Borouge Plc · ADX:BOROUGE
Borouge — Investor Day (October 2024)
60 slides from Borouge's investor day presentation, Oct 30, 2024
Slide 1: Investors Day 2024: Accelerated Growth & Value Creation
Borouge Investors Day 2024: Accelerated Growth & Value Creation 30 October 2024
Slide 2: Agenda (1/2)
Agenda (1/2) Management Presentations & Q&A (10:00am – 12:00pm) Session topic Presenter Samar Khan Welcome and Opening Remarks Vice President Investor Relations Hazeem Sultan Al Suwaidi Positioned for Growth & Transformation Chief Executive Officer Rainer Hoefling Commercial & Innovation Excellence
Slide 3: Agenda (2/2)
Agenda (2/2) Presentations & Q&A (1:00pm – 2:30pm) Session topic Presenter Product Differentiation through Innovation Moderated Panel Session Maitha Al Marashi Sustainability Vice President Sustainability Ghalib Al Afifi Artificial Intelligence & Digital Transformation Vice President Strategy & Exce
Slide 4: Borouge Investors Day
Borouge Classification: Public 4 Borouge Investors Day 2024
Slide 5: Speakers
Borouge Classification: Public Speakers Hazeem Sultan Rainer Dr. Hasan Jan-Martin Maitha Al Ghalib Al Suwaidi Hoefling Karam Nufer Marashi Al Afifi Chief Executive Chief Marketing Chief Operating Chief Financial Vice President Vice President Officer Officer Officer Officer Sustainability Strategy &
Slide 6: Positioned for Growth & Transformation
Positioned for Growth & Transformation Hazeem Sultan Al Suwaidi Chief Executive Officer
Slide 7: Strong Q3 2024 Net Profit Driven by Highest-ever Quarterly Sales Volume
Borouge Classification: Public Strong Q3 2024 Net Profit Driven by Highest-ever Quarterly Sales Volume Competitive cost position and industry-leading profitability drive strong results Revenue Adj. Net Profit Adj. Utilization Sales Premia EBITDA (1) OFCF(2) Rates Volumes Q3 $1,600M YoY 7% $646M YoY
Slide 8: Borouge at a Glance
Borouge Classification: Public Borouge at a Glance Leading provider of innovative and differentiated polyolefin solutions $2.2B $1.3B EBITDA FY 2023 Dividend 2024 $607M 1998 3,100 $20B Value Enhancement $1.0B $2.0B 6.3% (1) Program 2023 Net Income Cash From Operating Current Dividend Founded Employe
Slide 9: Building on Foundational Strengths
Borouge Classification: Public Building on Foundational Strengths Proven track-record of utilizing strengths to drive best-in-class operations Safety Efficiency Scale 2 > 22.7 MM 43% EBITDA Margin 2019 - 2023 Average 5 MM TONS Safe manhours Largest single-site production site 13% ROIC 2023 0.1 6.4 M
Slide 10: A Leader in Premium Polyolefins Solutions
Borouge Classification: Public A Leader in Premium Polyolefins Solutions Differentiated solutions serving many highly demanded end-products Market Growth(3) 2.9mt ~1.2x 2023 GDP Growth Consumer Sales Volume(1,2) Forecast Solutions Greenhouse Films Sustainable Packaging Mono-material Solutions 2.0mtt
Slide 11: Our Strategic Themes
Borouge Classification: Public Our Strategic Themes nce Growth Excellence Growth Identity le Identity l HSE and Growing portfolio Strong and e operational of differentiating cohesive identity xc excellence solutions and culture E Commercial & Growing circular Corporate innovation economy solutions c
Slide 12: Track-record of Growth and Excellence
Borouge Classification: Public Track-record of Growth and Excellence 2005 2022 2016 2025 onwards 1998 Borouge 1 expansion PP5 comes onstream Image is completed. Total PO Capacity increases to 2015 in Q1 2022. Total PO Capacity increases 600kt Inauguration of Shanghai to 5.0mt Application Centre Boro
Slide 13: Accelerated Growth & Value Creation
Borouge Classification: Borouge PublicInternal Classification: Accelerated Growth & Value Creation Growth strategy builds on foundational strengths Strengthen The Core Growth & International Future Proof Expansion Optimising asset utilisation Capacity & technology expansions Develop circular solutio
Slide 14: Delivering on IPO Promises
Borouge Classification: Public Delivering on IPO Promises Committed To Creating Long-term Sustainable Value For Our Shareholders 01 02 03 04 05 Global leader in World’s largest Robust financial Strategically and Delivering strong premium polyolefin single-site performance, financially well- sharehol
Slide 15: Commercial & Innovation Excellence
Commercial & Innovation Excellence Rainer Hoefling Chief Marketing Officer
Slide 16: 7 Success Factors that are Driving our Achievements
