Slide 1: Analyst & Investor Presentation
Borouge Classification: Internal BOROUGE ANALYST & INVESTOR PRESENTATION FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2023
Slide 2: Disclaimer
Borouge Classification: Internal DISCLAIMER This presentation has been prepared by the 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 inform
Slide 3: Agenda and Presenters
Borouge Classification: Internal AGENDA AND PRESENTERS Hazeem Sultan Al Suwaidi Q3 and 9M 2023 Results Chief Executive Officer Market Update Rainer Hoefling Operational Highlights Chief Marketing Officer Financial Highlights Jan-Martin Nufer Outlook Chief Financial Officer Concluding Remarks Hasan K
Slide 4: Q3 & 9M 2023 Results
Borouge Classification: Internal Q3 & 9M 2023 RESULTS 4 Q3 '23 Earnings Presentation
Slide 5: Q3 / 9M 2023 Results Highlights
Borouge Classification: Internal Q3 / 9M 2023 RESULTS HIGHLIGHTS Strong operational performance, high sales volumes and outperformance of the Value Enhancement Programme Adj. Operating Net Income Sales Volumes Adj. EBITDA Cashflow Q3 2023 Q3 2023 Q3 2023 Q3 2023 $282 million 1,395 kt $592 million $5
Slide 6: Polyolefins Market & Premia Update
Borouge Classification: Internal POLYOLEFINS MARKET & PREMIA UPDATE Product Prices and Premia Evolution Commentary 1,394 1,271 1,309 1,149 1,166 1,133 ▪ Challenging macro environment and 1,048 1,093 1,062 1,024 1,041 924 967 916 919 949 967 increasing polyolefin supply continued to Benchmark 894 891
Slide 7: Operational Performance
Borouge Classification: Internal OPERATIONAL PERFORMANCE Sales Volumes(1) Commentary +1.1% 1,943 1,965 +11.2% Polyethylene +7.6% (kt) 681 733 659 733 ▪ Q3 production volumes at high utilisation rates of 109% for PE and 104% for PP 9M’ 22 9M’ 23 Q3’ 22 Q3’23 Q2’ 23 Q3’ 23 +11.9% ▪ Healthy PE and PP s
Slide 8: Revenue & Profitability
Borouge Classification: Internal REVENUE & PROFITABILITY Key Metrics(1) Commentary (3) Polyethelene -16.4% Polypropylene 5,134 4,294 Ethylene & others -10.6% 2,894 +5.7% Revenue 2,418 ($m) 1,674 1,496 1,496 1,416 2,035 941 840 840 1,782 820 648 205 94 85 637 20 591 5 637 20 ▪ Resilient Q3 performanc
Slide 9: Costs
Borouge Classification: Internal COSTS Key Metrics(1) Commentary % of Revenue 46.5% 53.7% 51.4% 51.7% 53.0% 51.7% (3) 2,388 2,307 Cost of Sales -10.1% +3.1% ($m) -3.4% 773 860 773 750 ▪ Overall cost base -14% YoY, with costs / tonne -26% due to material cost savings 9M’ 22 9M’ 23 Q3’ 22 Q3’ 23 Q2’ 2
Slide 10: Capex & Free Cash Flow
Borouge Classification: Internal CAPEX & FREE CASH FLOW Key Metrics(1) Commentary 125 113 Capital Expenditure +10.4% ($m) -31.1% -10.4% 29 22 20 ▪ Adjusted operating free cash flow of $573m 20 in Q3 and $1.4bn YTD 9M’ 22 9M’ 23 Q3’ 22 Q3’ 23 Q2’ 23 Q3’ 23 ▪ Cashflow conversion in Q3 of 97% and 95% C
Slide 11: Value Enhancement Programme
Borouge Classification: Internal VALUE ENHANCEMENT PROGRAMME $420m achieved in cost savings and revenue optimisation YTD VEP target raised to $500m to further mitigate challenging market environment and polyolefin price decline 1. Reinforcing robust financial profile 2. Positioning for sustainable f
Slide 12: Outlook
Borouge Classification: Internal OUTLOOK ▪ Market environment remains challenging with slower macro-economic recovery in Asian markets, increased supply, Market due to capacity additions and regional price convergences towards lower levels ▪ Borouge well-positioned to maintain premia over product be
Slide 13: Concluding Remarks
Borouge Classification: Internal CONCLUDING REMARKS Strong production Value Enhancement Exploring Product innovation $1.3 billion dividend output and asset Programme international and differentiation commitment for FY reliability supporting delivering strong expansion enable premia over 2023. $650 m
Slide 14: Thank You
Borouge Classification: Internal THANK YOU www.borouge.com/en/investor-relations ir@borouge.com