Saudi Basic Industries Corp. · TADAWUL:2010
Saudi Basic Industries — Q3 2019 Earnings Presentation
21 slides from Saudi Basic Industries's earnings presentation, December 2019
Slide 1: Investor Presentation Q3 2019
INVESTOR PRESENTATION Q3 2019
Slide 2: SABIC Overview
INVESTOR PRESENTATION SABIC OVERVIEW
Slide 3: SABIC at a Glance
Classification: General Business Use SABIC AT A GLANCE Top 3 Top 3 Largest global Chemical Brand chemical companies1 Value2 Global Headquarters Production, Distribution, Storage Facilities and Logistical Hubs 100+ A+/A1 Product Application Centers International Subsidiaries and Sales Offices Countri
Slide 4: SABIC's Growth Since Its Inception
Classification: General Business Use SABIC’S GROWTH SINCE ITS INCEPTION MORE THAN 40 YEARS OF ORGANIC AND INORGANIC GROWTH 2017 80 SALES 2011 / 2012 Ibn Sina POM USD Billion Saudi Kayan 70 CAGR 10.7% 40 2010 Yansab and Sharq 2007 7 60 2000 2017 GE Plastics 50 2006 MMT Huntsman Petrochemicals 2018 40
Slide 5: SABIC's 2025 Strategy - World Leader in Chemicals
Classification: General Business Use SABIC’S 2025 STRATEGY - WORLD LEADER IN CHEMICALS OUR VISION: TO BE THE PREFERRED WORLD LEADER IN CHEMICALS by delivering Chemistry that MattersTM More global…more integrated…more differentiated…ambitious growth FINANCIAL MARKET FEEDSTOCK TECHNOLOGY World class f
Slide 6: Key Highlights
INVESTOR PRESENTATION KEY HIGHLIGHTS
Slide 7: Key Highlights
Classification: General Business Use KEY HIGHLIGHTS 1. Market Leader in Multiple Products and Segments 2. Diversified Global Footprint 3. Cost Leadership and Operational Excellence 4. Strategic, Strong and Stable Alliances 5. Robust Financial Profile, Dividend and Stock Performance 7
Slide 8: 1. Market Leader in Multiple Products and Segments
Classification: General Business Use 1. MARKET LEADER IN MULTIPLE PRODUCTS AND SEGMENTS PETROCHEMICALS AGRI-NUTRIENTS SPECIALTIES SABIC’s largest operating unit; A global leading fertilizer producer; Global offerings of innovative One of the world’s largest global petrochemicals with over 7 MMT prod
Slide 9: 2. Diversified Global Footprint
Classification: General Business Use 2. DIVERSIFIED GLOBAL FOOTPRINT 8 Manufacturing Companies 5 Manufacturing Companies 8 Compounding Companies S P 9 Compounding Companies 3 Crackers 2 Manufacturing Companies S P 8 Compounding Companies 1 Cracker S P 8% 4% 24% 39% 9% 1% Global Headquarters Sales Pr
Slide 10: 2. Strategic Initiatives to Drive Future Growth
Classification: General Business Use 2. STRATEGIC INITIATIVES TO DRIVE FUTURE GROWTH Specialties - 24.99% stake in Clariant AG Exploring Methanol JV to explore Coal-to- Chemicals Technology Gulf Coast Growth Ventures JV Project Oil-to-chemicals Project Developing a petrochemical Agreement with Saudi
Slide 11: 3. World Class Operational Excellence and Sustainable Progress
Classification: General Business Use 3. WORLD CLASS OPERATIONAL EXCELLENCE AND SUSTAINABLE PROGRESS STRONG FOCUS ON OPERATIONAL EXCELLENCE Operational Excellence Supply Chain Excellence Technology Improvements • Maintain cost efficiency via global network • Top 3 - SABIC was ranked one of the top •
Slide 12: 3. SABIC Research and Technology
