LyondellBasell Industries NV · NYSE:LYB

LyondellBasell Industries NV — Q1 2016 Earnings Presentation

16 slides from LyondellBasell Industries NV's earnings presentation, Apr 22, 2016

  1. Slide 1: First Quarter 2016 Earnings

    First Quarter 2016 Earnings April 22, 2016

  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: 1Q 2016 Highlights

    1Q 2016 Highlights (1) As Reported Excluding LCM ($ in millions, except per share data) 1Q15 4Q15 1Q16 1Q15 4Q15 1Q16 EBITDA $1,952 $1,394 $1,807 $2,044 $1,678 $1,875 Income from Continuing Operations $1,167 $797 $1,030 $1,225 $982 $1,077 Diluted Earnings ($ / share) from Continuing Operations $2.42

  5. Slide 5: LyondellBasell Safety Performance

    LyondellBasell Safety Performance Safety Benchmark: Injuries per 200,000 Hours Worked (1) 0.50 0.40 0.30 0.20 0.10 0.00 2009 2010 2011 2012 2013 2014 2015 1Q 16 Continued improvement over our already strong 2015 safety performance (1) Includes employees and contractors. 5

  6. Slide 6: First Quarter 2016 and LTM Segment EBITDA

    First Quarter 2016 and LTM Segment EBITDA First Quarter 2016 (1) LTM March 2016 (1) ($, millions) EBITDA Op. Income ($, millions) EBITDA Op. Income As Reported $1,807 $1,360 As Reported $7,388 $5,907 As Adjusted for LCM $1,875 $1,428 As Adjusted for LCM $7,912 $6,431 USD, First Quarter 2016 EBITDA U

  7. Slide 7: Cash Flow

    Cash Flow First Quarter 2016 LTM March 2016 USD, millions USD, millions $4,000 $10,000 8,000 3,000 6,000 2,000 $2,952 4,000 $2,375 1,000 $3,582 2,000 $2,952 (1) (2) (3) (1) 1Q 2016 CF from Working Capex Dividends & Net Debt Other 1Q 2016 2Q 2015(1) CF from Working (2) Capex(3) Dividends & Net Debt O

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

    Strong Cash Generation, Share Repurchases & Dividends Cash From Operations Dividends & Share Repurchases USD, USD, millions Free Cash Flow Capex millions Interim Dividends Share Repurchases $7,000 $8,000 6,000 6,000 5,000 4,000 4,000 3,000 2,000 2,000 1,000 2013 2014 2015 LTM March 2016 2013 2014 20

  9. Slide 9: Olefins & Polyolefins – Americas Highlights and Business Drivers – 1Q'16

    Olefins & Polyolefins – Americas Highlights and Business Drivers – 1Q’16 EBITDA Performance vs. 4Q’15(1) USD, EBITDA Margin Volume millions As Reported Excluding LCM U.S. Olefins $1,200 • Ethylene price down 0.6 ¢/lb. 1,000 • Purchased ethylene for 2Q maintenance 800 Polyethylene 600 • Building inve

  10. Slide 10: Olefins & Polyolefins – Europe, Asia, International Highlights and Business Drivers – 1Q'16

    Olefins & Polyolefins – Europe, Asia, International Highlights and Business Drivers – 1Q’16 EBITDA Performance vs. 4Q’15(1) USD, EBITDA Margin Volume millions As Reported Excluding LCM $700 EU Olefins • Ethylene margin up ~4 ¢/lb. 600 500 Polyethylene 400 • Spread up ~ 1 ¢/lb. 300 200 Polypropylene

  11. Slide 11: Intermediates & Derivatives Highlights and Business Drivers – 1Q'16

    Intermediates & Derivatives Highlights and Business Drivers – 1Q’16 EBITDA Performance vs. 4Q’15(1) USD, millions EBITDA Margin Volume $600 As Reported Excluding LCM Propylene Oxide and Derivatives 500 • Volume up ~ 16% • Margins lower due to sales mix 400 300 Intermediates • Styrene margins up ~ 2

  12. Slide 12: Refining Highlights and Business Drivers – 1Q'16

    Refining Highlights and Business Drivers – 1Q’16 EBITDA Performance vs. 4Q’15(1) USD, millions As Reported Excluding LCM EBITDA Margin Volume Houston Refinery $200 • Maya 2-1-1: $17.86 per bbl, down $0.69 from 4Q’15 150 • Crude throughput: 186 MBPD, down 100 20 MBPD from 4Q’15 due to maintenance. 50

  13. Slide 13: O&P Profitability Shift to Polymers: Strong Ethylene Integration

    O&P Profitability Shift to Polymers: LYB Benefitting from Strong Ethylene Integration Internal Ethylene Balances for LYB (1) Ethylene and Polyethylene Margins (2) Blbs/year cents/lb 16 LYB Assets JV Assets PE Other Derivatives 50 Ethane Margin Naphtha Margin HDPE Margin Ethylene/HDPE Chain 14 40 12

  14. Slide 14: O&P Profitability Shift to Polymers: Strong Polypropylene Position

    O&P Profitability Shift to Polymers: LYB Benefitting from Strong Polypropylene Position Internal Propylene Balances for LYB (1) Polypropylene Spreads and Prices (2) cents/lb Blbs/year LYB Assets JV Assets PP Other Derivatives 100 12 Propylene Cost PP/Propylene Spread PP Price 10 8 6 50 4 2 Productio

  15. Slide 15: MTO Capacity Appears To Support Global Pricing

    MTO Capacity Appears To Support Global Pricing Global Ethylene Supply / Demand (1) March 2016 Global Ethylene Cash Cost and Prices (2) • Global operating rates forecast to remain in the balanced/transition zone for coming years • Advantaged feedstocks should see strong operating rates throughout the

  16. Slide 16: First Quarter Summary and Outlook

    First Quarter Summary and Outlook First Quarter Summary Near-Term Outlook  First quarter developed as anticipated  Global O&P markets are tight due to strong global demand and planned industry  O&P Americas and O&P EAI continued to maintenance benefit from strong polyolefin margins and demand in

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