LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Q2 2019 Earnings Presentation
18 slides from LyondellBasell Industries NV's earnings presentation, Aug 2, 2019
Slide 1: Second Quarter 2019 Earnings
Second Quarter 2019 Earnings August 2, 2019 www.lyondellbasell.com
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 which are believed t
Slide 3: Second Quarter 2019 Highlights
Second Quarter 2019 Highlights Financial Highlights Delivering strong results $ in millions, except per share data 2Q18 1Q19 2Q19 ▪ Diluted EPS: $2.70 Net Income $1,654 $817 $1,003 ▪ EBITDA: $1.6 B, 11% increase over 1Q19 EBITDA $2,010 $1,428 $1,579 (1) Diluted Earnings ($/share) $4.22 $2.19 $2.70 G
Slide 4: Achieving Considerable Progress to Maintain Industry Leading Safety Performance
Achieving Considerable Progress to Maintain LyondellBasell’s Industry Leading Safety Performance Injuries per 200,000 Hours Worked 0.50 0.40 ACC Top Quartile 0.30 0.22 0.21 0.23 0.21 0.20 0.18 0.10 2015 2016 2017 2018 2Q19 YTD Knapsack, Germany Source: American Chemistry Council (ACC), LYB. ACC data
Slide 5: Strong Seasonal Improvements Driven by Global Consumer Demand
Strong Seasonal Improvements Driven by Global Consumer Demand EBITDA Strong: Oxyfuels & Related Products margins $2,400 2,000 Improved: Polyethylene chain margins 1,600 1,200 Challenging: 800 Heavy sour crude oil pricing 400 Growing: Technology licensing 2Q18 3Q18 4Q18 1Q19 2Q19 www.lyondellbasell.c
Slide 6: Cash Generation and Deployment
Cash Generation and Deployment Second Quarter 2019 Delivering strong results: USD, millions $3,000 Cash from operating activities $1.2 B 2,000 Growing through investment: 1,901 Progressing construction on Hyperzone PE and PO/TBA 1,315 1,000 Returning value to shareholders: 11th quarterly dividend in
Slide 7: Strong Cash Generation With Ample Liquidity
Strong Cash Generation With Ample Liquidity Cash From Operating Activities Total Liquidity(2) USD, millions USD, millions $7,000 $10,000 6,000 8,000 5,000 4,000 6,000 3,000 4,000 2,000 2,000 1,000 2015 2016 2017 2018 2Q19 LTM 2015 2016 2017 2018 2Q19 (1) (1) Free Operating Cash Flow Sustaining Capex
Slide 8: Our Capital Deployment Strategy Remains Consistent
Our Capital Deployment Strategy Remains Consistent Sources 2013-2018 Uses 2019-2023 Uses Priority Optional Balance Balance Sheet Inorganic Sheet Capacity Opportunities Capacity M&A Share Share Repurchase Repurchase Growth Cash From CAPEX Operating Growth Activities CAPEX Dividends Dividends Base Bas
Slide 9: Olefins & Polyolefins – Americas
Olefins & Polyolefins – Americas Abundant and Affordable Natural Gas Liquids Expand Profitability EBITDA USD, millions $800 671 704 631 635 600 516 400 200 2Q18 3Q18 4Q18 1Q19 Volume Margin Other 2Q19 2Q19 Performance vs. 1Q19(1) EBITDA Margin Volume Olefins ▪ Feedstock costs declined Polyethylene ▪
Slide 10: Polyethylene Capacity Additions Absorbed by Steady Global Demand
Polyethylene Capacity Additions Absorbed by Steady Global Demand Demand growth last 20 years: 4.1% 2018 demand growth: 5.9% 2020-2023 demand growth forecast: 4.2% tons, millions 250 100% 95% 200 Balanced Market 90% 150 85% 100 80% 50 75% 70% 2015 2016 2017 2018 2019 2020 2021 2022 2023 Global Capaci
Slide 11: Olefins & Polyolefins – Europe, Asia, and International
Olefins & Polyolefins – Europe, Asia, and International Continued Seasonal Improvement EBITDA USD, millions $400 355 331 300 296 262 200 127 100 2Q18 3Q18 4Q18 1Q19 Volume Margin Other 2Q19 2Q19 Performance vs. 1Q19(1) EBITDA Margin Volume Olefins ▪ Ethylene price increased Polyethylene Polypropylen
Slide 12: QCP Premium Recycled Plastics - Providing Sustainable Solutions in Attractive End Markets
QCP Premium Recycled Plastics - Providing Sustainable Solutions in Attractive End Markets www.lyondellbasell.com 12
Slide 13: Intermediates & Derivatives
Intermediates & Derivatives Consistent Performance Bolstered by Strong Oxyfuels Profitability EBITDA USD, millions $800 642 600 504 448 379 390 400 200 2Q18 3Q18 4Q18 1Q19 Volume Margin Other 2Q19 2Q19 Performance vs. 1Q19(1) EBITDA Margin Volume Propylene Oxide and Derivatives Intermediate Chemical
Slide 14: Advanced Polymer Solutions
Advanced Polymer Solutions Continued Headwinds from Automotive & Industrial Construction EBITDA(1) USD, millions Annualized Synergy Run Rate(3) $200 USD, millions ~ $100 $100 148 150 121 120 $47 100 86 50 70 50 2018 Total 2018 Cumulative 2019 Cumulative 2Q18 3Q18 4Q18 1Q19 Volume Margin Other 2Q19 2
Slide 15: Product Spotlight: Anti-blocking Masterbatches
Product Spotlight: Anti-blocking Masterbatches Improved performance through: ▪ Streamlined fabrication process ▪ Reduced friction and sticking of film rolls ▪ Increased processing efficiencies Applications: ▪ Food packaging ▪ Labels ▪ Lidding film ▪ Agricultural film ▪ Tape www.lyondellbasell.com 15
Slide 16: Refining Margins Challenged by Heavy Sour Crude Oil Prices
Refining Margins Challenged by Heavy Sour Crude Oil Prices EBITDA USD, millions $150 104 84 50 (15) -50 (66) (84) -150 2Q18 3Q18 4Q18 1Q19 Volume Margin Other 2Q19 2Q19 Performance vs. 1Q19(1) EBITDA Margin Volume Houston Refinery ▪ Crude throughput: 261 MBPD ▪ Maya 2-1-1 up ~$5 to ~$19 ▪ Margin dec
Slide 17: Second Quarter Summary and Outlook
Second Quarter Summary and Outlook Summary Outlook Diluted earnings per share: $2.70 Resilient consumer-driven demand Quarterly EBITDA improvement: 11% Continued low-cost NGLs Strong cash from operating activities Highest margin for NWE Oxyfuels $4.6 billion for LTM 2Q19 since 2015 Advancing Growth
Slide 18: Investor Day 2019 – Save the Date
Investor Day 2019 – Save the Date LYB Investor Day Join us for an opportunity to meet with members of our executive leadership team September 24, 2019 and learn more about LyondellBasell Houston, TX Please contact us at: cheryl.fletcher@lyb.com for additional information www.lyondellbasell.com 18
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