Borouge Classification: Public 7 Success Factors that are Driving our Achievements and will Continue to Sustain our Future Growth and Success 01 Attractive segments & fast-growing regions amidst volatile market 02 Borstar® platform enabling superior products 03 Innovation at the core of our business
Slide 17: Positive Long-term PO Industry Outlook: Global Megatrends
Borouge Classification: Public Addressing global serving high driven by organic supported by signs of 01 megatrends… growth markets… growth & substitution improving supply Positive Long-term PO Industry Outlook is Driven by Undisputed Megatrends; Growth in population Healthcare and Food waste Boroug
Slide 18: Borouge Markets
Borouge Classification: Public Addressing global serving high driven by organic supported by signs of 01 megatrends… growth markets… growth & substitution improving supply Positive Long-term Global Polyolefins Demand and Growth (2025-2029) PO Industry Asia Outlook is Driven by 30% Middle East & Afri
Slide 19: Organic Growth and Material Substitution
Borouge Classification: Public Addressing global serving high driven by organic supported by signs of 01 megatrends… growth markets… growth & substitution improving supply Positive Long-term PO Industry Outlook is Driven by Undisputed Megatrends; Borouge is Well Placed to Capture Fast Growth Targeti
Slide 20: Industry Outlook and Factors Worth Noting
Borouge Classification: Public Addressing global serving high driven by organic supported by signs of 01 megatrends… growth markets… growth & substitution improving supply Positive Long-term PO Industry Outlook is Driven by Undisputed Industry outlook Factors worth-noting Megatrends; The Polyolefins
Slide 21: Borstar Technology Enables Delivery of Superior Products
Borouge Classification: Public 02 Borstar® Technology Enables Delivery of Superior Products through Continuous Innovation and Technology Upgrade Addressing the global sustainability challenge and entering new high-value markets Borstar® Technology Next Generation Borstar® Technology Proprietary tech
Slide 22: Borouge 4: Advanced Technology Drives Higher-value Applications
Borouge Classification: Public 02 Borouge 4: Advanced Technology Drives Higher-value Sustainable Applications and Profitability Ensures continued delivery of above-guidance premia performance Benefits to Customers from Advanced Technology Energy efficiency & resource conservation Efficiency Sustaina
Slide 23: Innovation is at the Core of our Business
Borouge Classification: Public 03 Innovation is at the Core of our Business to Ensure the Constant Market Relevance and Future Readiness of our Portfolio New developments in healthcare and electrification capture high growth segments Recent Product Launch Upcoming Innovation Future Innovation Improv
Slide 24: Digitalisation is Driving our Strategy and Delivering Value
Borouge Classification: Public 04 Digitalisation is Driving our Strategy and Delivering Value Artificial Intelligence / Machine Learning: Digital Testing Prediction of Material Properties in Final Applications Value Delivery 20% increase in speed to market Facilitating new State-of the-art AI algori
Slide 25: Comprehensive Market Footprint and Direct Customer Coverage
Borouge Classification: Public 05 Comprehensive Market Footprint Ensures Extensive Direct Customer Coverage and Efficient Supply Chain Network Expansion of our office footprint to 14 offices in addition to 13 logistics hubs Over 200 customer-facing employees across 14 offices, with 2 new offices (Se
Slide 26: Borouge's Supply Chain Network is Resilient
Borouge Classification: Public 05 Borouge’s Supply Chain Network is Resilient and Enables Strong Sales Despite Disruptive Market Events Achieving optimal balance between cost efficiency, service level and resilience Robust supply chain network with proven results… PO sales volume, KT +5.8% +6.1% +15
Slide 27: Market Footprint and Engagement with the Value-chain
Borouge Classification: Public 06 Our Market Footprint and Engagement with the Value-chain Positions Us as Industry Leaders Voice of the Customer ‘Co “ mm Feedstock o Our Company has been in Borouge provides a diverse Always innovative, always di le business with Borouge Pte selection of maintaining
Slide 28: Product Portfolio Design Principles: Durability and Circularity