Classification: General Business Use 3. SABIC RESEARCH AND TECHNOLOGY 2,000+ 80+ 2 1 Employees in research Licensed Technologies centers worldwide Globally RESEARCH TECHNOLOGY BUSINESS DEVELOPMENT DEVELOPMENT 2.2+ 1 2 6,670+ 30+ 1 21 USD Bn 1 Research, Development Research and Issued patents and ove
Slide 13: 4. Partnerships, the Cornerstone of SABIC's Business Growth Model
Classification: General Business Use 4. PARTNERSHIPS, THE CORNERSTONE OF SABIC’S BUSINESS GROWTH MODEL PARTNERSHIP WITH BEST IN CLASS GLOBAL COMPANIES1 50% 50% 50% 80% 50% Scientific Design Kemya, Yanpet & Cos-Mar Ibn Zahr SSTPC GCGV 50% 50% 50% 50% 75% Ibn Sina SSNC SAMAC Sharq Chemtank PARTNERSHIP
Slide 14: 4. Strategic Alignment with Government Initiatives
Classification: General Business Use 4. STRATEGIC ALIGNMENT WITH GOVERNMENT INITIATIVES SABIC’S STRATEGIC IMPORTANCE TO THE KINGDOM OF SAUDI ARABIA NOW AND IN THE FUTURE Significant contributor to the domestic GDP SABIC total exports SABIC contributed 70% owned by Public Investment Fund (KSA) = USD
Slide 15: 5. Highest Rated Chemical Company
Classification: General Business Use 5. HIGHEST RATED CHEMICAL COMPANY1 CONSISTENTLY ONE OF THE HIGHEST RATED CHEMICAL COMPANIES IN THE WORLD Moody's S&P Fitch A1 A+ A+ A+ A1 A2 A A A- A- A3 A- A- BBB+ BBB BBB Baa1 BBB+ BBB- Baa1 BBB+ Baa2 Baa2 BBB+ Baa2 BBB BBB- Ba1 SABIC SABIC DSM Equate Westlake
Slide 16: 5. Strong Financial Performance
Classification: General Business Use 5. STRONG FINANCIAL PERFORMANCE1 SALES (USD Bn) ADJUSTED EBITDA (USD Bn) 45.1 Adjusted EBITDA Margin (%) 39.5 39.9 14.2 38.1 11.8 12.1 11.4 28.5 7.5 32% 30% 30% 30% 26% 2015 20162 2017 2018 9M 19 2015 2016 3 2017 2018 9M 19 NET CASH FLOWS FROM OPERATIONS CAPEX (U
Slide 17: 5. Strong Financial Performance
Classification: General Business Use 5. STRONG FINANCIAL PERFORMANCE ROBUST PROFITABILITY DESPITE FLUCTUATIONS IN COMMODITY PRICES 2,100 140 30% 30% 30% 30% 31% 2,000 120 28% 1,900 13% 12% 12% 13% 1,800 100 USD / tonne 13% 12% USD / bbl 1,700 80 1,600 Crude Oil, Brent 60 1 Polyethylene (RHS) 1,500 E
Slide 18: 5. SABIC Dividend Historic Payout
Classification: General Business Use 5. SABIC DIVIDEND HISTORIC PAYOUT NET INCOME (USD Bn); CASH DIVIDENDS & PAYOUT Net Income Cash dividends Dividend payout ratio 10 100% 8 88% 68% 80% 68% 60% 59% 71% 61% 6 50% 49% 51% 60% 4 7.8 40% 6.6 6.7 6.2 5.7 5.0 4.4 5.7 2 4.4 4.7 4.9 20% 4.0 4.0 4.0 3.2 3.4
Slide 19: Strong Financial Performance
Classification: General Business Use STRONG FINANCIAL PERFORMANCE RECENT FINANCIAL PERFORMANCE USD Bn 3Q 19 2Q 19 % Var 3Q 18 % Var 9M 19 9M 18 9M19 vs 9M18 Sales 9.0 9.6 -6% 11.7 -23% 28.5 34.4 -17% EBITDA¹ 2.4 2.4 0% 3.8 -36% 7.5 11.0 -31% Income from Operations 1.2 1.3 -4% 2.7 -53% 4.2 7.9 -47% N
Slide 20: Key Highlights
Classification: General Business Use KEY HIGHLIGHTS 1. Market Leader in Multiple Products and Segments 2. Diversified Global Footprint 3. Cost Leadership and Operational Excellence 4. Strategic, Strong and Stable Alliances 5. Robust Financial Profile, Dividend and Stock Performance 20
Slide 21: Thank You
THANK YOU
Saudi Basic Industries Corporation (SABIC) — Q3 2019 Earnings Presentation on 6ix