Slide 1: Analyst & Investor Presentation, Three Months Ended 31 March 2023
ADNOC Classification: Public BOROUGE ANALYST & INVESTOR PRESENTATION FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2023 28 April 2023
Slide 2: Disclaimer
ADNOC Classification: Public DISCLAIMER This presentation has been prepared by the Borouge PLC and its subsidiaries (the “Company”) based on publicly available information and non-public information to assist you in making a preliminary analysis of the content referenced herein solely for informatio
Slide 3: Agenda and Presenters
ADNOC Classification: Public AGENDA AND PRESENTERS Hazeem Sultan Al Suwaidi Chief Executive Officer Q1 23 Results Market Update Rainer Hoefling Chief Marketing Officer Operational Highlights Financial Highlights Jan-Martin Nufer Chief Financial Officer Outlook Concluding remarks Louis Roland R. Desa
Slide 4: Q1 23 Results
ADNOC Classification: Public Q1 23 RESULTS
Slide 5: Highlights from the three months ended 31 March 2023
ADNOC Classification: Public SUCCESSFUL COMPLETION OF PLANNED BOROUGE 2 TURNAROUND, IMPROVING POLYOLEFIN PRICES IN THE QUARTER AND STRONG PERFORMANCE FROM VALUE ENHANCEMENT PROGRAMME Highlights from the three months ended 31 March 2023 Revenue declined 13% q-o-q, driven by 18% fall in quarterly sale
Slide 6: Macroeconomic Challenges and Opportunities
ADNOC Classification: Public MACROECONOMIC CHALLENGES AND OPPORTUNITIES While global, industry-wide challenges exist… Inflationary environment Economic slowdown Volatility in oil and gas markets Global price softening IMPACTS Conversion & logistics Softening product demand Rising feedstock costs Pre
Slide 7: Polyolefins Market & Premia Update
ADNOC Classification: Public POLYOLEFINS MARKET & PREMIA UPDATE Product Prices and Premia Evolution Commentary 1,399 1,381 1,202 1,102 1,116 1,137 1,082 1,016 938 899 945 Benchmark 899 Prices vs Avg. Selling Price(1) ▪ Q1 average selling prices strengthened, ($ / t) driven by healthy demand ▪ PE: av
Slide 8: Operational Performance
ADNOC Classification: Public OPERATIONAL PERFORMANCE Sales Volumes(1) Commentary 733 573 610 573 ▪ Production volumes increased by 6.7% year- Polyethylene on-year, and declined by 18.7% compared to -21.8% (kt) -6.1% the previous quarter, due to the planned turnaround of Borouge 2, which is now compl
Slide 9: Revenue & Profitability
ADNOC Classification: Public REVENUE & PROFITABILITY Key Metrics(1) Commentary (3) 1,593 1,590 PE PP Others 1,382 1,382 34 41 69 69 672 652 Revenue 555 555 -13.1% ($m) -13.2% 880 904 758 758 ▪ Q1 23 revenue declined 13.3% q-o-q and 13.1% y-o-y, due to the planned turnaround Q4 22 Q1 23 Q1 22 Q1 23 o
Slide 10: Costs
ADNOC Classification: Public COSTS Key Metrics(1) Commentary (3) % of Revenue 54.1% 56.5% 46.3% 56.5% 861 Cost of Sales 781 781 ▪ Overall cost base declined 12% q-o-q (excl. D&A) 736 ($m) -9.3% +6.06% ▪ Decrease in cost line items for Q1 23 in Q4 22 Q1 23 Q1 22 Q1 23 comparison vs. previous quarter,
Slide 11: Value Enhancement Programme
ADNOC Classification: Public VALUE ENHANCEMENT PROGRAMME Reinforcing robust financial profile Positioning for sustainable future growth Proactively addressing market challenges $400 million value enhancement programme, focused on high-impact cost efficiencies and revenue optimisation, directly suppo
Slide 12: Capex & Free Cash Flow
ADNOC Classification: Public CAPEX & FREE CASH FLOW Key Metrics(1) Commentary 128 82 82 76 Capital Expenditure ($m) -35.4% +8.7% • Higher capex in Q1 23 at an 8% increase q-o- q, primarily reflects investment in Borouge 2 turnaround Q4 22 Q1 23 Q1 22 Q1 23 Cash Conversion(2) • Strong cashflow conver
Slide 13: Outlook
ADNOC Classification: Public OUTLOOK ▪ Activity in Borouge’s core Asia Pacific and Middle East markets remains stronger than in developed markets, with Market economic growth rates ahead of developed economies ▪ Sales to energy & infrastructure customers remains strong, comprising 46%1 of polyolefin
Slide 14: Concluding Remarks
ADNOC Classification: Public CONCLUDING REMARKS Improved pricing in Value enhancement Strong balance sheet Committed to Reiterate the quarter programme supporting future product innovation commitment to delivering significant growth opportunities and differentiation, paying $1.3 billion in efficienc
Slide 15: Thank You
ADNOC Classification: Public THANK YOU www.borouge.com/en/investor-relations ir@borouge.com