Lyondellbasell Industries Nv · NYSE:LYB
Lyondellbasell Industries Nv — Q4 2016 Earnings Presentation
18 slides from Lyondellbasell Industries Nv's earnings presentation, Feb 3, 2017
Slide 1: Fourth Quarter 2016 Earnings
Fourth Quarter 2016 Earnings February 3, 2017
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: LyondellBasell in 2016
LyondellBasell in 2016 SHAREHOLDER RETURN EARNINGS CASH FLOW RETURNS MEASURES Dividends Diluted EPS Cash from Return on ex. LCM(1) Operations $1.4 Billion Invested Capital $9.20 $5.6 Billion 3.9% Dividend Yield 29% Top 8% of the S&P 500 Share Total Shareholder EBITDA Repurchases Return Free Cash Flo
Slide 5: LyondellBasell Safety Performance
LyondellBasell Safety Performance Safety - Injuries per 200,000 Hours Indexed Environmental Incidents Indexed Process Safety Incidents Worked(1) 200% 500% ACC 2015 Average 0.70 ACC 2015 Average 0.60 400% 150% 0.50 300% 0.40 100% 0.30 200% 0.20 50% 100% 0.10 0.00 0% 0% 2012 2013 2014 2015 2016 2012 2
Slide 6: Highlights
Highlights FY 2014 FY 2015 FY 2016 ($ in millions, except per share data) FY 2014 FY 2015 FY 2016 (1) (ex. LCM) (ex. LCM) (ex. LCM) EBITDA $7,050 $7,533 $6,602 $7,810 $8,081 $6,631 Income from Continuing Operations $4,172 $4,479 $3,847 $4,655 $4,830 $3,865 Diluted Earnings ($ / share) from Continuin
Slide 7: 2016 Accomplishments
2016 Accomplishments Financial Accomplishments Operating Accomplishments • Strong earnings: EPS ex. LCM of $9.20 • Improved on our top decile • Growth Projects • All-time high EBITDA in 2016 for safety performance Completed ethylene expansion O&P EAI and Technology • Completed 7 major turnarounds
Slide 8: Fourth Quarter 2016 and LTM Segment EBITDA
Fourth Quarter 2016 and LTM Segment EBITDA Fourth Quarter 2016 (1) FY 2016 (2) ($, millions) EBITDA Op. Income ($, millions) EBITDA Op. Income As Reported $1,406 $1,048 As Reported $6,602 $5,060 As Adjusted for LCM $1,435 $1,077 As Adjusted for LCM $6,631 $5,089 Fourth Quarter 2016 EBITDA USD, FY 20
Slide 9: Cash Flow
Cash Flow Fourth Quarter 2016 FY 2016 USD, millions USD, millions $4,000 $10,000 3,500 8,000 3,000 2,500 6,000 2,000 4,000 1,500 $2,391 $2,126 1,000 2,000 $2,375 $2,391 500 4Q 2016 (1) CF from Working (2) Capex (3) Dividends & Net Debt Other 4Q 2016 (1) 1Q 2016 (1) CF from Working (2) Capex (3) Divi
Slide 10: Strong Cash Generation, Share Repurchases & Dividends
Strong Cash Generation, Share Repurchases & Dividends Cash From Operations Dividends & Share Repurchases USD, m illions Interim Dividends Share Repurchases USD, m illions Free Cash Flow Capex $8,000 $7,000 6,000 6,000 5,000 4,000 4,000 3,000 2,000 2,000 1,000 2013 2014 2015 2016 2013 2014 2015 2016
Slide 11: Olefins & Polyolefins – Americas Highlights and Business Drivers – 4Q'16
Olefins & Polyolefins – Americas Highlights and Business Drivers – 4Q’16 EBITDA Performance vs. 3Q’16(1) USD, EBITDA Margin Volume millions As Reported Excluding LCM U.S. Olefins $1,000 • Ethylene margin down 6 ¢/lb • Production up post Morris turnaround 800 600 Polyethylene 400 200 Polypropylene (i
Slide 12: Olefins & Polyolefins – Europe, Asia, International Highlights and Business Drivers – 4Q'16
Olefins & Polyolefins – Europe, Asia, International Highlights and Business Drivers – 4Q’16 EBITDA Performance vs. 3Q’16(1) USD, EBITDA Margin Volume millions As Reported Excluding LCM EU Olefins $700 • Ethylene margin down 7 ¢/lb 600 • Volume down due to turnaround Polyethylene 500 • Spread down 2
Slide 13: Intermediates & Derivatives Highlights and Business Drivers – 4Q'16
Intermediates & Derivatives Highlights and Business Drivers – 4Q’16 EBITDA Performance vs. 3Q’16(1) USD, As Reported Excluding LCM EBITDA Margin Volume Millions $500 Propylene Oxide and Derivatives • PO margins higher due to sales mix 400 Intermediates 300 • Methanol, EG, and ethanol margins up; sty
Slide 14: Refining Highlights and Business Drivers – 4Q'16
Refining Highlights and Business Drivers – 4Q’16 EBITDA Performance vs. 3Q’16(1) USD, millions As Reported Excluding LCM EBITDA Margin Volume Houston Refinery $100 • Maya 2-1-1 was relatively unchanged 50 • Crude throughput: 228 MBPD • Positive impact from consumption of low cost crude inventory -50
Slide 15: Continued O&P Strength
Continued O&P Strength North America Spreads(1) Steady Growth in Global Polymer Demand(2) ¢/lb Blb 40 250 Ethylene Margin (Wtd. Average) PE Spread PP Spread PE PP 200 30 ’90 – ’16 150 PE: 4.4% PP: 6.6% 20 100 ’12 – ’16 ’15 – ’16 10 50 PE: 3.7% PE: 3.8% PP: 5.0% PP: 4.5% 0 2012 2013 2014 2015 2016 We
Slide 16: 2017 Industry Outlook
2017 Industry Outlook 2016 Conditions 2017 Expectations Factor • Slow, steady growth • Global Economy • Chemical Demand • Developing economies • Generally continued economic Drivers environment at higher oil price • Weak hydrocarbon pricing, • Raw Materials good NGL availability • Decline in chain m
Slide 17: LyondellBasell 2016 Summary and Outlook
LyondellBasell 2016 Summary and Outlook 2016 Summary Near-Term Outlook • Completed 20% expansion program of • Global O&P markets remain balanced U.S. ethylene capacity and stronger than anticipated • Completed 7 major turnarounds at 4 ethylene crackers, 2 I&D plants and the • Positive environment fo
Slide 18: Investor Reception and Investor Day 2017: Save the Date
Investor Reception and Investor Day 2017: Save the Date LYB Investor Reception LYB Investor Day March 21, 2017 April 5, 2017 Houston, TX New York City, NY This is a valuable opportunity to meet with members of our executive leadership team and have informal conversations about LyondellBasell busines
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