Lyondellbasell Industries Nv · NYSE:LYB
Lyondellbasell Industries Nv — Q2 2024 Earnings Presentation
24 slides from Lyondellbasell Industries Nv's earnings presentation, Aug 2, 2024
Slide 1: Second Quarter 2024 Earnings
Second Quarter 2024 Earnings August 2, 2024
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 of LyondellBasell which are believed to be reasonable at the time made and are subject
Slide 3: Safety performance
Safety performance LYB continues to improve its top-tier safety performance Injuries per 200,000 hours worked 0.7 0.6 0.5 0.4 0.3 0.2 0.1 2010-2014 2015-2019 2023 2024 YTD LyondellBasell ACC Top Quartile Sources: American Chemistry Council (ACC) and LyondellBasell. Notes: Medium and large companies
Slide 4: Second quarter 2024 highlights
Second quarter 2024 highlights Higher volumes due to increased LYB production and improved seasonal demand $0.9 B $2.82 $1.6 B $1.3 B Net income Diluted EPS EBITDA Cash from operating activities $0.7 B $2.24 $1.4 B 10% Net income Diluted EPS EBITDA Return on ex. identified items ex. identified items
Slide 5: Advancing our strategy
Advancing our strategy Committing to strategic growth and sustainable value creation Our Focus Area Today Grow and upgrade Shaping our portfolio to leverage strengths, support growth, increase the core resiliency and drive higher returns Build a profitable Building a leading CLCS business at scale t
Slide 6: LYB's strategic criteria to grow and upgrade the core
LYB’s strategic criteria to grow and upgrade the core We are laser-focused on… 1 Leading market positions Our portfolio upgrades continue at pace • April 2022 | Divested Australia PP • March 2023 | Started up new PO/TBA asset 2 Growing end markets • December 2023 | Closed PP asset in Brindisi • May
Slide 7: Strengthening LYB by reshaping our portfolio
Strengthening LYB by reshaping our portfolio Sharpening our focus and extending our advantage Growing our core businesses Upgrading our core businesses EBITDA margins: + +4% Value Enhancement 18% Program Ongoing and Unlocking value Houston future LYB portfolio refinery historical improvements closur
Slide 8: Creating a sustainable European footprint
Creating a sustainable European footprint Bold actions underway to strengthen future profitability European assets within strategic review 1 LYB selected key product capacities2 Location Segment Options for assets under review MM tons Berre, France O&P EAI • Profitability improvement 10 Muenchmuenst
Slide 9: Resilient cash generation
Resilient cash generation Excellent cash conversion delivering strong shareholder returns despite market headwinds Cash from operating activities USD, billions $4.4 B Cash from operating activities 2Q24 last 12 months $8 7 6 5 $2.9 B Cash and cash equivalents June 30, 2024 4 3 Net debt to EBITDA ex.
Slide 10: Capital allocation
Capital allocation Disciplined capital allocation supporting our strategy to grow and upgrade the LYB portfolio Delivering resilient results USD, billions • $1.3 B cash from operating activities in 2Q24 $4 • Achieved 95% cash conversion3 over last 12 months Generating value for shareholders 3 • Incr
Slide 11: Accelerating VEP results in 2024
Accelerating VEP results in 2024 ~$400 MM2 expected contribution to EBITDA in 2024 $600 MM ~$400 MM2 VEP is embedded in our culture Recurring annual Estimated • Enhancing product mix by high-grading EBITDA1 by 2024 EBITDA portfolio and improving variable margins by optimizing operations year end 202
Slide 12: 2Q24 segment highlights
2Q24 segment highlights Seasonal demand improvements coupled with higher production and margins for most businesses EBITDA variance by segment ex. identified items USD, millions $1,644 $189 $5 $1 $1,373 $149 $56 $(56) $(34) $1,063 $1,047 1Q24 O&P O&P EAI I&D APS Refining Technology Other 2Q24 Americ
Slide 13: Olefins & Polyolefins – Americas
Olefins & Polyolefins – Americas Higher margins coupled with improved production EBITDA ex. identified items USD, millions 2Q24 market dynamics • June 2024 YTD North American polyethylene industry sales $679 $670 increased ~11% over prior year1 $604 • Improved seasonal demand $504 $521 Near-term out
Slide 14: Shale-driven North American growth wave is slowing down
Shale-driven North American growth wave is slowing down Limited polymer capacity growth following significant increase over the past 10 years North American polyethylene capacity1 North American polypropylene capacity1 MM tons MM tons Forecast 40 Forecast 11 -0.2% CAGR2 +1.0% +2.3% CAGR2 CAGR2 35 10
Slide 15: Olefins & Polyolefins – Europe, Asia & International
Olefins & Polyolefins – Europe, Asia & International Higher integrated margins with increased utilization of LPG feedstocks 2Q24 market dynamics EBITDA ex. identified items USD, millions • Higher olefins and co-product prices • Modest seasonal demand • High shipping costs constraining EU imports fro
Slide 16: Refining
Refining Higher production offset by lower Maya 2-1-1 crack spreads EBITDA ex. identified items 2Q24 market dynamics USD, millions • Lower margins driven by modest seasonal demand improvements for refined product and high industry operating rates Near-term outlook • Stable gasoline crack spreads $11
Slide 17: Intermediates & Derivatives
Intermediates & Derivatives Higher production coupled with improving seasonal demand for oxyfuels 2Q24 market dynamics EBITDA ex. identified items USD, millions • Record LYB oxyfuels volumes serving strong octane demand; $794 margins well above historical norms $708 • Higher acetyls volumes due to i
Slide 18: Advanced Polymer Solutions
Advanced Polymer Solutions Improved margins across most APS businesses EBITDA USD, millions 2Q24 market dynamics $40 • Improved margins driven by modestly higher pricing $34 $35 • Slow demand recovery impacted by modest market growth Near-term outlook • Increased customer focus helping to restore LY
Slide 19: Technology
Technology Moderating licensing and catalyst revenue EBITDA 2Q24 market dynamics USD, millions • Licensing revenue normalized after strong 1Q24 Near-term outlook $146 • Increasing licensing revenue $118 • Modestly improving catalyst sales $79 $84 $77 Our actions Utilizing LYB’s Spheripol polypropyle
Slide 20: Delivering results and advancing our strategy
Delivering results and advancing our strategy Second half 2024 outlook Growing and upgrading our core • Global markets continue to slowly recover • Clear criteria and focused strategy to drive profitable growth of LYB’s core businesses • Expecting slightly higher 2H 2024 results compared to 1H 2024
Slide 21: Appendix
Appendix
Slide 22: LyondellBasell 2024 modeling information Update
LyondellBasell 2024 modeling information Update (USD, millions) 1Q 2Q 3Q 4Q 2024 Capital Expenditures O&P Americas ~$55 ~$20 -- -- ~$75 Total CAPEX Major Planned ~$2.1 B Maintenance O&P EAI -- -- ~$25 ~$50 ~$75 Sustaining | Profit Generating CAPEX Estimated EBITDA ~$1.3 B | ~$0.8 B Impact Intermedia
Slide 23: 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. We report our financial results in accordance with U.S. generally accepted accounting principles, b
Slide 24: Information related to financial measures (continued)
Information related to financial measures (continued) Normalized EBITDA - Assumes 2013-2022 historical average margins and operating rates and reflects the benefits associated with the following strategic initiatives: Grow & Upgrade the Core, Building a Profitable CLCS Business and Step Up Performan
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