Lyondellbasell Industries Nv · NYSE:LYB
Lyondellbasell Industries Nv — Q2 2015 Earnings Presentation
16 slides from Lyondellbasell Industries Nv's earnings presentation, Jul 28, 2015
Slide 1: Second Quarter 2015 Earnings
Second Quarter 2015 Earnings July 28, 2015
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: Highlights
Highlights (1) As Reported Excluding LCM ($ in millions, except per share data) Q2'14 1Q'15 Q2'15 Q2'14 1Q'15 Q2'15 EBITDA $1,941 $1,952 $2,186 $1,941 $2,044 $2,177 Income from Continuing Operations $1,173 $1,167 $1,326 $1,173 $1,225 $1,320 Diluted Earnings ($ / share) from Continuing Operations $2.
Slide 5: LyondellBasell Safety Performance
LyondellBasell Safety Performance Safety - Injuries per 200,000 Hours Worked(1) 0.60 0.45 0.30 0.15 0.00 2009 2010 2011 2012 2013 2014 2015 (Q2 YTD) 1) Includes employees and contractors. 5
Slide 6: Second Quarter 2015 and LTM Segment EBITDA
Second Quarter 2015 and LTM Segment EBITDA Second Quarter 2015 LTM June 2015 EBITDA Op. Income EBITDA Op. Income As Reported 2,186 1,845 As Reported 7,579 6,203 As Adjusted for LCM 2,177 1,836 As Adjusted for LCM 8,422 7,046 Second Quarter 2015 EBITDA LTM June 2015 EBITDA USD, millions USD, millions
Slide 7: Cash Flow
Cash Flow Q2 2015 LTM June 2015 USD, millions USD, millions $12,000 $12,000 10,000 10,000 8,000 8,000 6,000 6,000 4,000 4,000 $3,811 $3,811 $3,529 2,000 $3,582 2,000 0 (3) 0 (1) 2Q 2015 (1) CF from Working (2) Capex Dividends & Net Debt Other 2Q 2015 (1) 3Q 2014 CF from Working (2) Capex (3) Dividen
Slide 8: Strong Cash Generation, Share Repurchases & Dividends
Strong Cash Generation, Share Repurchases & Dividends Cash From Operations Dividends & Share Repurchases USD, millions USD, millions $7,000 $8,000 Capex Free Cash Flow Interim Dividends 6,000 Special Dividends Share Repurchases 6,000 5,000 4,000 4,000 3,000 2,000 2,000 1,000 2012 2013 2014 LTM June
Slide 9: Industry Leading Cash Returns to Shareholders
Industry Leading Cash Returns to Shareholders 2011 - Q1'15 Shareholder Returns of Capital as % of Enterprise Value Regular Dividend Special Dividend Share Repurchase Free Cash Flow 40% 37% 35% 31% 30% 25% 20% 17% 16% 15% 15% 14% 12% 10% 10% 11% 10% 8% 8% 6% 6% 5% 0% LYB A B C D E F Peer Companies Ex
Slide 10: Olefins & Polyolefins – Americas Highlights and Business Drivers – 2Q'15
Olefins & Polyolefins – Americas Highlights and Business Drivers – 2Q’15 EBITDA Performance vs. 1Q’15(2) USD, millions EBITDA Margin Volume U.S. Olefins As Reported Excluding LCM $1,400 • Margin lower due to lower co-product prices and higher cost of liquid feedstock 1,200 • Operating rates 95% duri
Slide 11: Olefins & Polyolefins – Europe, Asia, International Highlights and Business Drivers – 2Q'15
Olefins & Polyolefins – Europe, Asia, International Highlights and Business Drivers – 2Q’15 EBITDA Performance vs. 1Q’15(2) USD, millions EBITDA Margin Volume As Reported Excluding LCM EU Olefins $500 • Ethylene price up ~7 ¢/lb. • Advantaged feedstocks ~60% 400 • Operating rate ~97% 300 Polyethylen
Slide 12: Global Ethylene Supply/Demand Outlook
Global Ethylene Supply/Demand Outlook Billion Lbs. Capacity Demand Effective Operating Rate 500 100% Forecast 95% 450 90% 400 85% 80% 350 75% 300 70% 250 65% 60% 200 55% 150 50% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Industry operating rates transitioning to tight conditions Acce
Slide 13: Regional Ethylene Operating Rates
Regional Ethylene Operating Rates Global Ethylene Capacity U.S. Western Europe ~345 Billion Pounds Nameplate Effective Nameplate Effective 105% 105% Other India 4% 3% 100% 100% S. America 3% 95% 95% Middle East 90% 90% 19% 85% 85% Asia 33% Europe 16% 80% 80% 75% 75% North America 22% 70% 70% Q1'13 Q
Slide 14: Intermediates & Derivatives Highlights and Business Drivers – 2Q'15
Intermediates & Derivatives Highlights and Business Drivers – 2Q’15 EBITDA Performance vs. 1Q’15(2) USD, millions EBITDA Margin Volume As Reported Excluding LCM Propylene Oxide and Derivatives $600 • Volume down ~14% from strong Q1 500 and POSM turnaround during Q2 400 Intermediates • Methanol volum
Slide 15: Refining Highlights and Business Drivers – 2Q'15
Refining Highlights and Business Drivers – 2Q’15 EBITDA Performance vs. 1Q’15(2) USD, millions EBITDA Margin Volume As Reported Excluding LCM Houston Refinery $200 • Maya 2-1-1: $23.98 per bbl, 100 relatively unchanged from 1Q’15 • Moderately lower capture rate • Crude throughput: 255 MBPD, up 14 MB
Slide 16: Second Quarter Summary and Outlook
Second Quarter Summary and Outlook Second Quarter Summary Near-Term Outlook EBITDA results steady at ~$2 billion Natural gas and NGL supply, for the past five quarters(1) inventory and price have remained O&P Americas benefited from higher favorable polyolefin margins as a result of tight Ol
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