Lyondellbasell Industries Nv · NYSE:LYB
Lyondellbasell Industries Nv — Q4 2014 Earnings Presentation
18 slides from Lyondellbasell Industries Nv's earnings presentation, Feb 3, 2015
Slide 1: Fourth-Quarter 2014 Earnings
Fourth-Quarter 2014 Earnings Bob Patel, Chief Executive Officer Karyn Ovelmen, Chief Financial Officer Sergey Vasnetsov, SVP – Strategic Planning and Transactions Doug Pike, VP – Investor Relations www.lyb.com
Slide 2: Cautionary Statement
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 to be reasonable at the time made and are subject to significant ris
Slide 3: Information Related to Financial Measures
Information Related to Financial Measures This presentation makes reference to certain “non-GAAP” financial measures as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. The non-GAAP measures we have presented include income from continuing operations excluding LCM, di
Slide 4: Highlights
Highlights ($ in millions, except per share data) FY 2012 FY 2013 FY 2014 FY 2014 (As Reported) (ex. LCM)(1) EBITDA $5,808 $6,311 $7,050 $7,810 Income from Continuing Operations $2,858 $3,860 $4,172 $4,655 Diluted Earnings ($ / share) from Continuing Operations $4.96 $6.76 $8.00 $8.92 FY 2014 EPS Gr
Slide 5: LyondellBasell Safety Performance
LyondellBasell Safety Performance Safety - Injuries per 200,000 Hours Indexed Environmental Incidents Indexed Process Incidents Worked(1) 0.60 100% 100% 0.45 75% 75% 0.30 50% 50% 0.15 25% 25% 0.00 0% 0% 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 Continu
Slide 6: 2014 Accomplishments
2014 Accomplishments Financial Accomplishments Operating Accomplishments • Record earnings and cash flow • Key Operating Rates: • Completed 200 million pound per year • Generated $6.0 billion cash from operations – U.S. Ethylene: 95% excluding La PE expansion and 800 million pound per Porte turnarou
Slide 7: We are expanding our advantaged positions significantly
We are expanding our advantaged positions significantly U.S. Ethylene Propylene Oxide MM Lbs. 14,000 MM Lbs. 4,000 12,000 3,500 10,000 ~ 25% 3,000 ~ 35% 2,500 8,000 2,000 6,000 1,500 4,000 1,000 2,000 500 - - Before After Before After Methanol MTBE Equivalent MBPD MM Gal. Per Year 500 120 450 400 10
Slide 8: Key Volumes and Margins: 2011 - 2014
Key Volumes and Margins: 2011 - 2014 2011 2012 2013 2014 Ethylene Volumes Polyethylene Volumes Polypropylene Volumes I&D Chemical Volumes(1) HRO Crude Rates billion lbs billion lbs billion lbs billion lbs MBPD 10 15 10 12 300 (*) 8 12 8 10 240 6 9 6 7 180 4 6 4 5 120 2 3 2 2 60 0 0 0 0 0 US EU Index
Slide 9: LCM Inventory Adjustment
LCM Inventory Adjustment LYB Inventory and Brent Crude Oil History Key Raw Material and Product Pricing Inventory Inventory @ April 2010 Brent Crude Apr-10 Dec-14 Jan-15 $ per Barrel Brent ($/bbl.) 86 55 49 $6,000 120 Gasoline (¢/gal.) 240 144 135 MTBE (¢/gal.) 242 204 174 5,000 100 Polyethylene (¢/
Slide 10: Fourth Quarter 2014 and FY 2014 Segment EBITDA
Fourth Quarter 2014 and FY 2014 Segment EBITDA Fourth Quarter Full Year 2014 EBITDA Op. Income EBITDA Op. Income As Reported $1,406 $1,077 As Reported $7,050 $5,736 Excluding LCM $2,121 $1,792 Excluding LCM $7,810 $6,496 Fourth Quarter 2014 EBITDA Full Year 2014 EBITDA ($ in millions) ($ in millions
Slide 11: Cash Flow
Cash Flow ($ in millions) Q4 2014 Full Year 2014 $12,000 $12,000 10,000 10,000 8,000 8,000 6,000 6,000 4,000 4,000 $4,450 $2,974 $2,974 2,000 2,000 $2,929 0 0 (3) Q4 201 4 (1) CF from Working (2) Capex(3) Div idends & Net De bt Other Q4 201 4(1) Q4 201 3(1) CF from Working (2) Capex Div idends & Net
Slide 12: Strong Cash Generation, Share Repurchases & Dividends
Strong Cash Generation, Share Repurchases & Dividends Cash From Operations Dividends & Share Repurchases ($ in millions) ($ in millions) $7,000 $8,000 6,000 6,000 5,000 4,000 4,000 3,000 2,000 2,000 1,000 2011 2012 2013 2014 2011 2012 2013 2014 Capex Free Cash Flow Interim Dividends Special Dividend
Slide 13: Olefins & Polyolefins – Americas Highlights and Business Drivers – 4Q'14
Olefins & Polyolefins – Americas Highlights and Business Drivers – 4Q’14 EBITDA Performance vs. 3Q’14(2) ($ in millions) EBITDA Margin Volume $1,400 U.S. Olefins As Reported Excluding LCM • Net sales and internal consumption 1,200 increased ~130 MM lbs 1,000 • Ethylene price and COE lower by ~6¢/lb
Slide 14: Olefins & Polyolefins – Europe, Asia, International Highlights and Business Drivers – 4Q'14
Olefins & Polyolefins – Europe, Asia, International Highlights and Business Drivers – 4Q’14 EBITDA Performance vs. 3Q’14(2) ($ in millions) EBITDA Margin Volume $400 As Reported Excluding LCM EU Olefins • Higher naphtha margin • Advantaged feedstocks ~56% 300 • Operating rate ~97% Polyethylene 200 •
Slide 15: Intermediates & Derivatives Highlights and Business Drivers – 4Q'14
Intermediates & Derivatives Highlights and Business Drivers – 4Q’14 EBITDA Performance vs. 3Q’14(2) ($ in millions) EBITDA Margin Volume $500 As Reported Excluding LCM Propylene Oxide and Derivatives 400 • Margins lower after strong Q3 • Volume stable 300 Intermediates • Styrene margins up ~4¢/lb 20
Slide 16: Refining Highlights and Business Drivers – 4Q'14
Refining Highlights and Business Drivers – 4Q’14 EBITDA Performance vs. 3Q’14(2) ($ in millions) EBITDA Margin Volume $200 Houston Refinery As Reported Excluding LCM 150 • Maya 2-1-1: $17.72 per bbl, down 100 $6.63 from 3Q’14 50 • Crude throughput: 266 MBPD • Cost of RINs flat -50 4Q'13 1Q'14 2Q'14
Slide 17: Fourth Quarter Summary and Outlook
Fourth Quarter Summary and Outlook Fourth Quarter Summary Near-Term Outlook – Record quarter excluding LCM charge – Volatility of crude oil and product pricing makes quantification difficult – Continued to return cash to shareholders: • Share repurchases and dividends totaled $1.8 – Crude oil price
Slide 18: Investor Day 2015: Save the Date
Investor Day 2015: Save the Date 04•29•15 Investor Day NEW YORK CITY LyondellBasell is planning an Investor Day to be held on the morning of April 29, 2015, in New York City. At this half-day session, you will have an opportunity to interact with members of our leadership team and get an update on c
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