LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Q4 2022 Earnings Presentation
19 slides from LyondellBasell Industries NV's earnings presentation, Feb 3, 2023
Slide 1: Fourth Quarter 2022 Earnings
FOURTH QUARTER 2022 EARNINGS February 3, 2023 1
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 of LyondellBasell wh
Slide 3: Safety Performance
SAFETY PERFORMANCE OUTSTANDING 2022 RESULTS REFLECTING OUR COMMITMENT TO SAFE OPERATIONS Injuries per 200,000 hours worked 0.6 0.5 0.4 0.3 0.2 0.1 2018 2019 2020 2021 2022 LyondellBasell ACC Top Quartile Sources: American Chemistry Council (ACC) and LyondellBasell. Note: Medium and large companies o
Slide 4: 2022 Highlights
2022 HIGHLIGHTS HIGHLY EFFICIENT CASH GENERATION $3.9 B $11.81 $6.3 B $6.1 B NET INCOME DILUTED EPS EBITDA CASH FROM OPERATING ACTIVITIES $4.1 B $12.46 $6.5 B $6.0 B NET INCOME DILUTED EPS EBITDA LIQUIDITY ex. Identified Items ex. Identified Items ex. Identified Items 16% RETURN ON INVESTED CAPITAL
Slide 5: Resilient Value Generation
RESILIENT VALUE GENERATION EQUIPPED TO DELIVER STRONG SHAREHOLDER RETURNS UNDER A WIDE RANGE OF MARKET CONDITIONS STRATEGIC FOCUS ON VALUE EFFICIENT CASH CONVERSION Focus Area Outcome 96% 87% 88% 83% 80% 73% Core values of safety, ➢ 50% lower incident rates vs. 2021 cost management ➢ 1.7% higher Cas
Slide 6: Advancing Our Climate and Circularity Targets
ADVANCING OUR CLIMATE AND CIRCULARITY TARGETS COMMITTED TO HELP ADDRESS THE CHALLENGES OF CLIMATE CHANGE AND CAPTURE VALUE FROM RAPIDLY INCREASING DEMAND FOR SUSTAINABLE MATERIALS Recycled or Scope 1 & 2 Scope 3 Scope 1 & 2 Global electricity renewable-based CO2 emissions CO2 emissions CO2 emissions
Slide 7: Advancing Circular and Renewable Solutions
ADVANCING CIRCULAR AND RENEWABLE SOLUTIONS BUILDING A GLOBAL SUPPLY CHAIN FOR OUR CIRCULEN BRANDS Advancing plans for development of sorting and recycling facilities Germany | 50,000 tons of mixed plastic waste per year Houston | 150,000 tons of plastic waste feedstock per year CirculenRecover Circu
Slide 8: Excellent Cash Generation
EXCELLENT CASH GENERATION ROBUST PERFORMANCE FROM A DIVERSE BUSINESS PORTFOLIO Cash from Operating Activities USD, billions CASH FROM OPERATING ACTIVITIES $8 $6.1 B 2022 7 6 CASH AND CASH EQUIVALENTS 5 $2.2 B Balance as of December 31, 2022 4 3 CASH CONVERSION 2 96% 2022 1 RETURNED TO SHAREHOLDERS I
Slide 9: Cash Generation and Allocation
CASH GENERATION AND ALLOCATION MAINTAINING DISCIPLINED CAPITAL ALLOCATION WHILE DELIVERING SIGNIFICANT SHAREHOLDER RETURNS USD, billions DELIVERING RESULTS $8 7 Generated $6.1 B in cash from operating activities 6 Reduced working capital by ~$450 MM 5 GENERATING VALUE FOR SHAREHOLDERS 4 Paid $3.2 B
Slide 10: 4Q22 Segment Highlights
4Q22 SEGMENT HIGHLIGHTS MARGIN COMPRESSION DUE TO NEW SUPPLY, CUSTOMER DESTOCKING AND WEAK DEMAND EBITDA Variance by Segment ex. Identified Items USD, millions $1,192 $132 $(200) $865 $(69) $(69) $(33) $(25) $(63) 3Q22 O&P Americas O&P EAI I&D APS Refining Technology Other 4Q22 EBITDA EBITDA ex. Ide
