LyondellBasell Industries NV · NYSE:LYB

LyondellBasell Industries NV — Q1 2018 Earnings Presentation

16 slides from LyondellBasell Industries NV's earnings presentation, Apr 27, 2018

  1. Slide 1: First Quarter 2018 Earnings

    First Quarter 2018 Earnings April 27, 2018 www.lyondellbasell.com Company confidential

  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: Additional Information

    Additional Information Additional Information and Where to Find It This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. This communication may be deemed to be solicitation material in respect of the p

  4. Slide 4: First Quarter 2018 Highlights

    First Quarter 2018 Highlights ■ Significant improvement in net income Financial Highlights and EPS (excluding 4Q17 one-time tax reform benefit) ($ in millions, except per share data) 1Q17 4Q17(1) 1Q18 EBITDA $1,617 $1,726 $1,913 ■ Quarterly EBITDA improvements: Net Income $797 $1,894 $1,231 ▪ Increa

  5. Slide 5: Improving Upon LyondellBasell's Strong Safety Performance

    Improving Upon LyondellBasell’s Strong 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 1Q18 Houston, Texas, U.S.A. (1) Source: American Chemistry Council (ACC), LYB. ACC data includes all availabl

  6. Slide 6: LYB Polyethylene Products Aligned with Global Market Growth of 4%

    LYB Polyethylene Products Aligned with Global Market Growth of 4%(1) Strong LYB Presence China PE Trade Deficit: 38 Blbs by 2022(2) lbs., billions ■ Film & Sheet 2007 2012 2017 2022 ■ Pressure Pipe -10 ■ Automotive Fuel Tanks -20 -30 ■ Wire & Cable -40 PE Demand Growth(1): U.S./Canada 3.7%, Western

  7. Slide 7: First Quarter 2018 and LTM Segment EBITDA

    First Quarter 2018 and LTM Segment EBITDA First Quarter 2018 LTM March 2018 (USD, millions) EBITDA Net Income (USD, millions) EBITDA Net Income As Reported $1,913 $1,231 As Reported $7,430 $5,311 First Quarter 2018 EBITDA LTM March 2018 EBITDA USD, millions USD, millions $800 $3,200 600 2,400 400 1,

  8. Slide 8: Cash Generation and Deployment

    Cash Generation and Deployment First Quarter 2018 LTM March 2018 USD, millions USD, millions $5,000 8,000 4,000 6,000 3,405 3,468 3,000 4,000 2,000 3,468 2,000 2,159 1,000 (1) (2) (1) (1) (2) (1) 1Q1 8 Cash from CAPEX Divi dends & Chang e in Other 1Q1 8 2Q1 7 Cash from CAPEX Divi dends & Chang e in

  9. Slide 9: Strong, Consistent Cash Generation

    Strong, Consistent Cash Generation LYB Cash From Operating Activities ■ 1Q18 LTM Capex: $1.6 billion USD, millions Free Cash Flow Capex $7,000 6,000 ■ 1Q18 LTM Free Cash Flow(1): $4.0 billion 5,000 4,000 3,000 ■ 1Q18 Ending Total Liquidity(2): $6.9 billion 2,000 1,000 2014 2015 2016 2017 1Q18 LTM Ca

  10. Slide 10: Olefins and Polyolefins – Americas

    Olefins and Polyolefins – Americas Strong Demand Supports Polyolefin Margins EBITDA 1Q18 Performance vs. 4Q17(1) USD, millions EBITDA Margin Volume $1,000 U.S. Olefins ▪ Ethylene margin down 2 ¢/lb 800 ▪ Volume down due to reduced derivative operating rates 600 Polyethylene 400 ▪ Spread up 2 ¢/lb 20

  11. Slide 11: Olefins and Polyolefins – Europe, Asia, and International

    Olefins and Polyolefins – Europe, Asia, and International Improving Olefin Margins and Strong Demand EBITDA 1Q18 Performance vs. 4Q17(1) USD, millions EBITDA Margin Volume $800 EU Olefins ▪ Ethylene margin up 6 ¢/lb 600 Polyethylene ▪ Improved seasonal demand 400 Polypropylene 200 ▪ Improved seasona

  12. Slide 12: Intermediates and Derivatives Record Quarterly EBITDA Performance

    Intermediates and Derivatives Record Quarterly EBITDA Performance EBITDA 1Q18 Performance vs. 4Q17(1) USD, millions EBITDA Margin Volume $500 Propylene Oxide and Derivatives ▪ Volume down 4% 400 300 Intermediate Chemicals ▪ Styrene margin up 4 ¢/lb 200 100 Oxyfuels & Related Products 1Q17 2Q17 3Q17

  13. Slide 13: Refining Continuing Strong, Consistent Operations

    Refining Continuing Strong, Consistent Operations EBITDA 1Q18 Performance vs. 4Q17(1) USD, millions EBITDA Margin Volume $150 Houston Refinery ▪ Crude throughput: 252 MBPD ▪ Maya 2-1-1 relatively flat at 100 $20.72 ▪ 4Q included a full year 2017 50 LIFO benefit of $38 million -50 1Q17 2Q17 3Q17 4Q17

  14. Slide 14: Houston Refinery Improvements in Operations

    Houston Refinery Improvements in Operations ■ Strong operations resulting from reliability Refining Throughput improvement initiative BPD, thousands ▪ Returning to historical high, sustainable operating rates 300 Crude Capacity 200 ■ IMO 2020: potential upside ▪ Marine fuel sulfur specification redu

  15. Slide 15: 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

  16. Slide 16: First Quarter Summary and Outlook

    First Quarter Summary and Outlook Summary Outlook Record quarterly EBITDA Continued strong global demand Intermediates & Derivatives Increased quarterly dividend Continued strong operations at by 11% to $1.00 per share Houston Refinery Strong cash from operating activities Strong seasonal margins fo

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