Lyondellbasell Industries Nv · NYSE:LYB
Lyondellbasell Industries Nv — Q2 2023 Earnings Presentation
23 slides from Lyondellbasell Industries Nv's earnings presentation, Aug 4, 2023
Slide 1: Second Quarter 2023 Earnings
SECOND QUARTER 2023 EARNINGS August 4, 2023 1 Creating solutions for everyday sustainable living
Slide 2: Cautionary Statement and Information Related to Financial Measures
CAUTIONARY STATEMENT AND INFORMATION RELATED TO FINANCIAL MEASURES 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 wh
Slide 3: Delivering Results and Advancing Our Strategy
DELIVERING RESULTS AND ADVANCING OUR STRATEGY 1 2 3 Delivered resilient results Optimizing our advantaged Rapidly executing on our in challenging markets positions amid volatile long-term strategy feedstock and energy costs 3
Slide 4: Safety Performance
SAFETY PERFORMANCE STEADFAST COMMITMENT TO LEADERSHIP IN SAFETY Injuries per 200,000 hours worked 0.5 0.4 0.3 0.2 0.1 2019 2020 2021 2022 2023 YTD LyondellBasell ACC Top Quartile Sources: American Chemistry Council (ACC) and LyondellBasell. 4 Notes: Medium and large companies only. Number of hours w
Slide 5: Advancing Our Strategy
ADVANCING OUR STRATEGY DELIVERING A MORE PROFITABLE AND SUSTAINABLE GROWTH ENGINE BUILD A PROFITABLE GROW & STEP UP PERFORMANCE CIRCULAR & LOW CARBON UPGRADE THE CORE & CULTURE SOLUTIONS BUSINESS Increased 2023 year-end annual recurring MoU with Technip and Chevron Phillips to build Accelerati
Slide 6: Establishing Leadership in Circular Solutions Through Our Differentiated Approach
ESTABLISHING LEADERSHIP IN CIRCULAR SOLUTIONS THROUGH OUR DIFFERENTIATED APPROACH BUILDING A PROFITABLE CIRCULAR & LOW CARBON SOLUTIONS BUSINESS Advanced Extending participation up and down value chains to maximize profitability sorting Mechanical Compounding recycling Accessing existing waste f
Slide 7: LyondellBasell MoReTec Technology Webinar
September 26, 2023 LyondellBasell MoReTec Technology Webinar Jim Seward, EVP & Chief Innovation Officer Yvonne van der Laan EVP, Circular & Low Carbon Solutions 7
Slide 8: Accelerating Our Progress in Unlocking Value
ACCELERATING OUR PROGRESS IN UNLOCKING VALUE VALUE ENHANCEMENT PROGRAM (VEP) IS GAINING MOMENTUM $750 MM DELIVERING RESULTS Updated target Recurring annual EBITDA by year end 2025 Progressing ahead of plan for 2023 $200 MM Recurring annual EBITDA Inspiring a more agile and by year end 2023 entre
Slide 9: Implementing Value Enhancement Program Across Our Businesses
IMPLEMENTING VALUE ENHANCEMENT PROGRAM ACROSS OUR BUSINESSES DELIVERING VALUE THROUGH DISCIPLINED GOVERNANCE AND RAPID IMPLEMENTATION Improving LDPE Reliability Capturing Value By Broadening Supplier Base Upgraded valve controllers to improve performance in LDPE plant Invested engineering and pr
Slide 10: Second Quarter 2023 Highlights
SECOND QUARTER 2023 HIGHLIGHTS RESILIENT RESULTS AND STRONG CASH GENERATION DESPITE CHALLENGING MARKET CONDITIONS $0.7 B $2.18 $1.4 B $1.3 B NET INCOME DILUTED EPS EBITDA CASH FROM OPERATING ACTIVITIES $0.8 B $2.44 $1.5 B $6.6 B NET INCOME DILUTED EPS EBITDA LIQUIDITY ex. Identified Items ex. Identi
Slide 11: Generating Significant Cash
GENERATING SIGNIFICANT CASH OUTSTANDING CASH CONVERSION SUPPORTING STRONG BALANCE SHEET AND SHAREHOLDER RETURNS $4.8 B Cash from Operating Activities CASH FROM OPERATING ACTIVITIES USD, billions 2Q23 LTM $8 7 $2.5 B CASH AND CASH EQUIVALENTS 6 Balance as of June 30, 2023 5 1.8x NET DEBT TO EBITDA EX
Slide 12: Cash Allocation
