LyondellBasell Industries NV · NYSE:LYB

LyondellBasell Industries NV — Q2 2018 Earnings Presentation

16 slides from LyondellBasell Industries NV's earnings presentation, Aug 3, 2018

  1. Slide 1: Second Quarter 2018 Earnings

    Second Quarter 2018 Earnings August 3, 2018 www.lyondellbasell.com

  2. 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 which are believed t

  3. Slide 3: Second Quarter 2018 Highlights

    Second Quarter 2018 Highlights ■ Diluted EPS: $4.22 Financial Highlights ▪ Record after excluding tax benefits(1) (1) ($ in millions, except per share data) 2Q17 1Q18 2Q18 ■ Record quarterly EBITDA: EBITDA $1,970 $1,913 $2,010 ▪ Intermediates and Derivatives Net Income $1,130 $1,231 $1,654 ▪ Technol

  4. Slide 4: Improving Upon LyondellBasell's Industry Leading Safety Performance

    Improving Upon LyondellBasell’s Industry Leading Safety Performance Safety - Injuries per 200,000 Hours Worked(1) LyondellBasell ACC Average 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 2014 2015 2016 2017 2018 (2Q YTD) Wesseling, Germany First half 2018 - 38% improvement in YTD worker safety (1) Source:

  5. Slide 5: Second Quarter 2018 and LTM Segment EBITDA

    Second Quarter 2018 and LTM Segment EBITDA Second Quarter 2018 LTM June 2018 (USD, millions) EBITDA Net Income (USD, millions) EBITDA Net Income As Reported $2,010 $1,654 As Reported $7,470 $5,835 Second Quarter 2018 EBITDA LTM June 2018 EBITDA USD, millions USD, millions $800 $3,200 600 2,400 400 1

  6. Slide 6: Cash Generation and Deployment

    Cash Generation and Deployment Second Quarter 2018 LTM June 2018 USD, millions USD, millions $6,000 $9,000 4,000 6,000 3,873 3,468 3,873 2,000 3,000 2,560 (1) (2) (1) (2) 2Q1 8 Cash from CAPEX Divi dends & Chang e in Other 2Q1 8 3Q1 7 (1) Cash from CAPEX Divi dends & Chang e in Other 2Q1 8 (1) Beg i

  7. Slide 7: Strong Cash Generation, Dividends & Share Repurchases

    Strong Cash Generation, Dividends & Share Repurchases Cash From Operating Activities Dividends & Share Repurchases USD, millions USD, millions Free Cash Flow Capex Quarterly Dividends Share Repurchases $7,000 $900 6,000 5,000 600 4,000 3,000 300 2,000 1,000 2014 2015 2016 2017 2Q18 LTM 2Q17 3Q17 4Q1

  8. Slide 8: Olefins and Polyolefins – Americas

    Olefins and Polyolefins – Americas A Tight Market Supports Polyolefin Margins EBITDA 2Q18 Performance vs. 1Q18(1) USD, millions EBITDA Margin Volume $1,000 U.S. Olefins ▪ Ethylene margin down 7 ¢/lb 800 600 Polyethylene 400 ▪ Spread up 7 ¢/lb 200 Polypropylene 2Q17 3Q17 4Q17 1Q18 2Q18 U.S. Industry

  9. Slide 9: Majority of New N. America Industry Capacity Already in the Market

    Majority of New N. America Industry Capacity Already in the Market Status & Impact of New Capacity 2016-2019: N. America Capacity Startups(1) ■ Ethylene units are running well ~ 65% of 24 Blbs of Ethylene ■ Not all PE units are operating at full rates ~ 65% of 19 Blbs of Polyethylene ■ PE exports ar

  10. Slide 10: Olefins and Polyolefins – Europe, Asia, and International

    Olefins and Polyolefins – Europe, Asia, and International Ethylene Chain Margin Compression with Increasing Cost of Feedstocks EBITDA 2Q18 Performance vs. 1Q18(1) USD, millions EBITDA Margin Volume $800 EU Olefins 600 Polyethylene 400 ▪ Spread down 2 ¢/lb 200 Polypropylene 2Q17 3Q17 4Q17 1Q18 2Q18 E

  11. Slide 11: Intermediates and Derivatives Record Quarterly EBITDA Performance

    Intermediates and Derivatives Record Quarterly EBITDA Performance EBITDA 2Q18 Performance vs. 1Q18(1) USD, millions EBITDA Margin Volume $800 Propylene Oxide and Derivatives ▪ Volume up 7% 600 Intermediate Chemicals ▪ Increased volumes and margins 400 across multiple products ▪ Styrene margin up 3 ¢

  12. Slide 12: Intermediates and Derivatives Structural Changes and Reliable Operations Capturing Opportunities

    Intermediates and Derivatives Structural Changes and Reliable Operations Capturing Opportunities EBITDA increases $450 MM 1H18 vs. 1H17 EBITDA USD, millions ■ Structural improvements ~ 15% $1,200 ▪ Improved contracting strategies ▪ Return to typical reliability ■ 1H18 LYB maintenance schedule ~ 20%

  13. Slide 13: Refining Reliable Operations Capturing Improved Margins

    Refining Reliable Operations Capturing Improved Margins EBITDA 2Q18 Performance vs. 1Q18(1) USD, millions EBITDA Margin Volume $150 Houston Refinery ▪ Crude throughput: 259 MBPD ▪ Maya 2-1-1 up $5.22 to $25.94 100 50 2Q17 3Q17 4Q17 1Q18 2Q18 Refining Spreads(2) Refining Throughput LLS-Maya USGC RBOB

  14. Slide 14: A. Schulman Acquisition: Creating a Platform for Growth

    A. Schulman Acquisition: Creating a Platform for Growth Strategic Rationale Financial Metrics(1) ■ Vertical integration ■ Purchase price = $2.25 billion ■ New growth platform for organic and ■ 6.3x LTM 1Q18 Adjusted EBITDA, including inorganic opportunities synergies ■ End-to-end customer solutions

  15. Slide 15: Tangible Earnings Growth Over the Next Twelve Months

    Tangible Earnings Growth Over the Next Twelve Months Acquisition of Hyperzone I&D Refinery Refining A. Schulman HDPE Improvement Reliability Markets Vertical Poised to Capture Sustainable Contract Increased Focus on Well Positioned for Integration HDPE Demand Improvements Operational Excellence IMO

  16. Slide 16: Second Quarter Summary and Outlook

    Second Quarter Summary and Outlook Summary Outlook Diluted earnings per share: $4.22 Continued robust global demand Record quarterly EBITDA: Stabilizing market conditions after Intermediates & Derivatives industry capacity comes online Technology Strong cash from operating activities Continued relia

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