LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Basell AF S.C.A. — Q1 2007 Earnings Presentation
21 slides from LyondellBasell Industries NV's earnings presentation, May 30, 2007
Slide 1: Quarterly review – First Quarter 2007
Basell AF S.C.A. Quarterly review – First Quarter 2007 Conference call 30 May 2007 We are the global leader in polyolefins technology, production and marketing 1
Slide 2: Disclaimer
Disclaimer Forward looking statements – The presentation today may include forward-looking statements as that term is defined in securities law, including but not limited to anticipated plans, litigation and environmental matters, currency effects, profitability, and other commitments or goals. Su
Slide 3: First quarter 2007 performance review
First quarter 2007 performance review Agenda Introduction First quarter 2007 at a glance Industry overview and business review – Technology – Advanced Polyolefins – Polyolefins – Performance summary Financials 3
Slide 4: First quarter 2007 performance review
First quarter 2007 performance review Agenda Introduction First quarter 2007 at a glance Industry overview and business review – Technology – Advanced Polyolefins – Polyolefins – Performance summary Financials 4
Slide 5: Basell's 2007 first quarter top highlights
Basell’s 2007 first quarter top highlights 9 World-class safety performance with a TTR of 1.8 TRR First Quarter 2007 9 Best-ever first quarter 10 financial results driven 8.9 by strong Polyolefins 8.0 8 Business performance 7.3 6.7 9 ~ 1 million tonnes of 6 additional licenses sold 4.1 4 9 Strong Ad
Slide 6: First quarter 2007 performance review
First quarter 2007 performance review Agenda Introduction 2007 at a glance Industry overview and business review – Technology – Advanced Polyolefins – Polyolefins – Performance summary Financials 6
Slide 7: The polyolefins industry in Q1 2007
The polyolefins industry in Q1 2007 Highlights Challenges 9 Favourable supply-demand 8 North American polymer margin balance continued in Asia and pressure continued in a volatile Europe and improved in North environment America 8 Monomer and cracker feedstock 9 Market growth continued in volatility
Slide 8: Naphtha price developments
Naphtha price developments Naphtha quarterly average price rose late in the quarter US$ per tonne 700 600 500 400 300 200 100 Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- 2001 2001 2001 2001 2002 2002 2002 2002 2003
Slide 9: European cracker fundamentals
European cracker fundamentals Ethylene price stability combined with increasing naphtha prices have resulted in reducing cracker margins during the first quarter Feedstock price development in EUR/ton Naphtha Price - €/t Ethylene Price - €/t 600 900 Naphtha 500 800 400 700 300 600 Ethylene 200 500 J
Slide 10: Technology business review
Technology business review 9 Pro-forma EBITDA is Q1 2007 Q1 2006 behind the mln € excellent performance of Revenue 86 93 Q1 2006 Pro-forma 9 Continued good EBITDA 39 47 licensing sales with a further 980kta of capacity licensed during the quarter 9 Catalyst sales volumes ahead of 2006 10
Slide 11: Advanced Polyolefins business review
Advanced Polyolefins business review 9 2007 pro-forma EBITDA is 23% Q1 2007 Q1 2006 ahead of 2006 mln € Revenue 416 391 9 Sales volumes grew by: Pro-forma 9 9% in first EBITDA 48 39 quarter 9 Catalloy process resins sales volumes ahead of 2006, but margins under pressure 11
Slide 12: Polyolefins business review
Polyolefins business review PO Europe PO NA PO International 9 First quarter 9 Operating at 9 Excellent volumes volumes and capacity. EBITDA and spreads spreads ahead of significantly ahead resulted in 130% same period of Q1 2006 increase in first previous year quarter EBITDA compared to the 9 Smoot
Slide 13: Joint venture business review
Joint venture business review Joint ventures Q1 2007 Q1 2006 9 Good mln € performance by Equity income 32 13 polyolefins joint ventures in Q1 Dividends and 5 0 other cash 13
Slide 14: Summary of Basell's performance vs. Q1 2006
Summary of Basell’s performance vs. Q1 2006 2007 Pro-forma EBITDA result is 71% ahead of last year Basell established a new EBITDA record in Q1 2007 Technology significantly ahead of 2006 Advanced Polyolefins continued to improve Polyolefins Europe delivered good spreads and volumes Polyolef
Slide 15: First quarter 2007 performance review
First quarter 2007 performance review Agenda Introduction 2007 at a glance Industry overview and business review – Technology – Advanced Polyolefins – Polyolefins – Performance summary Financials 15
Slide 16: Quarterly Pro-forma EBITDA
Quarterly Pro-forma EBITDA Basell continues to perform strongly with a LTM pro-forma EBITDA of €1,135 million 400 374 315 292 300 50 10 219* € million 214 200 374 282 265 219 214 100 0 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Reported EBITDA excluding specials Specials 16 *Includes 10 million OBS adj
Slide 17: Free cash flow and working capital
Free cash flow and working capital Good working capital management and strong business performance resulted in positive cash flow generation Free Cash Flow before debt service (€ in millions) Q1 2007 2006 2005 EBITDA 374 1,030 766 Change in Working Capital -73 -85 -118 Dividends and other cash 5 33
Slide 18: Basell's debt structure
Basell’s debt structure € million Total external funding Net debt to EBITDA 4,000 ratio of 2.1 3,496 517 3,038 3,000 120 536 509 77 Net debt since 225 2,000 1,100 acquisition is lower 962 3,122 by €784 million 2,338 1,000 1,250 1,238 Cash and cash 0 -374 equivalent of €700 -700 million -1,000
Slide 19: Basell businesses in the news
Basell businesses in the news Technology – Basell grants 50th Lupotech T technology license to QAPCO for new 250 kta polyethylene plant in Qatar – Polinter selects Basell’s Lupotech T technology for new 300 kta polyethylene plant in Venezuela Polyolefins – Basell to relocate North American headq
Slide 20: Second quarter 2007 current performance
Second quarter 2007 current performance Technology – Continued strong catalyst sales – Excellent progress on a number of licensing projects Advanced Polyolefins – Demand has been strong across all three product lines Polyolefins – European polyolefin demand continues to be strong – Basell’s No
Slide 21: Thank you
Thank you @ basell 2 Polyolefins