Lyondellbasell Industries Nv · NYSE:LYB
Lyondellbasell Industries Nv — Q1 2024 Earnings Presentation
21 slides from Lyondellbasell Industries Nv's earnings presentation, Apr 26, 2024
Slide 1: First Quarter 2024 Earnings
First Quarter 2024 Earnings April 26, 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 deliver leading safety performance Injuries per 200,000 hours worked 0.4 0.3 0.2 0.1 2020 2021 2022 2023 1Q24 LyondellBasell ACC Top Quartile Sources: American Chemistry Council (ACC) and LyondellBasell. Notes: Medium and large companies only. Number of hours work
Slide 4: Advancing our strategy
Advancing our strategy Driving focus, differential growth and value creation Grow and upgrade Shaping our portfolio to leverage strengths, support growth, increase the core resiliency and drive higher returns Our Focus Area Today Build a profitable Building a leading CLCS business at scale to meet c
Slide 5: Our Circular & Low Carbon Solutions recycling strategy
Our Circular & Low Carbon Solutions recycling strategy We are building capabilities across the value chain Direct to customer Mechanical recycling APK (EU) – Feb-231 QCP (EU) – Apr-232 De Paauw (EU) – Oct-23 Jurupa Valley (U.S.) – Feb-243 Third-party renewable Compounding Plastic waste Advanced wast
Slide 6: Growing our Circular & Low Carbon Solutions business
Growing our Circular & Low Carbon Solutions business Targeting 2 MM+ tons per year of recycled and renewable-based polymers by 20301 Recycled and renewable-based polymers1 • Targeted investments aligned with our strategy has (thousand metric tons) delivered volume growth (55% CAGR2 2019-23) with 150
Slide 7: First quarter 2024 highlights
First quarter 2024 highlights Solid results with improving demand constrained by LYB downtime $0.5 B $1.44 $1.0 B $(0.1) B Net income Diluted EPS EBITDA Cash from operating activities $0.5 B $1.53 $1.1 B 10% Net income Diluted EPS EBITDA Return on ex. identified items ex. identified items ex. identi
Slide 8: Resilient cash generation
Resilient cash generation Supporting LYB’s investment-grade balance sheet and securing shareholder returns Cash from operating activities USD, billions $4.3 B Cash from operating activities 1Q24 last 12 months $8 7 6 5 $2.3 B Cash and cash equivalents March 31, 2024 4 3 2 1.8x Net debt to EBITDA ex.
Slide 9: Capital allocation
Capital allocation Strategic goals underpinned by balanced and disciplined investments in growth and returns USD, billions Delivering resilient results $4 • Slightly higher 1Q24 EBITDA offset by ~$630 MM build in working capital • Achieved 93% cash conversion over last 12 months $3.4 3 Generating va
Slide 10: 1Q24 segment highlights
1Q24 segment highlights Modest demand improvements partially offset by downtime across several segments EBITDA variance by segment ex. identified items USD, millions $41 $4 $1,063 $47 $23 $20 $910 $101 $1,047 $(83) $639 4Q23 O&P O&P EAI I&D APS Refining Technology Other 1Q24 Americas EBITDA EBITDA e
Slide 11: Olefins & Polyolefins – Americas
Olefins & Polyolefins – Americas Lower costs and stable prices offset by lower volumes from LYB downtime EBITDA ex. identified items USD, millions 1Q24 market dynamics • 1Q24 North American polyethylene industry1: o Domestic sales 5.4% higher than 4Q23 $679 $604 o Export demand significantly higher
Slide 12: Olefins & Polyolefins – Europe, Asia & International
Olefins & Polyolefins – Europe, Asia & International Higher volumes from nearshoring and modest restocking EBITDA ex. identified items 1Q24 market dynamics USD, millions • Red Sea logistics disruptions providing benefits in volume and fixed cost recovery for local producers in Europe $84 • Modest pr
Slide 13: Refining
Refining Improving gasoline crack spreads partially offset by LYB maintenance downtime EBITDA ex. identified items 1Q24 market dynamics USD, millions • Gasoline crack spreads increased driven by tighter supply during $315 the industry-wide springtime maintenance season Near-term outlook • Improving
Slide 14: Intermediates & Derivatives
Intermediates & Derivatives Margins improved following 4Q23 inventory valuation impacts EBITDA ex. identified items 1Q24 market dynamics USD, millions • Red Sea logistics disruptions benefiting European PO&D volumes $708 and margins • Oxyfuels margins decreased vs 4Q23; margins more than twice typic
Slide 15: Advanced Polymer Solutions
Advanced Polymer Solutions Improved volumes across all APS businesses EBITDA ex. identified items 1Q24 market dynamics USD, millions • 12% higher volumes following seasonal customer downtime in $35 4Q23 $26 $34 $18 $12 • Improved variable margins offset by fixed cost investments Near-term outlook •
Slide 16: Technology
Technology Higher licensing revenue and catalyst margins EBITDA 1Q24 market dynamics USD, millions • Increased number of licensing revenue milestones • Improved catalyst sales mix $146 Near-term outlook $118 • Licensing milestones expected to decrease to 4Q23 levels • Modest improvement in catalyst
Slide 17: Market outlook
Market outlook Normal seasonal demand improvements evident, continued progress expected in 2H24 • Improving domestic and export demand • Consistent demand for non-durables North for PE expected to tighten markets Packaging • Potential for restocking ahead America • Low ethane costs supporting integr
Slide 18: Delivering results and advancing our strategy
Delivering results and advancing our strategy 2024 outlook Progressing our long-term strategy • Expecting seasonal improvements in 2Q24 and modest Growing and upgrading our core to drive higher improvements across most businesses in 2H24 returns • LYB’s U.S. and Middle East production benefiting fro
Slide 19: Appendix
Appendix
Slide 20: 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 21: Information related to financial measures (continued)
Information related to financial measures (continued) Recurring annual EBITDA for the Value Enhancement Program (VEP) – Year-end EBITDA run-rate based on 2017-2019 mid-cycle margins and modest inflation relative to a 2021 baseline. Recurring annual EBITDA for individual projects cannot be reconciled
LyondellBasell Industries — Q1 2024 Earnings Presentation on 6ix