LyondellBasell Industries NV · NYSE:LYB

LyondellBasell Industries NV — Q3 2023 Earnings Presentation

17 slides from LyondellBasell Industries NV's earnings presentation, Oct 27, 2023

  1. Slide 1: Third Quarter 2023 Earnings

    THIRD QUARTER 2023 EARNINGS October 27, 2023 1 Creating solutions for everyday sustainable living

  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 of LyondellBasell wh

  3. Slide 3: Delivering Results and Advancing Our Strategy

    DELIVERING RESULTS AND ADVANCING OUR STRATEGY 1 2 3 Achieved resilient results and Focused execution Diverse portfolio is well- exceptional cash conversion of our long-term strategy1 positioned to capture value in challenging markets through cycles  Record quarterly EBITDA for  Successful startup

  4. Slide 4: Safety Performance

    SAFETY PERFORMANCE UNWAVERING COMMITMENT TO SAFETY LEADERSHIP Injuries per 200,000 hours worked 0.5 0.4 0.3 0.2 0.1 2019 2020 2021 2022 2023 YTD LyondellBasell ACC Top Quartile Sources: American Chemistry Council (ACC) and LyondellBasell. 4 Notes: Medium and large companies only. Number of hours wor

  5. Slide 5: Third Quarter 2023 Highlights

    THIRD QUARTER 2023 HIGHLIGHTS DELIVERED RESILIENT RESULTS AND STRONG CASH GENERATION FROM A DIVERSE PORTFOLIO $0.7 B $2.29 $1.4 B $1.7 B NET INCOME DILUTED EPS EBITDA CASH FROM OPERATING ACTIVITIES $0.8 B $2.46 $1.4 B $7.0 B NET INCOME DILUTED EPS EBITDA LIQUIDITY ex. Identified Items ex. Identified

  6. Slide 6: Generating Significant Cash

    GENERATING SIGNIFICANT CASH STRONG BALANCE SHEET AND SHAREHOLDER RETURNS SUPPORTED BY HIGHLY EFFICIENT CASH CONVERSION $5.0 B Cash from Operating Activities CASH FROM OPERATING ACTIVITIES USD, billions 3Q23 LTM $8 7 $2.8 B CASH AND CASH EQUIVALENTS 6 September 30, 2023 5 1.6x NET DEBT TO EBITDA EX.

  7. Slide 7: Cash Allocation

    CASH ALLOCATION BALANCED AND DISCIPLINED CAPITAL ALLOCATION SUPPORTING OUR LONG-TERM STRATEGY AND SHAREHOLDER RETURNS DELIVERING RESULTS USD, billions  Generated $1.7 B in cash from operating activities $5  Achieved 102% cash conversion over trailing 12 months 4 GENERATING VALUE FOR SHAREHOLDERS 3

  8. Slide 8: 3Q23 Segment Highlights

    3Q23 SEGMENT HIGHLIGHTS RECORD I&D QUARTERLY EBITDA OFFSET BY LOWER O&P MARGINS EBITDA Variance by Segment ex. Identified Items USD, millions $1,450 $67 $1,410 $236 $1,383 $(16) $(14) $1,356 $(9) $(175) $(129) 2Q23 O&P Americas O&P EAI I&D APS Refining Technology Other 3Q23 EBITDA EBITDA ex. Identif

  9. Slide 9: Olefins & Polyolefins – Americas

    OLEFINS & POLYOLEFINS – AMERICAS INTEGRATED MARGINS UNDER PRESSURE DUE TO HIGHER FEEDSTOCK COSTS AND NEW MARKET CAPACITY EBITDA ex. Identified Items 3Q23 MARKET DYNAMICS USD, millions  Margin compressed by higher feedstock costs and lower polymer pricing vs. 2Q23  Increased North American polyethy

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

    OLEFINS & POLYOLEFINS – EUROPE, ASIA & INTERNATIONAL MARGINS COMPRESSED BY WEAK DEMAND AND HIGHER NAPHTHA COSTS 3Q23 MARKET DYNAMICS EBITDA  Lower integrated margins with continued weak demand USD, millions  Stable energy costs NEAR-TERM OUTLOOK  Low European demand expected to persist  Modest p

  11. Slide 11: Intermediates & Derivatives

    INTERMEDIATES & DERIVATIVES EXCEPTIONAL OXYFUELS MARGINS CONTRIBUTED TO RECORD I&D QUARTERLY EBITDA EBITDA 3Q23 MARKET DYNAMICS USD, millions  Oxyfuels margins far above historical levels due to industry downtime  New propylene oxide capacity largely offset by planned maintenance $708 and idled LY

  12. Slide 12: Grow & Upgrade the Core: PO/TBA

    GROW & UPGRADE THE CORE: PO/TBA NEW PROPYLENE OXIDE AND OXYFUELS ASSETS INCREASE OUR CAPACITIES BY OVER 35% WORLD-LEADING TECHNOLOGY Successful ~$450 MM  New asset is world’s largest single train propylene oxide asset Startup  We believe PO/TBA technologies have the lowest operating costs and lowe

  13. Slide 13: Refining

    REFINING HIGHER CRACK SPREADS OFFSET BY HEDGING IMPACT EBITDA ex. Identified Items 3Q23 MARKET DYNAMICS USD, millions  Maya 2-1-1 refining crack spread modestly improved NEAR-TERM OUTLOOK  Seasonally slower demand moderating product spreads $322 $315 $249  Distillate inventories remain low $106 

  14. Slide 14: Advanced Polymer Solutions

    ADVANCED POLYMER SOLUTIONS LOWER MARGINS AND VOLUMES DUE TO REDUCED DEMAND EBITDA ex. Identified Items 3Q23 MARKET DYNAMICS USD, millions  Lower demand from automotive market driven by 3Q23 downtime at automotive OEMs and impact from the U.S. United Auto Workers (UAW) strike $28 $26 $34 $18 NEAR-TE

  15. Slide 15: Technology

    TECHNOLOGY HIGHER LICENSING REVENUE AND IMPROVED CATALYST RESULTS EBITDA 3Q23 MARKET DYNAMICS USD, millions  Higher licensing revenue with achievement of contract milestones $146  Improved catalyst volumes and sales mix NEAR-TERM OUTLOOK $92 $79  Lower licensing revenue during 4Q23 $73 $59  Low

  16. Slide 16: Near-Term Market Outlook

    NEAR-TERM MARKET OUTLOOK 1 Slower seasonal demand in 4Q 2 Higher feedstock and energy costs 3 Operating rates tracking demand REGIONS END MARKETS  Slow but steady demand for consumer  Increased polyethylene exports and stable and industrial packaging applications domestic demand supporting polyole

  17. Slide 17: Delivering Results and Advancing Our Strategy

    DELIVERING RESULTS AND ADVANCING OUR STRATEGY Achieved resilient results and exceptional Focused execution of our cash conversion in challenging markets long-term strategy RESULTS Growing and upgrading our core to  Record Intermediates & Derivatives segment quarterly drive higher returns EBITDA sup

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