Slide 11: LyondellBasell 2023 Modeling Information
LYONDELLBASELL 2023 MODELING INFORMATION Capital Expenditures New PO/TBA Value Enhancement Capacity Program Total CAPEX ~50% ~$150 MM ~$1.6 B of 470 kt PO recurring annual EBITDA Sustaining | Profit Generating CAPEX nameplate capacity by the end of 2023 during 2023 ~$1.1 B | ~$0.5 B as plant ramps u
Slide 12: Olefins & Polyolefins – Americas
OLEFINS & POLYOLEFINS – AMERICAS NEW MARKET SUPPLY AND CUSTOMER DESTOCKING PRESSURED POLYMER MARGINS INVENTORY VALUATION EBITDA LIFO charges of ~$15 MM USD, millions 4Q22 MARKET DYNAMICS Lower polymer volumes and margins due to customer destocking and new capacity $1,262 Moderating energy and feedst
Slide 13: Olefins & Polyolefins – Europe, Asia & International
OLEFINS & POLYOLEFINS – EUROPE, ASIA & INTERNATIONAL REDUCED UTILIZATION TO MATCH DEMAND EBITDA ex. Identified Items INVENTORY VALUATION USD, millions LIFO charges of ~$50 MM 4Q22 MARKET DYNAMICS Weak European demand Moderating energy costs $228 $188 Lower volumes due to downtime $155 NEAR-TERM OUTL
Slide 14: Intermediates & Derivatives
INTERMEDIATES & DERIVATIVES OXYFUELS VOLUMES DECLINED; STYRENE MARGIN IMPROVED EBITDA USD, millions $675 INVENTORY VALUATION LIFO charges of ~$25 MM $546 4Q22 MARKET DYNAMICS Lower oxyfuels volumes; margins above historical averages $360 Styrene margin improvement due to lower feedstock cost $291 $2
Slide 15: Refining
REFINING HIGHER MARGINS DRIVEN BY FAVORABLE HEAVY CRUDE PRICING EBITDA ex. Identified Items USD, millions INVENTORY VALUATION $418 LIFO benefit of ~$40 MM $322 4Q22 MARKET DYNAMICS $190 $150 $148 $249 Modest increase in Maya 2-1-1 crack spread to $48/bbl $106 Unplanned downtime and U.S. Gulf Coast w
Slide 16: Advanced Polymer Solutions
ADVANCED POLYMER SOLUTIONS HIGHER RAW MATERIAL AND ENERGY COSTS; LOWER DEMAND EBITDA USD, millions INVENTORY VALUATION LIFO charges of ~$25 MM 4Q22 MARKET DYNAMICS $125 $118 Higher raw material and energy costs Lower demand due to seasonality and customer destocking $66 NEAR-TERM OUTLOOK Improved de
Slide 17: Technology
TECHNOLOGY LOWER CATALYST VOLUMES AND MODERATING LICENSING REVENUE EBITDA INVENTORY VALUATION USD, millions LIFO charges of ~$15 MM $173 4Q22 MARKET DYNAMICS Lower catalyst volumes driven by reduced polyolefin industry operating rates $112 Moderating licensing revenue $103 $92 NEAR-TERM OUTLOOK $59
Slide 18: Advancing Our Strategic Priorities
ADVANCING OUR STRATEGIC PRIORITIES HIGHLY FOCUSED AND RESILIENT STRATEGIES TO GENERATE VALUE AT SCALE RESILIENT ADVANCING MARKET STRATEGY RESULTS SUSTAINABILITY OUTLOOK DEVELOPMENT Outstanding safety performance Increased targets for reducing Modest improvements in demand New, more agile culture and
Slide 19: Save the Date: Capital Markets Day
SAVE THE DATE CAPITAL MARKETS DAY Tuesday, March 14, 2023 New York Stock Exchange | NYC Join Peter Vanacker, CEO, and Michael McMurray, CFO, along with members of the LyondellBasell executive committee 19
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