Borouge Classification: Public 07 Product Portfolio Design Principles are Centred Around Durability and Circularity, Reflective of our Role in Addressing Global Challenges Borouge future … predicated on addressing global challenges proof portfolio design… Energy transition Infrastructure Solutions S
Slide 29: Borouge is a Successful Platform for Future Growth
Borouge Classification: Public Borouge is a Successful Platform for Future Growth Factors driving our achievements will continue to sustain our future growth and success Attractive segments & fast-growing 01 regions amidst volatile market Borstar ® platform enabling Proven performance in Demonstrate
Slide 30: Industry-leading Operations
Industry-leading Operations Dr. Hasan Karam Chief Operating Officer
Slide 31: World's Largest Integrated Single-site Polyolefins Complex
Borouge Classification: Public World’s Largest Integrated Single-site Polyolefins Complex 01 Outstanding industrial performance supports industry-leading margins 02 Operational excellence maintains best-in-class standards 03 Superior technology drives innovation & differentiation 04 Strategic growth
Slide 32: Outstanding Industrial Performance Drives Margins
Borouge Classification: Public 01 Outstanding Industrial Performance Drives Margins Industry leading metrics Total Recordable Injury Rate Production Volume Asset Performance Energy Intensity (TRIR) (Kt) (GJ/Ton) 95% 90% 84% 19 0.24 3,874 104% 3,597 99% 0.1 0.1 3,249 91% 18 18 2022 2023 2024 2024 Tar
Slide 33: Operational Excellence
Borouge Classification: Public 02 Operational Excellence Culture driven by continuous improvement Key Pillars HSE Production Asset Management Technological Excellence Excellence Excellence Excellence Consistently increasing production Benchmarking asset availability - Maximize profit margin through
Slide 34: Superior Technology & Innovation
Borouge Classification: Public 03 Superior Technology & Innovation Borstar ® Technology providing competitive edge High Technical Performance Source of Defensible Differentiation Improved processability and mechanical properties and shorter cycle times for our customers offering Differentiated Produ
Slide 35: Strategic Growth Projects Delivering Accelerated Growth
Borouge Classification: Public 04 Strategic Growth Projects Delivering Accelerated Growth Borouge 4 to contribute $1.5-1.9B in revenue after full ramp-up Transforming Borouge Increase Polyolefin Enable rapid increase Latest Borstar ® Biggest One of the to the world’s largest single- production by 28
Slide 36: Borouge 4 Site Updates
Borouge Classification: Public 04 Borouge 4 Site Updates 36 Borouge Investors Day 2024
Slide 37: Strategic Growth Projects Asset Revamps
Borouge Classification: Public 05 Strategic Growth Projects Asset Revamps EU2 cracker and PE4 / PE5 to Deliver $250 - $300M in annual revenue after ramp-up by 2027 Plant Overview EU2 Cracker Revamp Second ethylene unit (EU2) to increase total ethylene production by a further 230 KTA. Next Project Mi
Slide 38: Industry-leading Profitability
Industry-leading Profitability Jan-Martin Nufer Chief Financial Officer
Slide 39: Strong Q3 2024 Net Profit Driven by Highest-ever Quarterly Sales Volume
Borouge Classification: Public Strong Q3 2024 Net Profit Driven by Highest-ever Quarterly Sales Volume Competitive cost position and industry-leading profitability drive strong results 9M 2024 Q3 Net Profit Q3 Sales Volumes Q3 Adj. EBITDA(1) Q3 Adj. Operating FCF (2) Net profit $328 million 1,422 kt
Slide 40: Delivering the Highest EBITDA Margins in the Industry
Borouge Classification: Public Delivering the Highest EBITDA Margins in the Industry Substantial and sustained EBITDA margin profile through-the-cycle Adj. EBITDA(1) $ millions Percentage (%) Strategic focus on high growth markets $607m positive impact from the Value 650 Enhancement Program in FY 20
Slide 41: Strong Financial Profile
Borouge Classification: Public Strong Financial Profile Strong financial performance reflects Borouge’s competitive position Sales Volumes(1) Revenues(1) Adj. EBITDA(1,2) (in kt) (in $m) (in $m) % margin 6,728 39% 38% 37% 42% 4,435 247 248 5,791 3,977 3,869 3,758 113 197 116 6 2,706 1,671 2,646 4,29
Slide 42: Strong Cashflow Generation
Borouge Classification: Public Strong Cashflow Generation High free cash flow through a combination of high profitability and limited maintenance capex Capital Expenditure(1,2) Adj. Operating Free Cash Flow (1,3) Leverage(5) (in $m) (in $m) Cash Conversion(4) (ratio) 93% 91% 92% 95% 199 189 2,457 1.
