Slide 1: Borouge Analyst & Investor Presentation
ADNOC Classification: Public BOROUGE ANALYST & INVESTOR PRESENTATION FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED 30 JUNE 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 Q2 and H1 23 Results Hazeem Sultan Al Suwaidi Chief Executive Officer Market Update Operational Highlights Rainer Hoefling Chief Marketing Officer Financial Highlights Outlook Jan-Martin Nufer Chief Financial Officer Sustainability Concluding Remark
Slide 4: Q2 & H1 23 Results
ADNOC Classification: Public Q2 & H1 23 RESULTS
Slide 5: Resilient performance in a challenging market
ADNOC Classification: Public RESILIENT PERFORMANCE IN A CHALLENGING MARKET WITH HEALTHY SALES VOLUMES, PREMIA ABOVE MANAGEMENT GUIDANCE AND STRONG IMPACT FROM VALUE ENHANCEMENT PROGRAMME Highlights from the three and six months ended 30 June 2023 $2.8bn Resilient Q2 performance within a challenging
Slide 6: Polyolefins Market & Premia Update
ADNOC Classification: Public POLYOLEFINS MARKET & PREMIA UPDATE Product Prices and Premia Evolution Commentary 1,518 1,460 1,435 1,409 1,182 1,2021,166 1,092 1,082 1,126 1,117 1,0821,041 1,060 945 Benchmark 926 938 916 916 891 ▪ Challenging market environment putting Prices vs Avg. pressure on price
Slide 7: Operational Performance
ADNOC Classification: Public OPERATIONAL PERFORMANCE Sales Volumes(1) Commentary 1,263 1,232 +1.1% +15.0% Polyethylene 652 659 659 -2.5% 573 (kt) ▪ Q2 production volumes at high utilisation rates following B2 Turnaround in Q1 H1 22 H1 23 Q2 22 Q2 23 Q1 23 Q2 23 954 1,035 ▪ Healthy PE and PP sales vo
Slide 8: Revenue & Profitability
ADNOC Classification: Public REVENUE & PROFITABILITY Key Metrics(1) Commentary 3,460 PE PP Others (3) 121 2,798 -24.3% +2.5% 1,386 74 1,871 1,145 87 1,416 1,382 1,416 Revenue ($m) -19.1% 734 5 69 5 ▪ Resilient Q2 performance within a 1,953 591 555 591 challenging market environment 1,578 1049 820 75
Slide 9: Costs
ADNOC Classification: Public COSTS Key Metrics(1) Commentary (3) % of Revenue 44.2% 54.7% 42.3% 53% 56.5% 53% 1,528 1,531 -5.3% -4.0% Cost of Sales 792 750 781 750 ($m) -0.2% ▪ Overall cost base -9% YoY, with costs / tonne -16% due to material cost savings H1 22 H1 23 Q2 22 Q2 23 Q1 23 Q2 23 % of Re
Slide 10: Capex & Free Cash Flow
ADNOC Classification: Public CAPEX & FREE CASH FLOW Key Metrics(1) Commentary 105 84 83 -50.0% Capital -72.8% Expenditure 44 ($m) +25.7% 22 22 ▪ Cashflow conversion of 96% in Q2 23 versus 82% in the previous quarter related to B2 H1 22 H1 23 Q2 22 Q2 23 Q1 23 Q2 23 Turnaround capex Cash Conversion(2
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: Technology and Innovation Update
ADNOC Classification: Public TECHNOLOGY AND INNOVATION UPDATE We continued to drive innovation in Q2 2023... 2023 HIGHGLIGHTS New PP infrastructure “Food for Taught” Leader in “Zero Pallet Sustainability out-of- product Initiative Loss” the-box campaign ...and diversify our attractive product portfo
Slide 13: Outlook
ADNOC Classification: Public OUTLOOK ▪ Market environment remains challenging with polyolefin pricing expected to operate within a narrow band of Market volatility for the remainder of 2023 ▪ Borouge well-positioned to maintain premia over product benchmark ▪ Benchmark prices for PE and PP have come
Slide 14: Concluding Remarks
ADNOC Classification: Public CONCLUDING REMARKS High production Value Enhancement Exploring Product innovation $650 million interim capacity supporting Programme is international and differentiation dividend endorsed healthy sales tracking ahead of expansion as enable premia over by the Board for vo
Slide 15: Thank You
ADNOC Classification: Public THANK YOU www.borouge.com/en/investor-relations ir@borouge.com