Lyondellbasell Industries Nv · NYSE:LYB

Lyondellbasell Industries Nv — Q3 2015 Earnings Presentation

17 slides from Lyondellbasell Industries Nv's earnings presentation, Oct 23, 2015

  1. Slide 1: Third Quarter 2015 Earnings

    Third Quarter 2015 Earnings October 23, 2015

  2. 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

  3. 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

  4. Slide 4: Highlights

    Highlights (1) As Reported Excluding LCM ($ in millions, except per share data) Q3'14 Q2'15 Q3'15 Q3'14 Q2'15 Q3'15 EBITDA $2,035 $2,186 $2,001 $2,080 $2,177 $2,182 Income from Continuing Operations $1,260 $1,326 $1,189 $1,288 $1,320 $1,303 Diluted Earnings ($ / share) from Continuing Operations $2.

  5. Slide 5: LyondellBasell Safety Performance

    LyondellBasell Safety Performance Safety - Injuries per 200,000 Hours Worked(1) 0.60 0.45 0.30 0.15 0.00 2009 2010 2011 2012 2013 2014 2015 (Q3 YTD) (1) Includes employees and contractors. 5

  6. Slide 6: Third Quarter 2015 and LTM Segment EBITDA

    Third Quarter 2015 and LTM Segment EBITDA Third Quarter 2015 LTM September 2015 EBITDA Op. Income EBITDA Op. Income As Reported 2,001 1,650 As Reported 7,545 6,147 As Adjusted for LCM 2,182 1,831 As Adjusted for LCM 8,524 7,126 Third Quarter 2015 EBITDA LTM September 2015 EBITDA USD, millions USD, m

  7. Slide 7: Cash Flow

    Cash Flow Q3 2015 LTM September 2015 USD, millions USD, millions $12,000 $12,000 10,000 10,000 8,000 8,000 6,000 6,000 4,000 4,000 $3,524 $3,524 $3,811 $2,929 2,000 2,000 0 (3) 0 (1) 3Q 2015 (1) CF from Working (2) Capex Dividends & Net Debt Other 3Q 2015 (1) 4Q 2014 CF from Working (2) Capex (3) Di

  8. Slide 8: Strong Cash Generation, Share Repurchases & Dividends

    Strong Cash Generation, Share Repurchases & Dividends Cash From Operations Dividends & Share Repurchases USD, millions USD, millions $7,000 $8,000 Capex Free Cash Flow Interim Dividends 6,000 Special Dividends Share Repurchases 6,000 5,000 4,000 4,000 3,000 2,000 2,000 1,000 2012 2013 2014 LTM Sept.

  9. Slide 9: Olefins & Polyolefins – Americas Highlights and Business Drivers – 3Q'15

    Olefins & Polyolefins – Americas Highlights and Business Drivers – 3Q’15 EBITDA Performance vs. 2Q’15(1) USD, millions EBITDA Margin Volume As Reported Excluding LCM U.S. Olefins $1,400 • Ethylene pricing down ~6 ¢/lb. 1,200 • Volume up ~2% following Q2 maintenance 1,000 800 Polyethylene 600 • Sprea

  10. Slide 10: Olefins & Polyolefins – Europe, Asia, International Highlights and Business Drivers – 3Q'15

    Olefins & Polyolefins – Europe, Asia, International Highlights and Business Drivers – 3Q’15 EBITDA Performance vs. 2Q’15(1) USD, millions EBITDA Margin Volume As Reported Excluding LCM $600 EU Olefins • Ethylene margin up ~6 ¢/lb. due to 500 lower cost of ethylene production • Advantaged feedstocks

  11. Slide 11: Intermediates & Derivatives Highlights and Business Drivers – 3Q'15

    Intermediates & Derivatives Highlights and Business Drivers – 3Q’15 EBITDA Performance vs. 2Q’15(1) USD, millions EBITDA Margin Volume As Reported Excluding LCM $600 Propylene Oxide and Derivatives • Higher margins driven by lower 500 feedstocks and other variable costs 400 Intermediates 300 • Highe

  12. Slide 12: Refining Highlights and Business Drivers – 3Q'15

    Refining Highlights and Business Drivers – 3Q’15 EBITDA Performance vs. 2Q’15(1) USD, millions EBITDA Margin Volume As Reported Excluding LCM Houston Refinery $200 • Maya 2-1-1: $22.77 per bbl, down 100 ~$1 from 2Q’15 • Crude throughput: 249 MBPD, down 6 MBPD from 2Q’15 -100 -200 -300 -400 3Q'14 4Q'

  13. Slide 13: Third Quarter Summary and Outlook

    Third Quarter Summary and Outlook Third Quarter Summary(1) Near-Term Outlook  EBITDA results steady, averaging ~$2  Balanced global ethylene industry billion for the past six quarters supply and demand  Ethylene industry conditions adjusted toward a balanced market, with  Natural gas and NGL sup

  14. Slide 14: Shale Advantage: Healthy Oil to Gas Ratio

    Shale Advantage: Healthy Oil to Gas Ratio Historic Oil/Gas Ratio 60x 50x 40x Current: 20x 30x 20x 10x ’99 – ’09 Average: 8.5x 0x Current oil to gas ratio remains healthy and well above the pre-shale average 14

  15. Slide 15: LYB Portfolio and Economic Sensitivity: LYB End-Use Markets Generate Volumetric Stability

    LYB Portfolio and Economic Sensitivity: LYB End-Use Markets Generate Volumetric Stability Durable / Non-Durable Revenue(1) World PE and PP Demand B Lbs 200 PP PE 150 Durable 100 Non-Durable ’90 – ’14 CAGR: 50 PE: 4.4% PP: 6.5% 0 1990 1994 1998 2002 2006 2010 2014 Revenue by End Use(1) 20% PE Year-on

  16. Slide 16: Global Ethylene Supply/Demand Outlook

    Global Ethylene Supply/Demand Outlook Billion Lbs. Capacity Demand Effective Operating Rate 500 100% Forecast 95% 450 90% 85% 400 80% 350 75% 70% 300 65% 60% 250 55% 200 50% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020  Industry operating rates in 2016 are very similar to 2015  Accelerat

  17. Slide 17: Looking Forward: Continued Constructive Outlook

    Looking Forward: Continued Constructive Outlook Shale Advantage  Abundant natural gas and NGL supply  Continued favorable oil / gas ratio LYB Portfolio and Economic Sensitivity  Two thirds of LYB portfolio is consumable / non-durable  Polyolefins history suggests increasing demand in the spring

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