CASH ALLOCATION COMMITTED TO OUR BALANCED CAPITAL ALLOCATION STRATEGY USD, billions DELIVERING RESULTS $4 Generated $1.3 B in cash from operating activities Issued $500 MM inaugural green bond 3 GENERATING VALUE FOR SHAREHOLDERS $2.5 2 Increased quarterly dividend by 5% to $1.25 per share $1.8
Slide 13: 2Q23 Segment Highlights
2Q23 SEGMENT HIGHLIGHTS MODEST IMPROVEMENTS IN O&P MARGINS AND I&D VOLUMES OFFSET BY WEAKER REFINING MARGINS EBITDA Variance by Segment ex. Identified Items USD, millions $46 $8 $138 $7 $1,452 $6 $1,450 $(201) $(6) 1Q23 O&P Americas O&P EAI I&D APS Refining Technology Other 2Q23 EBITDA EBITDA ex. Id
Slide 14: Olefins & Polyolefins – Americas
OLEFINS & POLYOLEFINS – AMERICAS HIGHER INTEGRATED POLYETHYLENE MARGINS DUE TO LOWER ETHANE COSTS EBITDA USD, millions 2Q23 MARKET DYNAMICS Improved integrated polyethylene margins with higher U.S. sales prices and lower ethane costs $954 Weak demand for durable goods impacting polypropylene mar
Slide 15: Olefins & Polyolefins – Europe, Asia & International
OLEFINS & POLYOLEFINS – EUROPE, ASIA & INTERNATIONAL HIGHER ETHYLENE MARGINS DUE TO LOWER CRACKER FEEDSTOCK COSTS 2Q23 MARKET DYNAMICS EBITDA ex. Identified Items Lower cracker feedstock costs USD, millions Comparable polyolefins volumes with continued weak demand, especially for durable goods $
Slide 16: Intermediates & Derivatives
INTERMEDIATES & DERIVATIVES HIGHER OXYFUELS VOLUMES OFFSET BY LOWER MARGINS ACROSS MOST BUSINESSES 2Q23 MARKET DYNAMICS EBITDA USD, millions Higher oxyfuels volumes partially offset by slightly lower margins $675 New propylene oxide capacity largely offset by planned maintenance Weak demand fo
Slide 17: Refining
REFINING MARGIN DECREASE DRIVEN BY LOWER REFINING CRACK SPREADS 2Q23 MARKET DYNAMICS EBITDA ex. Identified Items Both Maya and WCS crack spreads declined relative to 1Q23 USD, millions NEAR-TERM OUTLOOK $418 Stable demand $249 Refined product inventories remain low $322 $315 $106 Further mod
Slide 18: Advanced Polymer Solutions
ADVANCED POLYMER SOLUTIONS MODERATELY HIGHER MARGINS DRIVEN BY IMPROVED PRICING AND LOWER ENERGY COSTS EBITDA ex. Identified Items 2Q23 MARKET DYNAMICS USD, millions Improved pricing for polypropylene compounds Demand from automotive market gained momentum $42 $34 Lower demand from constructio
Slide 19: Technology
TECHNOLOGY HIGHER LICENSING REVENUE AND LOWER CATALYST VOLUMES EBITDA USD, millions 2Q23 MARKET DYNAMICS Higher licensing revenue Lower catalyst volumes reflect continued low operating rates across the polyolefins industry $112 $92 NEAR-TERM OUTLOOK $79 $73 Higher licensing revenue $59 Moder
Slide 20: Market Outlook
MARKET OUTLOOK 1 Uncertain outlook driving soft demand 2 Volatile feedstock and energy costs 3 Operating rates tracking demand REGIONS END MARKETS Tepid underlying demand; LYB customers and Demand from service industries driving consumers buying cautiously Packaging flexible packaging applicatio
Slide 21: Delivering Results and Advancing Our Strategy
DELIVERING RESULTS AND ADVANCING OUR STRATEGY Delivering resilient results Rapidly executing on our in challenging markets long-term strategy RESULTS Growing and upgrading our core to Moderately improved O&P margins amid tepid demand drive higher returns Oxyfuels and refining margins remained ab
Slide 22: Appendix
APPENDIX lyondellbasell i} tou iT]
Slide 23: LyondellBasell 2023 Modeling Information Update
LYONDELLBASELL 2023 MODELING INFORMATION UPDATE Capital Expenditures New PO/TBA Value Enhancement Capacity Program (VEP) Total CAPEX (includes VEP) ~50% ~$200 MM ~$1.7 B of 470 kt PO recurring annual EBITDA Sustaining | Profit Generating CAPEX nameplate capacity by the end of 2023 during 2023 ~$1.2
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