondellBasell Third-Quarter and Year-to-Date 2010 Segment EBITDA(R) 3Q10 EBITDA (1) YTD EBITDA(R) (2), (3) $1,230 million ex LCM charge $3,273 ex LCM charge 3Q10 Operating Income YTD Operating Income (2), (3) $988 million $2,100 million Third-Quarter 2010 EBITDA Year-to-Date 2010 EBITDA(R) 600 1,50
Slide 6: Third-Quarter Cash Flow
Third-Quarter Cash Flow 5,250 5,000 4,832 4,750 USD, millions 4,500 4,250 4,000 3,753 3,750 3,500 (1) (2) 2Q10 Ending Cash Cash Flow from Working Capital Debt Decrease Capex Other (prim arily 3Q10 Ending Cash Balance Operations (Euro FX) Balance excluding Securitization) Working Capital 1) Includes
Slide 7: Working Capital and Liquidity
Working Capital and Liquidity Working Capital (1) Liquidity 8 7 6 6 5 USD, billion USD, billion 4 4 3 2 2 1 0 0 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 -2 -4 Total WC Inventory AR AP September 30 Statistics Liquidity: ~ $6.1 billion Net Debt: ~ $2.5 billio
Slide 8: Reduced Expenses Since Emergence
Reduced Expenses Since Emergence 5,000 4,500 Pre-Chapter 11 4,000 Post-Chapter 11 Δ= $1 billion 3,500 USD, millions 3,000 2,500 2,000 1,500 Δ= $1.7 billion Δ= $1.1 billion 1,000 500 0 (3) Interest Expense (1) Depreciation Expense (2) Cash Fixed Costs 1) Pre-chapter 11 refers to 2008 net interest exp
Slide 9: Olefins & Polyolefins – Americas
Olefins & Polyolefins – Americas 3Q10 EBITDA (1) YTD EBITDA(R) (2), (3) $518 million ex LCM charge $1,377 million ex LCM charges 3Q10 Operating Income YTD Operating Income (2), (3) $448 million $917 million Third-Quarter 2010 EBITDA Year-to-Date 2010 EBITDA(R) 400 1,200 300 900 USD, million USD, mil
Slide 10: Olefins & Polyolefins – Americas Highlights and Business Drivers – 3Q10
Olefins & Polyolefins – Americas Highlights and Business Drivers – 3Q10 Indicative Margins (per CMAI) Third-Quarter 2010 Results $518 million EBITDA excluding 30 25 $26 million LCM charge 20 (cents/pound) 15 U.S. Olefins 10 • Margins declined as market 5 balanced from Q2 tightness 0 -5 • Ethane rema
Slide 11: Olefins & Polyolefins – Europe, Asia, International
Olefins & Polyolefins – Europe, Asia, International 3Q10 EBITDA (1) YTD EBITDA(R) (2), (3) $294 million ex LCM charge $703 ex LCM charges 3Q10 Operating Income YTD Operating Income (2), (3) $231 million $460 million Third-Quarter 2010 EBITDA Year-to-Date 2010 EBITDA(R) 250 275 200 225 150 175 USD, m
Slide 12: Olefins & Polyolefins – Europe, Asia, International Highlights and Business Drivers
Olefins & Polyolefins – Europe, Asia, International Highlights and Business Drivers – 3Q10 Third-Quarter 2010 Results Indicative Margins (per CMAI) 25 $294 million EBITDA excluding n 20 $5 million LCM charge n 15 (cents/pound) 10 EU Olefins • Butadiene strength 5 • Competitor outages 0 -5 Polyethyle
Slide 13: Intermediates & Derivatives Highlights and Business Drivers – 3Q10
Intermediates & Derivatives Highlights and Business Drivers – 3Q10 Third-Quarter 2010 Results 300 2010 Quarterly EBITDA(R) $243 million EBITDA $207 million Operating Income 200 USD, millions Propylene Oxide and Derivatives 100 • Increased volumes and margins • Strong derivative results 0 (1) 1Q10 2Q
Slide 14: Refining & Oxyfuels
Refining & Oxyfuels 3Q10 EBITDA (1) YTD EBITDA(R) (2), (3) $141 million ex LCM charge $373 million ex LCM charge 3Q10 Operating Income YTD Operating Loss (2), (3) $83 million $2 million Third-Quarter 2010 EBITDA Year-to-Date 2010 EBITDA(R) 150 350 100 250 USD, million USD, million 150 50 50 0 -50 -5
Slide 15: Refining & Oxyfuels Highlights and Business Drivers – 3Q10
Refining & Oxyfuels Highlights and Business Drivers – 3Q10 Third-Quarter 2010 Results Spreads (per Platts) 25 $141 million EBITDA excluding 20 $1 million LCM charge (US$/bbl) 15 Houston Refining 10 • Crude throughput: 261 MB/D 5 • Maya 2-1-1 spread: $16.14/bbl • Increased volumes partially offset 0
Slide 16: Technology Highlights and Business Drivers – 3Q10
Technology Highlights and Business Drivers – 3Q10 Brindisi, Italy Third-Quarter 2010 Results $78 million EBITDA $38 million Operating Income • Continued strong catalyst volumes • Improved licensing results Year-to-Date EBITDA(R) (1), (2) $168 million Operating Income (1), (2) $100 million 1) Represe
Slide 17: Third-Quarter Summary and Outlook
Third-Quarter Summary and Outlook Third-Quarter Summary Near-Term Outlook • Continued strong business results • Overall positive conditions continued • Global Olefins & Polyolefins results into October approximately equal to second - Expect some seasonal decline quarter results - Fourth quarter typi
Slide 18: Appendix
Appendix lyondellbasell.com Third-Quarter 2010 Earnings 18
Slide 19: Reconciliations of non-GAAP Financial Measures
Reconciliations of non-GAAP Financial Measures • For reconciliations of non-GAAP financial measures, please see Table No. 9 of our earnings release which is available on our website, www.lyondellbasell.com/investorrelations lyondellbasell.com Third-Quarter 2010 Earnings 19
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