Slide 43: Reliable Through-the-cycle Dividend Capacity
Borouge Classification: Public Reliable Through-the-cycle Dividend Capacity Consistently high EBITDA margins and cash conversion 2023 EBITDA Margin 2023 Cash Conversion (in %) (in %) 37% 91% Regional Peer 1 31% 70% 69% US Peer 1 13% 44% Regional Peer 2 12% 39% 26% Regional Peer 3 12% 23% EU Peer 2 1
Slide 44: Consistent Performance Translates to Shareholder Value
Borouge Classification: Public Consistent Performance Translates to Shareholder Value Compelling relative performance and valuation continue to drive superior returns Total Shareholder Return Dividend Yield (Since Borouge IPO: 03 Jun 22) (FY 2024) BOROUGE PEERS PROXY* -12% BOROUGE PEERS PROXY* 4.7%
Slide 45: Strong Balance Sheet and Financing Capability
Borouge Classification: Public Strong Balance Sheet and Financing Capability Access to diverse sources of funding at favourable terms Debt Portfolio (as of 30 Sep 24) Debt Paydown Commercial Loan $4.0B(1) Paid Back $2.6B ($4B) $1.05B $2.95B Islamic Financing $350M $0.85B $0.2B Dec-2021 2023 2024 Sep
Slide 46: Creating Long-term Shareholder Value
Borouge Classification: Public Creating Long-term Shareholder Value As a trusted global leader in premium polyolefins solutions, Borouge is ideally placed to leverage its strengths and competitive advantages to grow and create sustainable value for our shareholders and stakeholders Focussed on high
Slide 47: Q&A / Moderated Session
Borouge Q&A / Moderated Session
Slide 48: Lunch
Lunch
Slide 49: Sustainability
Sustainability Maitha Al Marashi Vice President Sustainability
Slide 50: Sustainability at Borouge
Borouge Classification: Public Sustainability at Borouge The company’s sustainability philosophy is anchored by 4 pillars Enriching the sustainability of Borouge and the plastics industry Ensuring the decarbonization Providing sustainable plastics Being a valued contributor and Cultivating an ESG pe
Slide 51: Pioneering Plastics Sustainability in the Region
Borouge Classification: Public Pioneering Plastics Sustainability in the Region Our journey to net zero Taking bold action towards a zero-carbon future and becoming net zero by 2045 1998 2007 2009 2014 2015 2017 2021 2022 2023 2025 2030 2045 FOUNDATIONS PIONEERING DELIVERING Journey Achieved Set Tar
Slide 52: S&P ESG Rating 2024 Preliminarily Disclosed
Borouge Classification: Public S&P500 ESG Rating 2024 is Preliminarily Disclosed, with Visible Improvements from Previous Year 2023 2024 Borouge PLC Borouge Ranked at top Borouge is preliminarily ranked at top 19th percentile 11th percentile* CSA Industry Industry Score Distribution Industry Score D
Slide 53: Artificial Intelligence & Digital Transformation
ArtificiaI Intelligence & Digital Transformation Ghalib Al Afifi Vice President Strategy & Excellence
Slide 54: AI & Digitalization Transformation Roadmap (1/2)
Borouge Classification: Public Borouge AI & Digitalization Transformation Roadmap (1/2) AI market fundamentals and global trends and the Borouge’s advantage GDP: Borouge Leads Global AI Transformation Leveraging Competitive Advantage $15.7 Tn by 2030 UAE ranked 3rd in AI GDP contribution Advanced Lo
Slide 55: AI & Digitalization Transformation Roadmap (2/2)
Borouge Classification: Public Borouge AI & Digitalization Transformation Roadmap (2/2) Commitment to accelerated growth by adopting artificial intelligence Autonomous AI-based Automated AI-powered AI-enabled operations & prescriptive supply chain product market intelligence production maintenance &
Slide 56: Borouge Investors Day
Borouge Classification: Public 56 Borouge Investors Day 2024
Slide 57: Product Differentiation through Innovation
Product Differentiation through Innovation Moderated Panel Session
Slide 58: Panel Session Speakers
Borouge Classification: Public Panel Session Speakers Khalfan Al Muhairi Maitha Al Marashi Mounir Haddad Grigorios Vigellis Senior Vice President Vice President Chief Executive Commercial Middle East Region Sustainability Officer Director Borouge Borouge ADNIP UPI 58 Borouge Investors Day 2024
Slide 59: Q&A & Concluding Remarks
Borouge Q&A & Concluding Remarks
Slide 60: Disclaimer
Borouge Classification: Public Disclaimer This presentation has been prepared by Borouge PLC and its subsidiaries (the “Company”) based on publicly available information and non-public information to assist you in making a preliminary analysis of the content referenced herein solely for informationa